Learn about the basics of trading (DAO,DAO) tokens and understand the non-custodial order book exchange on daodao.io. (Not financial advice, do your own research.)
Key Takeaways:
You can trade DAO-tokens on the beta version of (DAO,DAO). You can make money by buying DAO-tokens for cheap and selling them for more while you sleep.
In this article, I’ll guide you through on how to trade DAO-tokens on the order book exchange on beta.daodao.io.
Did you receive a message on the 25th of May saying “Your time has come. You now HODL the key.” for beta.daodao.io?
If you did, like 1512 others, you’ve the ability to trade DAO-tokens. Since the message was sent, I’ve earned over 15.8 $DESO trading DAO-tokens on the order book exchange. Let’s find out how.
DAO-token price formation takes place during the simultaneous execution of orders by traders. Traders can buy or sell tokens by placing an order for a certain price of the DAO-token. It may seem complicated at first, but you will see that it’s not that hard.
Join
https://beta.daodao.io/d/DAODAO?invite=3jqW5aBuThe (DAO,DAO) Order Book
The order book is a list of orders set up by a group of buyers who are bidding and a group of sellers who are asking to trade the DAO-token. On beta.daodao.io the order books looks like this:
On the top section the sell orders are displayed, on the bottom the buy orders. The Total Quantity column is the the sum of all trader’s offers at this price, shown in the Ask or Bid Price (USD) column. The My Quantity column shows how many coins you are offering at this price.
How to trade DAO-tokens on the order book?
On the middle section of the screen, there’s another frame that allows you to place buy or sell orders for a certain DAO:
Standard, the buy-section is displayed. Here, you can place buy-orders. You have two options:
Market order: Buy tokens for the ask-price from the lowest seller. You have two options:
Immediate Or Cancel: This will fill as much of the order amount as possible, and cancel the remainder.
Fill Or Kill: This will try to fill the entire order amount immediately. If this is not possible, the entire order will be cancelled
Limit order: You can set up a Limit Price for how much you want to spent per DAO-token. Second, you fill in the number of DAO coins to Buy.
The same applies for the sell-section.
Join
https://beta.daodao.io/d/DAODAO?invite=3jqW5aBuWhat happens after you place your order?
For example: you buy 1000 $DAODAO coins at $0.06. The order book is looking for a sell order for $DAODAO at $0.06 or less. If the sum of all Sell orders exceeds 1000 $DAODAO coins, your order will be executed in full. If there is not enough liquidity — that is when there are not enough sellers in the market to offer you 1000 $DAODAO at $0.06, your order is partially executed. Finally, if there is no counter order, your order gets to the order book and stays there until (partially) filled.
How to make money by trading DAO coins?
First of all, DAODAO.io is still in beta. A lot of new DAO’s will come up in the upcoming weeks and it’s yours to find out what’s the best fit for you. So before you start trading and investing in any DAO, make sure to understand where you’re putting your money. @Randhir posted a threat today where he does a round-up of what to seek for in a DAO and where to pay attention to. Find it here.
When you found out in what DAO you want to invest, such as @Overclout or @supernovas, contribute to the DAO or buy tokens from the order book. If you contribute to the DAO, you buy them at a low price. Especially in the starting phase of a DAO is contributing to it possibly the cheapest way to get tokens. Of course, you could set up a buy order for lower than the price per coin when contributing — if someone wants to sell for lower then he or she bought.
When you have the coins, you can start trading. Set up a sell order for a multiple of 2x or 3x the price you bought the coins for. And then it’s waiting for someone to buy the coins from you. Tip: if you want a quick-sell see what’s the lowest price and go just below that one. If someone buys, your coins will sell first. And that comes in handy when you want your order the be executed in full.
After you sold your coins for more than you bought them, buy them again for less then you sold them. If you buy them back for less, you’ve made your money and you still HODL the same amount of DAO coins!
Watch the Tutorial:
https://www.youtube.com/watch?v=i5PQcZNc-yc&feature=youtu.beJoin
https://beta.daodao.io/d/DAODAO?invite=3jqW5aBuhttps://medium.com/@vlad-nemoqqq/101-trading-dao-dao-tokens-how-i-earned-15-8-deso-trading-on-day-1-76ea9351db11