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Social Arbitrage Trading In Crypto?

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Anything related to bitcoin, crypto, blockchain

PizzaOnTheRoof

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Jul 30, 2018
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For those that don't know, social arbitrage trading is looking at popular trends and current events on social media to find trading opportunities.

Crypto seems like an excellent candidate for this style of trading, since the gains can be massive during a pump. I've seen it myself with SHIB, and don't get me wrong, it's a complete shitcoin, but I also like making money.

Has anyone done this or trying to do this now? Do you know of any tools available to monitor social media chatter for different tokens?

P.S. This is simply a hobby. I only invest in BTC.
 
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Eudaimonium

Bronze Contributor
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Jun 8, 2017
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So, knowingly participating in a pump-and-dump scheme?

I'd look for personalities on Twitter with a good track record of being early birds and forecasting future growth. You could go for a quantitative approach looking at number of social media mentions, frequency-- but I don't think this is as useful as knowing the people involved in the pumping. If you see literal idiots / bag holders desperately shilling an investment, it may be way too late for you. If these same people hate it or seem skeptical at first, it is a lot better than if they were silent about it. They will quickly change opinion and buy when see a critical mass of influential people promote it. (FOMO)

People good at identifying opportunities early are likely going to do it again. Likewise, people good at the pump-and-dump are likely to repeat the scheme many times, with new audiences and investment vehicles. Often they move from latest thing, to the newer hotter phenomenon. Such as from small cap stocks, then to cryptocurrencies, then to NTFs, then to the latest NFT project trend etc. For this reason it may be hard to monitor, as when the tools are available, it may be too late.
 

TrillAmbition

Contributor
Jun 11, 2020
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26
Texas
There are a lot of projects that revolve around detecting social scores and market temperature based on it. But there is always the issue that there are a lot of coins that are marketed heavily and one look at crypto twitter will let you know that.

The biggest issue in my opinion is that heavy spike in social media is usually a lagging indicator. For leading indicators you want one which tells you there is a strong community of users and development is being done. These are a bit harder to track since project health and type of social media used vary heavily project by project (irc, discord, github,gitlab etc)

By the time something is trending on normal people social network then it is already popping off
 

OleksiyRybakov

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Aug 25, 2021
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For those that don't know, social arbitrage trading is looking at popular trends and current events on social media to find trading opportunities.

Crypto seems like an excellent candidate for this style of trading, since the gains can be massive during a pump. I've seen it myself with SHIB, and don't get me wrong, it's a complete shitcoin, but I also like making money.

Has anyone done this or trying to do this now? Do you know of any tools available to monitor social media chatter for different tokens?

P.S. This is simply a hobby. I only invest in BTC.
What are the relative gains that you expect to gain from BTC and from the more volatile assets?
What are the losses that you expect to happen for BTC and for the volatile asset?
What are the probabilities for the different outcome scenarios?
 
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Ing

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I m comming into Cryptos slowly.
And thought these meme shitcoins don’t have much sence perhaps, they are the market.
And the market shows, where to go.
No shortcut though. Follow the marketcap, the cap rankings over the months and the social media.
Read the charts and make your conclusions.
 

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