It's been a month since I started trading on @HyperliquidX, so here is a thread about my experience on the platform, and some of the ways that you can use it to make money.
** Long thread full of my opinions, NFA **
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Full disclosure, I am not an influencer, or a paid shill, I am simply sharing my findings here to help educate others about trading perpetual futures, which I always thought was something intimidating and probably not for me.
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Also, my size is not size. I started trading with $46, which I gained from selling 2 free NFTS. If you want to learn how to mint free NFTs and how to maximise your profits when selling them, then I encourage you to join @rekt_gang.
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You can earn money on @HyperliquidX in the following ways:
1. Trading perpetual futures
2. Funding arbitrage
3. Open interest rewards
4. Referring other traders
5. Depositing in Vaults
6. Airdrop farming
I will go through these and share my experiences
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1️⃣ Trading Perpetual Futures
I'll simplify this as the ability to go "Long" or "Short" on a cryptocurrency, using leverage if you like, with USDC.e as margin.
I always wanted to be able to "trade the news" but shied away from trading on Binance due to alleged manipulation.
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Hyperliquid is a DEX on it's own L1 on Arbitrum, the team collects no revenue and there is no treasury.
IMO it seems open and transparent, & lists coins that are not on main CEXs, so it can be free of the alleged "cartel" manipulation.
They also have some "cartel" coins
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If you, like me, spend huge amounts of time on CT, then you will know that a couple of times per year there will be free money on the ground, and it's our job to pick it up.
How to?
Zhu Su gets arrested? ==> go short on $OX
BTC ETF approval rumours? ==> go long on $BTC
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These trades are really risky of course, but I only trade when I feel I have an edge.
I typically set a stop loss (SL) and -25% and a take profit (TP) at 100%.
Then if a coin moves down, I don't lose more that 25% of my margin, and if it moves up violently, I get double.
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In this way, I can set up a trade and then go back to my day job, or go to sleep if it's late etc, and don't have to stay glued to the chart.
Set it and forget it. ✅
Also setting a TP is helpful so you don't round trip your profit back to a loss.
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2️⃣ Funding Arbitrage.
Funding is the way that the price of a perp is kept close to the underlying asset price.
Too many shorts, funding is negative.
Too many longs, funding is positive.
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You can check the funding rate and take the opposite to the popular trade. Then you will be paid the funding every hour.
It can be that you lose on the trade, but actually make profit on the funding.
You can also win the trade and make profit on the funding.
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twitter.com/BrenOfTheGlen/status/1713600150298345634?t=gqFXHa8H3PT9zIFW0-tjCQ&s=19
Conversely, if you are the same side as everyone on a popular trade, you will pay funding every hour and see this deducted from your deposits.
This should not be overlooked and could potentially reverse your profit.
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3️⃣ Open Interest Rewards.
This is 20% of the net fees collected, paid out weekly & the amount you receive depends on which assets you trade.
If you want to maximise this, then trade assets that have low open interest.
I have not gained much from this, < 1% of my deposits
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4️⃣ Referring other traders
Know any traders whose size IS size?
Refer them using your HL ref code and earn a portion of their takers fees.
You can make a ref code once you have traded $100 of volume.
I can't comment on this as nobody had used my code yet 🤷♂️
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5️⃣ Deposit in vaults
Anyone can deposit into a vault and profit from the trading / market making strategy of that vault.
You can deposit USDC.e into a vault of a successful trader and earn APR based on their performance.
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I have deposited into the HLP vault, this is the protocol vault which does market making and liquidations.
At present it has an APR of 55%.
I am depositing profits there so I don't trade everything to zero.
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6️⃣ Airdrop farming
HL will launch it's own L1 token and activity on the platform will likely be monitored and snapshot-ed for a potential airdrop.
I am trying to use every part of the platform to maximise my chance at getting some airdrop.
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My honest review?
I love it!
I had losses and wins, but more of the wins thankfully!
Currently I am down in an open trade but I have plenty of margin to keep me going until it comes back to profit (🤞), and meanwhile I am collecting the funding.
I have learned a LOT!
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To learn how to onboard to HL, check this excellent thread by @KingJulianIAm
I used your ref code Xuli, so enjoy that $1 you earned from me 🤣
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twitter.com/KingJulianIAm/status/1703841219489485117?t=GP6ksGVaC6hWF9YWrmdNgA&s=19
If you made it this far, then thanks for reading my first thread in a looooong time 😂
I'll get back to making GIFs 👋