Recently, many friends have expressed that this alpha scoring is too tight.
Originally, there aren't many airdrops now, and if they tighten it up a bit more, let's not even talk about profits, it could be a loss at any time.
As a veteran deeply involved in alpha (I estimate my earnings on alpha to be over 8000 dollars, but I haven't calculated it precisely), I have experienced the ups and downs of alpha all the way, from the initial interactions with random airdrops, participating in TGE with no conditions at all, as long as you have a Binance wallet to get in on the new offering, to the later trading competitions and points system, from previous on-chain trading to future limit order trading, I have done it all and have been researching how to accurately control costs.
As the number of participants in alpha decreases, the probability of being trapped greatly increases.
There are two reasons here.
1. There are now no 4x token project parties willing to create stable coins similar to koge (this may also be due to Binance's efforts, after all, stablecoins rely on cutting people off). I've heard that Binance has raised margin requirements before.
2. Due to the sudden decrease in the number of alpha participants, the depth of the entire alpha sector's transaction order book is far inferior to before. Currently, more than half of the transaction volume comes from one or two tokens. In severe cases, it may only be one of the hottest tokens, which leads to the fact that as long as you don't choose tokens with high transaction volume, you will inevitably face insufficient buying and selling, which means high buying and low selling, i.e., pure being trapped.
From this reason, how can we avoid being trapped as much as possible?
1. Find the most suitable target for the day. I know some friends will say that the alpha website we usually use is clear about which token is the most stable. However, based on my practical experience, this is not as reliable as checking the transaction volume. For example, please see the figure below; we directly select BSC in alpha, arranging the transaction volume from largest to smallest, with the first one being the most stable coin at this moment (of course, coins like koge do not count). As shown in the figure below, there are actually 3 coins currently ranked very high.
No need to look at or think about whether some 4x tokens seem to have little price fluctuation and whether to try them. I have tried many times in the past, and due to insufficient order book depth, entering would only mean high buying and low selling. Therefore, the K-line chart cannot tell you which token is the most stable, but the K-line chart has another function: it tells you whether the token with the largest transaction volume is currently stable or not, as shown in the figure below.
Still taking the first example, BSB, click on the minute K-line! You can only look at the minute line! The part I circled shows that the current fluctuation range is already very small, and this is a good time to score points (you don't need to look at how long the needle is inserted, mainly focus on the stability of the candlestick), so we move on to the next step, choosing the right time to place orders, we need to pull out the order book on the trading page, as shown in the figure below.
The place I circled is where to switch the order book, and the area I framed is the latest transaction record, which clearly shows the latest buy and sell orders, i.e., the latest prices you can enter and exit. After coming here, we need to wait for the right moment.
An undeniable fact is that if you want to avoid being trapped as much as possible, currently scoring points will take more time than before. For example, I spend 10-15 minutes every day, and in extreme cases, I even have to choose different time periods to score.
We must observe the latest order book more, which is the dozens of rows of constantly changing red and green numbers on the left, and we can also open the minute K-line chart below. At this time, there are two situations where you will not be trapped.
Please see the above figure, the latest buy and sell prices on the transaction book only fluctuate by 1 in the fourth significant digit. At this time, the fluctuation is very small, please note that you must see the fourth significant digit of the actual valid number. For example, if the token price is 181.3889864, you need to look for fluctuations where the fourth digit rises or falls within 1, which is between 181.3 and 181.4. Still taking BSB as an example, the current effective number (removing all zeros before the first non-zero digit) is between 1626 and 1627, even the fluctuation in the fifth digit is very small, and the token price is basically between 16266 and 16271. This is a very good time for limit entry and exit, I generally set $600 per order (to avoid being trapped, it's basic operation to do small amounts more frequently). Please set the buying price to be 1 more or the same in the fifth digit, which is 0.16271, and set the selling price to be at least 1 less, which is 0.16265, or even set it to 0.16264. The handling fee at this time is generally 0.002, because the actual price fluctuation can be ignored. You must maintain high concentration; once a stable moment ends, such as when the transaction price falls sharply, or the difference between buying and selling prices becomes larger, please stop scoring immediately and continue to wait for the next wave of stability!
Another situation is when the token is rising unilaterally, and the prices on the left order book are constantly rising. In this case, you can directly place limit orders at the third significant digit of the valid number, for example, if the token rises from 0.0016258 to 0.0016295, you can set 0.00163 to enter and 0.00162 to exit, which is very likely to yield surprises, not only no handling fee but also profit. However, I generally do not score in this situation because, based on my experience, alpha tokens tend to experience a larger drop after a continuous rise (usually just a few minutes, or at most 10 to 20 minutes), and if you are unlucky enough to buy at the highest point during that one second (the probability is not small), it will cause you to be unable to escape. At this time, you will be in an extremely torturous moment. Holding it, you are afraid it will continue to drop; if you don't hold it, you will lose about 10 dollars, which is painful. I once lost over 100 dollars when I encountered a similar situation while scoring the rwa token. After that, I directly set stop losses for extreme situations; at most, I have lost about 5 dollars. After all, we are here to take advantage, not to speculate on coins, stability is greater than everything, so I do not recommend everyone to play this second method. Of course, gains and losses are two sides of the same coin; the choice is yours!
All of the above are painful experiences summarized from being trapped too often. I have not been trapped for a long time using this method, and the daily cost of scoring 15 minutes is basically a fluctuation of 1 to 2 dollars, with some instances being 0.x dollars or even 0 cost. The biggest problem now is that the time cost has increased compared to before. It is foreseeable that if the number of alpha participants continues to decrease, then the transaction volume will continue to decline. A continuous decline in transaction volume means fewer stable moments, which may increase the probability of being trapped!
But how can I put it, the bigger the storm, the more valuable the fish; when there are fewer people, you may have to pay more cost, but you can't guarantee that one day it will get better. Those who persevere will be the first to reap the biggest results!
So during difficult times, it's even more important to control costs!
Of course, my method does not apply to everyone, so please refer to it cautiously. In the crypto circle, always remember, Do your own research!
If you have a better way to score, I hope you can share it in the comments!
Half of the ideas in this article come from my good friend who started working hard on alpha with me from day one@ALi-李力 , special thanks!
Let's encourage each other!