The Shitcoin Index is Moving with Speed!
The SHIT Index on FTX.com tracks a basket of weighted low-volume/low MCAP coins. 50 of them to be exact. They run each one off a different set of weights and package them all nice and neatly together into one ticker so you can get exposure to the “Shitcoin” Market with the press of one button.
The 50 Coins that are tracked have an impact on one another as well as the Index itself. So, the names of the tickers are actually very important. Often times they will need to rebalance the Index so it continues to make sense to the investor.
Some Notable Names in the SHIT Index
ARPA, CHZ, ENJ, HBAR, ICX, IOST, MANA, MATIC, OMG, THETA, WAVES, XVG, ZEN, ZIL and ZRX
These are the notable ones from that list – sure maybe a few more could have made the cut like REN or LSK but the point is there are some pretty good names in here. Now that we just saw a 564% peak move from MANA in the last 3 days, it’s no wonder that the SHIT-PERP is lighting up.
Dominance is dropping for Bitcoin - Making room for Alts
Those 50 coins only tell part of the story. A short time ago we did not have a SHIT Index but instead, we had other metrics to measure Dominance for BTC, ETH, and essentially – all the other AltCoins in the Market. We can see that BTC Dominance has been falling and this allows investors and traders alike to sell their BTC positions and use their capital in other areas of the market.
There are some moves to be made
Watching every other Coin move 100% without you is never fun. We have laid out a few that really stand out, including the META tokens already written about in previous blogs. MANA, AXS, ENJ, CHZ, to name a few. The trick here is to understand RISK. Super low-volume coins can be very difficult to trade, especially with a lot of Capital. Managing your risk by taking smaller positions than you normally would is a very wise decision if you plan to trade Shitcoins.
The second trick is to Not Get GREEDY. You can be in a trade and see your PNL go up 100/200/300% and that Shitcoin can lose 60-90% in a few seconds. Understand your risk, set your levels, and move on to the next trade. You DO NOT want to become a Bag Holder. When these guys are tired, and yes, they will eventually tire, they can easily lose 80-99% and consolidate for months if not years.
What can you watch?
The best way to find the plays is to simply read the Blogs and updates. We generally have something we’re cooking in the back office that we want to share. But since these are such high risks, you really need to understand what your looking at. That being said, here are a few with promise.
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