Just like the stock market has IPO’s (initial public offering.) Cryptocurrency has ICO’s (initial crypto offerings.) Similiarly crypto will also have splits just like Apple and Tesla just split their stock. Crypto traders will try to profit from ICO’s and splits.
Kraken exchange had been sending me emails about they were going to be offering Polkadot staking soon. Doing some quick research I had decided that I was not really interested in Polkadot at the moment. It was still in Beta form and not yet easily supported by my Ledger Nano S hard wallet.
But I was curious about playing a cryptocurrency split. Polkadot (Dot) was calling it a redenomination which was similar to a split. They were creating a new Dot that was 100 times smaller.
I like summer dresses with polkadots and ladybugs put a smile on my face. So why not join the fun. Plus I had a whole 20 dollars on Kraken to experiment with. That’s the humorous part about this trade.
So the day came on Kraken that the Dot was available to purchase and I went all in with my 20 US dollars. Then I staked it on Kraken earning close to 12%. Hit the pillow that night with sweet dreams of the riches about to bless me.
Next day out of curiousity I checked the price of Polkadot and realize that the price had increased by about 49%. Well that was good enough for me. I login into Kraken. Unstake Polkadot. Sell it for dollars. Buy Tron with the handsome profit. Send Tron to my hard wallet and call it a successful small fun trade.
A couple days later I check the price of Polkadot and see that the price is up a whopping 129% since my initial trade. Wow.
Yeah I know I made a meager 10 dollars, but it was fun. Yes I love Polkadots and ladybugs, but even if I had some real money on the exchange I would not of bet more than 100 dollars in a coin that I had not researched and believed in.
How much are you willing to risk?
Splits and ICO’s are crypto trading plays to think about.