Who has been making money in the currency circle?
There are three types of people
1. Water pumpers
2. Smart traders
2. Rule breakers
A rake, as the name implies, is a person who does not participate in the gambling but only rake or act as an intermediary:
- Those who engage in exchange commission rebates. Don’t be discriminatory. It’s normal for big Youtube and Weibo Junket Operators to have commissions of millions of dollars a month. Top Youtubers like MoonCarl’s commissions are tens of millions of dollars a year. In addition, computer knowledge is also of great use in this field. There are some professional SEO technical teams that specialize in keywords in this area. Sometimes when you search for the name of an exchange on a search engine, the first search result you click on is them. Invitation link, it is normal for this kind of leading SEO team to earn hundreds or tens of millions a month in the bull market.
- Open a paid community and act as an information intermediary. Often when some big Vs accumulate a certain number of fans, they start to set up a paid community. A slightly larger paid community can receive millions of RMB in annual fees. In addition, these group owners have additional gains, that is, for example, if they find out what XXX activities are held on XXX exchange, they post it to the group, and many people will register through his link, and they can earn a lot of head fees all at once. . Suppose my Zhihu account now posts a "Tutorial on opening a U.S. stock account". I estimate that by posting an article, at least 200 people can open an account through my link. One head = 100-1000 US dollars commission. You can calculate how much money I can make assuming that I have a low moral sense.
Smart traders are mostly individuals or teams with unique skills.
- Computer faction. Many traders who make a lot of money in this market are programmers with computer skills or are institutions where a large number of programmers work. There are many sects evolved from computer technology, but they are roughly divided into two factions: on-chain and CEX.
On-chain promotion: Some people will develop programs to launch airdrops, events, fair launches, and whitelists in batches. They would do anything that they could be sure someone would take over and make them money from. Many of the biggest players in the domestic currency circle are the group of professional woolies who started using Fiddler tools to make money in 2016-2017.
On-chain MEV: What you earn is the slippage spread paid by retail traders. You can say that this is very risky, but you cannot say that it cannot make money.The largest MEV bots generally earn millions of dollars a month.
On-chain CEX arbitrage: Many times, hot money and bookmakers like to detonate the market on CEX. A large order can raise the price by several points. When encountering such a large price difference, opportunities come for arbitrageurs. They can buy chips on the chain and hedge them on the CEX contract, then wait for the price to return and slowly sell them to complete risk-free arbitrage.
Statistical arbitrageurs: There are many currencies in this market that are correlated. The principle behind it is that market participants have a psychological mentality of "AAA has risen/fallen, while BBB with the same concept has not risen/falled yet, so I want to Go buy BBB”. Statistical arbitrageurs will write sophisticated programs to calculate the approximate historical correlation between different currencies. When the deviation reaches a certain level, they will take advantage.
Market makers: In fact, market makers often wear multiple hats. On the one hand, they provide liquidity for buyers and sellers in the market. On the other hand, they also do statistical arbitrage, delay arbitrage and even VC. Theoretically speaking, the job of a market maker is to earn the spread price, but they also do a lot of other private work to improve their return on investment.
News trading is where I have my roots. What is earned is money made by retail traders whose information is lagging behind and market makers whose information channels are not fast enough to cancel orders. Retail traders often rely on word of mouth from a few slow news media or communities to obtain information. The reaction time to a piece of news often takes several minutes, so as long as they buy faster than retail investors, they will make profits.
It’s so diverse that I don’t want to continue writing.
-Integrated data flow system. The data stream system often looks at the market's IO position data, large order transaction data, and monitors the address changes of large investors. They seem to have all-seeing eyes in the market and can grasp the flow of money faster than ordinary people. In essence, they make money with lagging information.
Rule breakers
Market manipulators, that is, dealers in the secondary market, will accumulate a large number of spot chips of small-market altcoins in advance, and then start the market to increase the price by more than 10 times, and then slowly twap and ship after retail investors buy in. When retail investors look at it and say, "Wow, this currency has dropped 50%, I want to buy the bottom." In fact, even if it drops 50%, market manipulators still make money.
Insider traders. Some are real insiders, while others have mastered certain loopholes or leaked information. A typical example is the leak of Coinbase. Any currency listed on Coinbase in 2021 will 100% skyrocket. Smart people have discovered that Coinbase will test transfers in its on-chain wallet every time before listing a coin. By monitoring Coinbase's on-chain behavior, smart people know in advance what coins Coinbase will list, and start buying small coins a few months in advance. The market value of the currency will be determined, and then it will be listed and then sold to American retail investors who are belatedly belatedly after the price rises more than ten times. In addition, Coinbase also has an API leak. Coinbase staff added a coin to the backend before it was opened for trading, but just hid it. Some smart API leak miners will test enumerating the symbols of different coins to place orders. The three types of coins that are not on the shelves/coins that are already on the shelves/coins that are about to be on the shelves but are hidden will have completely different APIs. In response, API leak miners can use this to know in advance which coin Coinbase will list.
Why are market manipulators and insider traders so unscrupulous? Because many non-European and American countries treat cryptocurrencies as commodities, and there is no concept of "market manipulation" in the legislation of many countries for commodities. Just like if you stock up on Rolex watches and sneakers in China and then sell them at retail, no one will care. Similarly, no one will care if you sell the goods at high currency prices and then ship them.
There are three types of people
1. Water pumpers
2. Smart traders
2. Rule breakers
A rake, as the name implies, is a person who does not participate in the gambling but only rake or act as an intermediary:
- Those who engage in exchange commission rebates. Don’t be discriminatory. It’s normal for big Youtube and Weibo Junket Operators to have commissions of millions of dollars a month. Top Youtubers like MoonCarl’s commissions are tens of millions of dollars a year. In addition, computer knowledge is also of great use in this field. There are some professional SEO technical teams that specialize in keywords in this area. Sometimes when you search for the name of an exchange on a search engine, the first search result you click on is them. Invitation link, it is normal for this kind of leading SEO team to earn hundreds or tens of millions a month in the bull market.
- Open a paid community and act as an information intermediary. Often when some big Vs accumulate a certain number of fans, they start to set up a paid community. A slightly larger paid community can receive millions of RMB in annual fees. In addition, these group owners have additional gains, that is, for example, if they find out what XXX activities are held on XXX exchange, they post it to the group, and many people will register through his link, and they can earn a lot of head fees all at once. . Suppose my Zhihu account now posts a "Tutorial on opening a U.S. stock account". I estimate that by posting an article, at least 200 people can open an account through my link. One head = 100-1000 US dollars commission. You can calculate how much money I can make assuming that I have a low moral sense.
Smart traders are mostly individuals or teams with unique skills.
- Computer faction. Many traders who make a lot of money in this market are programmers with computer skills or are institutions where a large number of programmers work. There are many sects evolved from computer technology, but they are roughly divided into two factions: on-chain and CEX.
On-chain promotion: Some people will develop programs to launch airdrops, events, fair launches, and whitelists in batches. They would do anything that they could be sure someone would take over and make them money from. Many of the biggest players in the domestic currency circle are the group of professional woolies who started using Fiddler tools to make money in 2016-2017.
On-chain MEV: What you earn is the slippage spread paid by retail traders. You can say that this is very risky, but you cannot say that it cannot make money.The largest MEV bots generally earn millions of dollars a month.
On-chain CEX arbitrage: Many times, hot money and bookmakers like to detonate the market on CEX. A large order can raise the price by several points. When encountering such a large price difference, opportunities come for arbitrageurs. They can buy chips on the chain and hedge them on the CEX contract, then wait for the price to return and slowly sell them to complete risk-free arbitrage.
Statistical arbitrageurs: There are many currencies in this market that are correlated. The principle behind it is that market participants have a psychological mentality of "AAA has risen/fallen, while BBB with the same concept has not risen/falled yet, so I want to Go buy BBB”. Statistical arbitrageurs will write sophisticated programs to calculate the approximate historical correlation between different currencies. When the deviation reaches a certain level, they will take advantage.
Market makers: In fact, market makers often wear multiple hats. On the one hand, they provide liquidity for buyers and sellers in the market. On the other hand, they also do statistical arbitrage, delay arbitrage and even VC. Theoretically speaking, the job of a market maker is to earn the spread price, but they also do a lot of other private work to improve their return on investment.
News trading is where I have my roots. What is earned is money made by retail traders whose information is lagging behind and market makers whose information channels are not fast enough to cancel orders. Retail traders often rely on word of mouth from a few slow news media or communities to obtain information. The reaction time to a piece of news often takes several minutes, so as long as they buy faster than retail investors, they will make profits.
It’s so diverse that I don’t want to continue writing.
-Integrated data flow system. The data stream system often looks at the market's IO position data, large order transaction data, and monitors the address changes of large investors. They seem to have all-seeing eyes in the market and can grasp the flow of money faster than ordinary people. In essence, they make money with lagging information.
Rule breakers
Market manipulators, that is, dealers in the secondary market, will accumulate a large number of spot chips of small-market altcoins in advance, and then start the market to increase the price by more than 10 times, and then slowly twap and ship after retail investors buy in. When retail investors look at it and say, "Wow, this currency has dropped 50%, I want to buy the bottom." In fact, even if it drops 50%, market manipulators still make money.
Insider traders. Some are real insiders, while others have mastered certain loopholes or leaked information. A typical example is the leak of Coinbase. Any currency listed on Coinbase in 2021 will 100% skyrocket. Smart people have discovered that Coinbase will test transfers in its on-chain wallet every time before listing a coin. By monitoring Coinbase's on-chain behavior, smart people know in advance what coins Coinbase will list, and start buying small coins a few months in advance. The market value of the currency will be determined, and then it will be listed and then sold to American retail investors who are belatedly belatedly after the price rises more than ten times. In addition, Coinbase also has an API leak. Coinbase staff added a coin to the backend before it was opened for trading, but just hid it. Some smart API leak miners will test enumerating the symbols of different coins to place orders. The three types of coins that are not on the shelves/coins that are already on the shelves/coins that are about to be on the shelves but are hidden will have completely different APIs. In response, API leak miners can use this to know in advance which coin Coinbase will list.
Why are market manipulators and insider traders so unscrupulous? Because many non-European and American countries treat cryptocurrencies as commodities, and there is no concept of "market manipulation" in the legislation of many countries for commodities. Just like if you stock up on Rolex watches and sneakers in China and then sell them at retail, no one will care. Similarly, no one will care if you sell the goods at high currency prices and then ship them.