Taking Advantage Of The HIVE Pump
It seems the Koreans are at it again.
Here is what the price was at, according to Coingecko, just a few minutes ago. The market is very volatile right now so who knows what the price will be when you read this.
This is quite a jump from earlier in the day. We can see it is more than double where it was earlier in the day.
How do we know it was the Koreans? Other than the fact that they tend to do this periodically, we only need to look at the exchange information, again from Coingecko.
Look at the volume on Upbit compared to the other exchanges. This is most of the volume.
A Quick Trade
I tend not to do a lot of trading but, in this instance, I couldn't not pass it up. Fortunately, I had a couple thousand Hive in liquid form to take advantage of the pump.
What did I do?
I put in three different sell orders:
1000 Hive at $1.03 (1030 HBD)
500 Hive at $1.15 (575 HBD)
600 Hive at $1.19 (714 HBD)
All of these were done on the internal exchange on Hive.
This means I sold 2,100 Hive for 2,319 HBD. This puts my average sell price at about $1.10.
You will notice this pricing does not match what was on the external exchanges. That is how arbitrage opportunities arise. In this instance, I am not playing the game with different exchanges. Instead, my idea is to cash out the Hive to HBD and then wait for the inevitable dump to happen.
Since this is a situation that we saw happen many times before, I feel it is a low risk move. It is further mitigated by the fact that if need be, I would just move the HBD to savings and earn the 10% since building a stake in that area is what I am after.
However, that is not my main goal. This is one of the few times I am looking at this as a trade.
If the price of Hive drops back to about the 70 cent range, then I should be able to net 1,000 Hive by swapping the HBD I just picked up. That would be a bit over 40% if it works out that way.
Powder In The Keg
There is a saying among traders to always have some powder in the keg. In this instance, I was able to jump onto the trade since I had a couple thousand Hive liquid. This is the first lesson.
Secondly, being able to jump on the internal exchange made it easier to trade. I do not have an external exchange to trade upon so I was probably harmed by some of the lack of liquidity. Nevertheless, I did set my sell prices and eventually got them hit.
Also, never get too greedy. I did three separate trades, perhaps leaving some money on the table. As I write this, the price on Upbit is pulling back a bit yet is still strong on the internal exchange. Naturally, we can expect that to change if the dump keeps going.
In fact, here is the latest shot from Coingecko. We can see that Upbit came back in line with the other exchanges.
We will see how it goes over the next couple days. I believe, since this has all the markings of another pump, that we will see the price of Hive return to the range it was before the pump.
If that happens, this is a nice little trade. I will give it a few days to see where the price settles down at.
For someone who doesn't do a lot of trading anymore, sometimes fortune is tossed our way. Hive is the gift that keeps on giving.
If you found this article informative, please give an upvote and rehive.
gif by @doze
logo by @st8z
Posted Using LeoFinance Beta
https://twitter.com/taskmaster4450/status/1445561427503108106
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
It was quite a nice surprise. I'm not much of a trader either but I took the opportunity and managed to sell some at $1.41
I'm obviously going to buy more Hive with that money so I'm very happy right now
Posted Using LeoFinance Beta
Very nice trade.
Posted Using LeoFinance Beta
That is a great move. I was on the internal exchange so I have to wait for things to fall further. With a low liquidity, it made it tough to get as much of a selling price as the external markets.
Either way, I am of the same mindset. If the price of Hive does head towards the previous range, I will buy Hive.
Posted Using LeoFinance Beta
Very smart move and well deserved. I saw it hit $1.55 and noticed the other blockchain never moved in price. This should make it easier for Hive to move up as there is very little resistance as it has been smashed. That is what I am hoping for anyway as that makes sense. Glad you came out on the right side of this and a neat move on your part. What is it with the Koreans as they are known for doing this as in the past we have seen similar cases.
Posted Using LeoFinance Beta
1.55 is very impressive!
Posted Using LeoFinance Beta
This is fantastic to watch as never seen such a pump before and it has stayed above $1 which is important. The base level goes up and is a better starting point for the next round.
Posted Using LeoFinance Beta
We will see if I am on the right side of this. If the price stalls out here and then heads back up to $2, then it was a bad choice.
But then, there are no guarantees with any trade. Plus, there is the history with the Koreans of pumping and then the price drifting lower.
Only time will tell how smart I am on this one.
Posted Using LeoFinance Beta
That is a very good opportunity to gain some profits
What make me more satisfied that the price of LEO and POB do not dropped so much and still have lots of buy orders
Posted Using LeoFinance Beta
You make a very good point, it is therefore good time to load up on Leo.
Posted Using LeoFinance Beta
Yes with the Hive-Engine tokens, due to a lack of liquidity, they do not run in tandem like one would expect on larger exchanges. This also presents arbitrage opportunities although they are not easy to exploit.
Posted Using LeoFinance Beta
Damn, I wish I had of read this earlier. I don't have any liquid Hive I tend to just stake everything or pick up HE stakes.
I did transfer my 17 Hive to an exchange where I'm waiting to buy back in lower but I should probably utilise HBD abit more. But I get abit worried because HBD tends to drop below the peg in the 90s range. Can suffer a loss if HBD and Hive both decline.
But this is a clear indication of the future of Hive. Absolutely amazing.
Posted Using LeoFinance Beta
I feel your pain, I had just powered up most Liquid Hive for Hive Power up day or to buy Dec in Splinterlands. There is so much going on in Hive these days. It's amazing.
Posted Using LeoFinance Beta
It is impossible to keep up with everything. That is the amazing thing. There was a time where one person could have a handle on what was taking place.
No more.
Posted Using LeoFinance Beta
Yes that is true although they will not fall at the same rate. But yes there is that consideration.
Posted Using LeoFinance Beta
This is the only time I sell. When strangers pump it by accident.
LOL
Posted Using LeoFinance Beta
I am not sure it was by accident.
It looks like these are planned events by an exchange that is closed to much of the world.
Posted Using LeoFinance Beta
hmmm hope they aren't working with sun....
Good trade :) I sold too
Nice trade! I didn’t have near that much but caught it around 1.24 so not complaining.
Ha HA HA... neither would I, nice trade. You made the most of what you had.
:)
Posted Using LeoFinance Beta
We will see if the price drops and I can get my Hive stake back at a lower price. History says it should but, who knows, this might be the major breakout we are all looking for.
Posted Using LeoFinance Beta
Pains me that I don't have a lot of liquid Hive at my disposal. Guess there is always next time though
Yes, if the past is any indication. Hive will fall and Hive will rise again. :)
Posted Using LeoFinance Beta
If the history of the Upbit exchange is any indication, there will be a next time.
It seems there is a pump ever couple months. I imagine some people are making bank off it.
Posted Using LeoFinance Beta
Well, it's always interesting to watch... and even though I had no liquid Hive at the moment this took off, I'm not unhappy about seeing my staked value jump over $5K in a matter of minutes.
The cool thing about these pumps is that we don't tend to give ALL of it back. We've been sitting in a 65-70 cent range, and it wouldn't surprise me if this helps us settle in in the 80-85 cent range, once the dust settles and people take their profits.
Hi @denmarkguy
This is a very good point.
I hope it continues this pattern.
Posted Using LeoFinance Beta
That is true. We never know the impact of these things. Perhaps it puts Hive on some people's radar.
If it drops back into that range, I would be happy. It would be a decent trade for me.
Posted Using LeoFinance Beta
Smart move it's been holding above $1 pretty solid here now for a number of hours. Let's see what tomorrow brings us.
Yeah it will likely take a few days to drift lower. I dont think it will completely collapse back to 70 cents.
But we shall see.
Posted Using LeoFinance Beta
"Tutorial: How to grow your Hive holdings fast!" 😅
I have been powering down to do this on a larger scale. I went from 6k to a little over 11k Hive with this strategy.
Also, buying HBD is worthwhile especially when it is below a dollar. It will 9 times out of 10 always get back to a dollar and you can pull a nice profit. 😉
Posted using Dapplr
Impressive gains @deniskj
Posted Using LeoFinance Beta
Thank you :)
Your very welcome :)
That is an outstanding return. For me, I am not powering down to do this. With the liquid Hive that I had, it made sense.
A low risk trade. Plus, even if I am wrong, and the price remains elevated, most of my Hive is powered up, so I gain there.
Posted Using LeoFinance Beta
I will obviously be powering back all of it once I hit my desired 50K Hive. This is my sort of locked savings account.
Oh so the price isn't exactly matching the internal markets. I started a conversion for HBD to spend the comment giveaway into LEO and other HE tokens. It looks like it might of been a bad time to do so.
Posted Using LeoFinance Beta
No it doesnt always match the internal market since that is a lot less liquid than some of the exchanges. Nevertheless, I look at the percentage even if the raw numbers are different.
If the price pushes back down into the 70 cents range on Upbit, it might be near there or a bit different internally.
Either way, it will be a much lower entry point than when I sold.
Posted Using LeoFinance Beta
That was a good move. I wonder why Koreans do this with Hive only once in a while?
I would imagine so as not to alert everyone. It is probably a few whales on that exchange who pump it. They then sell and have others holding the bag.
Do it too often and nobody will buy. Need to keep recycling buyers through.
Posted Using LeoFinance Beta
Nice trade @taskmaster4450 .
Rule number one about keeping some liquid Hive is really a Golden Rule.
Posted Using LeoFinance Beta
Always good to have some powder in the keg when it is time to blow something up.
Posted Using LeoFinance Beta
Ha HA Ha..
Yep Yep
Posted Using LeoFinance Beta
Hive deserves $10 at least.
Posted Using LeoFinance Beta
It will get there in my opinion. Just have to be patient. A lot of development taking place that is going to suck up a lot of Hive.
Posted Using LeoFinance Beta
One thing I have to learn is to play with sell limits. I constantly have to sell HIVE as I am living off of this thing, but I don't nail the best trades all the times. I sold 240 HIVE on Monday for example for like $160. If I'd held that amount would have been close to $200. An extra $40 that would have come at hand. Not a good trader I have to admit. Nice seeing HIVE pumping though, especially when the rest of the market is cool. The age of abundance is upon us... :)
Posted Using LeoFinance Beta
Trading is not easy and, honestly, very few can do it well.
For me, when I do it, I try not to let greed get in the way. The key is to be profitable while minimizing risk. Alas, none of us have a crystal ball so we do the best we can.
Posted Using LeoFinance Beta
Keeping power in the keg. That is a very interesting phrase. It makes a lot of sense, but is very hard for me to do in practice. I tend to always power up anything that I have sitting liquid. It is a temptation that I just can't seem to shake. Congrats on the swift move. I hope you maximize it to the fullest!
Posted Using LeoFinance Beta
I put some HIVE sell for HBD at $1.
This is a nice way to take advantage of the pump. Although I was lucky enough to sell at $1.4
Posted Using LeoFinance Beta