The Best Time to Buy LOAN Token (It's Not When You Think)

Timing the market, especially in crypto, is hard.

Most people get it completely wrong.

In fact, hedge fund manager and investor Ray Dalio once said to “do the opposite of what your instincts are.”

In this opinion piece, I’m not providing financial advice. But Dalio’s quote did inspire me to come up with four of the best, and unconventional, times to buy a speculative asset like the LOAN token.

1. When Token Inflation is the Highest

The best time to buy Bitcoin was in the early days when BTC’s inflation was at its HIGHEST rather than its lowest. 

The inflation rate of Bitcoin has been cut in half every 4 years, and nobody would argue that it's better to buy BTC now than it was in 2011.

At the same time, the inflation rate of LOAN will never be higher than it is right now.

Every year, the LOAN token distributed to the Stability Pool will be cut in half.

This eliminates sell pressure from holders who are just profiting off yield, and makes it more likely for LOAN to find its way into the hands of diehard holders.

2. When Liquidity is the Thinnest

Large amounts of liquidity is an incredibly attractive indicator for people who have millions of dollars to invest into a DeFi protocol.

That’s because, when liquidity is thin, large orders will spike the price up or down violently. For large traders, this is less than ideal.

This can actually be a good thing for average traders, because thin liquidity can mean the opportunity for rapid gains.

At the same time, thin liquidity will always be the case for relatively new digital assets like the LOAN token. This was also the case for BTC and ETH in their early days.

3. When the Price is the Lowest

‘Buy low, sell high’ is a cliche, but it’s also the cornerstone of good investing.

Nobody would argue buying BTC at $52,000 is better than buying it at $1.

While we can't go back in time and buy at those prices–though wouldn’t that be great–we can look at current asset prices to measure how far they are from their previous value.

Right now, the LOAN token is currently sitting substantially down from its highest price to date.

In other words, if you think LOAN is cheap relative to its previous ceiling and what it provides, this could indicate that it’s a good time to get tokens.

4. When Nobody Has Heard About It

In theory, one way that we can think about opportunity is as a ratio. It’s essentially how many people have NOT heard about something relative to the amount of people it could later appeal to. 

Liquid Loans is a very young project. It has roughly 19,000 followers on X, 10,000 subscribers on YouTube, and only around 1,000 Vaults opened on the PulseChain mainnet so far.

Let’s use these figures to roughly estimate that 30,000 people in total are paying attention to Liquid Loans since its recent launch.

For a project with substantial staying power, I believe that this is only the beginning. If the LOAN token is truly far from reaching its total audience, buying before that happens could be a way of seizing on this opportunity.

Investing Is Never Foolproof

Now that I’ve made my case, I also want to point out that there’s no crystal ball that can tell us how LOAN will behave over the next few years.

Even the most logical plans can be disrupted by factors within the market that no one could reasonably predict. 

I say this to point out that it’s important to make your own decisions in crypto.

But for my money, these four indicators present an opportunity that I’m interested in pursuing.

If you’re looking to buy LOAN, check out this step-by-step guide.