Understanding Penny auctions
Have you heard of Penny Auction? Today auction sites are highly searched for. Despite the news on penny
auctions scam and other bad press, people still wish to participate in these auctions. One of the main reasons
behind it is the fun and the thrill involved.
Penny auctions are not about selling goods or products. It is not about auctioning an item, but it is about auction of
bids. There are many websites that are legitimate, and the popularity of these bidding sites gave way to a number
of fraud websites too. Let’s get our basics on penny auctions clear.
Penny auction is about bidding to win fabulous prizes in even less than half or 1/4th its cost price. Thus you can
buy a latest ipod, laptops, cameras or cars etc at prizes that may seem a joke or simply peanuts. You can save up to
almost 90% on electronic goods, and other gift items.
More information can be found on this site
What is the strategy behind penny auctions? The player must log in or register on a penny auction site to bid. The
basic aim of the bidder should be to win at the cheapest expenditure and buy at the lowest bid. Though it is an
auction, it is very similar to poker. Thus if you love to play poker, you can be a good penny auction bidder and
player. Many people opine that penny auctions scam is a type of gambling. There is no legitimate overseer or open
regulator and thus what happens behind the scene is unknown.
On the face the bidding is time bound. But in reality penny auction allows extension of time. Each and every time
a new bid is made, the time is extended. Thus if the bidding time is 3 hours, it can get extended to even an hour.
How does the time get extended? Usually bids are made in the last minute. Most bidders remain silent till the last
phase of the count down. Since each bid costs a 0.05$ or 1$, the bidder chooses to spend and bid when it really
helps him overpower the previous bid. Thus, there may be just one or 2 participants in the beginning of the
auction, but by the time the dead line nears you may be bidding along with 20 or 30 bidders. Thus with each bid,
the time gets extended by 5 to 10 seconds and the price of the item also increases by a penny. You have to be the
last bidder to win the auction.