I bought it; should you? : Arbitrage Crypto Trader - Part 1

in #cryptocurrency6 years ago

💲💲💲 What can $4100 buy you in the crypto world today?

1% of the total supply of ARCT tokens, that's what! That's quite correct, for the price of 2/3 of a single Bitcoin, you could own 1% of ARCT.

Arbitrage Crypto Trader (referred to as ArbitrageCT on coinmarketcap.com - ticker symbol ARCT) is a coin designed for cryptocurrency arbitrage trading - a rather self explanatory name, isn't it?

I bought a little more ARCT this week, for one specific reason: it was simply too cheap to pass up.

This post is about two things - very cheap coins and ARCT. It's a two part post; today will be the introduction and discussion about ultra-low market cap coins, tomorrow will be all about ARCT specifically. Read on to learn more about the exciting world of ultra-ultra low market cap coins...

ARCT page.png
From https://arbitragect.com/en/index.html#

I bought it; should you? : Arbitrage Crypto Trader - Part 1

I've bought ARCT before. A small amount bought with a handful of leftover sats. It shot up in value 2.5x shortly after I bought it, but has since crashed to about 1/6th of the USD purchase price. ARCT was already a cheap coin when I first bought it in January, but now it's quite simply ridiculously cheap. "Ridiculously" really doesn't do it justice, I lack the vocabulary to describe to you how cheap this coin really is. Let me rather show you:

ARCT stats.png
From https://coinmarketcap.com/currencies/arbitragect/

Will you look at that market cap! ARCT is by far the lowest market cap coin that I hold (at least of those that are featured on coinmarketcap.com). For a man who holds a fair amount of low market cap coins, that's saying something! The market cap is less than a quarter of a million USD!

ARCT banner.png

A glimpse of reality

I'm by no means wealthy. I live a painfully middle class existence on a relatively bad government salary (soon to become considerably less). I'm in the lower half of the middle class, with very little cash to spare (which is why I hardly ever put more fiat into crypto). For various reasons, I have little hope of improving my situation by conventional means, hence my willingness and enthusiasm when it comes to investing in crypto. I know there is no guarantee of success, but there is a strong chance of it and I would like to maximise my own chances of greatly increasing my wealth. I've already laid out for you my strategic plan of how to get rich with crypto. That post tells you about how I'm counting on good low market cap coins with potentially massive ROIs to make the real gains.

Full disclosure: when I first bought ARCT it was not intended to be held as a "good" low market cap coin. This is not the brilliant CargoX (CXO), it's a different kind of hold. I bought ARCT as a long shot. A very long shot! My pre-buy research was the bare minimum and was really more of a gamble than anything else. Hey, it was January 2018, times were good and money was plentiful! But as you will see later, perhaps my gamble will pay off...

Crypto enthusiasts are not an homogeneous group. You find all types in the crypto world and they come from all over the globe. Most of my crypto-related interactions are with Westerners, people who can speak English, live in First World countries, have a decent lifestyle and above all; invest in crypto as an entertaining side project. The same is not true for everybody.

Those who have never been without the comforts of their protected civilisations often completely fail to appreciate what crypto means to investors in less fortunate parts of the world. I have shown in a previous post how the Argentinian currency has depreciated radically against the US dollar. I have shown how Zimbabweans paid several times the normal BTC price just to hold a currency that didn't devalue as fast as their national one did. You can't tell someone that they should have sold BTC and held fiat instead when their fiat currency is dropping faster than BTC! The nasty reality is that there are crypto investors around the world who are betting everything on crypto in a desperate bid to save themselves from disaster. The more fortunate among us may moan about things like SEC crypto regulations, or poor government health care or potholes in our local roads. Meanwhile many people have no reliable financial services available, have no healthcare whatsoever and have no tarred roads!

I can tell you for a fact that there are crypto investors who are sitting in areas that frequently don't have access to fresh water, reliable electricity supply or even the ability to get their local fiat currencies from ATMs. In fact, Venezuela's fiat currency became so bad that the government launched their own crypto! (The Petro.) Some people live in slightly better conditions but under harshly oppressive government regimes who seek to overtax their own populations with punitive extra taxes and effectively legalise theft from them. If you look at much of Central and South America you will see people who need crypto to help them. If you look at some people who live in the Middle East or Southern Asia you will see people who need crypto too. If you look at Africa you will see disaster areas where only a miracle such as a lucky crypto investment will be able to alleviate a few fortunate individuals from abject poverty and a life of hardship.

This is the real situation and this is where ultra-low market cap coins come into play.

ARCT banner.png

It's all about the potential ROI

The greater the potential ROI, the greater the risk. But if you simply can't afford decent amounts of top 25 market cap coins, or you are so desperate that a far riskier gamble seems worth it, it makes sense to throw the dice and attempt to get some of that high ROI for yourself. To wealthier investors, the riskier high ROI coins are still a good idea to invest in; you just have to invest in several of them in order to spread the risk / increase your chances of catching a cheap coin that will "Moon".

ARCT as a case study:

Say you spend $100 on ARCT today. That's enough to buy you 36 980 ARCT. I'll round off to 37 000. We'll look at ARCT tomorrow and see what it may be able to do, but let's say for now that ARCT does succeed and reach a high market cap. With a market cap of only $245 000 now, what will my $100 of ARCT be worth in the future?

ARCT is currently ranked 968 by market cap on CMC. If ARCT can make it to the top 500, what will it be worth? The market cap of the coin in 500th position right now is $7 000 000. That's 28.5 times greater than that of ARCT. Your $100 of ARCT will be worth $2850. That's very possible (in my opinion).

What if ARCT can make it into the top 200? Coin 200 has a market cap of $35 000 000 or 143 times that of ARCT. Your $100 will be worth $14 300! Now you're making money! The gains are still realistic too.

Let's dare to dream bigger: what if ARCT can make the top 100? Coin 100 has an $87 000 000 market cap, so your $100 of ARCT will become your $35 500 of ARCT! Still a plausible ROI.

Top 50? - $98 000 - probably unlikely but far from impossible.

Top 20? - $390 000 - highly unlikely

Top 10? - $1 000 000 - almost impossible

If ARCT took the number 1 spot from BTC? - $44 900 000 - Never going to happen!

Okay, I took those final examples beyond the realm of possibility, but was it a silly exercise? Not necessarily... You see we have suffered a rather large market crash in 2018 and are down about an average of 70 - 85% from ATH prices across the board. That means that you could take all the prices above and multiply them by 4, 5 or even 6 times to get ATH prices. So fine, throw away the number 1 spot, top 10 and top 20 calculations. But now that Top 50 spot worth $98 000 suddenly becomes worth about $500 000! A Top 100 spot may be worth about $150 000! Not bad for a $100 investment...

But there's more. That's only stopping at the previous ATH level. It is generally believed that crypto still has a lot of growing to do; I certainly believe that. What happens when BTC reaches $50 000 or $100 000+? In that scenario, even in position 200, your $100 of ARCT would then be worth about $150 000 to $250 000. If you don't have $100 to spend then how about $10 for a potential $20 000 a few years from now? In fact, due to the increasing number of cryptos, ARCT won't have to reach position 200 for that sort of return, though it will have to climb the same amount relative to BTC. If that last sentence confuses you then just ignore it, it's not very important.

Take home message: 200th spot for ARCT is quite possible. $50 000 - $100 000 BTC is quite possible. Why not risk just $10 on something like ARCT if it could turn into about $20 000 in a few years time? Isn't that worth it? Put $10 into 10 different ARCT-like coins. Total cost to you: $100. Potential reward: a lot, even if 9 of those 10 coins turn to dust.

Go look at the figures yourself. Judge for yourself how high you think ARCT will climb (I'll help you with that tomorrow.) Look at the risk and look at what your return could realistically be.

ARCT banner.png

What's to come?

Tomorrow I will talk about ARCT itself. If you've paid attention to this post and decided that throwing a little cash at a few ultra-low market cap coins sounds like a good idea, then you'll be looking for such coins. Market cap doesn't get much lower than ARCT! I will show you what I've found in my ARCT research and then you can decided for yourself whether it's a worthwhile investment or not. Remember: with such low market cap coins it's not about avoiding risk entirely, there will be risk; instead it's about finding the lowest risk for the highest potential return.

See you tomorrow for the details of ARCT itself.

Yours in crypto,
Bit Brain


Published on
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by Bit Brain


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