Prerequisites

Before you can start trading on MegaTAO, you need to have certain tools, knowledge, and resources in place. This section outlines everything you need to get started safely and effectively.

Essential Requirements

Web3 Wallet

You'll need a compatible Web3 wallet to interact with MegaTAO:

Supported Wallets

  • MetaMask: Most popular and widely supported

  • WalletConnect: Compatible with mobile wallets

  • Coinbase Wallet: User-friendly option

  • Trust Wallet: Mobile-first wallet

  • Other EVM Wallets: Any wallet supporting Bittensor EVM

Wallet Setup Requirements

  • Private Key Access: You must control your private keys

  • Bittensor EVM Support: Wallet must support custom networks

  • Gas Fee Management: Ability to pay transaction fees

  • Backup Security: Secure backup of seed phrases

TAO Tokens

TAO is required for both trading and network fees:

Trading Requirements

  • Margin Capital: TAO for position margins

  • Minimum Amount: Start with at least 0.1 TAO for safety

  • Risk Management: Only use funds you can afford to lose

  • Liquidity Needs: Consider your trading strategy requirements

Network Fee Requirements

  • Gas Fees: TAO needed for transaction fees

  • Typical Costs:

    • Open position: ~180,000 gas

    • Close position: ~120,000 gas

    • Add margin: ~45,000 gas

  • Fee Estimation: Always keep some TAO for fees

Bittensor EVM Access

You need access to the Bittensor EVM network:

Network Configuration

  • Network Name: Bittensor EVM

  • RPC URL: https://lite.chain.opentensor.ai (mainnet)

  • Chain ID: 964

  • Currency Symbol: TAO

  • Block Explorer: Available for transaction verification

Connection Requirements

  • Stable Internet: Reliable connection for trading

  • Browser Compatibility: Modern browser with Web3 support

  • Network Stability: Consistent access to Bittensor EVM

Knowledge Requirements

Basic Understanding

Before trading, you should understand:

Perpetual Futures Concepts

  • What are perpetual futures: Derivatives without expiration

  • Leverage mechanics: How leverage amplifies gains and losses

  • Margin requirements: Initial and maintenance margins

  • Funding rates: Periodic payments between longs and shorts

  • Liquidation: Automatic position closure when undercollateralized

Risk Management Basics

  • Position sizing: How much to risk per trade

  • Stop losses: Automated loss-limiting orders

  • Take profits: Automated profit-taking orders

  • Margin management: Adding and removing collateral

  • Portfolio diversification: Not putting all capital in one position

Trading Knowledge

Recommended understanding includes:

Technical Analysis

  • Chart reading: Basic price action and patterns

  • Support and resistance: Key price levels

  • Trend analysis: Directional market movements

  • Volume analysis: Trading volume significance

  • Indicators: Moving averages, RSI, MACD basics

Market Dynamics

  • Alpha token fundamentals: What drives Alpha prices

  • Bittensor ecosystem: Understanding the broader context

  • Market cycles: Bull and bear market characteristics

  • Volatility patterns: Price movement expectations

  • Correlation analysis: How different assets move together

Technical Requirements

Hardware Requirements

  • Computer: Desktop or laptop with stable internet

  • Mobile Device: Smartphone for mobile trading (optional)

  • Storage: Sufficient space for wallet and trading software

  • Backup: Secure backup of wallet and trading data

Software Requirements

  • Operating System: Windows, macOS, or Linux

  • Browser: Chrome, Firefox, Safari, or Edge (latest versions)

  • Wallet Software: Compatible Web3 wallet

  • Trading Tools: Optional CLI tools or SDK for advanced users

Network Requirements

  • Internet Connection: Stable, high-speed connection

  • Firewall Settings: Allow Web3 wallet connections

  • VPN Usage: May be needed in some regions

  • Proxy Settings: Configure if using corporate networks

Safety Requirements

Security Practices

Essential security measures:

Wallet Security

  • Private Key Protection: Never share or store online

  • Hardware Wallets: Use for large amounts (recommended)

  • Multi-signature: Consider for business accounts

  • Regular Backups: Secure backup of seed phrases

  • Software Updates: Keep wallet software current

Trading Security

  • Position Limits: Never risk more than you can afford to lose

  • Diversification: Don't put all margin into one position

  • Regular Monitoring: Check positions frequently

  • Emergency Procedures: Know how to close positions quickly

  • Risk Management: Always use stop losses for large positions

  • Jurisdiction: Understand local regulations

  • Tax Implications: Consult tax professionals

  • Compliance: Ensure compliance with local laws

  • Documentation: Keep records of all trades

  • Reporting: Understand reporting requirements

Before Your First Trade

  1. Start Small: Begin with minimal amounts

  2. Practice: Use testnet or small positions

  3. Education: Read all documentation thoroughly

  4. Risk Assessment: Understand your risk tolerance

  5. Strategy Planning: Have a clear trading plan

Ongoing Requirements

  • Continuous Learning: Stay updated on market developments

  • Risk Management: Regularly review and adjust risk parameters

  • Performance Tracking: Monitor your trading performance

  • Community Engagement: Participate in community discussions

  • Security Updates: Keep all software and practices current

Getting Started Checklist

Before you begin trading, ensure you have:

Next Steps

Once you have all prerequisites in place, continue to:


⚠️ Important Note: Trading perpetual futures involves substantial risk of loss. Ensure you fully understand all prerequisites and risks before trading with real funds.

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