THe last few months have been great. Solarcoin is expanding at a great rate. I would be happy if the price held at this level for a few months and built a base. If it keeps going up I'm concerned about a big drop. Would rather take the slow and steady approach where new investors do not get burned.
No one will ever get burned, it will just take investing more money after the drop. They can hedge their positions all the way down to a satoshi if needed and at that point they will be able to use their coin too at merchants and maybe even for solar with this kind of bitcoin on the buy side. Of course the volume could be fake but I feel it is real and people want to change out their Bitcoin for a green alternative, and then later SolarCoin can unhook from the BTCTow truck spewing black plumes of smoke as it speeds down the highway.
Good days ahead for SolarCoin if people hedge and prepare for these distribution (I won't call them Dumps anymore) events... Hedging is the only way to recover from this and if people are serious about investing they will hedge their positions. You should too, it will just prove out participation in the end since the hedge will show the median price point and then the swings will stabilize and create liquidity simultaneously since you can not sell above and must buy below so it locks you in as an investor if you want to eventually make money off your high buy after distribution occurs.
Example... 3 BTC at .0003 and you get 10,000 SLR. The price drops to .0001 so you buy 3 more BTC for 30,000. Now the price drops further and you hedge another 3 BTC at .00005 for 60,000 SLR. You now have 100K of SLR and your new break even point is not .0003 it is .00009. But you will be buying if no one else is buying and replicate this all the way down to a satoshi and you still have a viable coin to use and it is now stable at 1 satoshi, and you can own tons to hedge and if it jumps up to 2 satoshi you can double your money. So that is the hedge and you must think long term on this one, since there will be a point where distribution happens. If large coin holders participate and don't sell it will be smooth sailing to $120 per coin easily. These holders would be silly to crash the market knowing they could have the majority of coin for quite some time.
Good strategy indeed...but there is one major assumption you did not mention: liquidity (e.g. buyers). Hedging is great investing, as is dollar (BTC)-cost averaging to reduce risk. However if you get left with the bag as so many in crypto do who mistakenly buy at ATH thinking price will rise, you are "s@*t out of luck" and wind up holding a bag with no buyers. I'm not saying this will be the case with SLR as there remains so much value in the ultimate system, but only responding with a bit of criticism to your optimism. 😀😉