One of the most attractive features of elastic tokens is that many traders and traders can make money from them in a matter of days before the corresponding rebase is made. Now, you can lose money if you don't take into account a number of things that you should consider before working with elastic tokens because they are not as interesting as they seem. I also speak from experience.
Ampleforth and Ditto are currently the best known elastic tokens, the former works within the Ethereum blockchain and the latter within the Binance Smart Chain. Ampleforth we can exchange it on Uniswap and Ditto on Pancakeswap, directly from our Metamask or Trustwallet.
What is the best strategy to make money with elastic tokens? Sure, none. Everyone is thinking that the best time to buy these tokens is when they are below $1 in price, for example at 0.88. Then, to make a profit, it is sold when the price is around $1.60, more or less. It works? Not quite.
Elastic tokens will always try to stay close to the dollar, either above or below. If the price rises too much, an Overrun is carried out, increasing the distribution of the token with the aim of causing a depreciation. Ditto or ampleforth holders will see their token amount progressively increase. If the price drops too low, the overrun is reversed. The distribution of tokens is reduced and the Holders of Ditto and Ampleforth will see their amount of tokens decrease little by little.
Remember this: The more tokens you have in possession the more you will lose when there is a sharp decline and the fewer tokens you will win when there is a sharp rise. That is why the one who buys the most tokens does not win the most, it really is the one who would lose the most. The system distributes the tokens equally. He who has less, receives more. He who has more receives less and loses more. Much attention to this detail. If you miss it, you will lose money when trading with elastic tokens.
Let's take a practical example to improve understanding of this matter.
Ditto goes down to $0.92 and I buy 100 tokens. If the price keeps going down, for example to $0.86 my Ditto amount will surely decrease to 95 or 90 tokens. This is because the protocol triggers the Rebase. If instead of going down it goes up to $1.10 my Ditto amount doesn't have to go up. The Rebase will only be made when it is well above the dollar. Therefore, for my initial amount of 100 Ditto tokens to increase to 120 or 130 the price would have to reach the value of 1.60 or 1.70 and stay a few hours like that, so that the system redistributes the tokens in my favor and my amount increases.
If you buy many Dittos you will lose many Dittos when the price drops, however if you buy many Dittos you will earn less Dittos when the price goes up. It seems illogical right?
That said, the best method, although not guaranteed, after you have lost and made money with these tokens, is to buy little. About $40, just when the price is below $0.90. In this way, if the price goes down, the Overflow will not affect us as much and if it goes up we will be rewarded with more tokens.
Transactions within the Exchange consume gas so if you want to save commissions it is preferable to use the BSC.