have you invested in highly speculative meme coins? i've found a meme token on pump.fun created today that despite a few bots trying to pump n dump , hasn't been compromised like the majority which are rug pull are dump within an hour. it's called catwiffblunt (cwbl)
the market cap is around 10k usd, and i saw today the dogwifhat market cap is above 3b market cap, so it's seems like it can easily make 10 to 100x.
what is your experience with degenerate gambling on the platform 😂
if you have blown up accounts trading futures, you have already experienced what a margin call and liquidations are.
in short, when your losses are bigger than your total amount -> marketmaker liquidates your position to ensure no further losses are generated without collateral.
MArgin call is when the loss is 80% for example of the 100% of total funds and it is like an alert to add more funds if you want to not be liquidated if the same movement continues.
not managed risk looks like: you have 100 usd total funds and you go and use high leverage (anything above 2x for a beginner) and use max out position, let's say 100% of the total funds so you have margin 100usd , total position 2000 usd with 20x leverage. and let's say the coin makes 10 percent upwards -> you have effectively made 200% on your 100 usd or 200 usd unrealized profit. And you say, i wonder how far it may go, and sit on the position.
BUT there's a correction. the coin losses 20% in the next day, making it 400% difference from the day before. So the market maker had your position of 300 total usd before that day, and now you are minus 100 usd on your whole margin which was 100 usd. this is the point where you have been liquidated.
there are ways and strategies to "manage risk" which is the possibility of getting liquidated. so if you had used only 2x on the same trade : the first day you would have made only 20% on the margin or 20 usd. and on the next day you would have lost only 40% or 40 usd on the 100 usd, leaving you with 60 usd as margin.
in this way you have not been liquidated but also the loss and profit are not amplified as much as with higher leverage.
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so a very simple way to manage risk with futures trading. let's say you have 100 usd. first of all, the whole position with leverage shouldn't be above 100 usd. so let's say you are using 50x leverage. that means margin shouldn't be more than 2 dollars (x50 leverage) = whole position is up to 100 usd.
in that way your liquidation point is not present since your whole position is less than the total amount of funds.
why and when to use leverage? if you use 5x leverage vs 50x leverage basically means that you are being lended 5x your money vs 50x.
the problem with big leverage is that if you trade with a position bigger than your funds total, you have a liquidation point.
but if you don't, you can be pretty relaxed that you are not gonna be liquidated.
let's say you open a position with 1 usd margin, 50x leverage, so your whole position is 50 usd and your margin is 1 usd. and let's say the crypto you chose has made 1% since you have opened the position, that means you will have made 50% on your margin, or 0.50 usd. if the crypto has made 10% yoh have made 500% effectively on your margin or 5 usd on your 1 usd margin.
i am currently trading $JASMY long with that strategy as well as $IOTA and $IOTX
do you know that currently 100,000 spell tokens are less than hundred dollars and when it goes back to its ath those 100,000 will be worth like 4000 usd. do you have spell in your portfolio? $SPELL #spell $ETH
i am buying little positions in this dip, like $GALA , $JASMY ,$IOTX what are your targets for gala ,jasmy and iotx in the next 12 months, i would say easily 10x on each. some may even do a 100x ,nobody knows.nfa. share your thoughts in the comments
Due to the developments of ICP and on the other hand the circulating supply , what is the new peak price you would bet on? i remember the day of the listing, the whole market tanked and ICP was absolutely flying. $ICP do you think it can go to 1000$ in the current bull run? or even higher?
filecoin speculation ath of fil is 250$ which was one of the reasons i have bought for the long term holding. do you think it will regain and make new ath on the current bull run? $FIL
did you cashout on jasmy? or do you hold for the long haul? $JASMY i think it can easily go at least 10x from here in the upcoming 12-16months , what do you think? $BTC $BNB
what are your thoughts on pi network? i have been mining for a while and even though the mainnet hasn't went live, the IOUs have a strong support around the 40$ area. i continue to mine and let's see how this will play out. do you think it's a scam ?
$BTTC so with the upcoming bttc halving comes the question have you tried the storage mining? i feel like this can be the throwback after 10 years which btc had when i saw there was a site in 2010 paying 5 $BTC per capcha 😆 Can we retire of bttc -what do you think? $SOL #bttc