Wild Side of Crypto - Leverages & Hunt

Crypto is the highest risk but also the best return of investment market in the existing financial world. It can be called as the "casino of the world" thanks to its reputable volatility that shows itself in bear and bull seasons.

As it is a free-soul activity initiated by Satoshi Nakamoto and then embraced by millions, we are used to seeing harsh free market conditions in the lower levels of the market. While there are strictly managed, regulation friendly platforms, there are also pump tokens and instant rug projects, as well.

Though the early years of crypto were more enjoyable and exciting, as there was a big dream of paying for your Starbucks coffee with Bitcoin, the nature of this market is still preserved somewhere in the ecosystem.

Leverages - Soft Gamble

I do not like gambling because I do not find myself lucky enough to make gains in it. However, I do soft-gamble in crypto with long and short positions that carry up to x70 - x100 to have some fun and spend time.

The ordinary exchanges do not enable more than 20x for your accounts because it is pretty easy to lose all your money in minutes with leverages.

For those who are not familiar with extremely high leverages, there are some things to keep in mind.

The funding rates are crucial, and so are fees. When you see positive PNL on the screen of the open position, the positivity may not stay long when the position is closed because of the fees paid by you.

Though 200X sounds like a great way to multiply your money, it turns into a way to melt your capital for fees. The earning opportunities come after that parameter.

Hunt the Hopeless

One of the best things about these low level exchanges is that they list the new coins in the market and open future positions for them.

While these new coins, in general, the majority of them are useless meme coins, you do not need to take any action. If you believe in a hard pump, you may give it a chance.

However, after 1 or 2 weeks of unchanging nature in the market, the tokens are forgotten. When they are totally lost, the show starts for Hopeless Lovers. The mere strategy to follow can be opening a short position.

As an example, go to the USDT - M pairs that you use stablecoin rather than tokens themselves.

When the narratives of the meme coins lose their credibility, it is time to make use of the open positions in the margin side. Please keep in mind the fact that the prices can be easily manipulated by the bag holders. However, with high leverage, they can be used to make some cheap trades while the market is going down. Preferably, there might be another position in Bitcoin or Ethereum to see the direction of the whole market so that you adjust your position accordingly.

Always remember the fact that you will never be the only person who is taking a " genius " action in the gamble-like trades. It is always recommended to put your money in coins / tokens with real utility. However, I strongly believe that an investor should test every single product to understand how the speculators and other investors think and open positions.

What do you think about the wild / harsh side of crypto investments?
Share your strategies and opinions below 👇

Hive On ✌🏼

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