Quote: (03-28-2019 11:33 PM)SamuelBRoberts Wrote:
I'm so out of the market now that I have no idea whether it'd be a good idea to buy it or not, but it's the kind of thing I'd be giving a serious look if I was.
Even if you wanted to buy it, it would be difficult to build a decent position. MSR has around $5k daily volume on a no-name exchange. I would ballpark that you need at least $200k daily volume, depending on position size. Otherwise, the price you get will be terrible, and even worse you risk the volume just evaporating and trapping your money.
There have been a number of coins that people have been plugging semi-recently on the forum (mainly ones they held through the bubble popping), and then when I check how much they're trading, the daily volume is basically equivalent to a Toyota Tercel.
During the bull run, you could trade low volume coins on Etherdelta, and then the volume would show up eventually elsewhere. Now, coins can just flatline and you're out your money.
There are certain coins that have done well recently such as Ravencoin, which did 6x in USD over the past couple months. Right now it has $60m volume, which is about 25% of its market cap. It got massive volume out of nowhere, which is highly suspicious. But, it's got a few things going for it:
1) Even before the latest pump, it has maintained greater than $1 million daily volume.
2) Its primary market is on Binance. They have increasingly become the only game in town. They are scumbags, but wash trading on their platform isn't nearly as extreme as on other exchanges, at least when I was using it. In other words, slippage wasn't as bad, since you weren't trading against 95% ghost volume.
3) RVN is associated with OSTK, so there may be some deep pocketed vested interests in the coin. Apparently that's the case, since someone is generating a lot of volume to pump it.
I don't own any RVN, it's just something I've been watching. I'm not expressing any opinion on it either, per se. I'm only using it as an example of something that actually has volume that you could conceivably get your money in and out of.
Also, to decrease slippage, there may be some utility in using a service such as Shrimpy. This is a free rebalancing tool, and you only need to give it limited trade-only API access to your crypto account (no withdrawal privileges). Not entirely risk-free, but not a huge concern if you use it quickly and then kill the API key.
It's a rebalancing tool, but you could possibly use it to move in and out of positions in an automated way, but more slowly to decrease slippage. It only uses limit trades, not market trades, and it could probably place them more efficiently than doing things manually. Another alternative is to just write a slippage bot that does this properly, which isn't that hard, but I'm not sure if there's enough interest/opportunity to pursue it at this point.
