Alas, because of joining in the ckb excitement yesterday, I suffered heavy losses, so I learned from my mistakes and started to study how to profit from this sudden surge in the price of coins. If you have any good ideas, you can discuss with me in the comment section.
First of all, the reason why ckb skyrocketed is because it was listed on a Korean exchange. So can we keep an eye on the exchange's coin listing announcements and ambush them?
The answer is no, because from my observation, the surge of this kind of coin usually happens in an instant, and almost at the same time as the official announcement of the listing. It can be said that if there is no inside information, even if you see the announcement for the first time, you will be a step behind.
Well, since the price of this coin has already skyrocketed, there is no need for us to chase it as the risk is too great.
At this time, you can look at the over-the-counter currency prices. The currency prices in different places are different.
Just like yesterday, I found that the price of Binance CKB had a 20% difference with the OTC price. I was overjoyed at the time, thinking that I could make a fortune. However, the tragedy is that other people also thought of this...
So my ckb on Binance is stuck on the chain and can’t get out at all (sad)
At this time, you can also look at the funding rate of the contract. For example, the funding rate of ckb has been as low as -3%. What does this mean? If you open a long order with a 20x leverage, you can get an extra 60% of your margin when the funding rate is transferred, which is quite scary.
So can we open a long order a few seconds before the funding rate is transferred, and then close it immediately when the time comes to make a profit?
The answer is still no. This is the painful lesson I learned from practice yesterday.
Why? Because everyone is smart and wants to get the funding rate, so the rate can drop by about 3 points within one second after the handover, and you can't escape at all...
In this way, your loss is greater than the gain from the funding rate, so you still lose money.
But I reversed my thinking. If that was the case, why didn’t I open a long position one minute before the exchange and close it one second before the exchange? Since everyone wanted to arbitrage, there would definitely be many more people opening long positions within one minute of the exchange, and the contract price would inevitably rise. Wouldn’t that be a profit?
What do you think?
But to be honest, this is a bit too radical. To really make money, you have to look at valuable coins like BTC, BNB, and TON.