December 22, 2023
DeFi
iVerse Vision DeFi: 5 Ways to Win the AshSwap Battle of Perps
After first launching on MultiversX as a stable-swap exchange, AshSwap has kept on evolving and building additional DeFi utilities.
After releasing powerful new features like a DEX aggregator, the ASH Team is now focused on delivering a decentralized perpetual trading platform known as AshPerp. AshPerp is set to go live in Q1 2024 and will feature leveraged trading for a range of top cryptocurrencies from the MVX ecosystem and beyond.
Compared to perpetual options on CEXs like Binance, AshPerp is far more decentralized and has a smoother UI to accommodate all different types of users.
This module will generate more revenue for AshSwap and veASH holders while also filling an important gap in MultiversX DeFi.
But before AshPerp launches for real on the MultiversX mainnet, AshSwap is hosting a special Battle of Perps event to stress test the protocol, identify any bugs, and reward the community.
While we recommend checking out the Battle of Perps’ official Medium article for all the rules and guidelines, here is an overview:
The main prize pool is $10,000+ in ASH and USDC- plus the total registration fees. The top 200 traders will get rewarded from the main pool based on their final account balance.
Additionally, you can win prizes for referring friends, achieving bonus trading rewards, and completing side events.
While there was a slight delay from December 12-19 due to high traffic on the AshPerp oracle, the contest is now live again and in full swing.
Here’s how it works:
OPTIONAL: You can also add a price where you want to automatically take profits or stop your losses. If your position reaches the Take Profit margin, this feature will automatically lock in your gains. If it reaches the Stop Loss margin, it will automatically close your position and prevent further losses.
Here are a few trading strategies that could help you win the $2000+ grand prize:
Whether you are trading crypto for real or just trying to win the Battle of Perps, being aware of trends is extremely important. If a token is moving in a certain direction, this trend could continue for days, weeks, or even longer before a significant reversal.
To anticipate where a trend is heading next, it can be helpful to look at the price action of related tokens.
For example, price movement from a large-cap token like Bitcoin or Ethereum can mean that a corresponding move is coming soon for smaller tokens like EGLD.
Consider the ‘flash crash’ of BTC that happened on December 11 from $43,800 to $41,800 within the span of a few hours. As Bitcoin started falling, EGLD soon followed and quickly dropped from $65.83 to $62.28.
You should also keep in mind that price action from EGLD impacts MultiversX ecosystem tokens in a similar manner. This means that when EGLD goes up, tokens like HTM are likely to follow as well.
This can be attributed to a number of factors, such as an increase in positive sentiment for the ecosystem and traders rotating their profits to new positions.
If you think fast, you can make big profits in a short time period with this tactic. To increase your reaction time, consider using an application to set up price alerts for various tokens.
The next few strategies are based on doing some basic technical analysis, which relies heavily on reading charts and then making informed decisions.
Tokens often trade back and forth within a certain price range, so it helps to locate the current support and resistance levels for a specific token.
When a token dips to a certain level where investors find significant value and buy up a lot of tokens, this is called the support. When a token goes up to a point that many investors want to sell and lock in profits, this is called the resistance.
So, how can you use this knowledge to win the Battle of Perps?
If you sense that a token is currently locked within a trading range, you can anticipate the price ‘bouncing’ off the resistance and support levels.
If you have a short position, this means you can try and close it right before it reaches the support level to lock in profit. Then, you can switch your position to long if you think it will go back up from that point.
While tokens often trade within a certain price range, they can of course also break out and go either higher or lower.
As a perpetuals trader, you can capitalize in a major way off of these breakouts regardless of whether the price is going up or down.
If a price breaks out through the resistance and keeps going up, it’s a great time to be long! But if it breaks downward through the support, a short position would make a nice profit.
One useful way to predict an upcoming breakout is to pay attention to a token’s volume, which means the amount of tokens traded over a certain time period. A major increase in volume often occurs before a price breakout.
When a price rises with low volume, it means the gains could be quickly erased once more orders start flowing in. In contrast, a token rising with high volume generally indicates a trend is gaining momentum and could cruise upwards through its resistance.
The amount of volume when there is downward price movement can also help you predict whether the price will break down through the support.
A drop with low volume can happen fairly easily due to manipulation from market makers, but is not necessarily a cause for alarm. On the other hand, a drop with high volume can confirm the bearish sentiment and mean that an even greater correction is coming.
To sum it up, higher volume means a higher chance for a breakout in either direction.
Breakouts can also happen at the end of a chart pattern.
Recognizing basic crypto chart patterns can be useful even if you are not a professional trader. If you think you see a certain pattern forming, try to anticipate where it will head next and set your position accordingly.
For example, you could believe that EGLD is in the midst of a falling wedge pattern.
This typically indicates that another bullish move is coming once the two trend lines converge. If you have high conviction that we are in the midst of a falling wedge and a positive breakout is coming, this is a good time to go long.
The inverse can also be true, since there are several bearish chart patterns to be aware of like the rising wedge. In these situations, it’s better to be short.
Remember, there is not only one correct way to trade successfully!
While technical analysis and reading charts could be your personal strength, you might decide to focus more on fundamental analysis. Fundamental analysis places a greater emphasis on news events and their impact on price action.
Relevant news events can be directly related to a token or blockchain ecosystem, or happen on a much broader level.
A hack, outage, or exploit event can of course have a significant effect on related Web3 protocols. But macroeconomic events like Federal Reserve decisions and geopolitical events like war can also have a noteworthy impact on crypto markets.
These are just a few examples, but we definitely recommend monitoring news related to cryptocurrency and beyond to stay ahead of the curve as much as possible.
When you identify what could be a major catalyst, set a position quickly to maximize your profits before the rest of the market can react!
In conclusion, here are a few more general tips for the Battle of Perps:
At iVerse Vision, we recommend joining events like this and trying new protocols on devnet because it’s a great way to learn in a low-risk environment. And with events like the Battle of Perps, low risk can also deliver high rewards.
But while many of these strategies also apply in principle for regular trading, this article is for educational purposes only and does not represent any form of financial advice.
Keep experimenting and researching, and don’t get discouraged if you don’t succeed right away.
Good luck, and see you on the battlefield!
Founded in 2019, iVerse Vision is a full-service Web3 solutions provider based in Zug, Switzerland. The company’s team has extensive experience maintaining high-performance infrastructure, developing cutting-edge products and educational content, and incubating blockchain startups across a wide range of industries such as DeFi, GameFi, and Metaverse.
