With the Bull Run potentially going into its last parabolic phase, I'm starting a new series of posts as I'm trying out the Hyperliquid Platform in an attempt to get something going there...
Hyperliquid Journey
I have 2 main reasons to go on somewhat of a Hyperliquid Journey
Get more info on the project as it's been hypes as the next best thing for some months now. I always kind of stayed away from leverage trading while it looked interesting and I tend to just get in there and use products as a way to learn about them. I want to know if the Value of the token is fair, cheap, or overvalued and this certainly helps me with this.
Reaching Yolo Lottery Profit Dreams. While I tend to be quite grounded with a lont-term grinding approach, you see so many people who yolo-gambled their way into crazy riches. I understand though that this often is fake or a case of survivorship bias. However, so many times 'afterward' I go like 'this was so obvious and easy money' without actually having put money in. The reality when you have to pull the trigger however always is 100x more difficult as you tend to overestimate the times you were right and neglect all the times you were wrong. So I'm pretty much trying my luck using hyperliquid to see if I can get something going with a bit more risk.
Hyperliquid Lessons Learned
The only leverage so far that I had taken before Hyperliquid was complete degen 50x - 1000x on gambling sites as Rollbit which allow very easy entry and exits. So seeing that the token I wanted to long (PUMP) was only allowed to do with a 5x Leverage, it felts super 'safe'. However, 20% ups or downs with these kinds of tokens is done very easily and quickly which is great for the upside but potentially deadly to get Liquidated. Lesson #1: 5x is still risky for Volatile Altcoins
Apparently, there are 2 margin modes with the default put on Cross. This means that if your position goes down to the liquidation price, the leftover funds in your account will start to be used to lower the liquidation price. So there is a risk of your entire balance on Hyperliquid to be lost. I noticed that with one of my early Long $PUMP positions which showed when I wanted to take another trade that I had no funds left for it as it was reserved for the cross margin.
So I switched that setting to Isolated which makes it so that you can only lose the money you actually risk on the trade. Lesson #2 Switch to Isolated Margin if you don't want your entire balance at risk!
The funding rate is another thing that I knew about but never really experienced. Basically, you pay money to 'rent' tokens that you don't own in long trades or sell tokens that you don't own in Short trades which adds up over time. The rate tends to be variable I assume based on supply & demand. It looks like it's taken from your account balance every hour.
Looking at the average of the last 9 hours it's a rate round 0.0052% an hour to keep the trade open. This funding rate is calculated on the full levereaged amount and not on the money you put in. So 0.0054% an hour = 0.13% daily or 47% Yearly. So the longer you keep a trade open, the more expensive it will become while at the same time it might be worth to wait for the big pump if you can avoid getting liquidated. Lesson #3 Funding Rate Matters.
Lastly, there are fees to get in a trade and they vary based on if you take an offer that is available (taker) or is you provide and offer that someone els takes (Maker).
Basically, you always want to make an offer that gets taken compared to just 1-click buy-or-sell which will make you pay higher fees. Lesson #4 Always put in an offer that is taken by someone to pay lower fees
Week #1 Trading Journey
So my main idea last week was to long the $PUMP token after it had a big dump due to the fact that it got a competitor with BONK while they are losing market shared and the ICO kind of looked like a value extraction. Since the ICO price was set at 0.04$ and Pump is sitting on a ton of cash, I kind of assumed they would do what was needed to hold that line. However, that plan failed as it went down as low as 0.23$ ! I initially closed a tiny trade with a bit of profit but in the 2nd one going 4x bigger I learned abouy the cross margin so I closed it with a loss opening a 3rd one that got liquidated as the price kept going down. This was followed with a slightly higher last trade which I kept open for 6 days and made good profit on.
All of this landed me at just a -41$ loss on the week which could have been a lot worse. At the same time, I could have closed the last position 3 Times at a good profit only to open them again lower but that is easier said than done obviously. Right now I have no position open aside from some Spot Hype.
I did have plenty of fun as the first thing I watched each morning was the PUMP price to see if it went up or down.
New Week Plans & Goals
I will continue to watch the price of $Pump as I do believe there will be a time when it actually pumps and I also might add some other tokens on my watchlist. I did just deposit 1000$ initially deposited on Hyperliquid, but kind of plan to add to it until the account reaches 10k deposited as I'm getting more and more comfortable with it. As it's a bull market, I'm only buying longs and am waiting for pullback to do so. I also might put in some low spot orders here and to catch inevitable short-term crashes in the market which will come. I also plan to make a list on Dexscreener with coins that can be traded with leverage on Hyperliquid.
Trading So Far
I'm only down around -42$ which I consider learning money and I'm still quite confident that I will be able to do ok even though in realty it might turn out differently.
| Week | Total deposit | Total Balance | Difference |
|---|---|---|---|
| #1 | 500$ | 500 | 0$ |
| #2 | 1000$ | 959$ | -41$ |
Conclusion
I learned a lot on my Hyperliquid Journey last week and am having a lot of fun with it while everything continues to work on a platform that is quite impressive.
