How to Automate Your Crypto Portfolio on KuCoin, Binance, and Kraken
When the crypto market starts to go berserk, new traders flood into the market. These traders quickly find that the 24/7 nature of crypto makes it nearly impossible to keep up.
Although the first few weeks will be exciting, soon traders will be pulling out their hair trying to stay awake for the big break out. That’s when many traders will turn to Google, asking questions like:
How do I automate my trading?
What is a crypto trading bot?
When will Binance be under maintenance so I can finally sleep?
These are all valid questions that we will cover throughout this guide. Let’s start off by discussing different ways we can automate trading.
Crypto Trading Bots
Although it might not be the only option, trading bots are often the first option that traders turn towards when trying to automate their trading.
Simply put, trading bots are software programs that are used to automatically execute trades based on the conditions set within the bot.
An example would be if you want to execute a trade to sell Bitcoin for US Dollars when the 7-day “Simple Moving Average” drops below the 30-day “Simple Moving Average”, this can be programmed into a trading bot.
The bot would continuously monitor the state of the market and automatically execute the trade from Bitcoin to US Dollars when the conditions of the strategy are met.
The crypto market supports a wide variety of services that automate strategies. Anything from highly technical solutions like HaasOnline to simple portfolio automation applications like Shrimpy. If you’re interested in writing your own bots, there are even Universal Developer APIs that are available to connect to exchanges.
A cryptocurrency trading bot is a software program that automatically trades on exchanges.
Crypto Funds
If you’re looking for a solution that is even more hands-off than trading bots or social trading, crypto funds or indices might be the option for you!
While these are typically lower risk and lower reward options than the other options discussed above, they will allow you to finally get some sleep.
Crypto index funds offer a simple way to diversify your portfolio, automatically rebalance over time, and maintain a healthy position in the market, without any effort.
Index funds come in a variety of forms. There are institutional funds like the Bitwise 10. This index has a $25,000 minimum investment, a 12 month redemption period, and a 2.5% expense ratio.
The Bitwise 10 is an important option for institutional investors that are getting into the cryptocurrency market for the first time. For everyone else, Shrimpy may be a better option.
Shrimpy is the best index fund builder available in the market. Crypto traders with any size portfolio can set up a complete indexing strategy and begin automating their portfolio in seconds. These strategies allow traders to invest in the long-term and not worry about the day-to-day fluctuations of the market.
Index Funds
Power your portfolio with the most advanced index fund builder in the crypto market.
HODL
At the end of the day, you might decide that trading automation is simply too much work for you. That’s okay! You can always fall back to the most simple of all the trading strategies - to not trade at all.
That’s right, purchase the assets you want to own for the next few years, then kick back and relax. Forget about trading all together by investing some time early on to research projects and make strong picks.
Once you have the assets you want picked out, throw them into a Ledger or other hardware wallet of your choice, lock them in a safe, and come back to your portfolio in a few years. Ideally, the market will continue to grow over the next few years, netting your portfolio a healthy return.
HODLing will always be a solid strategy for people who are too busy to worry about keeping up with their assets.
Conclusions
These different ways to automate a portfolio are necessary to bring sanity back to the lives of crypto traders. Browse through the different automation options available and select the one that resonates the most with the way you want to manage your portfolio.
Once you’ve set up your automated strategy, it’s time to get some rest. You are now free from the chains of the 24/7 crypto market.
Additional Good Reads
Crypto Traders That Diversify Perform Better
Threshold Rebalancing for Crypto Portfolio Management
Shrimpy is an account aggregating platform for cryptocurrency. It is designed for both professional and novice traders to come and learn about the growing crypto industry. Trade with ease, track your performance, and analyze the market. Shrimpy is the trusted platform for trading over $13B in digital assets.
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The Shrimpy Team