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Different Types of Crypto Trading Bots

CoinCodeCap — Tue, 18 Feb 2020 17:28:15 +0000

Just like in traditional markets populated with algorithms, in cryptocurrency markets, trading strategies can be automated using trading bots. Recently we have written a guide to cryptocurrency trading bots. In this article, we’ll take a closer look at different types of crypto trading bots.

These bots are built based on buy and sell strategies and are common in both traditional and cryptocurrency markets:

Trend trading bots
Arbitrage bots
Coin lending bots
Market making bots

In the world of automated cryptocurrency trading, several companies are competing for dominance in the market. There are cloud-based and downloadable bots which integrate with the most popular exchanges.

Crypto trading bots are built for both beginners and experts. You will most likely be blown away by the number of products with indicators, signals, and risk-management features fitting specific trading strategies. So how to choose the right trading bot for you?

Here is a list of typical trading strategies that can be automated either in crypto or traditional trading.

Check out the complete list of crypto trade automation softwares on CoinCodeCap.

Trend trading bots

As you can probably see from the name of the bot, it takes into account the momentum of a particular asset and, after analyzing it, executes buy or sell orders.

If the trend shows the upsurge in the price, the bot will enter a long position. And similarly, it will enter into a short position once the price drops.

In short, trend trading implies that an asset will continue to move in the same direction as it is currently moving, and the trend trading bots make this fact work in their favor.

In order to determine a trend, bots can use price action or other technical indicators, for example, moving averages, momentum indicators, trend lines, and chart patterns.

While setting up a new bot, you might want to add technical indicators that will be used by the bot.

The PSAR indicator shows an uptrend in Bitcoin price that the trend trading bot can take into consideration to place a buy order

Arbitrage bots

This particular bot utilizes the concept of arbitrage. Arbitrage is a trade that exploits an imbalance in the price in different markets or different forms. In inefficient cryptocurrency markets, this is especially relevant. While simultaneously purchasing and selling an asset, you can profit from the existing imbalance.

Thus, arbitrage crypto bots are programmed to track the difference between the coin’s price in different markets. To later buy the coin where the price is lower and to sell where it is higher.

Arbitrage bots were particularly popular before 2017’s crypto hype, but these days they are harder to exploit because the spread between exchanges is much narrower than it used to be.

Coin lending bots

One of the exciting ways to earn on cryptocurrencies is to lend coins to margin traders who will later return you the loan with percentage.

Some exchanges like Bitfinex and Poloniex have this margin funding option. Yet, it’s tedious to set the number of parameters manually every time a margin trader returns your money, and you need to arrange a new loan.

Coin lending bots help you automate the process, spend less time looking for the right interest rate, and take advantage of possible spikes in lending options.

While setting up such a bot, you can configure your strategy, withhold lending until the current interest rate reaches a certain threshold, choose a currency, and a date you want your coins back.

Some of those coin lending bots are free, some of them you can even find right on top of the exchanges that do margin funding.

Market maker bots

Orderbook spread is something that the market maker bot utilizes to bring you profits.

The more actively an asset is traded, the wider the spread will be, and the more profits market maker bots might return. The main principle here is to sell to investors at a higher value than a selling price and do it as often as possible.

The market maker bot places an order with a price that is different from the market price and, thus, making a market, earns money for the owner of the software.

It scans for markets with a wider spread and does it 24/7, giving a trader an advantage of time, volume, and price.

Wrapping Up

In conclusion, it is still possible to get ahead of other traders in the crypto market. While using automated software, as an individual, you have a better chance to fight against the whole world and even win.

The most popular tools in your crypto trading arsenal might be trend trading bots that await the momentum. Arbitrage bots to exploit the price imbalance in different markets. Coin lending bots to help you get rid of unnecessary manual work on top of crypto exchanges and market maker bots that utilize fluctuations in the spread.

Also, Read

Five Best Crypto Trading Bots

Best Bitcoin Payment Processors

CoinCodeCap — Tue, 18 Feb 2020 17:25:20 +0000

One of the main benefits of accepting Bitcoin payments is that your customers can pay you from anywhere in the world without any hassle.

Today, many companies and solutions enable crypto payments for merchants. We have picked some of the best Bitcoin payment processors for you. Let’s dive in.

Check out the complete list of Crypto payment processors on CoinCodeCap.

Bitpay

Bitpay is one of the oldest Bitcoin payment processors. Started in 2011, Bitpay has processed more than $2.8bn in total bitcoin payments.

Bitpay charges 1% as a payment fee* for all your payments and supports multiple cryptocurrencies other than Bitcoin.

The team also offers Wallet and Crypto card services for individuals.

Bitpay features:

Online Payment integration through APIs
Invoicing
Email Billing
Payment Button
Point of Sale support
Automatic Bank settlements
Supports Bitcoin and other Altcoins
Custodian solution
Integration with platforms like Shopify, Woo-Commerce, etc.

OpenNode

OpenNode is Bitcoin only payment processor with Lightning network support. Like Bitpay, OpenNode also charges a 1% payment fee* for all your transactions.

OpenNode Features:

Lightning Network support
Online Payment integration through APIs
Instant Settlement with low transaction fees
Payment buttons
Microtransactions support
Bank settlements and free wallet transfers
Custodian solution
No chargeback and .csv file for Bitcoin accounting and tax purpose
Integration with platforms like Shopify, Opencart, etc.

Read OpenNode reviews on CoinCodeCap

Coinbase Commerce

Coinbase Commerce is a payment processor by Coinbase, one of the top cryptocurrency exchange. It supports Bitcoin and other altcoins, including their stable coin USDC.

One of the best features of Coinbase commerce is that it does not charge any payment fee.

No payment fee
Multi-currency support
No limits on transaction size
Online Payment integration through APIs
Customized payment buttons
Hosted checkout pages
Custodian solution
Integration with platforms like Magento, PrestaShop, etc.

BTCPayServer

BTCPayServer is an open-source payment processor that supports the Bitcoin and other altcoins. It is free to use a self-hosted solution, so you don’t need to pay any payment fee.

With BTCPayServer, you are responsible for the custody of your assets. It supports all the features of a payment gateway, and you can modify it based on your needs.

BTCPayServer features:

Open source, Self-hosted and Non-custodial
Bitcoin-only payment processor with Lightning support
E-commerce plugin support
Complete privacy, No KYC/AML
Payment button
Point of sale support
Invoicing support
Quickbook integration

Read BTCPayServer reviews on CoinCodeCap

CoinPayments

CoinPayments supports more than 1700 cryptocurrencies and charge 0.5%* as a payment fee for all altcoin payments.

It also provides a vault functionality to safeguard your cryptocurrencies and coin-swap for some of the altcoins.

CoinPayments features:

E-commerce plugin support
Invoicing
Payment buttons and donation buttons
Online Payment integration through APIs
Point of Sale support
Extra security with vault feature
Custodian solution
Auto coin swap for some altcoins

CoinGate

Coingate payment gateway supports more than 50 cryptocurrencies and integrates with e-commerce platforms like PrestaShop. It also supports the Lightning network. It charges a 1% payment fee* for all your payments.

CoinGate features:

Online Payment integration through APIs
Bitcoin, altcoin and Lightning network support
Payment button
Point of sale support
Custodian solution
E-commerce plugins for Magento, Opencart and other platforms
Bank settlements

Wrapping up…

Selecting a payment processor depends on your business needs, If you are looking for more control and privacy go for BTCPayServer. If you are looking for free softwares, check Coinbase Commerce and BTCPayServer.

In a world where people are using the Internet for all types of services, crypto is the future. Merchants all over the world started accepting Bitcoin payments, and with stable coins and Lightning network, this market will only grow.

In conclusion, If you run an online business and have customers all over the world, you should check out one of the above payment solutions.

Also, learn about

*- Tiered pricing is applicable

Best Blockchain Analytics Softwares

CoinCodeCap — Tue, 18 Feb 2020 17:22:59 +0000

Every public blockchain is an economy in itself. Blockchain analytics softwares (or Chain analytics) helps us to measure different metrics to analyze the economic activity of these blockchain networks.

Different softwares provide various metrics for multiple assets. Let’s look at some of these softwares.

Check out the complete list of Blockchain analytics softwares

Bloxy

Bloxy is Ethereum focused blockchain analytics tool. It provides analytics on ERC tokens, Dapps, Defi, wallets, and decentralized exchanges.

Bloxy analytics report center provides real-time Ethereum blockchain data and showcases some valuable metrics. Some example reports are:

You can use Bloxy to analyze Ethereum network growth in a meaningful way.

Read Bloxy reviews on CoinCodeCap

Dune Analytics

Dune Analytics is a DIY analytics software that provides Ethereum analysis.

It organizes Ethereum network data in application-based metrics in SQL tables. You can query these tables to create your own analytics, visualize it, and share it.

In addition, you can organize multiple query visualizations into a Dashboard form, which helps you to track essential metrics based on your needs.

Some of the popular dashboard, created by the Dune Analytics users.

Read Dune Analytics reviews on CoinCodeCap

Token Analytics

The team offers analytics for more than 70 different types of metrics for 50+ assets. These metrics are designed to provide you a better understanding of the Crypto market.

Other than analytics, the team also provides historical data, research, insights, and APIs to access their data.

It also has a tool to compare different metrics such as volume, transaction count, and fee for different crypto assets.

Example of metrics provided by Token Analytics:

Exchange Flows, Miner Flows
Stablecoin Mints & Burns, S&D
Smart Contract & DeFi Metrics

Read Token Analytics reviews on CoinCodeCap

Coinmetrics

Coinmetrics offers market and blockchain analysis for more than 200 metrics for 60+ assets including Bitcoin and Ethereum.

Other than that, Coinmetrics also acquired Bletchley Indexes to providebenchmarks for the financial performance of cryptocurrencies.

Popular metrics by Coinmetrics:

In addition to analysis, Coinmetrics provide research, APIs, Data files, and various tools.

Alethio

Alethio offers multiple products based on Ethereum data. The team has built many different products to provide various types of Ethereum blockchain network analytics.

It provides different types of downloadable reports based on Ethereum network data, and you can also add Ethereum accounts for which you want to generate reports.

Popular analytics by Alethio:

In addition, the team also provides Ethereum APIs.

Wrapping up…

In our view, every investor should have an understanding of there blockchain network metrics. They provide real growth and activity signal.

If you are investing in a company, you will need different data points, such as balance sheets, quarterly reports, market reports to understand the company better. Similarly, you can use these blockchain analytics softwares to understand blockchains better.

Related Article

Best Crypto Wallets

CoinCodeCap — Tue, 18 Feb 2020 17:20:46 +0000

Choosing a crypto wallet according to your needs can be a little confusing as there are different types of crypto wallets providing different services. So we have selected some of the best crypto wallets for you.

Ledger

Ledger has established itself as the most secure wallet now. It is a hardware wallet which comes in different model and price range.

Their products integrate a certified secure chip and a custom OS (BOLOS) that assure maximum security. Genuine Check is an authentication ensuring that the Ledger device has not tampered.

Ledger supports more than 1250 crypto assets. Ledger Live lets you check balance, send and receive crypto from the security of hardware wallet.

According to the official record of Ledger, they have sold more than 1.5 Million units sold all over the world.

Read Ledger reviews on CoinCodeCap

Trezor

Trezor is the world’s first and most secure multi-currency hardware wallet. It enables you to make secure payments and manage cryptocurrencies.

The wallet is available on both desktop and smartphones. Currently, Trezor One and Trezor Model T are the most popular model manufactured by Trezor.

Trezor One was the first model developed by Trezor. The Trezor Model T is the second-generation hardware-wallet that features a touchscreen, faster processor, advanced coin support, as well as all the features of the Trezor One.

Read Trezor reviews on CoinCodeCap

Guarda Wallet

Guarda Wallet is lightweight, non-custodial cryptocurrency storage. It supports more than 30 major blockchain and about 10,000 cryptocurrency tokens.

The wallets let you store, send, receive, buy and exchange crypto coins and tokens. It also enables one to buy a variety of currencies with a bank card.

It has one of the cleanest and user-friendly interfaces.

Read Guarda reviews on CoinCodeCap

Trust Wallet

Trust Wallet is a multi-currency mobile wallet. It was recently acquired by Binance is addressed as “Official Wallet of Binance”.

The first and obvious functionality of the wallet is that it supports some of the major cryptocurrencies like ETH, BTC, XRP, TRX, XLM, BNB, etc.

It is a non-custodial wallet i.e they store your private key locally with an additional layer of security. Data privacy and anonymity are innate features of a secure wallet.

Trust wallet supports Binance DEX and Kyber Network protocol which allows for a smoother trading and exchange experience. In addition, it also supports ERC20 tokens(Ethereum network) and BEP2 (Binance Chain).

BRD Wallet

BRD Wallet is a mobile wallet that has a simple interface but it is equipped with diverse functionality. It has a customer base of over 150 countries.

The team believes in open-source and transparency hence you can find the wallet code on Github. BRD is available in the App Store and Google Play Store.

BRD lets you set up your account using a securely generated 12-word paper key that directly connects to the blockchain of your desire. That saves you the hassle of login and remembering passwords.

It allows you to purchase cryptocurrency using a credit card, in-person purchases at a Bitcoin ATM, or a convenience store.

Exodus Wallet

Exodus Wallet is a desktop wallet with an attractive interface. It is now available in mobile and hardware. It is a non-custodial wallet.

Exodus elegant interface lets you manage your crypto assets easily. Features include portfolio management, crypto exchanges, and customer support 24X7.

Currently, it supports over 100 cryptocurrencies and the inbuilt charting feature lets you monitor the performance of cryptocurrencies in the market.

It provides greater flexibility to users. A user can manage its crypto assets either through desktop, mobile or hardware wallet. Exodus has maintained its reputation as an unhackable wallet.

Jaxx Liberty

Jaxx gives you the liberty to use your wallet hasslefree and securely. It is one pit stop for blockchain wallet, exchange, portfolio, market, and crypto news.

Being a mobile wallet makes it even more convenient. Additionally, it comes in the desktop version as well as a chrome extension.

Currently, it supports over 90 crypto products. You can manage your assets, exchange your crypto either to another crypto or token.

With Jaxx, you can trade your cryptocurrency securely, live tracking, as well as a news feature, keeps you well informed about what’s happening in the crypto world.

Armory Wallet

Armory is one of its kind wallets that is available for Windows, Mac OS, Linux as well as it can be used in raspberry pie.

It’s a cold Bitcoin wallet and being an open-source wallet makes it flexible to use as per convenience. Though it’s a cold wallet, one can easily make transactions over the internet safely as a watch-only wallet.

All secret private key data is available only on the offline computer which makes it less vulnerable to online attacks. It facilitates the user with multiple encrypted Bitcoin wallets and permanent one-time ‘paper backups’.

Mycelium Wallet

Mycelium is of the oldest and highly rated Bitcoin-only wallet till now. It has been awarded “Best Mobile App” by Blockchain.info in 2014.

The wallet has a huge customer base that makes it one of the most trusted Bitcoin wallets. It lets users store bitcoins, manage multiple accounts, create backups and trade Bitcoins.

Checkout best Bitcoin wallets for Andriod

Mycelium is an HD(Hierarchical Deterministic) that provides high security. Along with that, it uses Bit ID which is an open-source protocol that makes authentication more secure and phishing free.

Watch Only Account feature lets an address to be stored in the wallet without it’s corresponding private key, allowing the wallet to watch for outputs but not spend them.

Coinomi Wallet

Launched in 2014, Coinomi is a simple and secure wallet that is available free of cost. It is available for Desktop(Windows, Mac OS, Linux) as well as for mobile devices(Andriod, iOS).

The wallet provides unhackable and secure wallet services using groundbreaking security research. Additional features of Coinomi include supporting multi-chain, enhanced privacy and anonymity.

Built-in exchanges make life easier. A user can buy cryptocurrency and collectibles though card. It is available in multiple languages.

To make Coinomia more secure, it provides blockchain-based IDs. It is an open-source project which makes it even more transparent.

Coinomi Wallet

Wrapping up…

While selecting a crypto wallet always read reviews for that wallet. High-Quality wallet software is the must to protect your crypto assets. And your crypto wallets are as secure as your devices. So take great precautions to secure your passphrase and always store them. Because if you forgot your passphrase or private keys, your crypto is gone.

We have selected some of the best crypto wallets for you. Let us know how you liked our list in the comment section and did we miss any awesome crypto wallet.

Also, Read

Different Types of Crypto Wallets

CoinCodeCap — Tue, 18 Feb 2020 17:18:24 +0000

Crypto wallets help you to store your cryptocurrencies. There are different types of crypto wallets that provide various services like buying and selling cryptocurrencies, sending payments and interacting with smart contracts and other third-party applications.

Before getting into crypto wallets, let’s discover about private and public keys and how they are related to wallets. Public keys are a combination of hexadecimal characters that is accessible to everyone. A public key is used to transfer funds from one account to another account. It can be compared to an email ID. A private key is also a collection of hexadecimal character but, it’s known only to you. It can be compared to the password of your email ID.

There are wallets that only support Bitcoin but all the major wallets support multiple cryptocurrencies. Currently, there are wallets like KeepKey which support over 40+ currencies. So, crypto wallets are increasingly becoming one pit stop to transact in multiple blockchain networks.

So, the purpose of a crypto wallet is to store your precious private key securely. Because without the private keys, you will not be able to access your assets. A Wallet may store your private key over the internet(hot wallets) or they may store it in your local machine or hardware secluded from the internet. These wallets used different technics to secure your private keys.

We will try to cover different types of crypto wallets out there. You can check a complete list of crypto wallets on CoinCodeCap.

1.Web Wallet or Online Wallet

Web wallets store your private key over cloud-based storage securely. You can use web-based wallets to make transactions over the internet. While using a web-based wallet you have to trust the wallet provider to secure your wallets. These wallets are convenient but hackers lure to these types of solutions because these wallets are used by thousands of customers.

Example of Web wallets:

2. Desktop Crypto Wallet

Desktop wallets are downloadable software that stores your private key securely on your Laptop or Desktop. These wallets provide the highest level of security but the risk of losing your private key is high if your computer gets hacked!

Example of Desktop wallets:

3. Mobile Crypto Wallet

As the name suggests, they are mobile apps that store your private key. Mobile wallets are getting more popular as they have an optimum level of security as well as convenience. But these cryptocurrency wallets are as secure as your device. If you are looking for such a wallet, we have picked the best bitcoin wallet for your Android devices.

Example of Mobile wallets:

4. Hardware Crypto Wallet-

Hardware wallets are considered more secure because most of them are cold wallets. You just plug in the hardware wallet to any internet-enabled computer or device (which is a node of the cryptocurrency network), follow the security procedure to transact your cryptocurrencies.

Example of Hardware crypto wallets:

Ledger

5. Paper Wallet

It may sound hilarious but you can save your private keys in the most secure way just by using a Paper wallet. Which is nothing but a print out of your private keys. This way no hacker can steal it online. You can store it securely in your vault (or any secure place) and use it when requires.

Example of Paper wallets:

6. Privacy-focused wallet

One of the features of bitcoin that lead to mass acceptance is privacy protection. Bitcoin is a pseudo-anonymous coin and to complement bitcoin, privacy-focused cryptocurrency wallets like Samourai wallets were developed. Privacy-focused wallets give full control of your wallet and crypto-assets and protect your privacy. Most of them are non-custodial wallets i.e no involvement of 3rd party for managing your assets. Previously privacy-focused wallets were centered around bitcoin but nowadays they also support other altcoins.

Example of Privacy focused wallets:

Samourai Wallet

Samourai Wallet is a non-custodial, open-source wallet that was started in 20016. Some of the features supported by Samourai Wallet-

Circumvent financial surveillance with the most advanced privacy-enhancing technologies on the market.
Dodge data network restrictions with offline sending.
Fully non-custodial software. No email address, no ID checks, and no hassle. Just install and use it.
A high-performance plug and play full node that provides strong privacy
Whirlpool breaks the link of your bitcoins and their prior history and stops blockchain analysis in their tracks.

Wasabi Wallet

Wasabi Wallet is a non-custodial, open-source and privacy-focused Bitcoin wallet. It was started in 20018 and it is gaining popularity as a privacy-focused wallet. Some of the features of Wasabi Wallet-

It implements trustless coin shuffling with mathematically provable anonymity.
Wasabi implements trustless coin-shuffling using Chaumian CoinJoins over the Tor which makes your bitcoin fungible.

7. Multi-currency Crypto Wallet

Cryptocurrencies have been around for a while. It all started with Bitcoin which was founded by an unknown person Satoshi Nakamoto. With the gain in popularity of bitcoin, other cryptocurrencies like Bitcoin Cash, Ethereum and many more started spouting out like mushrooms. Cryptocurrency wallets also started supporting multiple blockchain platforms and their native cryptocurrencies besides bitcoin. This lead to the generation of multi-currency wallet. They provide various functionalities like crypto trading, exchanges and many more. It is beneficial because a user doesn’t have to keep many wallets to keep your cryptos.

Example of Multi-currency Wallets:

8. Smart Contract Wallet

A wallet that interacts with smart contracts is called a smart contract wallet. In other words, these wallets enable different types of activities such as buying or selling tokens, token exchange, dapp interaction, trade, borrow or lend, etc. If you are looking for such a wallet, we have picked the best smart contract wallets for you.

Example of Smart Contract Wallets:

Wrapping up…

Now the question arises which wallet to choose? Well, there is no definitive answer to that. It depends on your requirements. If you are a daily trader or involved in a business that depends heavily on cryptocurrency, it is obvious to go for a paper wallet or hardware crypto wallet. But if you are a casual user, you can go for a mobile wallet or web-based wallets.

Different type of wallets has its pros and cons. Paper wallets may be the most secure wallet, but if you lose it, you lose everything. Similarly, web-based wallets are convenient to use but if it gets hacked, you lose everything.

Overall, all wallets come with the two most important features i.e security and convenience. So, as per your requirement, you should choose the one that best suits you.

Also, Read

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Understanding Cryptocurrency Trading Bots

CoinCodeCap — Tue, 18 Feb 2020 17:12:49 +0000

There are two ways of making money while trading crypto. One is to buy coins or tokens and hold them (or hodl in crypto lingo) while expecting their value to appreciate vis a vis fiat money. It could be the USD, Euro, GBP, or any other currency out there.

The second method is to trade various crypto assets actively. The idea is to buy a basket of tokens or coins and, based on their price difference between them, exchange them one for the other. In a crude example, you could see the price BTC/ETH and if ETH is in relative term gaining over BTC trade one for the other. Then exit and exchange the profit to fiat.

This method also branches two ways. For one, you could sit for hours in front of a monitor and manually buy cryptocurrencies based on your analysis and exchange them (it is called discretionary investing ). Or, you could program and obtain a trading bot to do the buying/selling at higher speeds while reviewing the aggregate data (Algo trading or High-Frequency Trading).

Discover and review best trading bots

Why use trading bots?

Crypto trading slightly differs from the traditional trading world. It is very volatile, and perhaps the only market where assets change their price in double-digit percentage points a day. Also, it is open 24 hours, seven days a week, year-round. Always somewhere in the world, people are buying and selling crypto.

In the first case, a trading bot can automatically weigh the current volatility based on past market data and execute trades in a fraction of a second. That helps with the moment to moment changes to time the market correctly.

In the second case, a bot will operate all hours of the day. Some of the best opportunities for profit are when a region of the world is getting to sleep and another waking up. A large number of participants leave the market during the change creating arbitrage opportunities.

The downside of not using a trading bot

In the early days of the crypto investing world (2011–12), buying from an exchange was a simple matter. A person would create an account, log in, buy some BTC, and move it to a wallet.

Nowadays, when you try to place an order on any popular cryptocurrency exchange, you will see another order placed right above it, at a small higher price. And it forces you to pay a slightly higher price.

Just because an offer was immediately countered by a better one does not mean that someone is always trading in front of the computer. The offer was made by a crypto trading bot that made a fraction of a second decision to buy a little bit higher. The best trading bots have taken over the entire cryptocurrency trading ecosystem. These trading bots execute around 75% of all trades because they are more efficient than humans, especially when it comes to trading.

So, manual traders pay small price increases every time they place an order. Each one individually is nothing more than a nuisance, but in aggregate, they can cost a lot of money. Or make a lot of money for their users.

Characteristics of a good trading bot

1.Security

Fraud and theft is a common feature of the crypto world. Trading bots are no different. To use one, you have to give it access to your funds and account. Always research a bot performance thoroughly, and only use new ones if you can analyze the code yourself.

2.Reliability

A software crash can be devastating while trading. It can leave you with a bad open position at a crucial moment or make you miss a substantial gain. So, read thoroughly about the performance of any bot before using it. And test it using historical data and document how well it does during periods of high usage.

3.Profitability

Now, this is not as straight forward as it seems. There are a lot of factors that impact overall profit. Again, research past performance of any bot and test it on historical data (backtesting).

Backtesting is a must when considering using a bot. By doing this, proper parameters can be determined, and optimal conditions of usage established.

4.Transparency

Some bots are trademark protected. It means the code is not open to see, even if you buy it. A bot like this was made by professionals, and the lack of openness comes with certain guarantees. On the other hand, an open-source bot can be analyzed and even modified, with the proper expertise. There is trade-off either way.

5.Ease of use

A bot that comes with a user-friendly interface is essential, especially for a non-technical user. The ability to control bots with just a few clicks is something you should look out for, and research before choosing to use any particular one. A plus is drag and drops options to create trading strategies. A few bots offer this, which is of great help.

Trading Bot Features

1. Drag and drop

A lot of trading bots allow you to create strategies using a drag and drop. It is helpful for users who lack programming skills. So if you are not a programmer, always go for trading bots, who provide this functionality.

2. Order Splitting Across Exchanges

The ability to divide an order of buy/sell and submitted to more than one exchange to maximize results.

3. Backtesting

Perhaps one of the most crucial features of any bot is the capacity to use historical data to verify your trading strategies, this is called backtesting. More advanced trading bots can also be trained with historical data for better outcomes over time.

4. Multiple indicators

Professional traders use trading indicators all over the world. The ability to use multiple trading indicators in your trading strategy is a significant feature to make sense of the trading trends and use them.

Risks when using a trading bot

Now, there are some downsides to using a bot to trade. First, faulty software risk always exists, even though it is admittedly less frequent. Not all bots are made by professionals, and even pro-bots are not perfect.

Bots are built on specific codes and algorithms that help them function. Mistakes can happen during the development process, leaving the bot inefficient at particular points in time. Also, some bots are modified by users and can mess up the original design.

Second, human error. A bot is just a tool that can be misused. A lot of people think that an automatic bot can be left to its own devices, and the user can just go to sleep. It is not true, and unexpected errors can happen. Always review the data reports and never grant access to a bot to the entirety of your assets. Place coins in different accounts and limit exposure for an individual trading bot.

Conclusion

Trading bots have become endemic in the crypto investing world. All major exchanges are plagued with them, and they do offer significant advantages for professional or semi-professional traders. If you are in any of those categories, do give them a look with proper research. But for casual crypto users, they do not offer a great deal of value.

Attribution

This article is contributed by Sebastian Pereira.

More Trading related Articles

Best Smart Contract Wallets (DeFi Wallets)

CoinCodeCap — Tue, 18 Feb 2020 17:09:26 +0000

A crypto wallet that interacts with smart contracts is called a smart contract wallet. In other words, these wallets enable different types of activities such as buying or selling tokens, token exchange, dapp interaction, trade, borrow or lend, etc.

Read about different types Crypto Wallets

Features of a smart contract wallet:

Borrow and lending crypto assets using different money protocols
Token sell, buy, exchange or trading
Enabling interactions with different Dapps

InstaDApp

InstaDApp allows you to borrow and lend using Ethereum and other crypto assets by integrating with different money protocols. In addition, it also integrates with Uniswap exchange, when you can earn by adding your tokens to the liquidity pool.

Features of InstaDapp

Borrow or Lend, Ethereum or other assets
Earn by adding liquidity on Uniswap exchange
Protocol bridge to switch from MakerDao to Compound with one click
Support Single collateral and multi collateral Dai
Web wallet with mobile-friendly UI

Read InstaDApp reviews on CoinCodeCap

DeFi borrowing and Lending using InstaDApp

Zerion

Zerion integrates with multiple protocols and enables some core banking functionalities. Other than that, you can borrow, lend, exchange, or invest your assets using it.

Features of Zerion

Borrow or Lend
Exchange tokens using Uniswap
Earn by adding liquidity on Bancor and Uniswap
Available on the web as well as mobile
Dashboard to check your assets
History of your financial interactions

Read Zerion reviews on CoinCodeCap

Zerion Dashboard

Metamask

Other than securing your cryptocurrencies, the Metamask wallet also allows you to interact with different Dapps. For instance, You can use these Dapps to buy, borrow, earn or lend Ethereum and other tokens. You can also use Metamask to trade, swap non-fungible tokens, and play games.

Features of Metamask

Buy, borrow, lend your assets
Interact with Dapps
Token custody
Available on mobile and as a chrome plugin

Alpha Wallet and Coinbase wallet provide similar functionalities as Metamask.

Read Metamask reviews on CoinCodeCap

MetaMark mobile wallet showing different Dapps

Poketto Cash

Poketto is designed as a payment app using which you can send and request money from anyone. However, it uses xDai to reduce the transaction fee and to enable instant payments. It’s similar to Venmo, and you can assign addresses to your contacts. Poketto is entirely open-source.

Features of Poketto

Instant payments
Uses xDAI (A version of DAI stable coin)
Assign addresses to contacts
Available on mobile

PokettoCash mobile wallet

Argent

Argent provides a free ENS name and covers the transaction fee for all your transactions. Therefore, it is very helpful to send crypto to your friends as every argent wallet gets a readable name.

Other than storing your tokens, you can also buy tokens from Decentralised exchanges using argent.

Features of Argent

Token custody
Free transactions
Free ENS names to simplify addresses
Buy and sell tokens using Decentralized exchange
Earn interest by supplying tokens to the Compound protocol
Available on mobile

Argent mobile wallet

Wrapping Up…

As the crypto ecosystem will grow, we will see smart contract wallets will more capabilities. For now, most of the wallets only support Ethereum protocol, and it will be interesting to see these wallets supporting multiple smart contract protocols.

Related Article

Find a Bitcoin ATM near me

CoinCodeCap — Tue, 18 Feb 2020 16:58:02 +0000

What is a Bitcoin ATM?

Bitcoin ATM is a kiosk, which helps you buy or sell Bitcoins using an automated teller machine. Many of these ATMs also support other Cryptocurrencies such as DASH, Ethereum, etc. So we will call use Bitcoin ATM and Crypto ATM intermittently throughout the article. We have also written a guide for you to learn how to use a Bitcoin ATM.

History of Bitcoin ATMs

The first Bitcoin ATM installed in Waves Coffee House in Vancouver, Canada, in 2013 by a Robocoin company. This machine only supported Bitcoin at the time, and you need to provide your identity by scanning your palm. A total of 81 people used the ATM on the same day and more than $10,000 exchanged. The first machine in the United States went online in February 2014 in Albuquerque, New Mexico.

Find a Bitcoin ATM near me

CoinATMRadar tracks Crypto ATM locations. You can use this website to find a Crypto ATM near your location.

CoinATMRadar has a website as well as an Andriod app and iPhone app using which you can find an ATM location. The site tracks more than six thousand Crypto ATM locations.

Other than Bitcoin, you can also find ATMs for other cryptocurrencies such as Litecoin, Ethereum, Dash, etc.

Here are different ways to find a Crypto ATM on CoinATMRadar.

Find a Bitcoin ATM using your location

Here are the steps to find an ATM machine based on your current location.

Open Coin ATM Radar
Click on “Use my current location”
Allow the website to detect your current location

Find a Crypto ATM using your current location

2. Search a Bitcoin ATM by Address

You can also find an ATM by searching for a location address on CoinATMRadar. Here are the steps to find a Crypto ATM by address.

Open CoinATMRadar
Search an address on the search bar.

Find a Crypto ATM by address

3. Search Crypto ATM by countries

You can also search for a Crypto ATM by countries. Here are the steps for that:

Open Coin ATM Radar
Click on “Countries” on the top navigation bar and select a country

Select a country

You can use the map or select a city to open the map

Find a Crypto ATM by countries

That’s it, you found a Crypto ATM near you and now go and buy some bitcoins 😃. Let us know if you have used a Crypto ATM before and how was your experience in the comment section.

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Best Monero Wallets (XMR Wallet)

CoinCodeCap — Tue, 18 Feb 2020 16:03:32 +0000

Monero(XMR) is one of the top cryptocurrency focused on privacy and censorship-resistance. There are a lot of crypto wallets support Monero, but we have picked the best Monero wallets for you.

Check out the complete list of crypto wallets on CoinCodeCap.

Cake Wallet

Cake Wallet is a Monero-only wallet with easy onboarding and multiple exciting features. It allows you to create multiple wallets with the same app, and you will control all your keys.

In addition, the wallet has multiple security features such as biometric authentication, pin support, and cloud backup.

Cake wallet is very beginner-friendly with advanced features such as adding your own remote Monero node.

Above all, it also integrated ChangeNow inside the app using which you can convert Monero with different cryptocurrencies.

Features of Cake wallet:

You control your keys
Completely Open source
Monero’s unique subaddress
Create multiple wallets and accounts with cloud backup
Remote node support
support crypto exchange (ChangeNow, MorphTrade, XMR.to)
Easy onboarding, Dark mode, and biometric authentication
Maintain Address book
Multi-language support
Available only on Mobile

Monerujo wallet

Monerujo is a monero-only wallet for advance users with tons of features. It is entirely open-source and supports multiple wallet and account creation.

Because Monerujo a light wallet, therefore you need to select Monero node (It scan all the available nodes and shows you). You can also add your own Monero node.

The wallet offers the password and fingerprint feature for security. However, Monerujo is suitable for advanced users.

Features of Monerujo wallet:

You hold your keys
Completely open source
Pay BTC Addresses through XMR.to
View only XMR wallet
Add your remote node
Allow you to use a specific remote node for every transaction
Multiple accounts and wallet support
Secure your wallet using Password and fingerprint
Available only on Mobile

MyMonero

Mymonero is an open-source Monero-only wallet. It has a simple design and beginner-friendly.

With MyMonero, you can create multiple wallets and control your keys. In addition, you can create contacts for a better payment experience.

It’s a lightweight, minimalist wallet with a good user experience.

Features of MyMonero wallet:

You control your keys
Linux and as well as web XMR wallet
Create contracts
Multi-wallet support
Desktop, mobile, and online monero wallet
Use password for security

Edge Wallet

Edge is a multicurrency wallet with Monero support. It is open-source and provides basic privacy features. However, the Edge wallet doesn’t allow you to add your custom monero node.

It creates an account on the device which will be used to unlock and restore your wallet but do not provide your private keys, though private keys and account information never leave your device.

Edge wallet also allows you to buy and sell Monero using fiat and swap XMR with other altcoins and vice-versa.

Features of Edge wallet:

Complete control over your Monero
Basic privacy and transparency
Supports multicurrency
Available on Andriod and IOS
Buy, sell Monero using fiat
Swap cryptocurrencies

Monero Official Wallet

Monero’s official desktop wallet is an open-source Monero-only wallet. It has a simple design and supports different modes based on the user’s requirement.

Simple mode (Light wallet)
Simple mode with Monero full node
Advance node with Monero full node

For instance, if you are a beginner, you would like to use the simple light wallet, however, you can also support the network by running a full node with your wallet.

In addition, the wallet lets you control your keys and support all basic wallet features.

Official crypto wallets are best for security; however, always double-check if you are downloading the wallet from the official website.

Monero Official Wallet Features

Maintained by Monero team
Support view-only XMR wallet
Multiple accounts and wallet support
Available only on Desktop
Manage contacts using the address book
Support simple and advance
30+ language support

Monero (XMR) Hardware Wallets

Monero also funded a dedicated Monero hardware wallet project, Kastelo. It’s an Open Source hardware wallet focus on private and censorship-resistant transactions.

Other than that latest versions Trezor and Ledger also support Monero.

Let us know what you think about our best monero wallets list and which XMR wallet you use and why?

Also, read

Best hardware wallet to secure your bitcoin

CoinCodeCap — Tue, 18 Feb 2020 15:56:41 +0000

In this article, we are going to focus on hardware wallets. These wallets have a long history of being unhackable and by far the most secure crypto wallet.

Hardware wallets come with different features and flavors of cryptocurrency compatibility. They provide better security than any other wallet out there.

Serious crypto users should own a hardware wallet. Before diving deep into features of a hardware wallet, let’s have a look at how these wallets work.

How does a hardware wallet work?

Usual hardware looks like a box with a small screen and some buttons.

You provide information related to your wallet (your private key) in the device. After that, it asks you for a PIN to enhance security.

Now, whenever you make a transaction, you have to plug in the device and enter the PIN. That completes your transaction without any risk.

Hardware wallets features

Let’s have a look at the features of hardware wallets-

Keeps your wallet information away from the internet

A hardware wallet stores your wallet information securely in the chipset. It makes the device immune to cyberattacks and malware. A hardware wallet is a combination of the cold and non-custodial wallet.

The only time it comes in contact with the internet is during a transaction. It is immune to a phishing attack because the information is stored in hardware instead of software.

Supports multiple cryptocurrencies

After the popularity of Bitcoin, many cryptocurrencies emerged in the crypto world. So, these wallets started providing support to other cryptocurrencies like Ether, Bitcoin Cash, etc.

Now, a user has the option to switch from one wallet to another that lets him use the specific cryptocurrency. A dedicated software application that comes with the device aids in making transactions.

You own your information

The user is always in charge of the wallet information. It doesn’t involve any third party for storing a user’s data. That eradicates the cases of fraud and scams, and the probability of information leakage is down to zero.

Universal Second Factor (U2F)

Hardware wallets like TREZOR and Ledger Nano S support U2F, which is an authentication protocol that simplifies and enhances the two-factor authentication (2FA) through the hardware wallet.

U2F lets you store the private key of cryptocurrencies that are not supported by your hardware wallet. You can also use your device to log in to Dropbox, Github, and Facebook.

That being said, let’s have a look at the pioneers in the field of the hardware wallet-

1. Ledger

Ledger has established itself as the most secure wallet now. It is a hardware wallet which comes in different model and price range. Their products integrate a certified secure chip and a custom OS (BOLOS) that assure maximum security. Genuine Check is an authentication ensuring that the Ledger device has not tampered.

It supports more than 1250 crypto assets. Ledger Live lets you check balance, send and receive crypto from the security of hardware wallet. According to the official record of Ledger, they have sold more than 1.5 Million units sold all over the world.

Read Ledger reviews on CoinCodeCap

2. Trezor

Trezor is the world’s first and most secure cryptocurrency hardware wallet. It enables you to make secure payments and manage cryptocurrencies. It is compatible with both desktop and smartphones.

Currently, Trezor One and Tezor Model T are the most popular model manufactured by Trezor.

Trezor One was the first model developed by Trezor and Trezor Model T is the second-generation hardware-wallet that features a touchscreen, faster processor, advanced coin support, as well as all the features of the Trezor One. Trezor supports multiple cryptocurrencies as well as tokens.

Read Trezor reviews on CoinCodeCap

Also, read

What are Dapps? (An ultimate guide)

CoinCodeCap — Tue, 18 Feb 2020 15:45:26 +0000

If you have been following blockchain space for a while, you must have come across the word Dapps. but what are Dapps?

Dapps stands for Decentralized Applications. They have been around since the launch of Ethereum and Smart Contracts.

Dapps are very different from a classical web app. For instance, a web app runs on a centralized server, and whenever a client requests for information, it receives the requested information from the server. In addition, a centralized authority controls a web app, and if the server goes down, the web app will come to a halt.

Web apps are more prone to cyber-attacks. However, on the other hand, Dapps function in a decentralized environment.

Some of the Dapps characteristics are –

Decentralized that makes them independent, and no one controls them.
Deterministic i.e., they perform the same function irrespective of the environment they are executed.
Turing compatible, which means given the required resources, the Dapps can perform any action.
Isolated, which means they are executed in a virtual environment known as Ethereum Virtual Machine so that if the smart contract happens to have a bug, it won’t hamper the normal functioning of the blockchain network.

Innovation in Dapp has led to the development of many tools that are making cryptocurrency experience and enjoyable and secure. Some of the field where Dapps have more profound impacts are-

Wallet

Dapp wallets (Or Smart contract wallets) have been gaining popularity. They provide various functionality besides storing your private key. These wallets are versatile and secure thanks to the flexibility and innovation in designing smart contracts.

Also read: Best Smart Contract Wallets

Some of the well known Dapp Wallets are-

InstaDapp

It is a smart contract wallet that lets you lend and earn via variable algorithmic interest, optimize and manage your holdings across different protocols and perform leverage, sort debt switching actions.

Metamask

Metamask is a part of the Ethereum ecosystem. It lets you make transactions with ease either through Eth or ERC tokens and allows you to interact with Dapps on a web browser.

Trust Wallet

Trust wallet is a non-custodial wallet acquired by Binance. It supports multiple cryptocurrencies. It even supports ERC tokens and lets you interact with Dapps.

Exchanges

Exchanges based on Dapps, also called DEXs (Decentralized exchange) are gaining popularity as it does not involve centralized servers. Popular DEXs are-

Kyber

Kyber is an on-chain token exchange platform. It is an open-source project that lets you integrate token swap functionality in your project.

0x Protocol

0x is an open protocol that enables the exchange of assets on the Ethereum blockchain. It is an open-source project based on which many well-known projects like Radar, Paradex has been developed.

Airswap

Airswap is also an open-source, decentralized exchange and a trading platform that lets you exchange and trade Ethereum assets hassle-free. Traders have the power to add or remove liquidity through a pool of products.

Games

Dapps game is trendy among Ethereum enthusiasts. Gambling games that weren’t trusted by many in the start, now gaining popularity. Let’s have a look at some of the popular Dapp games.

My Crypto Heros

My Crypto Heroes is an arcade game built atop Ethereum blockchain. It lets you play with historically inspired heroes, go on adventures to find rare items and battle against other players for rewards.

Axie Infinity

Axie Infinity is a fantasy pet land where players can raise, battle, and trade, mysterious beings called Axies. Approximately 140,000 Axies exist in the world, and they can be bought using Ether.

CryptoKitties

Cryptokitties is an Ethereum based game that lets you collect, breed, and sell virtual cats called Cryptokitty. Kittyverse, a collection of games that you can play with your kitties.

Banking and Financial Services

The main motive behind Bitcoin was to make financial services open and decentralized. Dapps, along with cryptocurrency, is here to make banking and financial services automated in a decentralized environment. Let’s see some of Dapps which comes under this category-

Aave

Aave is an open-source, non-custodial platform that provides banking services like interests in deposit and borrowing of crypto assets.

ETH Bank Pro

ETH Bank is an investment platform that optimizes the investment model extended to the blockchain domain and implemented through Ethereum. They use AI along with high-frequency quantitative trading investment models to bring high returns.

Bank of Tron

Bank of Tron is a decentralized bank built upon Tron blockchain. Its smart contract generates 3.7–6.7% dividends per day based on the user’s investment. Other than that, it is compatible with TronLink or TronPay and can be even used in mobile through Banko Wallet.

Wrapping up…

The future of Dapps seems bright and full of possibilities. Many sectors have yet to see the implementation of Dapps. Platforms like Ethereum, Tron, and EOS are encouraging developers to deploy the advantages offered by Dapps to produce innovative use cases.

Also, learn about

Multi-Exchange Crypto Trading Platforms Features

CoinCodeCap — Tue, 18 Feb 2020 15:20:56 +0000

Multi-exchange crypto trading platforms build for professional traders. In this article, we will discuss the features of a multi-exchange trading platform.

1. Unified Interface

Considering the volatility of the market, traders need to keep a constant check on multiple exchanges to take advantage of the price difference.

However, it is a tough task and was indeed frustrating to understand the different UI/UX of different exchanges.

Therefore, a unified interface is the most significant advantage to carry out all your crypto trading activities from one platform instead of hopping on from one exchange to another.

Check the complete list of multi-exchange crypto trading platforms.

2. Arbitrage

Arbitrage crypto-trading is nothing but buying cryptocurrency from one crypto platform at a lower price and selling it on another crypto platform for a higher price and earning through the difference.

Multi-exchange crypto trading platforms analyze the market to help traders to find arbitrage opportunities.

3. Trading Bot

A crypto trading bot is a computer program that automatically executes trades on your behalf as per the settings you choose even when you are offline.

Multi-exchange platforms offer trading bots, which is one of the most popular products among traders.

4. Smart Trade

As the name suggests, Smart trade is an intelligent tool to ‘Stop Loss’ and ‘Take Profit’ orders at the same time.

Therefore, this tool not only provides additional safety to your funds but ends an order on your behalf if the price of a coin begins to drop. It’s a great tool to master to gain profits and minimize loss.

5. Trailing

Trailing in crypto-trading is nothing but a grid strategy that helps the bot to automatically buy or sell cryptocurrency within a pre-decided price range (or fix upper and lower limit), set by you.

In addition, the algorithm is such that it turns a maximum profit on each transaction that’s significantly valuable in times of market fluctuations.

6. Advanced Charts

Crypto charts help in assessing the future market fluctuations for a particular asset. A crypto-trading platform with an excellent charting interface can help indicate probable profit-making assets in the crypto market.

7. Portfolio Management

The trading portfolio is perhaps the most significant advantage of using a multi-exchange crypto trading platform.

It condenses and tracks your trading information at a single, handy interface so that you can browse through your trading history and performance in real-time.

8. Crypto Trading Signals

Generated either by traders or by bots, crypto trading signals help traders to identify when and at what price to buy or sell a particular cryptocurrency.

A good trading platform continually monitors market activities and makes suggestions on the coin that’s most likely to bring higher profits.

9. Backtesting

Backtesting is testing your trade strategy using historical market data. In other words, it’s like, instead of jumping straight into the waters, you first check its actual temperature by putting one foot inside the pool. Backtesting is an important feature provided by the multi-exchange platform.

10. News and Research

Multi-exchange crypto trading platforms aggregate research, news, and analytics, social indicators from various sources. It helps traders to be up to date with the ecosystem and avoid noise.

Wrapping Up

As we mentioned, Multi-exchange trading platforms built for professional trading. However, these platforms usually charge minimal fees, so if you trade cryptocurrencies frequently, you should try one of these platforms.

Let us know if we missed any feature of multi-exchange trading platforms in the comment section.

Attribution

The above article is contributed by Bitsgap. If you want to try a multi-exchange trading platform, checkout Bitsgap, as they have a 14-day free trial. In addition, you can read Bitsgap reviews on CoinCodecap.

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