It may have crossed your mind to make a purchase of Ampleforth at its low point and wait for it to expand again and sell it to make a succulent profit.

Before buying, pay attention to some AMPL basics. These details could save you money and more of a surprise.

• Ampleforth is an elastic token and is governed by an expansion and contraction protocol. It always aims at the value of $ 1 but if it goes down a lot, the number of tokens in circulation is reduced and if the number of tokens increases it does the opposite, it increases.
• The percentage of the total circulating tokens does not vary, it is the same, but the amount does. That is, you can buy 200 AMPLs for 0.84 cents. If the price goes up the amount of tokens you own increases. In order to equate the percentage with respect to the total AMPL. You could finally have 320 AMPL.
• AMPL is characterized by its Rebase function. It means that within the protocol there are oracles (answers to questions) that decide how much the price of the token expands and how much the price of the token will contract.
• There is a damping factor that is applied to avoid sudden changes in the market.
• Focus on the amount of tokens you have and not the price if you want to scratch a profit.
• Ampleforth is a ERC-20 token that belongs to Ethereum Network. You can use Uniswap and exchange AMPL or provide liquidity and get Uniswap V2 LP Tokens.

It is extremely important that you understand this about Ampleforth. If you go to the market to buy AMPL when it is on the ground in hopes of selling it when its volume is contracting, you could enter a loss. Everything will depend on the percentage of purchase that you had at the beginning. That said, it seems like the smartest thing to do is buy AMPL when it is on the rise and sell it quickly. It is not the best token to trade despite its formula telling us otherwise.