Based on my 7 years of experience in the cryptocurrency circle! Today I will share with you how to short a Shanzhai coin?
In fact, long-term shorting of Shanzhai coins is basically a steady win, with a 99% probability of not losing money. After all, except for BTC and ETH, BNB, SOL, other Shanzhai coins can hardly last forever. So, how can you short steadily and happily?
Shorting without a liquidation price is the most stable: try to choose a shorting method with almost no liquidation price, because the exchange and the market maker (MM) can see all the cards. Generally speaking, shorting with 2-4 times leverage is the most stable, and the margin only needs 10-20 times the principal.
Specialize in high-valuation VC plates, GameFi is the best: Especially for Chinese VC plates, GameFi is the best choice, because these projects usually have obvious conflicts of interest and have little long-term value. The project party usually finds an excuse to give everyone an explanation in the end.
Avoid innovative narratives and focus on cognitive biases: Don't short those projects that really have innovative narratives, and focus on those with obvious cognitive biases. You can see it with just a little analysis. If you can't see it, don't short it.
Sniper bluff and acting project parties: Specially snipe those who like bluff, have problems both inside and outside, love to mix Chinese and English in their speeches, and have a lot of visions to "create value", but in fact they are all acting and soft-playing, and the project is structurally flat. This type of project party is easy to see through, the smell is too strong, no need to say more.
Hit the dog when the trading volume drops: When the project's trading volume begins to decline, it's time to hit the dog when it's down. Because the contract between the project party and the market maker is time-limited, once the time is up, the water begins to recede.
Find the pain points of investment institutions: Now is not a simple lock-up and delivery era. The lock-up period is too long. Everyone is linked to the primary and secondary markets, and hedging operations are already standard. Grasp their pain points and start accurately!
If you want to know about specific opportunities and specific decisions, please check the introduction and get the position allocation strategy, which will teach you how to make money in a bull market and earn coins in a bear market.
