Bookmark.
I'm shocked so few know this:
If you earn $36 in LP rewards on Polymarket, you are in the TOP 10% of LPers
The catch? LPing can destroy you (see pic below)
So here is a guide to bookmark with important tips that will save your
.
life when LPing.
NOTE: THIS IS NOT FINANCIAL ADVICE. DO YOUR OWN RESEARCH AND CONSULT WITH EXPERTS
1) DONT WING IT: Spend time looking for the RIGHT market
You might think all reward markets carry equal risk/reward? ABSOLUTELY WRONG.
Some markets require you to place limit orders of $1000 in value for just pennies in rewards.
While others can earn you several dollars a day for just $200 in orders.
I look for markets with the following qualities
> Low minimum shares requirement (I like 20-250 range)
> High rewards (anything above $5 is amazing IF the orderbook is not crowded)
> Low price variance (Check the historical price. I don't LP any outcome that's moved more than 4% in last 24 hours)
> Uncrowded orderbook (If you put a limit order for just 20 shares on a crowded orderbook you wont make any money)
> Buffer Room (Don't put a limit order for 1000 shares on a market with only $50 in volume and an empty orderbook. If you do get filled, you'll have no way to sell your shares)
2) Never LP a market that can resolve INSTANTLY
"Will Trump say Melania this week?" "Will Elon tweet 10 times today"
These are extremely risky. Why?
If you're holding a NO limit order for $500 and TRUMP says MELANIA. Suddenly the price shift, you're forced to buy those NO shares, and then you get to watch that $500 become $0 all in the same minute.
For this reason, a lot of people choose to LP sport games (more on this later).
3) Never LP when you are AFK
It sounds like common sense but the ONLY times I lost money when LPing on Polymarket were when I forgot to close orders before going to bed.
DONT DO IT!!
4) Sports markets are great but there's a catch...
Many people love to LP sports markets because the odds are usually priced in before the game and don't change much.
However, I recommend closing them well in advance of the game.
The announcements of injuries, roster changes, etc can all influence the market before the game goes live. I recommend doing a little research on your markets to know what can influence them.
5) Alert system
There are plenty of cheap TG bots where you can set alerts for when you get accidentally filled.
This will save you a lot of money allowing you to sell those shares before they plummet further in value.
6) Don't force it!
I explained what I look for in reward markets in point 1
However, sometimes the markets are just not worth it.
On those days, I never force it. I take a break and look again the next day.
Did you enjoy this guide? Want more a full LP guide on how to start?
Let me know!
And be sure to bookmark these tips so you don't lose them.