How to Increase the Bitshares Price Risk Free
In this video I show you just how easy it is to borrow USD interest free which in turn locks up Bitshares and takes them out of circulation to increase the buying pressure of BTS. This is perfect for HODLer's who want to help without risking their Bitshares. If you don't have a Bitshares wallet yet then go here http://wallet.gobitshares.com
I found a bit hard to go trade in bitshare. Is there is a huge volume in bitshare? Than bittrex for exemple? @tonypeacock thank your for your help
Resteemed upvoted! And a big thanks in advance.
Still a bug thanks for your tutorial, it's motivate me, i watching now with the eyes wide open OO
More and more is happening on the DEX. Not as big as Centralized exchanges yet! Also there is no front running and its interest free :)
Thanks for the support
All I want is 50+ million dollar volume per day and a bunch of coins that I love and believe in. I'm getting a hang of the UI/UX. Get more coins and get more volume and I'm going to be all in.
Tony, Thanks for putting together the video. I've been levering up and giving myself 0% margin loans as my own private bank to buy up more Bitshares. As long as users monitor their ratio and make modifications if it dips below or rises above 2.25. I might suggest doing another video about how to wind down your margin position by selling BTS for bitUSD and closing out the margin position as that part can be confusing. OR how to trim the margin position back to a 2.25 ratio to skim BTS off the top as BTS continues to go up. Once more folks figure this capability out, and reading the recent press release about Arisebank, this capability is going to truly change people's perception of what the BTS DEX reflects.
Yes good suggestion. Been meaning to do one of those.
I'm keeping my ratio a lot higher, usually between 4.2 and 5.5
Do you think that's being too conservative? Keeping it under 3 all the time seems a bit risky, but I know there could be huge gains if done right.
That is my thinking. It seems risky, but it might be worth it
This is certainly a very useful capability within the DEX but to call it Risk Free is a stretch. Here is a chart of the price action on the DEX yesterday.
That spike equates to a roughly 40% swing in the price of BTS. Please make sure that YOU understand what you are doing if YOU choose to use this functionality. If your position is not sufficiently collateralized, you could be margin called and end up selling the BTS that you planned to HODL, at a very low price.
I usually keep my ratio between 4.2 and 5.5 - do you think that's safe enough?
I use 4, so from my perspective your numbers seem good. I look at the Call Price when setting up the loan and then check that against the chart to get a visual on whether a spike would likely reach that level.
Thanks! I appreciate your reply and explanation.
I do not have the wallet yet, so I'm interested to go here.
HI Tony~ Nice post- thx. Which feed price gets used in the collateral ratio? Is it a time based average of all the deelgates, the settlement price, or an actual print price off the DEX?
Let's lock them away boys!
I've been doing this for a while now. Excellent feature of the Bitshares DEX!
Thanks for making this video Tony. The more people that know about this, the better.
Hi Tony, Thanks for the video. I borrowed a small amount of bitUSD as shown on the video, just to try it out before making a large investment and it worked perfectly. The next step was obviously to make sure I could get the money out again. I closed the position, which was confirmed, waited the 24 hours and received a fill order, so everything was complete. The problem is the full debt is still showing in my Margin account and the equivalent in BTS has disappeared from my account. Do you by any chance have a contact for support on the BTS DEX, as it is the only exchange which does not seem to have this function on the exchange page.