Every now and then I employ a scheme to buy my favorite cryptocurrencies cheap. It does not always work – a long shot – but investors do things or make mistakes that you can capitalize on. If you don’t capitalize on them, someone else will. It is called Flash Crashing. How does it work?
Hasty tired, wired, or desperate investors have large amounts of a particular cryptocurrency that they want to offload for whatever reason. Maybe they need the money for some pressing expense and they need the money right away and they place an open market sell order. Maybe a holder has an excess of cryptocurrency and just needs some extra cash and selling it cheaply might not be a big deal to them, it is not a lot of money. Whereas, to you and I, it is a lot of money. Maybe they make a mistake, miss a zero or a decimal space and the price plummets. This sometimes happens.
For example, back in December 2018, there was a Flash Crash with Ethereum on GDAX (now Coinbase Pro) for $13 and Ethereum was trading at about $100. In other words, someone was able to get Ethereum at $13.
How Do You Play The Flash Crash Game?
So, how do you get your favorite cryptocurrency at a dream price? Permit me to say here that you should have no expectation or guarantee that this happens all the time or even most of the time. It happens every now and then. This is what you need to do:
- Choose the cryptocurrency you want to get at a dream price.
- Take 20% of the current CMC price. This becomes your Flash Crash price.
- Set buy limit orders on Coinbase, Binance, and Kraken and forget about it.
These orders may never fill (and you should expect them not to), but if you catch a Flash Crash, you can make a very nice profit.
Here is an example:
Today, Bitcoin is at $5600. Take 20% of that and you get $1,120. This is your Flash Crash price and you set buy limit orders on Coinbase, Binance, and Kraken for $1,120 and forget about it.
If you are fortunate to catch a Flash Crash, you will earn ~$4,480!
If you have some extra money to Flash Crash (money to set buy limit orders on the tree exchanges I mentioned about at 20% of the cryptocurrency you want to get a dream price), why not make Flash Crashing a part of your strategy?
At any rate, if you do not have extra money, it is good to know that Flash Crashing is used every day by experienced investors for any cryptocurrency they want to get at dream prices.
