Grid Cryptocurrency Trading Bots

This strategy goes to the heart of Tezing! Here, the goal is to make 1-3% on your crypto assets every day, thereby doubling your money every 70 days or sooner. This strategy is interesting because it produces a relatively steady line of income without as much risk as other strategies. In exchange, it also limits some of your potential upside in rapidly gaining markets.

Thesis: If you believe Bitcoin, for example, is going to go from today’s price to $1M in the future, then it might make sense to buy some Bitcoin… You’d make a lot of money as the value of Bitcoin rose through the years; however, you might also recognize that there could be a way to make a lot more money than $1M as Bitcoins price fluctuates all the way to $1M… This strategy profits from the high volatility of cryptocurrencies. The grid trading strategy can earn far more money over time if you buy into Bitcoin every time it drops and sell every time it goes up – over and over and over again. If you had the time and the insight to do this millions of times over the next decade, you could make millions on BTC instead of just $1M. Buy with every tick down of BTC and sell again with every tick upwards… 

But how do you possibly figure out when to buy and sell? And how do you make sure you do it 7 days a week and 24 hours a day, for years??? Luckily, in a digital world, there are digital solutions to this problem. We are going to discuss how to setup an automated trading strategy that simply buys every time your crypto drops and sells every time it goes up. If you hold onto that strategy for the next couple years, you could double your money many times over.

What’s going to happen inside your new Grid Trading Bot?

This strategy automates the oldest sage wisdom in investing, buy low, sell high. And it makes money by doing this over and over again thousands of times per day. I’ll explain: Imagine a hypothetical cryptocurrency worth $10,000 per unit the moment you begin your automated grid trading bot. The instant after you start your bot, lets say that the price of this crypto drops to $9,990. The bot’s job is to buy a small amount of this crypto. Then, when the price of this hypothetical crypto rises again moments later back to $10,000, the bot sells the same amount of crypto that you just bought at $9,990 – netting you a small profit. It does this over and over again, buying when the price drops and selling when it rises, until you stop your bot… Results for thousands of people doing this today are similar, you generally make 0.3% – 3% profit daily.

How to get started.

Photo by Austin Distel on Unsplash

Follow these steps:

  1. First, setup an account with a cryptocurrency exchange like Binance or Coinbase.
  2. Fund your account – get cash into your exchange. You will likely need to upload a government ID and link your bank to get the best rates. This may take a couple hours/days sadly.
  3. Next, please meet your auto-trader: Bitsgap! Please sign up for a free demo account here: Bitsgap. Don’t worry if it all looks very complicated, we will decode it all in a moment.
  4. You must now connect Bitsgap to your Exchange. You do this by clicking on “my exchanges” in the Bitsgap top tab. You must setup an API connection to your exchange, which means finding how to setup an API in Binance or Coinbase (or whatever exchange you are working with).
  5. Once you have successfully funded your exchange and connected it with Bitsgap – you are ready for your first Bot!

Bot Setup:

Ok, so I’ve tried all sorts of trading strategies in Bitsgap and some of it’s competitors (of which there are many) and documented their results, like the data nerd I am. I can say without question, the best way to dip your toes in is to start with my conservative strategy. It can still produce 1% daily returns on your total investment, and it will do so without making you cringe if the market tanks.  Let’s call this Rob’s Conservative Strategy (RCS).

Rob’s Conservative Strategy (RCS):

  1. Chose a coin (more on this here). Let’s start with ETH (Etherium) as an example. Go into Bitsgap and look at the top right corner. You should see a drop down that says “strategy.” Choose SBOT. (IMPORTANT – DO NOT EVER CHOSE CLASSIC BOT – Bitsgap has stoped supporting it and I can’t figure out why they don’t delete it altogether)
  2. You should see your exchange listed next: Binance (or select which ever exchange you want to use – each exchange may have different trading options available).
  3. Next, select a trading pair – start typing in ETH to see the various trading pair options. You want to choose one that looks like ETH/USD or ETH/USDT – depending on what fiat currency you deposited into the exchange. 
  4. Next, select the amount of value you want to put into this bot. I suggest starting with at least $1,000. 
  5. Next, where it says “Upper Price” please type in a value just a little bit higher than the current market price. Today, ETH is trading at $3,400, so I’d choose to put in an upper price of $$3,450.
  6. Then calculate a 25% drop from that price and enter that number into “lower price” (in this case that would be $3,450 * 0.75 = $2587.5). 
  7. Next, tick “Trailing Up” to on.
  8. Now chose how many grid levels you want. Grid levels represent every price you will be buying and selling. I always select the highest possible number of grid lines so I put in 180 lines. Now, you may get a warning below where it says: “Start”, that you’ve selected too many grid lines. Simply click the warning link to “Fix it”. That will set your grid steps to the highest number you can fund. Note, the smaller the distance between gridlines, the more trades and the more money you will make.
  9. Next, click on any other warning signs and it should help you fix. 
  10. Finally, click “Start” – it will ask you to buy some very small amount of ETH, choose YES.
  11. With any luck, that will do it – and you have a working bot!  Now sit back and watch as the price of ETH fluctuates all day. It’s a bit addictive… When the price goes down past a grid line, your bot will buy. When it goes up, your bot will sell. And Bitsgap will tell you how much money you are making along the way.

Have any questions? Go to the Tezing forum here.

Also, check out the bitsgap FAQ’s for better help

Definitely watch these videos posted by Bitsgap to learn more: https://www.youtube.com/c/Bitsgap.  This could be your job for the next couple years – watch the videos and try to learn!

Now, for what to trade!?  Click here to see my humble opinion on where to start… In order of my priority. I’ll note, Bitcoin (BTC) is not on this list – I personally don’t like it but of course I own some. At the moment, BTC is my third largest position behind BNB and ETH. I do not trade BTC though, I have found it doesn’t produce the 1% I like to earn EVERY DAY.  So here is the list:

  1. BNB
  2. ETH
  3. DOT
  4. ADA
  5. ALGO
  6. EGLD
  7. LINK
  8. UMA
  9. Zil
  10. CGLD
  11. UNI
  12. AAVE
  13. TRX
  14. NU
  15. SNX
  16. LUNA
  17. ATOM
  18. AVAX
  19. XVS
  20. GRT
  21. COMP
  22. 1INCH

So those are my picks, but there are thousands of coins… And you shouldn’t put money into anything you don’t believe in – so do your reading. Below are some decent resources but nothing beats actually going to each crypto projects homepage and consuming everything they have to say. Learn to read their white papers! If this isn’t gambling, then it’s investing – and in that case, what these folks say about their crypto’s better make sense before you place your bets.

https://coinmarketcap.com
https://academy.binance.com/en
https://research.binance.com

Last bit of advice, this can be very addictive – it is effectively gambling at the moment. Be careful. Don’t invest more than you can afford to lose. If you find you aren’t sleeping through the night – you’re playing with too much money! Don’t come crying to anyone (especially me) if you lose big.

Once again – I take ZERO responsibility for your results. I really hope you can make a bit of cash this way but you may also lose 100% of it! As in EVERY, LAST, PENNY dreadful. So, proceed at your own risk! Good luck!

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