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January 03, 2014, 07:37:52 AM |
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Hi all,
Been trading Alts on Cryptsy for some time now with varying success and wanted to share this story with you.
I found the whole CENT episode very interesting. I got in big time whilst it was still only on the LTC market, and around 0.00000001 - 0.00000004. Hoping that that it still had some time to boom, and with it reaching the lowest granularity of pricing (i.e. it could only move in whole points), I got myself into a fantastic infinite loop of buying at 0.00000001 and selling at 0.00000002. Nice...100% profit on every trade.
At this time not too many people were watching this one, so there were no massive standing orders at either price point. Any trade I placed was getting settled within 20-30 minutes. And so it continued....
Then people started to notice the massive volumes going through and got interested, pushing the price up further and further. I didn't get off the gravy train and decided to play it out, right ?? Wrong ! Of course the market eventually started to collapse and it soon ended right back at 0.00000001. By this time so many people had bought into the coin that there were stacked sell orders at 0.00000002 of over 20000 LTC. Then people panicked and tried to just dump the coin for what they paid for it, so now there was the same amount of orders to sell at 0.00000001, only what they paid for it. Nobody was buying anything in quantity, and so the market stalled.
Then CENT was launched on the XPM market which at least gave it some more granularity (around 7 XPM to 1 LTC), and crazy trading continued, though by this time there were so many CENTs stacked up in orders, although the market had great volume, it just took too long to get your trades through.
I kind of gave up at this point, and ended up pulling most of my remaining CENTs out for a fraction of what I paid for them. Oh dear.
Interestingly, there are still loads of people lapping them up on XPM/CENT @ 0.00000001, just hoping for a big gain again. But it aint gonna happen.
My current focus is margin trading on LOT/BTC, which I think still has time to go through a boom. This is another one that is so low in value, that it is possible to sit there for hours buying at one price point and simply selling at the next price point e.g 0.00000039 > 0.00000040. The margins are much lower (2.5% per trade, excluding comissions), but you only have to get a load of trades to go through to get some decent returns in 24h. As long as the market stays nice and active with high volumes it works as a strategy.
cheers
andycee
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