Bidding Strategies for Handshake Auctions
What works and what doesn’t?
Today, we give some strategies for people to have the best chance to win in the auctions.
Its a Vikrey Auction process
So review that one first.
Assuming you understand how the process works - return here and let’s talk about mindset and goals.
So here’s the steps:
Again - this is strategy, not exactly rules. Adjust as you see fit.Strategy 1: Bid High and Bid Early
Mark Smith at Namesake.domains mentioned this on our Handshake Mastermind Clubhouse calls - he likes to put down early and forget about it.
He opens an auction with the full bid he wants to place, no mask.
This way, he doesn’t stress about his bid mining at the end of the auction and he knows what he is willing to pay.
This strategy is more for someone with enough HNS to “scare” others and not trying to swoop in on the end.
If you are only willing / able to put 10 HNS on this auction, I do not recommend this strategy. But if you’re willing to “throw down” in the multiple thousands of HNS (again, the market is moving fast and some names are more desirable than others) - this strategy may be for you.
You may even pay less than waiting util the end!
Why? Because other bidders will be discouraged to even enter the auction.
Strategy 2: Open Low and Bid High at the End
I would say this is the most classic way - on Namebase the min bid is 0.4 HNS (I’d recommend a 0 bid and a 0.4 blind, as your real bid is later)
So you open for basically 0, and then towards the end you put in the max bid you want to do.
The risk is if your bid doesn’t go through. So at Namebase they recommend you bid up to 20 blocks before the end as there can be congestion or other technical reasons bids do not get mined.
This strategy helps get the auction started (if you are the one opening the auction).
Waiting til towards the end makes others not as prepared for your bid. If you want to bid 1,000 HNS - and do it earlier, other bidders can see that and then adjust their bid amount. Of course they may not have that amount or not be willing to bid that amount - but by bidding later in the process they do not have enough time (potentially) to buy more HNS or re-allocate funds towards this auction.
This strategy is one I use more often than not.
Strategy 3: Open with High (Mask) and Bid at the end
Another one is a mix of both strategies above. Bid with a high BLIND and a 0 or low bid to start the auction. This gets the “scare” factor of others not sure if your bid is real or not and may discourage a lot.
Then you can watch the auctions and as it gets towards the end - seeing other people’s bid behavour - you can then put a “real bid” for the amount above other people’s highest MASKED bid. Again you don’t know if they have a blind or bid - but you know your own high opening is all blind - so you don’t need to bid that amount.
This is a strategy to scare people away and giving you the power to bid at the end.
Once reveal comes - you get all that blind back and the “real bid” will be locked up for the 10 day reveal period.
Best Tip - Look at Previous Auctions
I learned a lot of these from looking at the reveal in auctions I was monitoring or names that were similar to the one I was bidding on.
You can learn a lot - as everything is public on the blockchain - there are not many secrets.
Good luck - and to share your strategies and insights - would love to see you on our forum at handshake.mercenary - or http://handshake.mercenary.hns.to