There’s a lot to learn in the global digital financial decentralized system.
Forget about the noise of Bitcoin being a bubble waiting to be busted, because in the past years a lot have happened in similarities to what we’re experiencing in the Crytocurrency world today.
Anyways, let’s look into Bitcoin Trading Lessons that every Bitcoin Investor should have at finger tips.
1. No one is in-charge (Decentralized Technology)
Combine that vacuum of faith with the growth of mobile technology and high-speed Internet around the world, and bitcoin was at the right place at the right time. Early adopters were a mélange of libertarians and tech nerds, each of whom saw their own reflection in the bitcoin mirror.
Bitcoin’s rise from there is similar to any FANG-y stock story. Global adoption of new technologies led to Facebook’s dominance in social, Google’s in search, and Apple’s in hardware/software. What is different with bitcoin is that it has no CEO, no board, and no proprietary physical assets. But that has proven to be a feature, not a bug. No one “needs” to be in charge … and that’s new and notable.
2. Get out of your head
Wealthy westerners finds it difficult to imagine why the world needs a cryptocurrency backed by nothing but computer code and the faith of the masses. For them, steeped in the status quo, it simply makes no sense.
Personal story here: My parents fled the Cuban Revolution in 1960 with $200 and a suitcase. They weren’t allowed to take anything else, or transfer funds overseas. They arrived in New York with no place to live and no work. My mom didn’t speak English.
Step outside the safe confines of western democracies, and my parents’ history is a relevant and cautionary tale. Similar stories happen every day, across multiple continents. Of course, there is intrinsic value in a decentralized store of value that governments cannot control or confiscate. To think otherwise is myopic.
3. Little bit of faith is always needed
Bitcoin and other crypto currencies are notoriously volatile, but few investors/traders seem to care. There is even a self-identifying moniker in crypto circles – HODLers (Hold On For Dear Life) – that captures this sentiment. Don’t sell on any dip, and add to your position if you can.
This confidence comes from a deep-seated faith, and it is something that equity investors in particular can learn from. A wise reader once told me, “The lows for US stocks in 2009 weren’t caused by people giving up on stocks – they were caused by people giving up on America.”
You’d think that after +70 years of consistent long-term value creation, US equities wouldn’t have to prove time and again that they are money-making investments, and America is a safe country in which to invest. Bitcoin’s rise shows such faith is possible; equities – and the US – have the track record to merit the same level of confidence.
4. You never know where you will find next big thing
We started looking at bitcoin in 2013 after reading about it on Zerohedge. Learning more meant studying the structure and uses of the Dark Web, boning up on computer-driven cryptography, and plowing through fringy tech websites.
In contrast, no large investment bank bothered with bitcoin. Financial news sites gave it a passing look when drug dealing website Silk Road was a thing, and when Japanese exchange Mt. Gox imploded.
Basically, the entire world missed the story. Too weird, too sketchy, too geeky, too … strange. And in that is an important lesson: You need to go off the standard intellectual grid to make out sized returns. Some will pan out, and others won’t. But without any exposure, your returns are guaranteed to be zero.
5. It’s all about imagination
There is an old Hindu saying that goes something like this: “From a drop of water, you should be able to imagine ice, steam, glaciers, rain, oceans, and waterfalls.”
Think back to when Amazon just sold books – its “Drop of water.” A few farsighted individuals could imagine everything that would come next. But not many. And certainly, none of its competition had an inkling until it was too late.
Regardless of where crypto currency prices go, remember the water drop. The use cases so far have varied, from the illegal to the sketchy to the current popular trading craze.
All this is as powerful a cautionary tale as I can imagine. It echoes through the expansive challenge of equity investing even more than the narrow confines of crypto currencies. Technology writ large is a largely ungoverned force for societal change. It can engender high levels of trust very quickly, in the right framework.
Top 6 Automated Bitcoin Trading Robots
Automated Bitcoin Trading Bot is a software or script that auto buys/sell for traders while they step out of their cryptocurrency trading screens.
To most people, trading bitcoin is yet another source of passive income while working their regular day jobs, and that’s why so many people rely on trading bots. But the question becomes, which of the trading robots can be trusted and which one should be avoided.
Below is a list of known cryptocurrency trading bots, however, your mileage may vary when using them anyways.
One of the very first automated bitcoin trading bots to ever be created goes by the name of BTC Robot. While it seems to do the job and is quite easy to set up, user’s mileage may heavily vary when using this tool. Some people seem to be making modest profits, whereas others seem to struggle to get it to work properly. There is a 60-day refund policy, which makes it a no-brainer to try out regardless.
The Gekko trading bot is an open source software solution hat can be found on the GitHub platform. It was last updated a month ago, which seems to indicate it is still being actively developed. Using this automated trading bot seems rather straightforward, as it even comes with some basic strategies. It is not a high-frequency trading bot by any means, nor will it exploit arbitrage opportunities. With a good list of supported exchanges, Gekko could be worth checking out.
The service offers cryptocurrency users automated trading bots running on cloud platforms. Not having to install unknown software is a big plus, albeit it remains to be seen if this platform is legitimate. One intriguing feature is how CryptoTrader features a strategies marketplace where anyone can buy or sell their favorite trading strategy.
Another open-source solution for bitcoin traders goes by the name of Zenbot. Albeit this bot has not seen any major updates over the past few months, it is available to download and modify the code if needed. This marks the third iteration of Zenbot, which is still a lightweight and artificially intelligent bitcoin trading bot. It is also one of the very few solutions capable of high-frequency trading and supporting multiple assets at the same time. According to the GitHub page, Zenbot 3.5.15 makes a 1.531 ROI in just three months, which is quite surprising.
Tradewave is a platform allowing users to create automated bitcoin trading strategies. Users can connect most of the major exchanges to enable live trading within a few minutes. Moreover, there are quite a few trading strategies shared by community members for other users to try out. Tradewave is not free to use, though, as plans start at just US$14 per month.
Haasbot does all of the trading legwork on behalf of the user, although some input is required. Haasbot supports all of the major exchanges and is capable of recognizing candlestick patterns. Considering it costs between 0.12 BTC and 0.32 BTC per three-month period to use this tool, one has to be committed to using the software and hopefully make a profit from doing so.