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Tag: crypto trading bot

  • Automated Crypto Portfolio

    Automated Crypto Portfolio

    An automated crypto portfolio is better for a busy person because it ensures your money is working for you while you are doing other things!

    If you can set specific rules for buying and selling assets and then have those rules automatically traded based on market conditions… then your money is doing the job of watching the price charts and you can fully focus on your life.

    Automation, along with a good crypto portfolio tracker,
    can eliminate the need for you to watch the charts.
    Your money is watching the charts on your behalf!

    The best crypto portfolio manager does everything for you allowing you to focus on building more revenue streams!

    While some automated crypto portfolio services may also provide advanced tools for risk management and portfolio rebalancing – it is vital to fully understand the market conditions when these might optimize returns and when they might maximize losses instead!

    A Good Portfolio Tracker

    Tracking your crypto gains and losses is crucial for managing your portfolio and making informed investment decisions. Not only is it important for tax purposes, but it also allows you to see the performance of your investments over time and make adjustments as needed.

    One of the best ways to track your crypto gains and losses is by using a crypto portfolio service. These services allow you to easily import transaction data from multiple exchanges and generate accurate and comprehensive reports on your portfolio performance. They also provide tools for portfolio management, risk management, and rebalancing, which can help to optimize returns and minimize losses.

    Scams and Warning Flags

    However, not all crypto portfolio services are created equal. Some services may make claims of providing secret trading signals or guaranteeing high returns, but it is important to be wary of these claims. These services may be nothing more than scams designed to take your money and provide you with little to no value in return.

    When looking for a reputable crypto portfolio service, it is important to look for warning flags. These may include:

    • Unusually high returns that are guaranteed or promised
    • High frequency trading approach to short term price moves
    • Lack of transparency or information about the service’s trading strategies
    • Pressure to invest large sums of money quickly
    • Lack of contact information or a physical address
    • Unusually low fees or commissions

    It is also a good idea to research the service and read reviews from other users. A reputable service will have a history of satisfied customers and positive reviews.

    Finding Quality Automated Crypto Portfolio Services

    Using a reputable crypto portfolio service can save you time, help you find the best altcoin opportunities and improve your trading success.

    By automating your trades with tools for risk management, you can focus on the important parts of your life while your money does the work of watch price charts all day.

    1. Cointracking: Cointracking is a portfolio management and tracking tool that allows users to track their crypto assets across multiple exchanges and generate tax reports.

    Automated Crypto Portfolio

    Automatic crypto portfolio tracker there are many other crypto portfolio automation services available, some other examples include:

    well known crypto portfolio automation services

    1. Shrimpy: Shrimpy is a portfolio management and trading automation platform that allows users to create custom trading strategies and automate trades across multiple exchanges.
    2. BitGetCopyTrader.com: Copy the trades of those with a proven record.
    3. 3commas: Find managed crypto portfolios to follow or set up your own automated strategy.
    4. TokenFolio: TokenFolio is a portfolio management and trading automation platform that allows users to track and manage their crypto assets and automate trades.
    5. Kryll: Kryll is a platform that allows users to create and automate trading strategies using a visual strategy builder and backtesting tools.
    6. Autonio: Autonio is a decentralized trading automation platform that uses AI and machine learning to execute trades on behalf of users.
    7. AlgoTrader: AlgoTrader is a platform that allows users to automate their trading strategies across multiple asset classes, including cryptocurrencies.
    8. Coinrule: Coinrule is a platform that allows users to automate their trading strategies using a simple rule-based system.
    9. Crypto SmartWatch: A transparent portfolio rebalancing tool focused on spot trading ALT/BTC pair spreads as a low risk, long term approach to profit from diversifying through the ongoing price trends of altcoin seasons.

    Crypto SmartWatch Control Panel

    Automated Crypto Portfolio

    It is important to be cautious when choosing a service. Look for warning flags, research the service and read reviews, and choose a service that has

    • a long term approach,
    • a transparent trading plan and has
    • a history of performance
    • with satisfied customers.

    In summary, tracking your crypto gains and losses is an essential part of managing your portfolio and making informed investment decisions.

    Our recent video on how to build crypto portfolio can be an excellent starting place
    as you prepare for the next altcoin season.

    By reviewing a reputable crypto portfolio performance,
    you can save time and improve your trading success.

    Make your money work for you while you focus on the important parts of life.

  • 5 Reasons To Automate Your Crypto Trading

    5 Reasons To Automate Your Crypto Trading

    In this article, we discuss 5 good reasons to use trading bots to automate your crypto trading strategy – at the end we’ll share unexpected disadvantages you should be aware of.

    Automated trading bots like 3commas

    and copy trading platforms like BitGet

    have become an increasingly popular tool among cryptocurrency traders looking to automate and optimize their trading strategies.

    These software programs are designed to execute trades on behalf of the trader, using algorithms and technical indicators to make decisions based on the trading signal definitions.

    Why automate your crypto trading strategy?

    1. Time-saving: The first principle of wealth building is that your money should be working for you while you do other things. One of the biggest advantages of using trading bots is that they do the unending menial task of watching prices for you. If you find yourself watching the charts or constantly checking the markets to manually execute trades, consider learning how to set up a bot to make trades on your behalf – or find some proven copy trading profiles and follow their automations.
    2. 24/7 trading: Crypto markets never sleep and using a trading bot allows you to assign your money the task of monitoring price and executing trades even when you are not available. This can be especially useful for investors who want to trade a slow long term, trend following approach.
    3. Diversification: A series of crypto trading bots across a portfolio of digital assets makes it easy to diversify into a new crypto portfolio at the start of the next Altcoin Season – and also to manage the work of closing trades at the right time. We have set up our trading bots to follow the proven Crypto SmartWatch strategy for different portfolios of coins. By diversifying your portfolio with a small position in many coins, you can spread exposure across different assets, thus increasing the potential for a single investment with massive moves boost your overall returns.
    4. Backtesting: Another advantage of using trading bots is the ability to backtest different strategies. Our methodical backtesting allows better confidence to identify when Altcoin Season is starting and ending, helping us fine-tune the settings and timing of the trading bot operations. Our Crypto SmartWatch historical research is now invaluable for crypto traders to optimize their trading strategies in 2023. Improve your understanding of risk control in trading crypto currency trends before you start trading with a bot.
    5. Emotionless trading: One of the most common mistakes made by traders is allowing emotions to cloud their judgment. This can cause trading mistakes when we are winning and trading mistakes when we are losing. A well-planned trading bot can eliminate this problem as trades are executed based on pre-set rules and algorithms rather than emotions, opinion or second-guessing. A Botted strategy will remove emotions such as fear, greed and excitement, which can often lead to impulsive trading and higher risk.

    Our research has shown that trading bots can provide advantages when you correctly automate your crypto trading.

    Trading Bots can be especially useful for investors who wisely take a hands-off approach to trading. Experienced investors leave their money to manage the work involved in watching the markets to capture opportunity at the correct time.

    However, it is important to note that like any trading strategy, using a trading bot comes with its own set of risks.

    Disadvantages Of Using A Bot To Trade

    While trading bot services and the best copy trading platforms offer a range of options and tools, they also come with some disadvantages to be considered. Some of the downsides of using copy trading or following trading bot include:

    1. Lack of flexibility: Trading bots rely on pre-set rules and algorithms to make trades. This can be beneficial in some cases, but it also means that the bot is not able to adapt to changes in the market or unexpected events. (For example we know that our trend following strategy, the Crypto SmartWatch, will take repeated losses in a sideways market so we have manual review of the activity of all our our bots.)
    2. Lack of human judgement: Trading bots can also lack human judgement, as they make trades based on pre-set rules and algorithms. We must understand all of the conditions of the market and how our bot will respond so that we might pause the bot operation in some market conditions.
    3. Risk of hacking: Trading bots are operated through software, which means they are vulnerable to hacking attempts. This will always put your funds and investment at risk, so we recommend funding your trading exchange with only a small part of your overall cold storage assets. Always take the time to set up 2FA and strong random passwords on your exchange accounts. Keep your cold storage digital assets on a hardware wallet.
    4. High costs: You may think that many of the best trading bots on the market come with a high cost but you can select from a range of low price and high return bots to follow on 3commas or BitGet.
    5. Lack of transparency: Most trading bots operate in a ‘black box’ with complex sounding things going on behind the scenes, which can make it difficult for traders to know exactly what trades the bot is making and why. The Crypto SmartWatch approach is completely transparent and easy to understand. We can explain why every trade is placed!

    Are Trading Bots Even LEGAL?

    It’s important to also note that depending on the jurisdiction you’re trading in, there might be some legal and regulatory restrictions around the use of trading bots. It’s important to be familiar with these before using bots, to ensure compliance with regulations.

    Trading Bots and Your Tax Obligations

    Using a trading bot will not change your tax classification. The classification of your trades and investment activity for tax purposes will be determined by

    1. how often you trade and
    2. the amount of profits you earn.

    Large crypto profits will affect the tax bracket you fall under and thus change your tax obligation.

    It’s also important to note that, depending on the jurisdiction and the way you use it, the use of a trading bot could change the way your profits are classified by the tax authorities.

    Beware Of Day Trading Bots

    For example, if a day trading bot is used for scalping, it may be classified as a business activity and may be subject to different tax rates and regulations than if it were used for long-term buy-and-hold investments.

    It is always recommended to consult with a tax professional in your country to understand the tax implications of your crypto trading activity and how the use of a trading bot may affect it.

    Keep Trading Records The Easy Way

    It is also important to keep accurate records of all your trades and report them correctly on your tax return in order to avoid any issues with the tax authorities.

    It’s good practice to keep track of all your crypto transactions and keep records of buying, selling and trading of any cryptocurrency, this would help in determining the capital gain/loss on them, as well as the cost basis. Simply import your trade data from your exchange API and CoinTracking.co will calculate the rest.

    Crypto trading is subject to tax regulations in most countries, so it’s essential to comply with them to avoid any legal issues.

    Automate Your Crypto Trading

    Overall, while trading bots can offer a range of benefits to traders, they also come with a number of disadvantages and dangers. Get to know exactly how your bot will work before deciding to automate your crypto trading with a bot.

    Crypto Investors should consider their own unique needs and risk tolerance when deciding whether to use a trading bot. Additionally, it is important to always do your own research, and thoroughly test and evaluate any trading bot before using it with your own funds.