Trading experiment - the 1 satoshi trade
I'm trying out a new experiment in trading - looking for coins priced really low, and then buying them and selling them for 1 satoshi more.
The coin I've chosen is the one highlighted in the following screenshot from livecoin.net:
I've placed a buy order at the very minimum trade allowed, for a price of 17 satoshis.
When it executes I'll place a sell order for 18 satoshis, which should give me a 5% gain after fees. I'll then just trade it back and forwards.
The idea is to see whether you can just profit from being a marketmaker and setting up buy and sell orders on either side of the trade (the spread being 1 satoshi).
Isn't it risky trying this with an obscure coin? What if it crashes to 10 satoshis?
With hindsight it might have been better to try this with doge. But doge has been too expensive lately to give a good percentage gain for 1 satoshi.
I guess pumps and dumps ruin this sort of strategy - for a 1 satoshi trade you really require the price to stay level for a long time.
Well yes. But if you do risk management you can do a lot of small trades and if the price moves against you, a future pump can rescue you.
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