This will be a really quick post from me today.
My picks from my last post, Cryptocurrency to Watch in December, have been going steadily. We'll have a full review of the performance of those coins at the end of the month, as always.
I thought I would write up a potential opportunity for a short-term trade that I will be taking a bit of a gamble on.
Remember, this is not financial advice, I am not a financial expert and I am simply documenting something that I will be doing in my own attempt to make some extra cash.
This (that I will reveal shortly) is something that I would have got in on a little earlier, however, I was entirely satisfied with my portfolio's position and it felt like a bit of a sidewards move to attempt to trade here.
With the news yesterday that Bittrex (one of the world's largest cryptocurrency exchanges) will be supporting this, along with numerous other exchanges, it seemed like something I could no longer afford to miss out on.
I sold around 30% of my Verge (XVG) that I've been holding since they cost $0.007 — now $0.14 at the time of writing — to fund this short-term trading opportunity.
Like everything else in crypto, this comes with high risk.
The opportunity I'm talking about here?
Nxt (NXT).
On December 28th, anyone holding NXT on Bittrex (or a range of other sites) will be awarded with a free airdrop of IGNIS.
For every 1 NXT you own, you will be given 0.5 IGNIS for free.
And sure, a lot of airdrops offer things like this — and Bitcoin hard forks typically pay out at a 1:1 ratio — but the most interesting thing here are the current prices.
NXT cost me $1.21 per coin around 12 hours ago, missing the initial pump as I was out of the house, and is already up to $1.36 at the time of writing this.
IGNIS has not yet been released, but it is possible to bet on the price of the cryptocurrency via the futures market. Futures for IGNIS are currently valuing it at $2.85.
This is extremely interesting.
At current prices, for every $1 of NXT you own, you'll be rewarded with over $1 of IGNIS — more than doubling your money instantly.
Is this a slightly dodgy situation? Yes.
It is risky? Yes.
I am anticipating that hype will build around this and prices will continue to rise as we head towards the 28th.
In a 'sell the news' type move, I am planning on selling some of my NXT purchase before the 28th. This means I will be missing out on claiming the maximum amount of IGNIS that I could be due.
Because this type of move comes with risk from various angles, I will be looking to hedge my bets.
It's better to have a profit than a loss, and being too greedy is never a good thing.
This post has been written ONLY for Steemit. Click my username and hit 'Follow' to see my moves and progress going forward.
Monitor the current prices:
This is interesting as I️ never understood the nxt/ignis split everyone was talking about.
Yep! I'm always wary when it seems like the money is too easy, but that's why I'm looking to hedge my risk as soon as possible.