CRYPTOCURRENCIES

Ten years ago, cryptocurrency was a niche concern that most people ignored. Now, everyone is angling for a bite of the cake. Governments are thinking of ways to impose regulations and tax the industry. Venture capital has plowed in billions of dollars in expectations of big returns down the line. Various big and small outlets have added crypto to their payment systems.

Colleges and universities have also got in on the act, as crypto continues to grow in recognition and acceptance. For a long time, the involvement of educational institutions in crypto wasn't always salutary. Criminal organizations that attacked school networks often demanded that the universities pay the ransom in crypto. In many instances, the affected schools complied to get their networks restored quickly.

Now, this is changing. With better security protocols in place to protect schools from crypto-demanding hackers, attention has turned to the more positive roles and uses of blockchain technology in education.

In this article, we outline several ways crypto and blockchain technology is transforming interactions between universities and students and donors.

The bigger picture to crypto usage

It is worthwhile to situate the growing use of crypto in schools within the overall social trend. In recent years, crypto adoption has grown among the public, with the largest segment of new converts being young consumers. According to a CNBC report, 20% of US consumers have used cryptocurrency in some form. Another report by Ypulse found that 28% of the 13-39 age demographic have bought at least one crypto token. A sister report discovered that interest among that age group in non fungible tokens or NFTs peaked at 38%.

This increased attention to crypto isn't reflected in the industry's financial standing at the moment. Because of the global recession and implosion of some big players, the total capitalization of cryptocurrencies has shrinked from a peak of $3 trillion in November 2021 to just over $800 billion one year later.

Given the current gloomy climate, one might wonder why universities would want to have anything to do with crypto. Yet, research has clearly shown that tertiary colleges continue to utilize the technology in ways that benefit them. Let's look at 3 of these ways.

1. Tuition payments

Schools and colleges are getting more flexible in tuition payment options for local and international students. Some have included cryptocurrency in their list of accepted mediums of payment. Lucerne University of Applied Sciences in Switzerland has been accepting bitcoin for tuition payments since 2017. Bentley University, a private school in Massachusetts has partnered with cryptocurrency exchange Coinbase to accept tuition payments in bitcoin, ethereum and USD Coin.

Some universities restrict cryptocurrency payments for tuition to certain courses, perhaps as a test run for a schoolwide implementation. The Wharton School of the University of Pennsylvania stated that enrollees to its education online certificate program in Economics of Blockchain and Digital Assets can pay program fees with cryptocurrency.

These schools recognize that paying tuition with crypto is easier, faster and cheaper compared to traditional payment methods. And as school admissions become more diverse because of the upsurge in international applications, cryptocurrency is an inexpensive method to democratize payments. By letting non-local students pay using bitcoin, universities can receive payments on time and avoid the multi-day delays synonymous with cross-border payments.

Cryptocurrency is very volatile and universities must find solutions that safeguard the value of tuition received via digital currency. Each crypto-accepting institution deals with this differently. Some, like the University of Nicosia in Cyprus, immediately change the crypto into fiat.

As crypto adoption among schools keeps growing, one imagines consensus will gravitate towards a more stable cryptocurrency like USD Coin (USDC) as the cryptocurrency of choice for tuition payments.

2. Gifts and donations

More and more gifts and donations are being paid in digital currency, not just to universities, but to donation-eligible organizations at large. Fidelity Charitable, the largest grant-maker in the US, received $331m in cryptocurrency donations.

Cryptocurrency gifts to universities have continued to grow since Blockchain.com founder Nicholas Cary made a donation of 14.5 bitcoin to the University of Puget Sound, his alma mater, in 2014. In 2018, the developers of the cryptocurrency EOS donated $3m worth of the coin to Virginia Tech, to aid in blockchain teaching and research.

Ripple co-founder Larsen and his wife Lyna Lam went even further in 2019. They donated $25m in XRD, Ripple's native token, to San Francisco State University. Also in 2019, Nikolai Mushegian donated $4.2m in Maker (MKR) tokens to Carnegie Mellon University. Vitalik Buterin, perhaps the most significant figure in decentralized finance and the co-founder of the Ethereum blockchain, gave away $9.4m in cryptocurrency donations in November 2022. The money, donated to the University of Maryland, will help to fund research in public health.

Not every donation to colleges and universities come with a name tag. Some donors choose to remain unidentified. For example, in 2021 the Wharton School of the University of Pennsylvania received an anonymous donation in bitcoin worth $5m.

Cryptocurrency opens up an additional avenue for universities to receive gifts. It also makes it easy for donors to donate their digital assets without having to first convert it to digital cash. Plus, reticent members of the public can easily and directly support their favorite educational institutions while maintaining their privacy. Hence, some schools have published instructions on their websites for those who wish to donate with digital tokens.

3. Non-Fungible Tokens

Non-fungible tokens, or NFTs, are a class of blockchain tokens that stand for real-world artifacts. They are unique identifiers that cannot be replicated, divided or copied. Universities are leveraging this newfangled phenomenon to foster closer ties with alumni or generate funds for research.

The University of California, Berkeley created headlines in June 2022 when it auctioned an NFT for $50,000, with the proceeds going to immunology research. The NFT was inspired by the research of James Allison, a respected immunologist and winner of the 2018 Nobel Prize in physiology or medicine. The school continues to explore other avenues for NFTs.

Institutions that wish to leverage NFTs have no shortage of inspirations to use or history to mine. In August 2022, the University of Miami minted an NFT of the school's football team's 1989 championship win for $10,000. The school has a website where it lists NFTs commemorating the institution's various sporting successes.

Some universities have gone the extra mile to make NFTs more attractive by doing a tie-in with real-world perks like VIP seating at events. Others like Harvard University made it a badge of academic accomplishment. The school announced in May 2022 that each graduate of Harvard College will get a commemorative NFT. Duke University, meanwhile, offers NFT certificates to students who complete a blockchain technology course.

Conclusion

The blockchain revolution is alive and well despite the recent downturn and universities are taking advantage wherever they can. In accepting tuition and donations and making creative use of non-fungible tokens, universities are showing the rest of the world the real-world possibilities of crypto adoption.

Not even the current gloom in the cryptocurrency industry can dampen popular appetite for investments. Hope lives forever, as they say, and after the winter comes the summer. Many people are already buying up their favorite crypto at the current low prices in anticipation of a forthcoming boom.

Before you join the throng and throw in your hard-earned money, you should ask yourself a few questions. Nobody knows for sure when the bulls will come roaring back so it's best to be thoughtful and analytical about what crypto you invest in and how you do so.

How We Got Here

Recall that in 2020 and for much of 2021, prices of popular cryptocurrencies soared beyond even the most optimistic forecasts. Thousands of early investors became millionaires as Bitcoin increased 800% to an all-time high of $68,000 in November 2021. Popular altcoins like Ether (ETH), PolkaDot (DOT) and BNB followed suit and everyone was loving it.

If you've paid attention in the crypto space then you should be familiar with what followed next. A cascade of calamities gradually eroded market prospects and investors' confidence. Major events like the global economic downturn and the war in Ukraine led investors to pull out from more volatile investments.

That wasn't all. The crypto world was rocked by several high-profile scandals. Two of them—the collapse of the Terra (LUNA) network, and demise of cryptocurrency exchange FTX—have cost investors billions in losses.

However, it is not all doom and gloom. Industry veterans have noted that things like this have happened before. And each time, the crypto industry bounced back and grew even more. Now, all eyes are on 2023 for a strong rebound.

5 Questions to Consider Before Buying Crypto in 2023

Many analysts and big investors have marked 2023 as the year to test the crypto waters again. You should ask yourself these questions before you join them.

1- Can You Afford to Lose Your Investment?

Thousands of investors put all their money in Terra and Celsius before the former crashed and the latter declared bankruptcy. Thousands more have their life savings trapped in FTX.

Bad idea, Amigos.

Before you jump into crypto, be sure that you won't be financially crippled if things go south. Investment brokers advise to have an emergency fund which is separate from your investment portfolio. In other words, keep enough money in a savings or fixed deposit account first before you make a major investment move.

The world of investing is unpredictable; crypto even more so. Prices can fluctuate up or down against your expectations. A rainy day fund will cushion you against unexpected losses and real-life changes as well.

Imagine having to sell your crypto at 70% loss because you urgently need money. This will rob you of the benefits of the anticipated recovery. If you have emergency funds, you can use those in the meantime instead of selling your assets or taking a loan.

2- Are You Looking For Short-Term or Long-Term Gains?

The answer to this question will largely determine your approach towards dramatic dips and Black Swan events. If you're in crypto for quick profits, you will be more inclined to cash in at the first large green candle. In the same vein, you will be more likely to cut your losses at the first sign of trouble. This approach can work with newer altcoins which often enjoy a honeymoon period.

A more long-term perspective will insulate you from making emotional judgements based on momentary market changes. If you believe in crypto and the potentials of blockchain technology, you can handpick individual projects that you believe will perform well in the coming years.

Alternatively, you can stick with the major players like BTC and ETH because of their staying power and room for future growth. Either way, you should conduct in-depth research before you buy your preferred coins and be comfortable with their future yield potential.

3- How Diverse Will Your Portfolio Be?

There is no doubt that the rise of cryptocurrencies has opened a new investment avenue but it is also fraught with danger. Unlike stocks and treasury bonds, crypto is a relatively unregulated market with lots of bad actors, poorly-managed exchanges, and greater risk of failure.

For this reason, experts recommend making your crypto investments a reasonable part of a diversified portfolio. Rather than going all in, make crypto, at most, 10% of your overall investments. Put the rest of the money in stocks, bonds, real estate, gold, and other less volatile commodities. This way,a prolonged bear market won't make a big dent in your finances.

"Don't put all your eggs in one basket," comes to mind here. Plus, fortune doesn't always favor the brave, no matter what Matt Damon tells you.

4- Do You Have a Plan and Are You Committed to It?

A large segment of crypto investors hold coins because of reasons that have little to do with prudent investing. Many invest due to peer pressure, because others are doing the same thing. When Bitcoin and the larger industry went bananas in early 2021, plenty of people bought crypto because of FOMO—fear of missing out. They wanted in on the riches without any idea what they're actually doing. And while some of them got what they wished for, others ended up with bags of devalued crypto as smart investors sold their holdings.

To counter panic selling or buying, you need to have a plan and stick to it. Be clear about your aims in crypto and disciplined when carrying out your plan. Don't let momentary fluctuations sway you from the beaten track. How much are you investing, which coins will you put the money in, and when will you sell off your holdings?

Setting short, medium and long-term investment targets is also crucial. You can plan ahead to sell or buy a certain amount of a coin when it reaches a specific price point. With concrete plans like this, you will make better decisions.

5- Do You Understand the Risks of Buying Crypto?

Crypto is like the wild west. The potential rewards are great, but so are the risks. You shouldn't go into any venture without being fully informed about what you stand to gain—or lose. Keep it in mind that, in crypto, you can lose everything.

Whether to buy crypto in 2023 or not should depend a lot on your risk tolerance level. If a 5% drop will set your heartbeat racing, you might be better off investing in less volatile instruments.

Here are some of the crypto risks you show be aware of:

• Crypto prices can rise or fall seemingly without rhyme or reason. Some coins that fall dramatically may never rise again.
• There's lots of scams in crypto. A coin you own can turn out to be a rugpull—a scam token. A good project can also fail if its backers withdraw or the community loses confidence.
• Crypto platforms are not 100% safe. For example, see FTX and Celsius. A crypto exchange can fail for any number of reasons including mismanagement, hacks, bank run or if it loses its operating license.

There are ways to guard against losses. For example, you can use a regulated crypto exchange with a legal license instead of storing your coins on a shady platform. Studying projects before you invest in them will also help you spot and avoid potential rugs.

Looking Ahead

After recent setbacks, crypto faces an uncertain future but there are signs that a recovery isn't far off. Governments across the world are now paying more attention and making moves to plug regulatory gaps. This should make the sector more safe for investors who operate on cryptocurrency exchanges.

If you're expecting quick returns, crypto might not be for you right now. Experts project a slow recovery after the bleak 2022 so a 2021-style run is probably out of the question.

Even so, with some savvy research and quick planning, you can spot coins with the potential to yield big gains when the bulls return.

PrimePool, in partnership with Huobi!

We are excited to announce the return of PrimePool, in partnership with Huobi! For now, users can lock their HT tokens for any length of time before the event ends to earn a reward of up to 1,208,898 KRRX tokens.

The event will run from 12:00 UTC on January 18, 2022, to 12:00 UTC on January 25, 2022, so make sure to participate before the event ends.

Event: Win Over 1 Million KRRX Tokens!

Specifically, you can lock any number of HT tokens from 100 units and receive an additional reward in KRRX tokens for doing so (the reward is calculated according to a formula that you can find on the event page at the link below).

This is a great opportunity for users to experience the upgraded PrimePool and win grand rewards. With simple rules, this event is open to all!

To join the event, all you need to do is visit the link provided and follow a few steps.

Your Kyrrex Team 💚

We are happy to announce that Huobi, one of the biggest and most reputable cryptocurrency exchanges in the world, has listed the KRRX token!

When can I start making KRRX deposits and trade?

Huobi has already enabled deposits for KRRX holders. You can start making KRRX deposits right now!

KRRX spot trading (KRRX/USDT) will open when the deposit volume meets the requirements for market trading on Huobi. Once the trading volume threshold has been met the commencement date of KRRX/USDT spot trading will be officially announced.

KRRX withdrawals will open at 12:30 (UTC) on January 18

Let’s develop the KRRX ecosystem together!

The KRRX token provides a seamless way to interact with services and features on the Kyrrex network. All KRRX holders are entitled to discounted fees and other special advantages.

KRRX is connected to many inner projects as well as linked to numerous initiatives, including significant partnerships in the sports industry. Currently, Kyrrex intends to expand agreements with MotoGP rider Jorge Martin, Moto2 young talent Pedro Acosta, and paddle athlete Martin Di Nenno.

Moreover, will launch Kyrrex Sport soon. A marketplace for potential athletes' image rights that are represented by fungible tokens (not NFTs) as well as an NFT marketplace for their personal collections.

This listing is a major milestone for Kyrrex as the company aims to make the KRRX token more accessible to users around the world. We are confident that Huobi's high liquidity and solid reputation would be extremely beneficial to our users.

To further improve the Kyrrex ecosystem, we will continue to reinforce existing collaborations and explore new strategic partnerships with industry stakeholders.

Stay tuned!

Your Kyrrex 💚

The tournament offers a massive prize pool of 50,000 KRRX and guaranteed payouts for 500 winners, providing all participants with the opportunity to come out on top.

The tournament will run from January 17th to February 1st, giving participants ample time to demonstrate their trading strategies and compete for the top prizes.

Don't miss out on this exciting opportunity to win big and register for the tournament today!

How to become a participant of KRRX-Huobi tournament:

1️⃣ Register on the Lot.Trade;

2️⃣ Create a new account on huobi.com;

3️⃣ Create an API key on the Huobi exchange and connect it to your Lot.Trade Personal Account;

4️⃣ Achieve a trading volume of at least 150 KRRX within 24 hours after registration;

5️⃣ Actively trade KRRX from the created profile on Huobi throughout the tournament, until its completion on 01.02.2023;

6️⃣ Wait for the results and get the desired prize

The first 1500 users who successfully complete the registration and trading conditions within 2 days after the tournament begins, will receive a bonus of $10. This is a limited offer, so don't miss out on this bonus opportunity.

So, are you ready to join the Kyrrex and Huobi crypto communities and compete for a prize pool of 50,000 KRRX and guaranteed payouts for 500 winners? Then fulfill the registration and trading conditions now and join our exciting crypto tournament.

Your Kyrrex 💚

In this article, we will provide a step- by-step guide to adding the new KRRX token on Trust Wallet app and converting all your old KRRX tokens on Trust Wallet to the new token.

How to Add the New KRRX Token to Trust Wallet

On January 12, 2023, the KRRX token migrated to a new contract address. This move, or rather upgrade, tightened up the token code to make it more secure and impregnable to all known threats. All minted and circulating KRRX tokens across all platforms will move to this new address.

KRRX is the native token that serves a popular exchange, Kyrrex. It will also, with time, serve a wide ecosystem. Hence, it's a very popular coin held by many users on exchanges like Kyrrex, HiBtc and Huobi, and also in non custodial wallets. If you're one of those holding KRRX in Trust Wallet, this guide will show you the steps to add the new KRRX tokens to your personal wallet. We will also show you how to convert your old KRRX holdings to coins using the new contract.

Part 1: Deposit Your Trust Wallet KRRX Tokens to Kyrrex

If you hold KRRX in Trust Wallet (and any other non custodial app), you first of all need to exchange your old coins with the new ones. The only place to do this is on Kyrrex.com, the Kyrrex app, or @krrx_bot on Telegram.

Here's how to use Kyrrex.com to deposit your old KRRX tokens.

Step 1: Visit Kyrrex.com in your browser.

Step 2: Log into your Kyrrex account and navigate to Wallet.

Step 3: Select KRRX in the currency list.

Step 4: Click Deposit.

Step 5: On the next screen, copy the deposit address for KRRX Token OLD.

IMPORTANT❗

Make sure you're copying the deposit address for KRRX Token OLD. The contract address for the old KRRX token and the new KRRX token are different.

Step 6: Now open your Trust Wallet app.

Step 7: Select Kyrrex and click Send.

Step 8: Paste the copied address in the Recipient Address field.

Step 9: Enter the amount of KRRX you wish to send in the Amount KRRX field. If you wish to send everything (this is strongly recommended) click MAX.

Step 10: Hit Continue and then click CONFIRM on the next screen to finish the deposit.

IMPORTANT❗

KRRX is a TRC20 token. So make sure you have some Tron in your wallet for gas fees.

Part 2: Remove the Old KRRX Entry From Your Trust Wallet Screen

You are going to be adding the new KRRX token to Trust Wallet soon. To avoid confusion, we recommend removing the old Kyrrex entry first. Here's how to do it.

Step 1: Open the Trust Wallet app and click on the Token Management button. The button is located on the upper right corner of the Trust Wallet app.

Step 2: Scroll down to Kyrrex in the list of tokens.

Step 3: Toggle the Kyrrex button to Off to remove the token from your Trust Wallet home screen.

Part 3: Add the New KRRX Token to Trust Wallet

IMPORTANT❗

Please update your Trust Wallet app to the latest version before you continue.

Step 1: Open the Trust Wallet app and click on the Token Management button. The button is located on the upper right corner of the Trust Wallet app.

Step 2: Click the big ➕ icon at the top right corner of the Token Managementscreen. This will open the Trust Wallet Custom screen.

Step 3: Next step is to select the network. KRRX is a TRC20 token on Tron. So, click Network and select Tron.

Step 4: Select TRC20 and then paste the new KRRX contract address into the Contract Address field. The rest of the data will be filled automatically.

NEW KRRX CONTRACT ADDRESS:

• THS2ZuQowumzFPD1z3wchB1PijWMggUgmA

Crypto trading has brought about a whole other level of fortune and wealth creation. Compared to the traditional trading models and methods, crypto trading is positively revolutionary. Despite—rather, because of—the high incidences of volatility in crypto prices and valuation, a beginner in the trading industry can go up a couple of zeros in investment returns without stress.

The main thing in crypto trading, however, is not that the value of a typical crypto asset is unpredictable. No. The main bite to crypto trading is that there are so many ways to trade. The use of strategies and automated trading is just the top of the pack. But that is not the focus of this article.

The focus of this article is to show you an easy method that you can use to build a crypto trading bot. This method is easy enough for newbies to implement and relevant enough for experts to test and adopt.

Easy Steps to Building a Crypto Trading Bot

The use of crypto trading bots has gradually become the heart of automated trading. Currently, the ideal way to increase the speed at which you monitor the market and widen your trading scope is by having crypto trading bots on hand. Recognizing this fact, software developers have made sure to create as many trading bots for crypto trading as possible.

However, as one would expect, there are a lot of counterfeit crypto trading bots available today. Thus, one way to save yourself from embarrassment on one hand and possible loss of trading funds on the other is to learn to build trading bots yourself.

Here are 8 of the most common steps used to build a crypto trading bot.

Select a reliable programming language

The core element of crypto trading bots is the code that they are written in. As you know, a crypto trading bot is not an actual robot, only the digital construct of one. Thus, how well the trading bot can function depends on the code (or algorithm) that underlies it. And this is why it is important to use a reliable programming language to build your trading bot.

Many popular programming languages are commonly used to build crypto trading bots. The most popular of these languages is Python. Others include C++, C#, Java, and R. Your familiarity with any of these languages should determine the one you choose to use eventually.

Get a good API

An API is the equivalent of a connector that lets your trading bot communicate with the trading market. Officially, API is short for Application Programming Interface, and it serves as the link between software applications so that you can ‘talk to’ the computer.

In the context of this article, a good API lets your trading bot interact with different exchanges. This way, the bot can ‘read’ signals from the crypto market and make decisions that crypto exchange platforms can understand.

Register with dependable crypto exchanges

Talk about crypto platforms and exchanges, this is where the trading bot you are building can truly shine. They are essentially platforms, centralized or decentralized, that allow you to interact with the trading market.

Registering with a dependable crypto exchange is important. For one, most crypto exchanges, the centralized ones, especially, require you to sign up with personal—often confidential—information. Nevertheless, the same way APIs allow your bot to interact with exchange platforms, these exchange platforms allow your trading bot to interact with the crypto market.

Consider sound strategies for the trading bot

So, we mentioned programming codes as the core element of trading bots. This is true. However, you can only consider these the hard parts of the core, not the soft part. Trading strategies make up the soft parts of the trading bot core. Without these soft parts, the bot you build will have no direction.

There are many strategies that you can use with your trading bot. The most common ones include arbitrage (buying crypto units from one exchange and selling on another), momentum trading (using trends in the market to trade), mean reversion (using price ranges around the average to trade), and more.

You can decide on the strategy that best fits your crypto trading style and implement it along with your bot.

Design the operative structure of the bot

The operative structure of the trading bot you are building is another core element. This is the architecture or framework within which the trading bot can operate. It is the mathematical model over which the bot makes decisions.

Deciding on the exact mathematical model can also be a taxing exercise. You can consider it the combination of the programming code (as an algorithm) and trading strategy that we mentioned earlier.

Monitor the bot creation

So far, we have listed the different components that you need to build a crypto trading bot. Now, you need to assemble these components to have something tangible. This process is very important because it serves as the point at which you combine the algorithm with everything else.

Some bot developers generally use more than one professional programmer just to keep things going. This helps you cover all possible gaps. It is better than doing it yourself, so you can use Slack or Github to get professional developers.

Test out the bot

The testing process is a feedback stage. It is the first step after you have developed the bot or a workable model of the trading bot. Because the bot runs on a mathematical model, there is always the possibility that the model is not accurate enough to be useful in the market. Therefore, you need to test it to determine the margin of error and correct it.

Moreover, this testing phase allows you to measure the risks involved in using the trading bot. As a result, whenever you use the bot (or recommend it to other crypto traders), you can have some level of assurance as to the extent to which it can work before uncertainty creeps in.

Launch it for use

This is likely the most enjoyable part of the bot creation process. It is where you have tested it enough times to know that it is useful and relevant for actual trading. Thus, this is where you deploy it in the market and begin to use it for automated trading.

Why You Should Build a Crypto Trading Bot

As you probably know now, using a crypto trading bot saves you a lot of trading time. However, building the bot yourself removes every uncertainty you might get from using the bot.

The main reason you should build the bot you use is that you know the bot best. You will not be surprised by whatever it does and can stay assured of its efficiency. Thus, the risks involved in using the bot you developed are never as high as the risks involved in using a third-party bot.

So, in summary, building a crypto trading bot gives you absolute control over the bot. By extension, you have more grasp of your investments and can better manage them through the bot.

Useful Alternatives to Consider: 5 Top Crypto Trading Bots of 2023

1- Pionex

Pionex is by far the most popular platform for trading bots. With Pionex, you get 16 free trading bots, each fitted with a different trading strategy. Due to how easy it is to use, Pionex emphasizes simplicity. So, you don’t have to be an Einstein to be able to make significant profits in crypto trading by using the bots.

2- BitQuant

BitQuant is a radical trading bot platform. Where other bots are only easy to use and extensive in the number of exchanges they work with, the BitQuant trading bot is super effective. So effective is it that you are guaranteed up to 20% monthly profits as long as you use the bot effectively. Moreover, the bot greatly reduces the risks of trading losses, so you don’t have to spend every minute worrying about what you will gain or lose.

3- Coinrule

Coinrule is another great place for trading bots. It is also easy to use and allows straightforward implementation of strategies. The best thing about the platform is that you get to use the bots even though you are on a basic plan.

4- Botsfolio

Botsfolio is also solid in offering useful crypto trading bots. It also allows easy integration of trading bots with trading strategies. Moreover, there is a cool community of crypto traders that are always available to assist you when you have questions. It also gives you a guaranteed monthly profit range per time, but this is not as high as that of BitQuant.

5- TradeSanta

Lastly, TradeSanta is a crypto trading bot platform where there are an unlimited number of bots for your use. Once again, ease of use is the priority, so you should have no problem plugging into the crypto market with the TradeSanta bots and getting solid returns on your investment.

And that is all you need to know about building crypto trading bots. The process is simple and requires you to have some knowledge of programming, yes, but nothing too advanced. And if you want to save time and effort, you can simply use any of the bots listed in this article.

Crypto trading is the new star in the corridor of trading. Since it emerged along with decentralized finance, NFTs, and other variants of blockchain technology, it revolutionized the trading floor. The volatility makes instant and large returns on investments possible. But this is also true for losses. Trading bots make the field somewhat even.

For crypto traders that use bots, maximizing profits and reducing risks is a simple thing. However, to effectively use crypto trading bots, you need to know them inside and out. This is one of the factors that set winning crypto traders apart from the others.

The aim of this article is to resolve questions about crypto trading bots. In it, we define crypto trading bots and show you how it differentiates automated from traditional trading. More importantly, the article shows you how these crypto trading bots work, their effectiveness, and great examples of these bots.

But first, what is a crypto trading bot?

What is a Crypto Trading Bot?

A crypto trading bot is exactly what it says it is—a bot that trades crypto. Realistically, it is a digital robot (bot) made up of programmable algorithms. In other words, these bots are computer software that traders use to fill the gap and automate trading. The operative word, thus, is automate—meaning that you can use them for trading with significantly less effort than if you were trading yourself.

How Crypto Trading Bots Work

Crypto trading bots work by being able to interact directly with crypto exchanges on your behalf. They function as go-betweens and carry out every task you have delegated to them. As they are efficient, trading bots are able to manage your crypto account and trading activities. This is possible because of the existence of authenticating identifiers such as API (Application Program Interface) keys.

When you use crypto trading bots, you are fundamentally banking on their code to do your bidding. These scripts of code allow you to customize them or set conditions within which they can buy and sell on your behalf. Thus, with crypto trading bots, you can better detect opportunities in the crypto market via signal generation, reduce risks via risk allocation, and boost trading performance.

To better understand how crypto trading bots work, you should know some of their core characteristics and capabilities. The most common of these are:

1- Ruled-Based Operations

A crypto trading bot’s operations are rule-based, meaning that these bots are programmable. Unlike human traders, trading bots are fitted with code that will run as they should unless they have been tampered with. These code scripts contain everything that the trading bot can do and will do. Thus, there is no room for surprises when it comes to the operations of crypto trading bots.

The implication of this characteristic is reliability and trustworthiness. You can ‘trust’ crypto trading bots, therefore, to run within whatever framework you set for them. This is the heart of the automation element of bot trading. It is also one of the reasons trading bots are popular and perceived to be effective.

2- Backtesting Capabilities

Backtesting generally has to do with being able to use past occurrences to assess the present and the future. In other words, it is all about using historical data (back) to evaluate the outcome of a decision or outcome (testing). For crypto trading bots, the same principle holds: it is how well bots can ‘map’ historical trading data for decision-making.

Needless to say, backtesting is a core element of data-driven trading. Using crypto trading bots this way consequently affords you a significant degree of guarantee and confidence. This is another reason some traders rely on crypto trading bots. After all, backtesting with pen and paper can be tedious and error-ridden.

3- Signal Generation

The generation of signals is a step process and capability after backtesting. It is simply the ability of the trading bot to identify trading ‘hot spots’ and ‘cold spots’ and make recommendations on this basis. Hot spots, in this context, are opportune periods and prices that fetch good profits. Cold spots, on the other hand, are periods and prices that demoralize traders.

When a bot has an effective signal generator, it can easily and promptly analyze data for decision-making. You can compare crypto trading bots on this basis, in fact, since some are better signal generators than others.

4- Risk Assessment and Allocation

Risk assessment and allocation is the ability of trading bots to recognize not only the opportunities of trading but also the risks. In a way, this is the exact opposite of signal generation. In the same way that signal generation centers on profit-making, risk allocation revolves around risk reduction.

Risk assessment and allocation is one of the core elements of crypto trading bots. After all, the crypto market is a billowing river of uncertainties. Thus, having something that can tell you that this crypto investment has high risks and low returns is very useful.

5- Automatic Implementation and Execution of Trading Strategies

Lastly, crypto trading bots are fitted with scripts of code that enable them to implement trading strategies and execute them. The operative word is automatic. In other words, once you get the trading bot to execute a particular strategy, you can automate the execution of that strategy. Of course, some crypto trading bots are known for the execution of particular strategies, that’s another relevant fact.

These strategies are the guidelines, in a word, of trading activities. Thus, while the developers of crypto trading bots equip them with rule-based code, you equip them with strategies. One allows them to run as trading bots, the other allows them to be useful tools for trading.

How Effective Are Crypto Trading Bots and Why Should You Use Them?

Trading bots are as effective as you allow them. A typical trading bot provides you with automated trading services for entry and exit points, and profit and loss margins. In effect, trading bots add efficiency, diversity, and extensiveness to your trading activities. With them, you can track more cryptos with less effort, and quickly spot investment opportunities ahead of time.

Once again, how much you can get from crypto trading bots depends on you. A trading bot like BitQuant, for example, can get you as high as a 20% guaranteed profit monthly. This allows you to rest easy as a crypto trader even though you spend more of your time pursuing other interests.

Other trading bots offer a multiplicity of services (recall the core characteristics/capabilities of crypto trading bots). However, some are unique in that they prioritize some of these services over others. Thus, knowing how to recognize great trading bots can take your trading game to the next level.

What Are the Best Crypto Trading Bots?

Crypto trading is a thriving industry. As a result, there are a lot of trading bots in the market, each fitted with a different set of advantages. Nevertheless, there are a number of trading bots you can rely on since they try to cover every aspect of profitable trading.

1- Pionex

Pionex is likely the most popular platform for crypto trading bots at present. In fact, there are 16 such trading bots on Pionex, and these are the free ones. Each of these bots, however, is fitted with a different defining feature. Thus, variety and diversity is the main thing you get from using Pionex crypto trading bots.

Cryptohopper

Cryptohopper is another incredible platform for crypto trading bots. The bots emphasize automation over anything else and use their AI (artificial intelligence) capabilities to implement a variety of trading strategies. Cryptohopper trading bots also emphasize diversity and flexibility, so using them means that you get more out of crypto trading effortlessly.

BitQuant

Where other trading bots offer only cryptos and crypto exchange diversity, BitQuant adds a guaranteed periodic profit margin of 20%. The emphasis of this particular bot is trader convenience. Thus, the platform ensures that your assets on the crypto trading floor and market are secured, risks are low, and trading is stable and profitable. Moreover, the customer service on this platform is very responsive, so you also get access to trading support from professionals.

Trality

Trality is another trader’s favorite when it comes to winning crypto trading bots. It is especially appreciated by crypto traders who can use the Python programming language. Thus, if you know Python, you will get much more out of Trality than many traders get from other trading bots. Nevertheless, the bots are also good for beginners and traders that know nothing about Python.

CryptoHero

CryptoHero is one of the best crypto trading bots for beginners. The bot services, interface, and even AI integration all ensure that you get a seamless experience without drowning in technical detail. Like the other platforms listed in this article, CryptoHero offers all the core components of trading bots with AI-enabled efficiency. It is one of the best in the industry.

That is all you need to know about trading bots to become a profitable crypto trader. Thus, and as you now know, crypto trading bots are not only efficient but also save you from rigorous mental gymnastics. Overall, using them allows you to easily increase your trading scope, reduce risks of dream-capsizing losses, and boost your earnings.