Millions of people around the world have proven that trading with cryptocurrencies can be extremely lucrative. Millions have also proven that trading with crypto can be risky business. Crypto trading has all the same risks associated with regular stocks or forex trading, however, cryptocurrencies’ inherent volatility means that years worth of movements can happen in a matter of minutes, sometimes even seconds. The harsh reality is that if one is not paying attention, then you stand to lose a great deal. However, similar to a coin, crypto has 2 sides. The upside is as beneficial as the downside is treacherous.
Where does that leave you? It leaves you wanting to know more about this crazy and wonderful world of cryptocurrency that compares to something out of the Matrix!
The problem today is that individuals are left wanting to explore the world of cryptocurrencies, but they are too nervous to commit any funds to the experimentation process of getting involved in the first place. This was the same situation that we were in, and it is the reason why we created QuidPro!
QuidPro is a trading platform that is free to download and free to experiment without any cost or risk. QuidPro allows users to experiment with automated trading software and cryptocurrencies in a sandbox environment. Try an aggressive strategy, try a conservative strategy, try them all! Never before has paper trading been easier to access.
Keeping all of the above in mind, how do you begin?
First step is to sign up! The process is simple and takes under 2 minutes. First, you need to sign up to QuidPro via our web or mobile app, and next you need to set up your Simulated Trading Bot. Once your Sim Bot is set up and ready, boom, you are officially experimenting in real-time!
CRYPTO TRADING FOR NEWBIES
About Crypto Trades
Trading markets today are filled with a large number of trading bots and trading algorithms. Some trading Bots are private, and some are made available to the public. There is always caution that is needed when entering the world of trading Bots. The recommendation is always to experiment with and get a feel for autonomous trading software before you use any real money. As already mentioned, users can make use of the QuidPro Platform to spin up a Simulated Bot and experiment with trading Bots in real-time, or back-test strategies against historical data. The practice is the name of the game! Gary Player once mentioned, “The more I practice, the luckier I get”.
CRYPTO TRADERS & TRADING CATEGORIES
Traders can be classified into two broad categories:
- Technical analysts
Speculators are individuals who keep a watchful eye of the cryptocurrency market for news and information that may give any indication that a particular crypto will change in value, and they make trading decisions based on this information. Key activities speculators tend to keep an eye out for include: Exchange Hacks, Government Legislation, Partnerships, New Upcoming opportunities, etc.
Analysts are individuals who are more interested in the deeper workings and fundamentals of various cryptocurrencies and the market in general. Analysts make use of financial and technical analysis to gain insight into possible opportunities to act on.
#TIP Try to use a combination of speculatory and analytical insights to make educated decisions to invest in various opportunities.
BUILDING YOUR CRYPTO TRADING STRATEGY
Now that you have an understanding of the different types of traders that there are, you can begin to think about what type of strategy you wish to build.
Developing a strategy normally involves great self-discipline and research. Traders take great caution when developing a strategy because lessons when developing a strategy tend to be expensive. Thanks to QuidPro, you don’t have to worry about this. You can literally go wild. Test the waters.
If you don’t like a strategy, you can simply reset your Bot and begin again. The QuidPro simulated Bots run in real-time. If you would like to test your strategy out against historical data, you can use the Back-Test functionality that QuidPro provides. Experiment without having to stress about losing money. Speed up the testing process by using the historical data to test your strategy against different market conditions.
#TIP Sometimes it is better to collect small gains and remain safe rather than to risk big in the hopes of scoring big. How would you behave in a game of poker?
DEVELOPING A CRYPTO TRADING STRATEGY
Perhaps the most exciting and important step is of course designing your very own strategy. Be sure to create a strategy that resonates with the investment style you wish to employ. Trading Bots provide a unique opportunity for you to create a trading strategy that runs 24/7. Don’t skip a beat, never miss an opportunity.
Trading Bots help remove emotional decisions that come when we as individuals try to make decisions without a speculatory hunch or without analytical analysis. Trading Bots do all the maths, all the time! Humans can’t keep up and using a Trading Bot effectively can lead to the harnessing of a consistent passive income stream.
SETTING UP YOUR CRYPTO TRADING BOT PARAMETERS
Some considerations and key concepts to apply, when creating your bots parameters:
- This is your exit strategy.
- Simply, setting a point in time when you wish your Bot to exit a trade.
- For example, you may wish to set a stop loss at -3% to allow your trade to have some wiggle room before exiting and accepting the loss.
- A stop-loss ensures that your trade does not run away from you without you being able to stop it.
- Think of this as the opposite of a Stop Loss.
- Although it is an exit strategy, instead of making a decision based on Loss, the Bot makes a decision on Profit.
- This is a great way to ensure that the trade exits at a positively deemed endpoint and that no profits are left on the table.
- For example, you could set your Profit Margin / Limit Order at a 1% profit. When your trades reach a profit of 1%, the Bot will exit the trade and you will make a 1% profit on the trade.
- On QuidPro, all profits take into account the fees incurred in the trading process, and all trades are therefore displayed in net values (taken fees into account).
- Performing large amounts of trades in an attempt to make a small profit from each trade.
- This is a more short term strategy that is fast-paced and can be risky at times.
- A more hands-on approach needs to be considered when setting your Bot up to trade in a “Scalping” manner. Keep an eye on the market and ensure that your Bot does not make multiple trades in quick succession during a falling market.
- Making decisions based on news sources and recognizing price moves.
- It is important to note that the QuidPro Bots do not analyze news sources. If the user wishes to make his own “Force” decision, he/she can simply select a coin and perform a “Manual Buy” using the QuidPro Bots.
- To learn more about a “Manual Buy”, click here.
- QuidPro provides a real-time and up to date news feed that allows users to stay up to date with all things crypto.
- Force decisions need to be made quickly as the market responds quickly to available news and information.
- As with everything else, fake news is a reality. Be careful not to make decisions without ensuring you do your due diligence on the information first.
Coins to Trade
- Researching and understanding the different technologies and companies that created the different cryptocurrencies can go a long way in choosing coins that will stick around for a long time and that will turn out to be profitable.
- Look at who created the coin, what the functionality of the coin is, and how long it has been around for before deciding whether or not you wish to invest in it.
- QuidPro makes selecting coins extremely easy.
- Use the “Coins to Trade” feature in your Bots parameters to open up a list of coins to choose from. Select the coins you wish the Bot to trade with and save your selection. Your Bot will only trade using the coins that you select in your parameters.
Available Trade Slots
- Simply, the maximum number of coins you wish your Bot to be held at any point in time.
- When using a QuidPro Trading Bot,
- If you set your “Available Trade Slots to
- Volume is the total number of coins that were traded during a given period of time.
- QuidPro uses a 24hr volume period on the Binance exchange.
- Increasing the 24hr volume with your QuidPro trading Bot will ensure that your Bot does not make a trade on a coin that has little market activity/liquidity.
- The higher the volume, the less likely a single trade will influence the market.
- Volume is a technical indicator that represents the overall activity of a coin/market.
SETTING UP NOTIFICATIONS & ALERTS
There are numerous ways to be automatically alerted when a specific market moves according to specific rules. QuidPro is currently working on introducing the ability for users to set up various alerts based on market indicators. These alerts will be received by push notifications through the QuidPro mobile platform.
In terms of Notifications, QuidPro users can enable or disable the alerts/notifications that the Bots send. The QuidPro Bots can send push notifications to inform the user when they buy or sell. The notifications include the RSI, price, volume, and profit of the trade. Keeping the notifications enabled allows you to keep a close eye on your Bots performance/activity.
QuidPro recommends that you enable the mobile push notifications for the QuidPro app to ensure that you can keep track of your Bot’s activity/performance, as well as receive notifications for invites for the QuidPro Lobbies.
UNDERSTANDING THE RISKS IN CRYPTO TRADING BOTS
All Bots make decisions based on instructions that you give them. This means that although the Bot is a computer-based algorithm with incredible decision-making capabilities, the fundamentals of all of its decisions come from parameters that you give it. A bot does not know the difference between making or losing money, it simply follows instructions. If the Bots instructions are not suited for the current market, then the Bot is likely to perform badly and losses are to be expected. If you keep a close eye on your Bot and you ensure to give the Bot a Stop Loss and a Profit Margin, then you can manage the performance of the Bot and adjust accordingly to ensure that you limit losses or maximize on profits.
Considering there is a potential downside and that there is a learning curve, the need to experiment and build strategies that have been tested has never been more important. Use the Quidpro Simulated bots and the Back-Testing functionality to help you build a strategy you are proud of and that you trust.
Finally, never trade with money/capital that you can’t afford to lose.
INSIDER TRADING TIPS
CRYPTO TRADING STRATEGIES FOR NEWBIES
When looking at creating a newbie level trading strategy, be sure to employ the following techniques:
- Set an Exit Strategy in terms of Loss for your bot to consider on each trade.
- Setting a stop-loss that is less than -1.5% is likely to result in your Bot making numerous trades that result in losses because the trade drops slightly in value before it matures and moves towards a profit – ensure to leave yourself some wiggle room to account for this..
- Caution: Removing the Stop Loss can result in great Losses. It is highly recommended to always have a stop loss.
- If you are interested in a more long term trading strategy, then you can increase your profit margin as high as -10% with the QuidPro Bots. This gives the trade more time to move from the negative into the positive.
- Set an Exit Strategy in terms of Profit for your bot to consider on each trade.
- To create a more short term strategy that has a high frequency in trades, you can set the profit margin to 1% or less.
- This allows the Bot to purchase a coin, and quickly take small profits off the table.
- If you wish to create a strategy that has a more long term outlook, you can increase your profit to achieve trades with higher profits.
- Set a 24hr volume that ensures there is liquidity and action in the market relevant to the coin you are purchasing.
- Setting a volume that is too high will make your Bot less likely to trade.
- If you wish to perform frequent trades and you find yourself in a bullish market, then you may choose to set a lower 24hr volume.
Trading is an incredible skill to learn and the benefits of successful trading have been proven by millions of individuals around the world who either trade as a profession, or they are managing to consistently generate annuity based income successfully. The world of cryptocurrency is exciting for many reasons and thanks to platforms such as QuidPro, learning, and getting involved has never been easier.