Disclaimer: Does this look like financial advice? You are right. It isn’t. Treat it so.
“Do Your Own Research” (DYOR) is not a fad but an important element of the cryptoverse. Do keep that in mind.
Crypto Futures | Warning, Warning!
You already read the warning above and understand that this is not financial advice at all. In fact, this goes beyond warning, and I request you not try it if you haven’t ever tried the Futures market.
For your information, I lost USD 20,000 before I even understood how Futures work. Then I lost another USD 1,200 (in INR) on CoinDCX (Indian Crypto Exchange) before I got an idea of how to get it right in Futures. So, I urge you not to try this if you have no clue what the Futures market is all about.
Now that the warning is out of the way, let’s dive straight in.
To The Futures Players | And the Stalwarts | And the Veterans
So, I keep playing in the Futures market on CoinDCX, and I have some investments on GateIO. I trade on GateIO and play Futures on CoinDCX. In both cases, BTC is common.
Here is something interesting I observed:
- The price of BTC on GateIO is 50-100 dollars higher than on CoinDCX. I presume this is due to the Exchange’s formulae of averaging the price of BTC on the major exchanges.
- Whatever the case, at any given point in time, the difference is at least 50 USD.
- And when the price is fast-moving, the difference goes up to 100 USD. I am yet to witness a bigger difference than this. So, safely assume it is between USD 50 and 100.
- Now, the regular trader may think of arbitrage, but I don’t think arbitrage will work that fast, or maybe it will with bots. I don’t know, and it is not something I am interested in. You can still check it out. But there is something more, and that is the fun part.
- If you are a Futures player who plays scalping or day trading, then you are always asking the question of which direction the price is moving.
- However, if you are both on CoinDCX and GateIO, then you can look at the price on GateIO, and whatever the price is, you know the price on CoinDCX is going to be 50 to 100 USD less.
- You can look at the direction of trade (increasing or decreasing) and go and buy a Long or Short contract on CoinDCX.
- I recommend trying with small amounts first until you get the hang of it. Once you get the hang, buy Long or Short and close the contract when you achieve 10, 20, or even 50% profit on your position.
- It is working like a charm for me, and I am loving it completely.
That’s it. That’s the trick.
Words of Caution | Be Smart About the Trick
This will not work if you see an extremely fast movement of the Bitcoin price upwards or downwards. Why? Because by the time you buy the contract (Long or Short), the price could have reversed, leading to losses.
I have tried this with Bitcoin, but it should work with any coin/token. I recommend not taking a chance with other tokens if you have no idea of their price movements. Bitcoin is easy. Others may not be.
That’s it. So try it out at your own peril!! 😊
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