Sounds like leverage trading (otherwise you can't really explain a 3k profit with 500 initial). I wouldn't recommend it though especially considering that it seems like you yourself OP is quite new to trading. It significantly magnifies the regular risks that trading normally has and that's already pretty risky imo.

Anw yeah, definitely recommend buying when it dips. In most cases, you almost always never want to buy something that's pumping. You're more likely to invest at the peak so you'd just end up losing money till it grows back to that peak.