Published
Time to read
5 minutes
EN
How to Build a Crypto Trading Bot
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.
Related articles
Big Trading Opportunities with Kyrrex: How to Maximize Your Profits in Cryptocurrency Trading
The cryptocurrency market is a rapidly evolving landscape that offers big opportunities for profit. However, navigating this market can be challenging, particularly for those who are new to the space. In this article, we will explore how you can maximize your profitability in cryptocurrency trading by taking advantage of Kyrrex's wide range of trading opportunities.
The Relationship Between Open Crypto Trades and Profitability
Open trades are trades that have not yet been closed. These trades can have a significant impact on profitability, as they represent potential gains or losses. In general, having more open trades can increase profitability, as long as they are managed effectively.
One way to manage open trades is to use stop-loss orders. A stop-loss order is an order that automatically closes a trade when a certain price is reached. By using stop-loss orders, traders can limit their losses and protect their profits.
For example, if a trader buys a coin at $10,000 and sets a stop-loss order at $9,500, the trade will automatically close if the price falls to $9,500. This can help the trader get out of a bad trade before their loss becomes bigger.
Another way to manage open trades is to stay up-to-date with market trends. By staying informed on market trends and using technical analysis, traders can identify potential trading opportunities early and make informed trading decisions.
For example, if a trader notices that the price of a particular cryptocurrency is trending upwards, they may decide to open a long position (i.e. buy the cryptocurrency) with the expectation that the price will continue to rise.
However, it is important to remember that open trades are never risk-free. If the market moves against the trader, they may end up losing money on the trade. To minimize this risk, it is important to use appropriate risk management strategies, such as setting stop-loss orders and diversifying your portfolio. Stop-loss on a winning trade locks in your profits while a diversified portfolio helps to spread risk around.
The Importance of Trading a Wide Range of Cryptocurrencies
Trading several cryptocurrencies, instead of just one or a few, is essential for maximizing profitability. By limiting yourself to a small number of cryptocurrencies, you are potentially missing out on gains that could be made by trading in other coins. Additionally, trading more cryptocurrencies can help to minimize risk, as losses in one coin can be offset by gains in another.
Here are some benefits of a diverse cryptocurrency portfolio:
- Increased exposure to potential gains: By trading in a diverse range of cryptocurrencies, traders can increase their exposure to potential gains in the market.
- Minimized risk: By trading in a diverse range of cryptocurrencies, traders can minimize their risk by offsetting losses in one coin with gains in another.
- More opportunities for profit: Traders can open more orders in more cryptocurrency pairs, which increases the potential for profits.
Wide Crypto Trading Opportunities with Kyrrex
Kyrrex is a leading crypto-fiat platform that offers comprehensive services for individuals and institutional clients alike. With its advanced trading, storage, and payment technologies, Kyrrex is designed to meet the needs of modern cryptocurrency enthusiasts.
One of the main advantages of Kyrrex is its wide range of trading opportunities. Users can access the built-in trading terminal, which allows for seamless transactions in cryptocurrency pairs. Currently, Kyrrex offers a total of 20 currency pairs, including popular options such as AVAX/USDT, ETH/USDT, and XRP/BTC. By offering a diverse range of currency pairs, Kyrrex enables users to trade in a way that best suits their needs and preferences.
The Kyrrex trading platform boasts flexible functionality. Users can easily analyze and track quotes around the clock, select limit and market orders, and enjoy reduced trading commissions. These features make it easy for users to make more trades and analyze market trends, thereby increasing the chances for gains.
In addition to its trading capabilities, Kyrrex offers a comprehensive set of features to help users manage their cryptocurrency assets. With its state-of-the-art storage technologies, Kyrrex ensures the safety and security of user funds. Users can also take advantage of the platform's advanced payment technologies, which enable them to make and receive payments in a variety of currencies.
Conclusion
Maximizing profitability in cryptocurrency trading requires a combination of trading in a wide range of cryptocurrencies and effectively managing open trades. Kyrrex's wide range of trading opportunities, advanced trading tools, low trading fees, and real-time market data make it an ideal platform for those looking to engage with the cryptocurrency market.
5min reads
BTCUSDT: Analyzing Bitcoin's Performance on TradingView
Bitcoin (BTC) has emerged as one of the most popular cryptocurrencies in the world, and its value has skyrocketed in recent years. As a result, traders and investors have become increasingly interested in BTCUSDT trading on platforms like TradingView.
TradingView is a popular charting platform that allows users to analyze and trade financial markets. With BTCUSDT trading, traders can track the performance of Bitcoin against Tether (USDT), a stablecoin that is pegged to the US dollar. This pairing is commonly used on crypto exchanges, and TradingView provides comprehensive BTCUSDT charts and indicators for traders to make informed decisions.
BTCUSDT Price Action
BTCUSDT's price action has been volatile, with sharp price swings and fluctuations. However, the overall trend for BTC has been bullish, with the cryptocurrency hitting all-time highs in recent years. TradingView's BTCUSDT charts provide traders with the ability to track BTC's price movements in real-time, as well as view historical price data.
Technical Analysis on BTCUSDT TradingView
Technical analysis is a popular method for traders to analyze financial markets, and BTCUSDT trading is no exception. TradingView provides a wide range of technical indicators and charting tools to help traders analyze BTC's performance.
One popular indicator used in BTCUSDT trading is the Moving Average Convergence Divergence (MACD) indicator. This indicator can help traders identify trend reversals, as well as potential entry and exit points. Additionally, traders can use other technical indicators like Relative Strength Index (RSI), Bollinger Bands, and Fibonacci retracement levels to gain further insight into BTC's price action.
Fundamental Analysis on BTCUSDT TradingView
In addition to technical analysis, fundamental analysis is also important in BTCUSDT trading. Fundamental analysis involves analyzing the underlying factors that affect BTC's price, such as adoption rates, regulatory changes, and economic events.
TradingView provides traders with access to news feeds and economic calendars, which can help traders stay up-to-date on the latest developments that may affect BTC's price. Additionally, traders can use TradingView's social networking features to discuss and share information with other traders and investors.
Final Thoughts
BTCUSDT trading on TradingView offers traders a comprehensive set of tools and indicators to analyze Bitcoin's performance. With both technical and fundamental analysis options available, traders can make informed decisions about when to enter and exit the market. However, as with any financial market, BTCUSDT trading carries risks and traders should exercise caution and conduct their own research before making any investment decisions.
5min reads
Top 5 Crypto Charities
There are two sides to everything, though humans tend to focus on one side of the coin. The latest weapons can help through deterrence, not just destruction. Artificial intelligence is an incredibly useful tool despite its dangers. And cryptocurrency, just like everything else, can be a force for good in the world.
Crypto is about PnLs, market and limit orders, DeFi and staking, coin offerings and L1s. It is also about borderless payments which can facilitate goodwill donations by anyone from anywhere to any organization that works towards a noble cause.
The philanthropic space, just like health, finance and sports, has realized the benefits of adopting crypto. Some of the best known global and regional charities have created channels for crypto donations.
Bitcoin, Ethereum and stables like USDT are the most popular coins supported by charities accepting crypto. Depending on the type of crypto charity, other popular digital coins like Dogecoin, Monero, Bitcoin Cash and Litecoin may also be accepted.
So if you're moved to reserve some of your cryptocurrency holdings or trading gains for a worthy cause, there are lots of charity crypto projects that would be happy to receive your donation
These crypto-affiliated charities vary by mission. Some are dedicated to helping oppressed peoples in war-torn areas like Ukraine to stand up to the aggressors. Others utilize blockchain technology to support next-gen ideas and technology like effective altruism and AI.
These organizations all have noble goals and have thrived through the benevolence of citizens who use some of their crypto for charity. This article presents 5 reliable and dependable crypto charity projects. So if you're looking for charities that accept crypto, you've come to the right place.
1. Electronic Freedom Foundation
The Electronic Freedom Foundation (EFF) is a U.S. 501(c)(3) nonprofit that has a mission to defend civil liberties and human rights both online and offline, but especially online. It supports outreach and legislation that protect digital rights and provides funding for projects that promote the rights of the individual to free expression in the digital space.
The EFF sees increased legislation and user restrictions in the digital age as a wall that stifles creativity and infringes on the rights to liberty. Thus, it campaigns hard against moves that seek to restrict people's rights and freedoms, especially online. The organization has a long and proud history of canvassing change and is one of the best charity crypto projects around. It accepts Bitcoin, Bitcoin Cash and Ethereum from individual donors and you can also elect to receive some cool swag if you donate at least $100.
2. Kyrrex Charity
The start of the war in Ukraine has led to a groundswell of governmental, institutional and individual support for the beleaguered country which continues to maintain its independence in the face of overwhelming odds. The Kyrrex Charity is the social arm of Kyrrex, a regulated crypto-fiat ecosystem. Its goal is to work towards the war's end and victory for Ukraine by supporting the country's civilians, volunteers and defenders through financial aid.
The foundation organizes charity events and fundraisers all over the western world to raise money which it then distributes to various agencies across Ukraine.
Because of the difficulties caused by the war, crypto donations to Ukraine is one of the best ways to get money across to those who need it on the ground. That is why the Kyrrex Charity's main vehicle is a crypto charity fund. Benevolent individuals and organizations can directly donate Bitcoin, Ether and USDT through the foundation's Ukraine crypto donations wallets and be rest assured the money will be used for a worthy cause.
So if you have excess coins gathering dust in your wallet or cold storage and wondering how to donate crypto to Ukraine, you can send your coins to a Kyrrex Charity wallet and sleep easy knowing you've just done a great deed for humankind.
3. UNICEF Cryptocurrency Fund
Unicef, or the United Nations Children Fund, works in 190 countries across six continents to help children overcome developmental and geographical challenges and achieve their full potential from early childhood to adolescence. It's long been one of the most visible agencies of the UN and its impact has been felt in every corner of the globe for decades.
In 2019, UNICEF launched a crypto fund to simplify fundraising and grants distribution and reach their networks of donors and beneficiaries faster than the complicated web of traditional finance would allow. Donors can send BTC and ETH directly to the UNICEF CryptoFund. To date, the fund has received 8 BTC and 2527 ETH which is distributed to open-source frontier tech solutions showing promising results.
All donations made by the funds are done in BTC and ETH only and capped to $100k. Through this scheme, UNICEF has invested 52 ETH in a digital cash and voucher transfer platform in Nigeria, 43.5 ETH in a platform for digital healthcare savings in DR Congo, and 21 ETH in a tool for visual eye tests to detect vision disorders among children in the UAE.
4. The Giving Block
Would you like more control and flexibility over your charity crypto donations? Then you can check out The Giving Block. This donations service is like a crypto charity marketplace that allows you to give crypto to a nonprofit, charity, university, faith organization, environmental NGO or any other mission-driven agency of your choice.
The Giving Block emphasizes choice and flexibility. Donors are free to choose any of the 100+ organizations that accept crypto donations through the service. You can use their search tool to filter available organizations. For example, a "crypto donations Ukraine" search brings up the Ukrainian American Coordinating Council, the US-Ukraine Foundation and similar organizations. You can also switch to "Impact index funds" and donate crypto to a particular cause, such as the war in Ukraine, women and girls empowerment, or arts and culture.
Another big draw of The Giving Block is the versatility provided for those who use the platform to donate crypto to charity. Most blockchain-positive philanthropic platforms support just a few cryptocurrencies. But on The Giving Block, you have your pick of more than 70 crypto options to donate with such BTC, ETH, USDC, USDT, DAI, MAKER, AVAX, SOL, and many more.
5. The Tor Project
Tor, or The Onion Router, is the free and open-source browser that enables anonymous communication through a network of volunteer nodes spread across the world. The Tor project and its browser allow users to bypass censorship and restrictions on internet usage. It generates a semblance of digital privacy and independence in an environment rife with governmental policy.
The Tor Project accepts donations in crypto and other avenues to keep the Tor network running and protected against intrusion by global institutions and governments. Tor accepts crypto donations in 9 currencies including Bitcoin, Ethereum, Dogecoin, Augur, Dash, Litecoin, Monero, Stellar Lumen, and ZCash.
Donating Crypto to Charity
If you'd love to donate crypto to charity, you can try one of the organizations on this list or another one that accepts digital currencies. You can donate your crypto directly—no need to convert into a stablecoin or fiat money first. Moreover, if you have a stablecoin in your portfolio, you can donate that. The price of a stable fluctuates less compared to traditional cryptocurrencies, which can benefit the charity of your choice more than a volatile coin would.
Making donations to a charity actually helps fulfill one of the founding principles of cryptocurrencies—anonymity. By donating through crypto, you show that you truly care about a cause and aren't donating just to look good in the news or on social media.
5min reads