To answer this is very easy, although it is enough to say that, the cheaper the better, is the obvious, but, what I want to explain is, when is the precise moment to acquire a token at the best price.
📊Auctions
Participating in an "Auction" defines the closing price of a FT, so, the best price at which you can buy, is undoubtedly this and although many are probably not aware, you have to pay attention, because these tokens have value and although it is a way of doing "Trading" a little different than usual due to the social aspect, it is one of the best ways to get into the "Trading of Fan Tokens" and more if you are starting, plus you start in the world of speculation and investment of assets.
Now, to know which auctions are live, how to participate and what you should analyze before "Auctioning", stay with me in this publication, because I will teach you the right way to analyze and how to get the best monetary profit, although, before that, I want to comment that this is NOT an investment recommendation, this post I am doing it for educational purposes, so, it is good that you keep it in mind.
Steps to participate and how to analyze
I will comment the step by step taking into account that there are many new people that do not have the information, so, let's go with the step by step:
Log in to Airstack
The first thing to do is to log into "Airstack", for that you must associate your "Farcaster" account by scanning the QR code and then verifying in the "Warpcast" application, then you must associate your wallet, with this you would be ready to search the "Auctions".
In the image above, when you are logged in, you will have a screen similar to mine, all you have to do is go to the “Fan Tokens” tab, then select “Auctions” and with that you will have the updated list of all the auctions that are live at that moment and where you can participate without any problems.
Select the "Auction" where you want to participate
Once you have clicked on "Auctions", the next screen you will see will be this one:
The first thing that the image shows is that when you click on "Bid", the official Moxie account "Airstack" will send you a direct message with the "Frame" of the auction of that user, but I will explain this later, because I want to show you how to analyze the user and determine if it is a good investment or not, to know this, click on the middle of the user we want to observe and we will get the next screen, which is the next step.
Analysis and calculation for investment
When you click on the user you want to analyze, you will see this screen and the first thing you should do is to see the "Closing Price", this price is key at the time of auctioning, because if we put for example, a price of 7.5 Moxie for each token, and we put 5000 Moxie of investment, if the price closes at 6.953 Moxie, we would get 719.11 Tokens, however, and although this sounds very good, another important aspect to take into account is the time remaining to the "Auction", which takes 72 hours.
Because I am talking about time, because if you place a price per token, so close to the current closing price and a wave of buyers comes almost at the end of the auction, the closing price will go up a lot and if it exceeds your bid, you will surely be out of the "Auction", so you will be out of the "Auction", so you have to keep in mind what price you will place and what amount of "Moxies" will be invested, because if for example, you place a purchase price of 200 Moxie and place the same 5000 Moxies, but the price at the end closes at 60 Moxie, the amount of tokens you will be awarded, will be based on the closing price, in a few words the 60 Moxie per token.
To calculate it you would have to divide the 5000 Moxie investment / the closing price which is 60 Moxie = 83.33 Fan Tokens.
Ahora bien, otro aspecto importante es la cantidad de tokens que el usuario o canal decidan subastar, la idea de esto, es que busquemos quedarnos con la mayor cantidad de tokens posibles al momento de la subasta, por lo que, si tomamos como ejemplo el usuario anterior, que coloco a subastar 408 Tokens, si nosotros quisiéramos llevarnos los 408, tendríamos que colocar 2836.82 Moxie, pero, esto es a si porque el precio de cierre actual está en 6.953 Moxies, ya que la operación es la siguiente:
408 x 6.953= 2836.82 Moxies
Now, to know if the user is a good investment, we only need to see what amount of “Moxies” he has earned all the time and his average daily earnings in “Moxie”, this will tell you if the user is active in the community and seeks to interact to earn “Moxies”, The analysis is that, the more “Moxies” the user earns, the more the smart contract will buy and burn its own token, which will make it go up in price just by winning, this apart from the purchases made directly by other users once your token is already in the market.
Process for "Auction".
To auction, go to the "Warpcast" application, go to your private "Chats", and select the "Auction" that you were sent by message from the user you have already analyzed. That Frame will look like this:
As you can see, this auction has approximately 13 hours left, to participate all you have to do is click on "Bid", it will first ask you to enter the price you are willing to pay for each token, and then the amount of "Moxies" you will place as an investment.
Conclusion
I hope this explanation will help you to start winning auctions and generate some "Money" by investing in "Fan Tokens". Subscribe to my "Paragraph" account so you will be aware of all the information I am about to bring you about "Moxie" and other projects related to "Farcaster".
