Bitcoin-Trading mit System: 4 Tipps für Einsteiger
Guide to Cryptocurrency Arbitrage: How I made 1% profit an ...
Crypto Arbitrage Trading In 2020 How to Arbitrage ...
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"We may be looking at one of the greatest arbitrage opportunities in the stock markets history. And this is largely due to the lack of understanding surrounding the opportunity connected to Bitcoin. This historical chart shows the true trajectory and trading range of Bitcoin:"
"We may be looking at one of the greatest arbitrage opportunities in the stock markets history. And this is largely due to the lack of understanding surrounding the opportunity connected to Bitcoin. This historical chart shows the true trajectory and trading range of Bitcoin:"
Ultimate glossary of crypto currency terms, acronyms and abbreviations
Best Cryptocurrency Multi-Exchange Trading and Portfolio Management Platforms Ranking 2020
Trade on multiple exchanges from a single platform and avoid the hassle of multiple logins, different interfaces, constant tab changing and overall keeping track of balance holdings and trades. https://preview.redd.it/ksar6fkxmfv51.jpg?width=1200&format=pjpg&auto=webp&s=b8629b0f29aefd9546d816413cc82de9656ef7f9 With more than 300 cryptocurrency exchanges today, most traders have to manage multiple exchange accounts. The need for more than one account usually rises because of the variety of offered crypto currency pairs, market liquidity, having to diversify the risk of being hacked, as well as the different trading tools and terms each exchange offers. Trading and keeping track of your portfolios on multiple exchanges is time consuming, inefficient and frustrating. Having to log on different platforms, use different interfaces, keeping track of multiple portfolios and all trading related activities become increasingly difficult with each new account. It would be simple and easy if you could connect all those exchange accounts into a single multi-exchange platform which combines all the data in real time and provides a single interface to control all remote exchange accounts.
A multi-exchange platform allows the traders to connect all their exchange accounts into a single account through the user of API keys generated from the account of each exchange. Once all accounts are connected into a single one, using the exchanges interfaces becomes obsolete. The unified account will now track and combine all portfolios and traders will be able to track prices, order statuses and other data across all exchange accounts from a single interface. In addition, most multi-exchange platforms provide various information tools such as news aggregators, sentiment tools, arbitrage matrix and price alerts. With regards to API keys security, these platforms do not require withdrawal or deposit permissions which limits the possibility of fraud and loss of funds. Finally, multi-exchange platforms do not typically charge additional trading fees and do not require lengthy verification procedures.
The current top platforms
Currently there are a handful of multi-exchange platforms with a variety of services. They range from a simple crypto portfolio tracker to an advanced trading and portfolio management platform. A detailed list of all major multi-exchange platforms and their features can be found here: www.AltXpert.com Here is an overview of the top 9 multi-exchange trading and portfolio management platforms:
Rebasing, new money, old money, the stable value, and value fluctuations.
Hello all. I have seen several people comparing ampleforth to bitconnect, so here is the simplified formula: (Oracle Price – Target Price) / 10 supply change every 24 hours. Now so long as the price fluctuations are under this amount, we never run the risk of dropping into negative territory. Now, look at the chart. What are our fluctuations? The biggest fluctuation was the 13 july 2020, from 3.46 to 1.86. Now, is this due only to the rebase? No. If you look up on the days before that, we had a massive run up. This looks like a normal market pattern cycle that got burst. But did hodlers lose? No. The marketcap just keeps going up. So, what could cause the price to dip below $1? Well, if we reached $1, and the marketcap stagnated, then a whale *COULD* crash the market. However, there are several things to consider here. First, when we reach a stagnated market value, ampleforth will have taken a strong competitive edge against tether and usdc. That means its volume will be absolutely massive. Second, it requires more money to crash an asset than it requires to jack an asset's prices up. Psychology lesson. Most people are bad traders because they treat risk and reward differently. They hold losing positions hoping the losing position will come back, and they hesitate to take winning positions if there is a chance of loss. This risk adverse mentality has an application here. Also, the lower number of say .90 is a numerically lower number than say 1.15. And trading lesson... the spot price of an asset is determined by active traders. Not by actual hodlers. Traders are necessarily reactionary. We cannot see the future. And when the price fluctuates, non market participants tend to become active market participants. This is why small price moves can spark feagreed runs. At ampleforth's target price of $1, it is going to be difficult for any one trader to crash the market, and we will NOT see price drops to .5 as a normal occurrence. If we do, there is an arbitrage that traders like me WILL do if it happens. Basically since we know that below $1 the rebase is a negative event, we will do the opposite of current actions with trading. The current trading strategy that eliminates risk while at the same time maximizes returns is to jump in with tether 5 minutes before rebase, and jump out and crash the market with the new 10% supply. Under $1, the strategy would be to buy and jump in. Right before rebase, traders sell, and then buy back in after rebase. People who are saying ampleforth is a bad investment are probably wrong. There are reasons it won't crash sub $1 when it has lots of users, and there are ways the market can remedy the situation. Now.. the ampleforth rich list IS disturbing. Just like satoshi nakamoto holding 10% of bitcoin is disturbing. However, they are a respectable crypto company, and they have plans for at least coinbase and binance, and I do not see them flash dumping on the market. That isn't to say they might sell. I am saying that if they do sell, they will do it in a nice respectful manner that does not crash the market, and doesn't cause lots of slippage for them.
Particl Marketplace is a decentralized marketplace for trading goods and services. Every installation becomes an independent node of this network and is helping to distribute it. Payments are made private and anonymous under the aid of its own cryptocurrency named PART. It utilizes CT and RING CT for privacy. Furthermore, it shares the as most secure comprehended privacy technologies from the industry-leading electronic currency Monero and makes its security features available on the Bitcoin codebase. Additionally for the metadata needed to list products and to let users communicate with each other an encrypted protocol named SMSG is utilized. Only corresponding parties are able to decrypt its content. This benefits the marketplace to be able to scale.
Problems Particl Marketplace solves
The use-cases and problems getting solved are multidimensional.
Saving money for its participants
No revenue share fee, no final value fees (sales commissions), no payment processing fees, no subscription fees, no participation fees, no value based listing fees, instant settlement -no retention of payments for vendors
Free markets, no censorship, self governance, no product-listing manipulations
Privacy and security first
No user-data, no data misuse, scam and fraud protection with two-party escrow system, custom storefronts with custom access-rules, protection of supply chains & intellectual property, DDoS protection
Enable untapped markets
Empowering and protecting companies to make OTC (Over the counter) deals with unknown/untrusted business partners of any industry, without the risk of being scammed. Of course this is not limited to companies.
Huge update to Cryptophyl - the SLP token exchange
Hi there, We've just released a big update to cryptophyl.com. The complete overhaul includes the addition of new features, a mobile-friendly trading interface and many design improvements. On top of this, we've just seen our biggest month yet of SLP token trading: almost $1M USD over April. What's new? Dark theme – We’ve introduced a dark theme which recolours the exchange interface so you can trade indoors without worrying about your eyes. The most requested feature we’ve had, you asked, and we delivered. Charts – We've added OHLC candle charts to the exchange so you can view price and volume data of all token trading since Cryptophyl launched last August. You can toggle between different periods and set the candle interval. Mobile friendly trading – We’ve revamped the mobile and desktop trading experience to a modern and responsive web application so you can trade comfortably on the move. Design improvements – We've refreshed the Cryptophyl logo, colours and typography, as well as redesigning the interface to maximise screen size, to provide a fresh user experience. Data availability – We've collected the most important trading and price information and have made it readily available from the dashboard – the core of the product. You can start trading, depositing and withdrawing with just a single click from here. API Keys – You can now generate API keys for programmatic trading directly on the platform. With lucrative arbitrage and market making opportunities existing in this nascent market, there is no better time than now to get started (view API documentation or create API Keys). Record trading volume In April we saw $900,000 USD worth of tokens traded over the month. The biggest markets were:
HonestCoin (USDH) - regulatory compliant 1:1 Backed USD stablecoin built on Bitcoin Cash = fast, cheap and stable border-less payments. We offer both BCH and BTC pairs. (Great explainer video why it's a nice alternative to USDT https://www.youtube.com/watch?v=bEiO3mwDwPQ)
Drop Token (DROP) - Cryptophyl's native exchange token which you can earn just for trading and gives you perks and features on the exchange.
Spice Token (SPICE) - a fun appreciation token used for tipping on social media, one of the first and most adopted SLP tokens.
What are SLP tokens? SLP is an emerging standard for issuing tokens on Bitcoin Cash. This means any token transactions are as scalable, fast and cheap as Bitcoin Cash . You can learn more about SLP tokens and how to quickly create your own token here: http://simpleledger.cash/ What's next for us? We're working to release Detoken - a trustless token exchange which allows you to buy, sell and trade tokens whilst always being in control of your private key! This means there is no centralised point of failure and you never have to trust us with your coins and tokens. The exchange will be open source. We're making it easy for wallets such as bitcoin.com to integrate Detoken into their product flow and we think it's going to be huge for the SLP token ecosystem! Thanks, Semyon, Founder and CEO, Cryptophyl.com
MKR Holder DAI-gest: Week 17, 2020: Action Required: The State of the Peg
Action Required: The State of the Peg
MKR Holder DAI-gest: Week 17, 2020
Governance Recap April 23, 2020
![Imgur](https://i.imgur.com/Jg3loyp.gifv) MKR Holder DAI-gest is a weekly Maker governance recap that is written by the community for the community. The best source of Maker Community information is through active participation and engagement. This supplemental publication strives to present all relevant facts and remain free of editorial opinion (Big 3 takeaway excepted). The statements made herein are not the opinions or statements of the Maker Foundation. DAI-gest is Now Available on Amazon Alexa as a Skill. You can enable it at https://skills-store.amazon.com/deeplink/dp/B087NH82D1?deviceType=app&share&refSuffix=ss_copy for all of your Alexa compatible devices. Then say, "Alexa, Open Maker Governance Digest" and you'll hear the latest issue. Coming soon to Itunes. Subscribe to MKR Holder's DAI-gest on Substack - Free Corrections / Comments / Suggestions / Other: @adrianhacker-pdx in the Official Maker Forums or [email protected]
Big 3 Take-Aways for the Week:
Understanding the MIPS framework that is being proposed right now is essential. It is a lot of information to sort through, so take it in small pieces if that will help you to focus and retain the information. Here is a link to an indexed list of all the MIPS (outside the forum). It is the entire framework of an introductory governance framework and collateral on-boarding procedures. You will find the MIP number, title, and sentence summary with a link to the forum discussion. See below for two additional sub-proposals added to MIPS 0 through 12.
The state of the peg has caused concern within and without the MakerDAO community. Some of the larger Maker holders stepped forward and posted their concerns around the state of the peg directly in the Maker forum. This spurred a lot of momentum in the platform, discussed further in this issue.
Intention to implementation. The DAO is getting very busy, and thought needs to be given to determining the feasibility of proposals, getting buy-in, and recruiting the appropriate skill sets in the community. Timing is key. The DAO is in need of a project management framework that is effortless and easily integrated into the current systems.
Dispositioned Governance Agenda
LongForWisdom is proposed, second governance facilitator. He said "Yes!".
Wrapped BTC has been proposed for collateral on-boarding.
USDC Risk parameter adjustment and on-boarding additional stable coins such as PAX and TUSD.
On-boarding LINK as a new collateral type.
Self-sustaining DAO: MIPS 0 - 12 - Ratification timeline and two additional sub-proposals have been shared in the forum.
Urgent - State of the Peg - Getting DAI back on soft-peg to a Dollar after it has been trading high following black Thursday.
SCD shutdown going to Executive Vote on April 24, 2020, three-week delay to follow for a final shutdown date of May 12, 2020.
Zero bid auction post mortem data evaluation - Maker Man currently completing the data analytics from black Thursday. This part is moving behind the scenes. A report is forthcoming in the next several weeks.
Public relations consortium - Communication team to create consistent and representative communications on behalf of the DAO and to report meaningful ecosystem sentiment back to the governance community. The team has been having weekly meetings, a first report is due by the end of the month.
Governance vote cadence - the timing for which executive voting happened for certain parameters. This may be overridden by the MIPS governance cycle.
Compensating Zero Bid Vault Owners. The poll was affirmative to compensate vault holders. Currently waiting on data analytics from Maker Man before restarting in another thread.
DeFi Emergency shutdown consortium
Dark fix - "
Flip / Flop auction usability
Maker token authority
Precedent for on-chain polling. Signaling started to determine the governance community's feelings about having foundation member proposals require on-chain polling. The forum thread seems to have died.
GSM delay - raise the delay from 4 hours to 12 hours for enacting Executive Votes, as a safety precaution.- Ratified
MKR Debt Auctions - Completed successfully
Deep dive into collateral on-boarding - Presentation to community completed, see forum for the movement
Governance cycle: MIPS 3 Presented in G and R Call - Presentation completed, see forum for the movement
Since the Black Thursday event of March 12, 2020, DAI has consistently been trading above the one Dollar price soft-peg it is supposed to maintain. Sometimes grossly over peg by over ten cents. In recent weeks it has been slowly trending back to a Dollar but has not quite gotten there. Confidence has not yet fully returned regarding the recent market volatility. Also, people are holding on to stable coins due to market fears. This has caused a serious lack of DAI liquidity, creating high demand, and affecting the peg. Prices this last week ranged from one to two cents above peg. Paraficapital, a larger corporate Maker holder in the governance community posted their concerns in the forum and related the sentiment of worry in the ecosystem regarding DAI being off the peg. This brought about immediate discussion and action regarding monetary policy and collateral on-boarding. The most recent passed Executive Vote contains monetary policy to make minting DAI more lucrative from USDC. Also, some exciting new collateral types are being considered for use in the MakerDAO platform. More on that next...
WBTC as a new collateral type?
WBTC also is known as wrapped Bitcoin is currently being evaluated by the Maker governance community to be on-boarded as approved vault collateral. Wrapped Bitcoin is Bitcoin that is held by the WBTC DAO and then tokenized 1:1 on the Ethereum (ERC-20) blockchain. Bitcoin on the Ethereum blockchain you ask!? It's already here, you can trade it on the https://Oasis.app . Many players in the DeFi ecosystem are excited about this step. Bitcoin is the most popular and most valuable cryptocurrency. While there is a small amount of WBTC use on current DeFi platforms, it was stated that people have been waiting for Maker to adopt WBTC as a collateral type. It was also said that using WBTC as ERC-20 collateral is the primary use case for ERC-20 Bitcoin. Forum links are listed below for this subject.
Other Collateral Considerations
In addition to WBTC, LINK is being considered for on-boarding as approved vault collateral as well as additional stable coins such as PAX and TUSD. All of these collateral options are hoped to help bring back sufficient DAI liquidity and help return the DAI price peg to exactly one Dollar. Again, see below for the forum links regarding these new collateral types.
MIPS 0 - 12 Due for Initial Polling; if Passed Moving on to Executive Vote
MIPS 0 through 12 has been a high focus subject in the governance community for the last few weeks. These are the first documents that spell out a governance and collateral on-boarding framework for a self-sufficient DAO. This is the beginning of the two to three-year process of handing full control of MakerDAO to the governance community and dissolving the foundation. The very nice flow chart below shows the two possible scenarios for approval or rejection of these MIPS in the Timing Governance Poll. Forum links can be found below for further information. ![MIP Implementation Timeline](https://i.imgur.com/sny6rOf.png)
Single Collateral DAI shutdown is very close. An Executive Vote for shutting down SCD is supposed to be posted on or shortly after April 24, 2020. There will then be a 3-week delay for shutting down. This will give time for people to close out their vaults, and hopefully drain the migration contract. Stability fees are going to be set to zero to incentivize the closing of vaults. If you are still holding SAI as of the time it shuts down, you should be able to redeem your SAI for ETH via the migration portal at https://migrate.makerdao.com
Here is a guide from MakerDAO about becoming involved in Governance. The meeting is held every Thursday, 17:00 UTC. During the postmortem and corrective action phase of the recent crypto market prices and resulting fiasco there has been a daily call. This is expected to drop to two calls over the next week. Please check the forums for information related to ad-hoc governance and risk calls that may be happening. Governance and Risk Meeting Community Guide * Understand the issues that are discussed and governance themes that get explored to build a healthy, secure, Maker Platform. * Get info on how to connect by phone or webcam. * Explore meeting archives.
By Andy Boyan There’s a common gripe among Ethereum users these days —gas is too damn high. Transaction fees are surging as Tether continues to move to the second-largest blockchain network. Fees paid on the Ethereum network have surpassed 500 ETH every day since April 15, according to Etherscan. That’s the longest stretch since three months at the height of the latest crypto bubble, between December 2017 and March 2018. What’s more, total daily fees paid have breached 2,000 ETH three times in May, a level that’s been crossed a few dozen times in all of Ethereum’s five-year history. The average for the past week was at 1,700 ETH. Image source: Etherscan Tether (USDT) is the main culprit. Users have paid almost $1.4M in the past 30 days for using the stablecoin, according ETH Gas Station. Much of that activity is coming from exchange-to-exchange transfers, which signals arbitrage trading. There are alsoseveral ponzi scams that make up the top seven spots including noted pyramid scam MMM, which continues its long program of ponzi scheming.
While frustrating for end-users, higher fees are a sign the network is getting used as a financial settlement layer. Dexes and stablecoins account for about half of the top 25 projects. Another positive: high fees are a sign Ethereum’s transition to proof-of-stake will be sustainable. Fees are higher than expected rewards for PoS validators, Vitalik Buterin said earlier this week. Building an attractive staking yield is critical to maintaining decentralized and robust network security, according to a March report by Delphi Digital. Read more
I was going through old emails today and came across this one I sent out to family on January 4, 2018. It was a reflection on the 2017 crypto bull market and where I saw it heading, as well as some general advice on crypto, investment, and being safe about how you handle yourself in cryptoland. I feel that we are on the cusp of a new bull market right now, so I thought that I would put this out for at least a few people to see *before* the next bull run, not after. While the details have changed, I don't see a thing in this email that I fundamentally wouldn't say again, although I'd also probably insist that people get a Yubikey and use that for all 2FA where it is supported. Happy reading, and sorry for some of the formatting weirdness -- I cleaned it up pretty well from the original email formatting, but I love lists and indents and Reddit has limitations... :-/ Also, don't laught at my token picks from January 2018! It was a long time ago and (luckliy) I took my own advice about moving a bunch into USD shortly after I sent this. I didn't hit the top, and I came back in too early in the summer of 2018, but I got lucky in many respects. ----------------------------------------------------------------------- Jan-4, 2018 Hey all! I woke up this morning to ETH at a solid $1000 and decided to put some thoughts together on what I think crypto has done and what I think it will do. *******, if you could share this to your kids I’d appreciate it -- I don’t have e-mail addresses, and it’s a bit unwieldy for FB Messenger… Hopefully they’ll at least find it thought-provoking. If not, they can use it as further evidence that I’m a nutjob. 😉 Some history before I head into the future. I first mined some BTC in 2011 or 2012 (Can’t remember exactly, but it was around the Christmas holidays when I started because I had time off from work to get it set up and running.) I kept it up through the start of summer in 2012, but stopped because it made my PC run hot and as it was no longer winter, ********** didn’t appreciate the sound of the fans blowing that hot air into the room any more. I’ve always said that the first BTC I mined was at $1, but looking back at it now, that’s not true – It was around $2. Here’s a link to BTC price history. In the summer of 2013 I got a new PC and moved my programs and files over before scrapping the old one. I hadn’t touched my BTC mining folder for a year then, and I didn’t even think about salvaging those wallet files. They are now gone forever, including the 9-10BTC that were in them. While I can intellectually justify the loss, it was sloppy and underlines a key thing about cryptocurrency that I believe will limit its widespread adoption by the general public until it is addressed and solved: In cryptoland, you are your own bank, and if you lose your password or account number, there is no person or organization that can help you reset it so that you can get access back. Your money is gone forever. On April 12, 2014 I bought my first BTC through Coinbase. BTC had spiked to $1000 and been in the news, at least in Japan. This made me remember my old wallet and freak out for a couple of months trying to find it and reclaim the coins. I then FOMO’d (Fear Of Missing Out”) and bought $100 worth of BTC. I was actually very lucky in my timing and bought at around $430. Even so, except for a brief 50% swing up almost immediately afterwards that made me check prices 5 times a day, BTC fell below my purchase price by the end of September and I didn’t get back to even until the end of 2015. In May 2015 I bought my first ETH at around $1. I sent some guy on bitcointalk ~$100 worth of BTC and he sent me 100 ETH – all on trust because the amounts were small and this was a small group of people. BTC was down in the $250 range at that point, so I had lost 30-40% of my initial investment. This was of the $100 invested, so not that much in real terms, but huge in percentages. It also meant that I had to buy another $100 of BTC on Coinbase to send to this guy. A few months after I purchased my ETH, BTC had doubled and ETH had gone down to $0.50, halving the value of my ETH holdings. I was even on the first BTC purchase finally, but was now down 50% on the ETH I had bought. The good news was that this made me start to look at things more seriously. Where I had skimmed white papers and gotten a superficial understanding of the technology before FOMO’ing, I started to act as an investor, not a speculator. Let me define how I see those two different types of activity:
Investors buy because the price is less than the value they see in the investment. Speculators buy because they think that someone will pay more in the future than they are paying now.
Investors trade on information (The white paper was really well-written, had a clear technical advantage over other alternatives, and addresses a need that I can understand and value.) Speculators trade on sentiment. (Buy the rumor! Sell the news!)
Investors usually look at the investment and themselves and can describe why they purchase in those terms (ABC-Coin provides (service) that isn’t addressed yet and matches (requirements) for an investment.) Speculators usually describe why they bought something in terms of how other people think (I think that other people think that the price will rise, so I want to get ahead of that.)
Investors don’t necessarily check the price every day. The can, and very often I do, but it isn’t required because fundamentals don’t often change on a dime. Speculators need to be glued to a price feed, because sentiment very often changes on a dime.
Investors like ideas, people, business plans, and market opportunities. Good ones are like Spock. Speculators like trends. They are tribal.
Investors have a longer time horizon than speculators. In cryptoland, the notion of a “longer” time horizon is still laughably small (months) compared to traditional markets, but it certainly isn’t weeks or days or hours, which is whre speculators often live.
So what has been my experience as an investor? After sitting out the rest of 2015 because I needed to understand the market better, I bought into ETH quite heavily, with my initial big purchases being in March-April of 2016. Those purchases were in the $11-$14 range. ETH, of course, dropped immediately to under $10, then came back and bounced around my purchase range for a while until December of 2016, when I purchased a lot more at around $8. I also purchased my first ICO in August of 2016, HEAT. I bought 25ETH worth. Those tokens are now worth about half of their ICO price, so about 12.5ETH or $12500 instead of the $25000 they would be worth if I had just kept ETH. There are some other things with HEAT that mean I’ve done quite a bit better than those numbers would suggest, but the fact is that the single best thing I could have done is to hold ETH and not spend the effort/time/cost of working with HEAT. That holds true for about every top-25 token on the market when compared to ETH. It certainly holds true for the many, many tokens I tried to trade in Q1-Q2 of 2017. In almost every single case I would have done better and slept better had I just held ETH instead of trying to be smarter than Mr. Market. But, I made money on all of them except one because the crypto market went up more in USD terms than any individual coin went down in ETH or BTC terms. This underlines something that I read somewhere and that I take to heart: A rising market makes everyone seem like a genius. A monkey throwing darts at a list of the top 100 cryptocurrencies last year would have doubled his money. Here’s a chart from September that shows 2017 year-to-date returns for the top 10 cryptocurrencies, and all of them went up a *lot* more between then and December. A monkey throwing darts at this list there would have quintupled his money. When evaluating performance, then, you have to beat the monkey, and preferably you should try to beat a Wall Street monkey. I couldn’t, so I stopped trying around July 2017. My benchmark was the BLX, a DAA (Digital Asset Array – think fund like a Fidelity fund) created by ICONOMI. I wasn’t even close to beating the BLX returns, so I did several things.
I went from holding about 25 different tokens to holding 10 now. More on that in a bit.
I used those funds to buy ETH and BLX. ETH has done crazy-good since then and BLX has beaten BTC handily, although it hasn’t done as well as ETH.
I used some of those funds to set up an arbitrage operation.
The arbitrage operation is why I kept the 11 tokens that I have now. All but a couple are used in an ETH/token pair for arbitrage, and each one of them except for one special case is part of BLX. Why did I do that? I did that because ICONOMI did a better job of picking long-term holds than I did, and in arbitrage the only speculative thing you must do is pick the pairs to trade. My pairs are (No particular order):
I also hold PLU, PLBT, and ART. These two are multi-year holds for me. I have not purchased BTC once since my initial $200, except for a few cases where BTC was the only way to go to/from an altcoin that didn’t trade against ETH yet. Right now I hold about the same 0.3BTC that I held after my first $100 purchase, so I don’t really count it. Looking forward to this year, I am positioning myself as follows:
ETH will still be my core holding. It is the “deepest in the stack” crypto investment that I have. “Deep in the stack” is a programming term that gets at the idea that most software is built on other software. If you just think about your notebook, you have your OS, and programs run on that. But even inside the OS there is a stack. The bottom of your stack is the kernel, and on top of that are the drivers, protocols, and other layers that allow the programs to talk to the OS, the hard drive, the screen, the mouse, your printer, etc. You can change your mouse or printer easily. Changing things deeper in the stack becomes harder and harder. ETH is deep in the crypto stack, so is very hard to dislodge – Around 60 of the top 100 cryptocurrencies by market cap run on top of Ethereum, so getting rid of Ethereum is something that would take a long time to do.
DNT, QTUM, ZRX, and OMG are all, to varying degrees, “deep in the stack” tokens that, once established, will be very hard to dislodge.
That said, I am peeling away some of my holdings into USD right now, because big changes are afoot and they are going to cause market disruptions. I’m going to come right out and admit that this is speculative, but I’m also going to back it up with some non-speculative facts.
The SEC has been sending out hundreds of subpoenas to cryptocurrency organizations over the past 3-4 months. These subpoenas are simply asking for information and nobody has been charged with any crimes or misdoings, but it is clear that the SEC is getting together information so that they can begin to regulate cryptoland. When that happens, other countries will follow, and that means:
Some tokens will be deemed outright scams and people will be prosecuted.
Some tokens will be deemed securities and will be regulated.
Some tokens will not be deemed scams or securities and will continue as they have.
Looking at this, it is clear to me that the tokens that escape prosecution and regulation should do better, but the short-term impact will be brutal and ugly. It would not surprise me at all to see a 50% drop in overall market cap within Q1-Q2, with Q1 being more likely.
Cryptoland has always been a bit nuts, but it is more nuts now than I have ever seen it. Back in 2011-2014 it was a freaks-n-geeks show where people were all about the technology and I would sit around for a 3-day weekend installing a *nix VM on my Windows machine so that I could compile the most recent source and run a CUDA SHA-256 routine rather than thrash my CPU. If that doesn’t make sense to you, you wouldn’t have even thought about being involved.
Now, people see Bitcoin advertisements in their Facebook feed and think “I gotta get on the BTC train!” before going to Coinbase and buying some with a credit card. They don’t know anything about crypto, and they are getting eaten alive – It is no coincidence that BTC peaked after the Thanksgiving holidays when people sat around the table and Janice got Uncle Mike and Cousin Bob all excited as she talked about going to Cancun for Christmas because of her crypto winnings. Huge amounts of fiat got transferred from newbies to BTC whales during this period, and once the whales were done, BTC had dropped from $20,000 to $12,000. It’s now back at $15,000, but for people who bought at a higher level, this sucks. As a result many have moved from BTC to ETH, with the single biggest money flow in crypto in December being the BTC à ETH flow. As a result, it’s no coincidence that ETH is at all-time highs now. The thing is, though, that even most people that moved from BTC to ETH really have no idea what they are doing. They are acting on buzzwords and emotion. They are speculators and are going to get crushed.
The stock market is quite high right now, but people are starting to worry that it is too high and that we are going to enter into a period of inflation again. This has caused gold to go up a lot the last quarter and is likely also responsible a bit for the rise in cryptos. If this view is correct, then cryptos stay stronger than if that pressure wasn’t there. If wrong, then cryptos will swing down as money exits cryptoland for more traditional markets.
I am spending most of my time and money on the arbitrage effort. The nice thing about arbitrage is that it works as the markets go up, and it works as the markets go down. When markets are too volatile, however, arbitrage can get very messy and dangerous, with each trade generating a loss instead of a profit, so I am working right now to tune the algorithms to take into account rate-of-change and add in some circuit breaker triggers. Once this is done I will expand those operations.
I am getting much more serious about systems security.
I have a Nano Ledger and recommend that anyone with >$1000 of crypto have one. The Trezor is also supposed to be good, but I haven’t used it.
I will set up a dedicated *nix notebook that is used for nothing except my crypto work. All it takes is one keylogger to get on your PC/Mac and your crypto is gone. What is on your Nano Ledger will be OK, but they will sweep out your exchange account or Coinbase account faster than you can type. A standard Linux installation with Chrome and nothing else is as about as secure as you can get in the civilian world.
If you don’t use LastPass or a similar password manager yet, you need to do that. Your password to LastPass should be at least 16 characters long and should not have a recognizable English word in it. If you think that “Iluvu4evah” is a secure password, you’re wrong.
Hackers know that “4”=”for” and “u”=”you”. Writing a script to substitute those in is trivial if they want to write the script, but it’s much easier for them to download one of the many, many programs out there that already do this.
If your password contains any string of numbers from anything that can be associated with you at any time in your life, it is insecure. Take those numbers out of the character count because they are an insignificant barrier to cracking your account.
The good news is that you probably won’t be targeted, but if you ever mention online that you are doing anything significant in crypto, that chance increased enormously.
*Never* talk with *anyone* about how much you have in crypto. You’ll notice that I haven’t here. There is no reason to tell even a family member how much you have unless you are sharing a tax form. Sure, you may trust them, but all it takes if for someone to overhead someone else mention at a party that a relative got into crypto a long time ago and made a bunch of money. That person can also then be subjected to the $10 hack and force you to send all your crypto to them.
Your password to LastPass (Or equivalent.) should look something like this -> 6k0jQMoziX&D#4W8
Yes, it’s a headache. Imagine your headache, though, were you to open your account one day and find all of your money gone.
Looking at my notes, I have two other things that I wanted to work into this email that I didn’t get to, so here they are:
Just like with free apps and other software, if you are getting something of value and you didn’t pay anything for it, you need to ask why this is. With apps, the phrase is “If you didn’t pay for the product, you are the product”, and this works for things such as pump groups, tips, and even technical analysis. Here’s how I see it.
Technical analysis (TA) is something that has been argued about for longer than I’ve been alive, but I think that it falls into the same boat. In short, TA argues that there are patterns in trading that can be read and acted upon to signal when one must buy or sell. It has been used forever in the stock and foreign exchange markets, and people use it in crypto as well. Let’s break down these assumptions a bit.
i. First, if crypto were like the stock or forex markets we’d all be happy with 5-7% gains per year rather than easily seeing that in a day. For TA to work the same way in crypto as it does in stocks and foreign exchange, the signals would have to be *much* stronger and faster-reacting than they work in the traditional market, but people use them in exactly the same way. ii. Another area where crypto is very different than the stock and forex markets centers around market efficiency theory. This theory says that markets are efficient and that the price reflects all the available information at any given time. This is why gold in New York is similar in price to gold in London or Shanghai, and why arbitrage margins are easily <0.1% in those markets compared to cryptoland where I can easily get 10x that. Crypto simply has too much speculation and not enough professional traders in it yet to operate as an efficient market. That fundamentally changes the way that the market behaves and should make any TA patterns from traditional markets irrelevant in crypto. iii. There are services, both free and paid that claim to put out signals based on TA for when one should buy and sell. If you think for even a second that they are not front-running (Placing orders ahead of yours to profit.) you and the other people using the service, you’re naïve. iv. Likewise, if you don’t think that there are people that have but together computerized systems to get ahead of people doing manual TA, you’re naïve. The guys that I have programming my arbitrage bots have offered to build me a TA bot and set up a service to sell signals once our position is taken. I said no, but I am sure that they will do it themselves or sell that to someone else. Basically they look at TA as a tip machine where when a certain pattern is seen, people act on that “tip”. They use software to see that “tip” faster and take a position on it so that when slower participants come in they either have to sell lower or buy higher than the TA bot did. Remember, if you are getting a tip for free, you’re the product. In TA I see a system when people are all acting on free preset “tips” and getting played by the more sophisticated market participants. Again, you have to beat that Wall Street monkey.
If you still don’t agree that TA is bogus, think about it this way: If TA was real, Wall Street would have figured it out decades ago and we would have TA funds that would be beating the market. We don’t.
If you still don’t agree that TA is bogus and that its real and well, proven, then you must think that all smart traders use them. Now follow that logic forward and think about what would happen if every smart trader pushing big money followed TA. The signals would only last for a split second and would then be overwhelmed by people acting on them, making them impossible to leverage. This is essentially what the efficient market theory postulates for all information, including TA.
OK, the one last item. Read this weekly newsletter – You can sign up at the bottom. It is free, so they’re selling something, right? 😉 From what I can tell, though, Evan is a straight-up guy who posts links and almost zero editorial comments. Happy 2018.
Newscrypto Platform BEGINNER TIER ● NEWS 📰 A feature that analyses the news and searches for pieces of new information whilst filtering and providing the right ones to our members. We will also have vloggers, bloggers, and journalists on our team, all being paid with our tokens. Therefore, in order for them to make money, they will have to provide the best pieces of news and information possible. ● CHARTS 📈 They answer the basic questions, for instance: What is the price action?; What do charts show us? What are price candles? Price movement; Trend Lines; Support Resistance lines; Orders; Order books explained and much more giving users a whole package of useful knowledge about charts. ● COIN CALENDAR 🗓️ A cryptocurrency event calendar to keep updated on events regarding the coins or tokens you are interested in or currently holding. The coin calendar can be managed and updated to the member’s portfolio. ● ALTCOIN POLICE 👮 A feature that shows your action behind the desired coin or token. If a project’s development isn’t active you can confidently assume it is dead and vice versa so you can act appropriately to it. ● COIN TRACKER 〽️ Database where users can import all of their trades. You can build your portfolio and calculate the current balance and sell/buy trade options for the coins you are currently holding 🔹🔹🔹🔹🔹🔹🔹 INTERMEDIATE TIER ● TRADING ™️ An option of trading available for our members that automatically places buy and sell orders in their name to a cryptocurrency of their choice. The user can set all the details (limit, token amount, rate, etc.) in advance. ● EXCHANGE RATES AND ARBITRAGE 💱 A feature analyzing all current exchange rates and their differences in different exchange markets. This allows users to choose the market where their selected currency has the best price for them to buy or sell it. As we know, the crypto world is decentralized, which means there can be vast differences between different crypto exchange markets. ● PERFORMANCE 🔧 Display of all cryptocurrencies and crypto exchanges that shows their performance in the desired time ratio from 1 day to 1 month. ● SENTIMENT 📏 A feature that consists of professional technical analysis for top cryptocurrencies to evaluate investments and identify trading opportunities. The options are arranged from 1 minute to 1 month showing you the buy/sell opinion by focusing on patterns of price movements, trading signals, and various other analytical charting tools. 🔹🔹🔹🔹🔹🔹🔹 ADVANCED TIER ● WHALE ALERTS 🐋 Whale alerts are instant notifications for so-called whale moves. They provide insight into big amounts of money or so-called smart money being entered or exited from one currency into another. These moves are normally made on some type of verified information and we enable our users to react accordingly to it. ● CORRELATION ➗ Indicator that shows the biggest price difference between Bitcoin and other major coins. It can be used to monitor the movement and analyzing the market. ● INFLOW INDICATOR 🔺 A special feature constructed on an exact calculation of FIAT flowing into and out of different crypto exchanges. ● CRYPTO MINING ⛏️ Indispensable tool for everyone interested in crypto mining. It shows digital asset staking rewards & dividends for most promising mining crypto coins. https://imgur.com/a/fIQgrKX Become NWC Member and register an account for free at 🔹 REGISTER https://newscrypto.io/users/login/ 🔹 SOCIAL MEDIA https://linktr.ee/nwc_public https://imgur.com/a/fIQgrKX NewsCrypto Team
Trading, psychology, and the benefits of Trading Bots.
https://preview.redd.it/8lhgwekhbmv31.jpg?width=823&format=pjpg&auto=webp&s=35c417aa683b9fcdf37a126127c2e60c3ab405c2 Most beginners who open trading accounts on cryptocurrency exchanges and start independent trading, see only one goal — to earn as quickly as possible. This is a big mistake. The fact is that trading on the stock exchange will only become truly profitable when it becomes a priority for the person who came to trading. As a rule, to combine trade with any other occupation and at the same time everywhere to succeed will not work. Trading for a novice trader should be if not the main, then a very important and priority occupation. No need to wait for quick results. Trading on the stock exchange — the same profession as a doctor, Builder or engineer. The only difference is that she can’t go to University. Just as one learns to be a Builder for five years, so it takes years to learn all the wisdom and secrets of the trade. Trading on the stock exchange is not a Stayer distance, it is a marathon. And the winner is the one who will find the courage to reach the end. In addition, trade is very much changing a person, showing his qualities, which in everyday life he does not know. Over time, if a trader really wants to succeed in trading, he must completely rethink his life, change the system of values and look at many things, change himself.
Fear as a Component of Trading
The strongest emotion known to man is, of course, fear. What gives rise to the exchange’s fears? We can not predict the behavior of the market, and therefore fully control their money invested in its instruments. In addition to the unknown, when there is no understanding of how to safely get out of a predicament, we are afraid in advance of what traumatized us earlier. Because fear is so emotional, you need to surround yourself with the right facts to drive it away. We need to know for sure that our trading system should not generate more than three consecutive losing trades. Winners plan what to do if their trades fail. So only a systematic approach will protect us from ourselves. That is why the investment rules written in the trading templates exist not only to communicate the best market opportunities but, more importantly, to protect us from our own internal “demons”.
Emotions in Trading
Seekers of strong emotions, adrenaline forget everything in pursuit of excitement. It follows that a novice investor, overtaken by the “adrenaline curse”, will trade at the slightest opportunity. Yet Dostoevsky, one of the most famous and avid players, said that for him the most acute feeling in life — to win money. The second most acute feeling is to lose them. Paradoxically, few things give more pleasure than getting rid of the pain and torment of being in a losing trade. This creates a mental internal conflict. Awareness of losses brings “excitement” or a sense of exaltation, and our emotionality does not care what we pay for these experiences losses in the brokerage account. “Adrenaline curse” will drive us into the trade for thrills and extract them from there, regardless of the price.
Intuition on the Exchange
The mind of an intuitive investor tries to construct mental constructions of events. I will try to explain what mental construction is by the example of a chess player’s thinking. The grandmaster understands and remembers the position of each figure in terms of its mental constructions and relationships inherent in the arrangement of figures. The random arrangement of the figures does not fit into any of his mental constructs, and he cannot structure what he sees. Market patterns on cryptocurrency charts compared to chess compositions include an excessive element of chaos so that they can be interpreted intuitively. Investors with intuition are able to achieve success with the help of” flair”, but this flair often leaves them. The intellect of the rational trader, on the contrary, is manifested in his ability to logically comprehend what is happening to him and to the reality around him and to make on this basis the simplest and most correct decision. Intuition is the ability of a person to penetrate into the essence of things not by reasoning or logical thinking, but by instantaneous, unconscious insight. This is the ability of a trader to “ see the market not with his mind but with his heart.” But, even with a highly developed intuition, you can not act on the market, using only it.This is the trap of intuitive trading — it is impossible to learn.
Fear of Taking Responsibility
What distinguishes successful traders from losers who lose money? First of all look at life. Most people are very passive. If you ask people if they are happy with their lives, the answer is likely to be negative. On the question of who is to blame, I would say that the fault of the parents who have not given a good education, why now not get a good job; blame the employer who delays wages; blame the dollar, which is rising, then falling; to blame the President and the government who do not pay pensions, etc., In their troubles and problems most of the people blame anyone but themselves. The same thing happens in the market because the exchange is a mirror of our life. Talk to the trader losing money, ask why he can’t make money in the market. He replied that the fault of the insiders, manipulators, blame the binary options broker too much Commission, to blame the neighbor who suggested the deal, which turned into a heavy loss. In other words, he himself would have been a millionaire long ago, but for a number of reasons, certainly beyond his control, until that happened. If a person wants to achieve something-not just to lead a life, which are millions of ordinary people (every day to go to work, save five years for a car, twenty years for an apartment, etc.), and to live a full life, so that the financial issue went into the background, to work for fun, not for money, he needs to take responsibility for everything that happens in his life. A person needs to realize that the cause of everything that happens to him is himself.It is this view that allows you to succeed in life and in any business. And trade is no exception. This is the way successful traders look at life. Once you realize that the cause of all your losses is yourself, and not some mythical manipulators, then the case will move forward. ******************************************************************************************************* In the age of digital technologies, when artificial intelligence develops, computer technologies improve, mankind creates various tools to facilitate their own life and everyday life. If we pay attention to trading, then this direction is actively developing, getting new and unique tools. Since any trader (beginner or experienced specialist) is subject to emotions and various psychological factors, there are tools such as trading bots.
A trading robot (bot) is a program that has a certain algorithm. It buys or sells cryptocurrency assets, focusing on the situation in the market. The first trading robots appeared in 2012, and since then they have become more and more perfect. Currently, according to some estimates, 90% of short-term transactions are made either by bots or with their participation. Bots are usually developed for specific trading platforms. Most cryptocurrency exchanges have an API, and they are generally positive about free auto trading within their platform. In contrast to the positive attitude to exchange robots, exchanges often have a negative attitude to arbitration robots. On the rules of trade can be found in the official documentation of the exchange, and if there is no such information, the question can be asked directly to technical support.Some people wonder: is it possible to write your bot trader? This is not an easy option, which is suitable only for experienced programmers. After writing, bots are tested for a long time in the market, corrected numerous errors, corrected strategy. A programmer can also write a bot based on someone else’s code. Some bots are open source, and anyone can find it on GitHub and modify it to fit their needs. Buy a bot for trading cryptocurrency: there are inexpensive programs for trading (about $ 10), and the cost of more high-quality and complex exceeds more than $ 200 and even $ 1000. There is no maximum price limit for bots, top bots are written to order $ 1500 and more. Users are usually offered a choice of several tariff plans for crypto bots, from economy to luxury. The inexpensive option includes the most basic trading algorithms, and the expensive one brings maximum profit and works on more complex algorithms. Arbitration bots are a more expensive exchange. Known cases when downloading the bot, people got on your computer virus-miner or virus-cipher, which encrypt all your personal files and demanded a ransom in bitcoin, usually in bitcoin. Naturally, after transferring the ransom to the specified wallet, no decryption of the files occurred. Trading strategy of stock and arbitrage bots can be very simple, for example:- When the price of cryptocurrency decreases, you need to buy it.- If the price rises, it should be sold.- Or much more complicated. The algorithm can take into account historical data for the last time, indicators, navigate by signals. Quality bots analyze more than a hundred parameters when placing orders. Some programs do not change the algorithm, and there are bots that can connect or configure additional parameters. This option is well suited for experienced traders who have their own preferences in the style of trading. A standard bot can perform such actions:- To assess the market situation, to monitor the rate at a given period of time, to make a forecast. In manual trading, it can show signals to the trader.- Create buy or sell orders.- To report on the profit or loss received. On the example of our IMBA-Exchange, we came to the conclusion that we also need to provide an opportunity for each trader to use bots so that they can be in a comfortable trading environment. Our exchange specialists are developing their own bot for cryptocurrency trading, which will be an excellent and convenient addition to every trader who wants to eliminate the psychological factor and seeks to get stable earnings without losing personal time. ******************************************************************************************************* IMBA-ExchangeMetronix botmakes life easier for every investor. For example, Ing. Michael Eder the CEO of IMBA-Exchange, who has 10 years of experience in trading and the last 3 years in cryptocurrency trading, has firmly decided for himself that in the current realities trading on the exchange simply needs bots:
Throughout the time that I have been trading, I can confidently say that today trading bots are necessary for all traders as the main tool. No matter how long you are in exchange trading, but the nature of the person is designed so that under the influence of psychological factors, market conditions, etc. You still make mistakes and, as a result, this leads to financial losses.OurMetronix Trading Botwill help to solve these problems and eliminate negative consequences. A bot is a tool; it has no feelings. He performs a specific task for a given program and performs it almost unmistakably. The task of the trader is to monitor the situation on the market and correctly, as well as at the right time to configure your bot.
BEGINNER TIER ● NEWS 📰 A feature that analyses the news and searches for pieces of new information whilst filtering and providing the right ones to our members. We will also have vloggers, bloggers, and journalists on our team, all being paid with our tokens. Therefore, in order for them to make money, they will have to provide the best pieces of news and information possible. ● CHARTS 📈 They answer the basic questions, for instance: What is the price action?; What do charts show us? What are price candles? Price movement; Trend Lines; Support Resistance lines; Orders; Order books explained and much more giving users a whole package of useful knowledge about charts. ● COIN CALENDAR 🗓️ A cryptocurrency event calendar to keep updated on events regarding the coins or tokens you are interested in or currently holding. The coin calendar can be managed and updated to the member’s portfolio. ● ALTCOIN POLICE 👮 A feature that shows your action behind the desired coin or token. If a project’s development isn’t active you can confidently assume it is dead and vice versa so you can act appropriately to it. ● COIN TRACKER 〽️ Database where users can import all of their trades. You can build your portfolio and calculate the current balance and sell/buy trade options for the coins you are currently holding ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE TIER ● TRADING ™️ An option of trading available for our members that automatically places buy and sell orders in their name to a cryptocurrency of their choice. The user can set all the details (limit, token amount, rate, etc.) in advance. ● EXCHANGE RATES AND ARBITRAGE 💱 A feature analyzing all current exchange rates and their differences in different exchange markets. This allows users to choose the market where their selected currency has the best price for them to buy or sell it. As we know, the crypto world is decentralized, which means there can be vast differences between different crypto exchange markets. ● PERFORMANCE 🔧 Display of all cryptocurrencies and crypto exchanges that shows their performance in the desired time ratio from 1 day to 1 month. ● SENTIMENT 📏 A feature that consists of professional technical analysis for top cryptocurrencies to evaluate investments and identify trading opportunities. The options are arranged from 1 minute to 1 month showing you the buy/sell opinion by focusing on patterns of price movements, trading signals, and various other analytical charting tools. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ADVANCED TIER ● WHALE ALERTS 🐋 Whale alerts are instant notifications for so-called whale moves. They provide insight into big amounts of money or so-called smart money being entered or exited from one currency into another. These moves are normally made on some type of verified information and we enable our users to react accordingly to it. ● CORRELATION ➗ Indicator that shows the biggest price difference between Bitcoin and other major coins. It can be used to monitor the movement and analyzing the market. ● INFLOW INDICATOR 🔺 A special feature constructed on an exact calculation of FIAT flowing into and out of different crypto exchanges. ● CRYPTO MINING ⛏️ Indispensable tool for everyone interested in crypto mining. It shows digital asset staking rewards & dividends for most promising mining crypto coins. https://preview.redd.it/6xs1q0k413q31.png?width=1903&format=png&auto=webp&s=597b69b44f8eac08a5267e2d8463d869110f8948
Crypto Trading Bots: The Servants That Make You Rich
The classical stock market has its phases, since it sleeps and awakens to resume trading. Unlike the traditional financial market, the crypto market never sleeps and trades nonstop. Such an approach can be quite profitable for those who resort to modern means of replacing themselves at the screen to go to sleep and let trading continue in automatic mode. The advent of trading bots allowed not only traditional market participants, but also crypto market enthusiasts to make profit nonstop at speeds and functional capabilities that humans will never be able to achieve.
In essence, trading bots are software programs that are installed as add-ons on financial software interfaces. Acting as automated trading operations facilitators, the trading bots execute strategies and actions that they are programmed to perform by the traders. Trading bots can place buy and sell orders based on parameters and algorithms, while more advanced models of bots are capable of conducting in-depth analysis of financial markets to reveal profitable avenues and approaches to strategies. The bots themselves rarely take action on their own, as traders program them to analyze market volumes, cups, dynamics and other parameters to act based on a pre-determined strategy. Though highly popular on traditional markets over the last decade, trading bots are quite restrictive in both their price, which can start from $10,000 on a Bloomberg trading terminal, and their limited functionality. However, the advent of blockchain and cryptocurrencies together with AI and neural networks has allowed trading bots to evolve into more advanced constructs capable of relatively independent “thinking” that allows them to take action based on a variety of aggregated datasets.
Cryptocurrency Trading Bots
Cryptocurrency trading bots have arisen together with the advent of crypto exchanges. It did not take programmers long to develop bots capable of monitoring the crypto market and executing strategies. The similarities between the crypto and traditional markets have made the transition even easier. Like their traditional counterparts, cryptocurrency trading bots act on the basis of data they aggregate from a variety of sources, namely the crypto exchanges. They analyze market parameters and execute the strategies that the traders program them to perform. Cryptocurrency day trading bots are the most popular type, since day trading still provides the biggest scope of opportunities for making profits on heightened market volatility. Bitcoin buy and sell bots are some of the most popular constructs tailored for the market. The logical arising question of how to make a cryptocurrency trading bot is a fairy popular one on the web, and the answer is not as simple as it would seem. Making a crypto trading bot is the job of traders/programmers who are qualified enough to make a piece of software capable of coping with vast amounts of financial data. In fact, cryptocurrency trading bots are available from open sources on the web and there are dozens of template software samples available to tailor any need. The internet is also awash with crypto trading bot reviews, which include Bitcoin arbitrage bots, day trading bots, specialized crypto coin trading bots and many others. Apart from expensive and highly advanced crypto trading bots, there are also free models that are available to average users. The constructs available range from beginner to advanced trader level in their complexity and user interface friendliness. Apart from average trading bots, there are also arbitrage bots, which are also software programs that have features allowing traders to set up a variety of parameters that will directly affect the bot's behavior. With such an approach to trading, the bots can enter various exchanges that support them and trade in autonomous fashion on the trader’s behalf. The main advantage of arbitrage bots is that they can make instantaneous decisions depending on asset price movements to make profits for the trader.
The Main Types Of Strategies Used By Bots
Since trading bots largely act as avatars for traders, they mimic the strategies that the traders program them to execute. Some of the most popular strategies that bots are used for are the following: Trading on the exchange is the classic norm under which a bot is programmed to buy or sell some assets at predetermined prices by placing buy and sell orders. Arbitrage is the simultaneous purchase and sale of an asset for the purpose of making a profit from an imbalance in its price. Identical or similar financial instruments on different markets or in different forms have different prices, and by exploiting those differences, the bots make profits for the traders. Market making is the third most popular strategy employed by trading bots. Namely, market making is the execution of strategies or sell-side methods designed to capture spreads, otherwise known as the difference in price between buys and sells. In essence, the bots act as market makers, essentially acting as a guaranteed counterparty for other traders that are single directional in the market.
Other Useful Features
Trading bots are not only about trading, as there are some constructs which were designed as assistants to traders rather than as direct replacements or avatars. There are bots that are designed as market dynamics analysts, others act as aggregators of information that provide detailed market charts, while some are deigned to filter out useful information in news backgrounds that can affect asset prices. The variety of bots on the market is immense and they have been around for far longer than the crypto market itself. In fact, many bank tellers, online shop assistants, even surveillance systems are actually bots, which have been designed to perform specialized features. The same applies to the crypto market, where the merger or AI and neural networks has given birth to invaluable constructs that help traders and enthusiasts make sense of the market.
I recently introduced a friend to our humble, little subreddit and they quickly pointed out that the language spoken here did not appear to be English. I suppose we do toss around a fair amount of acronyms, memes, and slang. I put together a quick glossary of terms for them and figured I should post it here in case any other new ethtraders can benefit from it:
Exchange Websites where you can buy and sell crypto-currencies. Some popular exchanges in North America are: Coinbase GDAX Gemini Bittrex Poloniex Quadriga Kraken
Whale Someone that owns absurd amounts of crypto-currency.
limit order / limit buy / limit sell Orders placed by traders to buy or sell a crypto-currency when the price meets a certain amount. They can be thought of as 'for-sale' signs. These orders are what are bought and sold against when traders place market orders.
market order / market buy / market sell A simple purchase or sale on an exchange at the current price. Market buys purchase the cheapest ETH available on the order book, and market sells fill the most expensive buy order on the books.
margin trading The act of 'magnifying' the intensity of your trades by risking your existing coins. (NOTE: Very risky, only for experienced traders and only on certain exchanges even then)
going long A margin trade that profits if the price increases.
going short A margin trade that profits if the price decreases.
bullish An expectation that price is going to increase.
bearish An expectation that price is going to decrease.
ATH All-Time-High. We've gotten a lot of these the past couple months.
Altcoin Generally any crypto-currency other than Bitcoin or Ethereum. (Though some Bitcoin folks would probably still say Ethereum is an altcoin)
ETH The crypto-symbol for Ether. Kind of like stock market symbols. (i.e., the crypto equivalent of AMZN meaning Amazon stock)
Symbols of some other crypto-currencies that are regularly discussed/shilled around here: BTC - Bitcoin LTC - Litecoin ANS - Antshares SC - Siacoin XRP - Ripple ETC - Ethereum Classic FCT - Factom (described as a software license more than a coin, but can still be traded)
Tokens Refers to the 'currency' of projects built on the ethereum network that have raised money via issuing their own tokens. Some common tokens discussed on this sub: GNT - Golem REP - Augur BAT - Basic Attention Token ICN - Iconomi
ICO Initial Coin Offering, somewhat similar to an IPO in the non-crypto world. Startups issue their own token in exchange for ether. This is essentially crowdfunding on the ethereum platform.
Shilling / pumping Someone essentially advertising another crypto-currency. If a coin is promised to cure cancer or be the second coming of Jesus, it's being shilled.
stable coin A crypto-currency with extremely low volatility that can be used to trade against the overall market.
arbitrage Taking advantage of a difference in price of the same commodity on two different exchanges. Often mentioned when it comes to comparing ETH prices on Korean exchanges against US exchanges.
FOMO Fear Of Missing Out. The overwhelming sensation that you need to get on the train when the price of something starts to skyrocket.
FUD Fear, Uncertainty, and Doubt. Baseless negativity spread intentionally by someone that wants the price of something to drop.
FUDster Someone that is spreading FUD.
Pump And Dump The recurring cycle of an altcoin getting a ton of attention, leading to a fast price increase, and then of course followed by a huge crash.
Bagholder Someone still holding an altcoin after a pump and dump crash. Can also just refer to someone holding a coin that is sinking in value with few future prospects.
Market Cap The total value held in a crypto-currency. It is calculated by multiplying the total supply of coins by the current price of an individual unit. This site shows a great run-down of each coin's market cap: http://coincap.io/
ROI Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).
TA Trend Analysis or Technical Analysis. Refers to the process of examining current charts in order to predict which way the market will move next.
Crypto-currency related, but not really specific to Ethereum:
blockchain The classification of technology that Ethereum falls into. Blockchains are distributed ledgers, secured by cryptography. They are essentially public databases that everyone can access and read, but the data can only be updated by the data owners. Instead of the data residing on a single centralized server, the data is copied across thousands and thousands of computers worldwide. More detailed information available at: https://en.wikipedia.org/wiki/Blockchain
node A computer that possesses a copy of the blockchain and is working to maintain it.
mining The process of trying to 'solve' the next block. It requires obscene amounts of computer processing power to do effectively, but is rewarded with ether.
mining rig A computer especially designed for processing proof-of-work blockchains, like Ethereum. They often consist of multiple high-end graphic processors (GPUs) to maximize their processing power.
Fork A situation where a blockchain splits into two separate chains. Forks generally happen in the crypto-world when new 'governance rules' are built into the blockchain's code. Some more information available at: https://en.wikipedia.org/wiki/Blockchain#Hard_forks
POW Proof-of-work. The current consensus algorithm used by Ethereum.
POS Proof-of-stake (not piece of shit). The proposed future consensus algorithm to be used by Ethereum. Instead of mining in its current form, people that own ETH will be able to 'lock up' their ether for a short amount of time in order to 'vote' and generate network consensus. The plan is that these stakeholders will be rewarded with ETH by doing so.
sharding A scaling solution for blockchains. Typically, every node in a blockchain network houses a complete copy of the blockchain. Sharding is a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
software wallet Storage for crypto-currency that exists purely as software files on a computer. Software wallets can be generated for free from a variety of sources. MyEtherWallet (MEW) is one of the popular. (more on MEW below)
hardware wallet A device that can securely store crypto-currency. Hardware wallets are often regarded as the most secure way to hold crypto-currency.
Ledger Nano S / Trezor Two of the most popular hardware wallet models.
cold storage The process of moving crypto-currency 'offline', as a way of safekeeping your crypto-currency from hacking. There are a variety of ways to do this, but some methods most commonly used: ---Printing out the QR code of a software wallet and storing it somewhere safe, such as a safety deposit box. ---Moving the files of a software wallet onto a USB drive and storing it somewhere safe. ---Using a hardware wallet.
Terms more specific to Ethereum
smart contract Code that is deployed onto the Ethereum blockchain, often directly interacting with how money flows. Not my quote, but: "A normal transaction allows you to send money from A to B. Smart contracts allow you to send money from A to B, on the condition that C happens."
Dapp Decentralized Application. This refers to an application that uses an Ethereum smart contract as it's back-end code.
The Flippening A potential future event wherein Ethereum's market cap surpasses Bitcoin's market cap, making Ethereum the most 'valuable' crypto-currency. This site shows the progress of the Flippening in real-time: http://www.flippening.watch/
gas A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.
gas price The amount of ether to be spent for each gas unit on a transaction. The initiator of a transaction chooses and pays the gas price of the transaction. Transactions with higher gas prices are prioritized by the network.
Wei The smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (1018)
Gwei Another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (109)
Raiden Network An upcoming protocol change to Ethereum that will enable high-speed transfers across the network. It is similar in some aspects to Bitcoin's planned Lightning Network. The name, I assume, comes from the Mortal Kombat character named Raiden that can shoot lightning. More reading available at: https://themerkle.com/what-is-the-raiden-network/
Frontier, Homestead, Metropolis, Serenity The four planned stages of the Ethereum development roadmap. We are currently in the Homestead phase. The Metropolis update is likely to be available sometime in the next year.
MEW MyEtherWallet. A free site that can generate ethereum software wallets for you.
EEA Enterprise Ethereum Alliance. A coalition of startups and corporations trying to figure out the best way to use this dang thing.
DAO Decentralized Autonomous Organization. An investor-directed venture capital fund built on the Ethereum network that was hacked in June 2016. The hack stole about a third of the DAO's funds and led to Ethereum being hard-forked the following month. The DAO is often cited as one of Ethereum's biggest stumbles thus far.
🔵Technical vs fundamental analysis: the basics With this post, we're starting a series of articles about the technical aspects of the OneExBit terminal. It includes numerous charts and indicators that can help you maximize your profits – if you know how to read them. We will explain what different indicators mean and how to use them to predict prices. If you are only starting out in trading, you've probably heard that there are two types of analysis: technical and fundamental. What's the difference between them? Should you use one or both as a trader? 🔵Understanding fundamental analysis Fundamental analysis aims to determine the real value of a coin, regardless of its current price. It's suitable for long-term investors who are prepared to hodl their crypto for years in order to gain thousands of percent in profit in the end. When doing fundamental analysis of a token or altcoin, you should try to think of all the factors that can influence its price in the future: - Internal factors: the quality of the project's team (are there any famous crypto personalities on the list?), availability of a working product, activity on GitHub, size of the community, latest news and releases, trading volume, etc. - External factors: regulations in the project's jurisdiction, actions of the authorities towards crypto projects, possible legal risks, size of the target market, competition, current situation in the crypto market… It can happen that your fundamental analysis will show that a coin is seriously undervalued and is likely to grow. A classic case is Bitcoin itself: when it was released, it was traded just for a few cents, but all the potential for growth was there. Those shrewd people who recognized it and bought BTC early on are now millionaires. Of course, you can also find that a popular coin is overvalued and it's better to short it. (For instance, if you discover that the authorities in the project's country of registration are preparing a ban on all crypto). 🔵Technical analysis and the mysterious world of indicators Technical analysts don't claim that internal and external factors aren't important. Rather, they believe that all those conditions are already built into the price. There's no need to study the recent laws or a project's GitHub page. All you need are past prices and volumes as displayed on a graph. By connecting dots into lines, seeing where they cross other lines, identifying figures and patterns – that's how you predict the price movement. Luckily, OneExBit gives you all the data and charts – you just need to learn to read them. There are dozens of different calculations that you can perform on prices – and each will give you a different indicator. Every trader has their own favorites, though there are some universally popular ones, such as moving averages, MACD, and Relative Strength Index. We'll discuss them in our upcoming posts. Technical analysis is very powerful, and traders who master it earn much more than those who just read news and listen to rumors. It doesn't require any strong math skills, but you do need to learn indicators – which you can do by reading our blog! Ultimately both kinds of analysis have the same objective: predict future prices in order to earn a profit. We believe that technical analysis is easier to learn and use – especially when you have a powerful tool like the OneExBit terminal! Very soon, we'll start posting a series of videos explaining how to view and use different indicators in the terminal, so make sure to follow our updates. And of course, you shouldn't miss the upcoming arbitrage bot! We are created for your profit ❤️ Onex Team https://preview.redd.it/x6z7p1pjrkc31.jpg?width=3000&format=pjpg&auto=webp&s=6a9f9fe9bd683cae34f53ad2c8f105088f16a549 🔗Official links: 🔹Website: https://oneexbit.com 🔹Twitter: https://twitter.com/Oneexbit1 🔹Telegram: https://t.me/oneexbit 🔹Discord: https://discord.gg/4QtsXck 🔹GitHub:https://github.com/oneexbit/oneexbit-release/ 🔹Whitepaper: https://oneexbit.com/whitepaper-onex.pdf 🔹Medium: https://medium.com/@smmonex 🔹Reddit: https://www.reddit.com/usesmmoneexbit 🔹Bitcointalk: https://bitcointalk.org/index.php?topic=5129693
I made all-in-one cryptocurrency tracker app ACrypto
Hi Reddit! Here's why i made ACrypto : I was very much fascinated by cryptocurrency and started investing. First week was fine as i was new to everything then i started to realize there are so many problems and it's not easy to do trading or hodling cryptocurrency. I will summarize the problems
For everything i need to use different sites and every site does not support all fiat currencies
I use mobile a lot and this watching the charts by zooming with my fingers was a big pain.
I had to visit different newsites for the latest news.
I wanted to add alerts on these websites but none supported. Then i checked some apps which lacked functionality but supported alerts.
I found that there are lot of opportunities for arbitrage but no single website or app shows this in a easy understanding manner.
I want to maintain my portfolio along with all these things which again was not possible.
So I took the matter into my own hands and decided to build an all-in-one app for myself. Along the way i realized that i was not the only person who has been facing such problems and decided to publish it on playstore. Introducing ACrypto - Cryptocurrency tracker app which has
Basic Price and Volume Charts with more than 20 fiat currencies and 40 exchanges
Top list of coins in different fiat currencies where you can search and sort and view the details and exchanges
Cryptocurrency news from different newsites like bitcoinist, 8btc, coindesk, new.bitcoin
Arbitrage opportunities for top cryptocurrencies in different fiat currencies and where you can buy and sell
Alerts for Price change or Arbitrage change for all your cryptocurrencies
Maintain all of your portfolio in a single place
Advanced Charts for Pro Traders
The app is free to download and will serve all beginners. If you are pro trader then you can subscribe to pro features. I'm an Indie developer who is just coded this from my laptop at home. It's only been a very short period, so expect some bugs. Let me know how I can improve it and would love to take suggestion and feature request from all you guys. Thanks! Hari (@1HaKr) Get ACrypto
Breakdown: "financialization" of Bitcoin through alt markets and USDT?
I'm seeing responses to this selloff focus on the SEC's decision to postpone the ETF. People are saying things like "how is it possible that postponement of a decision can lead to a selloff like this? " I can't be the only person unsatisfied with the lack of a clear answer to that. Part of the answer I'm providing to myself is that there is more than one reason we are selling off right now. I'm entertaining the possibility that the SEC decision isn't even the most important factor in this selloff.
If the selloff isn't caused by the ETF decision then why did they happen at the same time?
Shit happens. Sometimes events trigger moves in markets that have been set up for a long time. The result of something like that is a systemc breakdown. Sound familiar? Also, the selloff started July 29th, well before the decision to delay. The selloff and the SEC's decision to delay seems to be irrationally linked by some; Sure, the selloff continued and picked up speed, but there's no reason to believe that the market wasn't primed to do that already.
What else is important?
Volume is important. More specifically, where capital is flowing to and from. https://coinlib.io/global-crypto-charts?theme=dark#global_money_flow We're seeing alt hoarders sell everything (including their BTC) into tether and cashing out to fiat (look at the volume moving in and out of the Yen!!!). We're probably losing about 100 million tether a week from the system right now. 3 weeks ago there were 2.7 billion. Today there are 2.4. That's substantial because money that's leaving the system through tether may not come back. https://coinmarketcap.com/currencies/tethe If nobody is depositing cash to buy tether then all tether can (and will?) leave the CC ecosystem. That's 2.4 billion USD of bear pressure available... and I'm starting to believe that can sell out.
What happens without economic incentive to create more tether?
2.7 billion less liquidity is a big hit to the total CC market cap. I'm not even sure how to estimate the impact, but it will be substantially more than a 2.4 billion USD drop in the net CC market cap.
Consider the CC space without tether.
If alts aren't relevant to this selloff then why are they dropping in value faster than Bitcoin? Why have they been losing market cap for months? You're watching the network effect of cryptos break down when tether leaves because without it you will observe deviations between exchanges that are 10% or more. We had tools to measure that kind of thing 2 years ago that don't even exist today. Today, exchange prices are so close that there's no reason to pay attention to it. Arbitrage bots become more prominent in a world without tether... and a world with more arbitrage bots is a world that is much less efficient. Less efficiency means less profit and less upside potential on every trade.
To understand what I'm getting at you should listen to this podcast or read this article on forbes. A sort of financialization has already occured in the CC space by way of alts and tether and the market is just starting to grasp the implications of that. If tether is gone, or so scarce that it might as well be, your options to cash out in most alt markets is probably limited to Bitcoin. Think of the size of that squeeze. Similarly, if alts are less prominent in this space then there is less demand on available Bitcoin because there are fewer altcoins (which also have less value). As the alt market shrinks so does the demand for Bitcoin... but the Alt market also shrinks because everyone knows that there is more claim to bitcoin by way of altcoin market caps than there is Bitcoin to go around.
Wow. Big claims there, Mr. Hates-All-Alts
First, I don't hate all alts. I'm categorically opposed to shitcoins. I'm not up for discussing what qualifies as a shitcoin to me, but I will admit that much bias. Second, the amount of disgust some people show when I suggest this possibility that alts are somewhat culpable is telling. I'm happy to discuss details that I'm missing, but I don't think everyone is rationally engaging with the information that's available. When I read emotional responses, like the ones I've been getting in the daily discussion, I'm prone to asking questions. So, feel free to get emotional; but please be able to support your emotional response with observations, facts, and or quality arguments. Trying to discredit what I'm saying by slandering me isn't doing anybody any favors. Please be patient and help me think through this with you.
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Arbitrage opportunity? Compare prices on TradingView
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