February 25, 2020

How to build an empire with a bitcoin trading bot!

by Jens Ischebeck

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A bitcoin trading bot to build an empire on it is hard to imagine. An Empire of financial wealth.

But empires need a growth perspective, a clear strategy and solid fundamentals.

In our case this means the idea that cryptocurrencies will conquer the world, a clearly defined investment strategy (buy and hold versus day trading) and a robust Bitcoin and Ethereum development, sky rocking as store of value and innovative blockchain technology.

What you will learn in this article:

  • How to find an available and trusted cryptocurrency exchange
  • How to define your investment strategy
  • How to find the suitable bitcoin trading bot

Come with me and dive into the new world of cryptocurrency wealth.

Cryptocurrency exchange available in Africa

The usage and ownership of cryptocurrencies in Africa is fast growing, e.g. in South Africa, Nigeria, Ghana or Kenya. The bitcoin guide here uses the term bitcoin as synonym for all available cryptocurrencies.

In general we speak about two different types of exchanges: peer-to-peer exchanges like Paxful or Luno and market exchanges like the below mentioned (Binance, Kraken, etc).

There are a couple of big international cryptocurrency exchanges with a serious reputation:

  • Binance
  • BinanceUS
  • Kraken
  • KuCoin
  • Bittrex
  • Coinbase Pro
  • OKEx
  • Bitvavo
  • Poloniex
  • Bitfinex
  • Huobi Pro

To work it out properly you should compare all these mentioned cryptocurrency exchanges and select the one which is the best for you. In the case of many African countries, you should check first which Fiat currency can be used for buying in, e.g. if you can convert Naira to Bitcoin and Rand to Bitcoin.

Me, I use normally Binance.

Cryptocurrency exchange Binance

Binance is a relatively young exchange, established in 2017 by the Chinese Changpeng Zhao. It’s perfectly suited for crypto-to-crypto trading.

Binance offers trading pairs for many of the best cryptocurrencies, you can trade there nearly everything: Bitcoin (BTC) and many altcoins such as ETH, BNB, LTC, ADA, TRN, etc.

And, I think the most important for you, it is supported and available in most African countries.

Okay, to step forward, you need to open an account at Binance.

As for all cryptocurrency platforms, there are high security levels. You need to submit your contact data, your ID copies and go through a video ident procedure with your mobile phone.

Once you have succeed this security set up process, you have green light to start trading on Binance.

Cryptocurrency investment strategy

Once you have your cryptocurrency exchange account set up it’s time to think about your "how to invest in cryptocurrencies" strategy.

 Basically, there are two different strategies to follow and it’s up to you which one is the best bitcoin investment strategy for you:

Buy and hold

Investment strategy No 1 is the buy and hold strategy.

The idea is the following: You buy once (or at least only from time to time) your set of assets, your set of cryptocurrencies, and hold it.

Why shall you hold it?

Because you believe in the long term growth promises of these innovative assets. Your basic assumption is that the value of cryptocurrencies keeps growing.

As consequence, why paying transaction fees for buying and selling if the courses rise anyway.

If you have a look back to the past development of Bitcoin you are right with this approach. After its inauguration a decade ago Bitcoin’s value has risen from under one USD to approx. 10,000 USD today.

That’s a >1000x multiplication of your funds.

Not bad, right?

Bitcoin price chart 2009 - 2019

The ideal mix of a cryptocurrency investment for such a long term strategy is the right mix of various strong coins. By choosing 10 to 30 different cryptocurrencies to invest in you spread the risk of the Ups and Downs of the volatile crypto market.

Due to this reason I like the Hodlbot for this strategy. Hodlbot has got its name of the expression “HODL” which stands for a one time investment in cryptocurrencies and then holding the assets.

That’s exactly the same strategy as buy and hold.

But first let’s have a look on the second possible investment strategy:

Day Trading

The second group of cryptocurrency enthusiasts like the crypto market not only for the long term growth perspective, but for the volatility of the market.

This volatility opens big trading opportunities every day, or at least very often.

“Buy low and sell high”.

The motto of day trading is simple. You use your money to jump permanently in and out and heading towards small profits every day, e.g. 1% per day is a good benchmark.

Bitcoin price chart February 2020

For day trading, you need either a very good market knowledge or very good nerves.

Or a tool which owns these two attributes: a bitcoin trading bot. Not only for trading bitcoins, but many different cryptocurrency pairs.

That’s the Cryptohopper crypto trading bot.

Bitcoin Trading Bot: Hodlbot versus Cryptohopper

Hodlbot as bitcoin trading bot

Hodlbot company is situated in Canada with Anthony Xie as founder. It was established 2018 to give us (non-accredited investors) “an easy and inexpensive way to bet on the cryptocurrency market as a whole”.

The Hodlbot is based on algorithmic functions telling the bot how to execute trades.

But that sounds more complicated than it is.

Hodlbot Dashboard

In fact, Hodlbot provides you three different preset portfolios: Hodl10, Hodl 20 and Hodl30. Each portfolio is adjusted according to the market capitalization of the 10 respectively 20 respectively 30 biggest cryptocurrencies.

You can imagine this as an Index.

Buying such an index like portfolio, e.g. Hodl10, you participate in the development of not just one, but ten cryptocurrencies.

That’s already very useful.

Hodlbot indices Hodl10, Hodl20 and Hodl30

Even better, the Hodlbot has a rebalancing function. This means, after a configured period, e.g. 28 days, the portfolio is rebalanced according to the market capitalization of the chosen coins in the meantime, the past 28 days.

This is especially valuable in times with high volatility or downwards trends, because then you rebalance the assets to the strong cryptocurrencies and avoid overrating the weak coins.

For using the Hodlbot services you can choose between paying monthy 10 USD or 96 USD per year (equivalent of 8 USD per month).

A reasonable minimum investment is in the range of 300 to 600 USD. Then you can choose to put the 300 USD investment in a Hodl10 or a 600 USD investment in a Hodl30.

You can connect the Hodlbot with the following cryptocurrency exchanges:

  • Binance
  • Kraken
  • KuCoin
  • Bittrex
Hodlbot connected cryptocurrency exchanges

If we have a deeper look on such an Index, the Hodl10 portfolio consists of the following coins:

Coin and Weighting:

  • BTC: 38.6%
  • ETH: 15.4%
  • XRP: 10.0%
  • BCH: 7.6%
  • LTC: 6.2%
  • EOS: 5.6%
  • BNB: 5.3%
  • XTZ: 4.4%
  • ADA: 3.4%
  • LINK: 3.4%

The Hodlbot website has a good blog section which keeps you updated of all new developments of the trading bot and the cryptocurrency market.

Cryptohopper as bitcoin trading bot

You like adrenaline? You like winning? You like earning money every day?

The Cryptohopper trading bot is a great tool for day trading.

Whereas the above described Hodlbot has a preset algorithmic trading configuration, the Cryptohopper has not preset configuration. You can use it like you want.

The Cryptohopper uses in-built strategies and purchasable strategies as well as purchasable signals to define the actions of the trading bot. The strategies are based on technical analysis of the cryptocurrency markets respectively the targeted trading pair (e.g. BTC-USD).

Cryptohopper Dashboard

The Cryptohopper was founded 2017 by two Dutch brothers, one being a day trader and one being a software programmer. They combined their skills and invented the “Cryptohopper”.

The Cryptohopper is the only day bitcoin trading bot which I know which is web based. You don’t have to download any software and install it on your desktop computer.

Because the hopper is web based, it’s working 7 days 24 hours (24/7). The Cryptohopper matches perfectly the cryptocurrency markets: always active.

For using the Cryptohopper, you have the choice between three subscription models:

  • Explorer Hopper for 19 USD per month
  • Adventure Hopper for 49 USD per month
  • Hero Hopper for 99 USD per month
Cryptohopper Subscriptions

Cryptohopper knows you and me: we have big dreams, highflying goals, but reality is hard.

That’s the reason why Cryptohopper creates a functionality called “paper trading”.

With paper trading enabled, you configure your trading bot as you would like to. You even choose the connected exchange. But it’s not real trading, you don’t put real funds on it.

You just play around with play money. Try and error. You exercise so long with your trading bot configuration until you have a good and safe feeling. Then you turn on the key, keep the proven configuration and go for real earnings.

Me, I like the marketplace of Cryptohopper.

On the marketplace you can choose free and paid strategies, signals or templates. These strategies are created and managed by profi traders. There is a lot of technical analysis of the markets inside these strategies.

The last time I chose the “Crushing it” strategy of Miggity Miner. The price are 29.99 USD. But the strategy is worth it.

And one more argument in favor of Miggity Miner’s strategy: He offers as well an introductory online course about day trading on Udemy: “Getting started with Cryptohopper”, price are 19.99 USD, duration are 2 hours.

Cryptohopper strategy crushing it

As soon as you are familiar with the crypto trading bot you can purchase the Hero Hopper package and use the hopper as crypto arbitrage bot. Crypto arbitrage bots is an advanced trading technique making profit of long and short positions.

Just one last word: you need to put your whole money at once in the basket. Start with relative small amounts 200 USD, and get a feeling for the game. That’s all it needs at the beginning.

I invite you to use the Cryptohopper trading bot. Me, I am totally happy with it!

Do like my article? Share it with with your friends or send me a comment below!


investment, trading bot

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  1. You have only today come to my notice and i am impressed with your knowledge, compared to my knowledge that is not difficult to achieve, Having decide that Cryptohopper is the one for me for spread betting i decided that using a broker to do the trading for me and let them take all of the stress. I have to take life easy nowadays.
    So are you in a position to recommend a broker to me.
    I would be grateful if you could but obviously if not then i will phone around, not difficult.

    Regards, Norman Hawkins

  2. Does cryptohoppers have customer care who will reach a trader on how to trade and use the platform?

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Risk warning: Buying and trading in cryptocurrencies, foreign exchange and contracts for difference (CFD) poses a high risk to your invested capital. Therefore, only use money that you can bear to lose. These products are not suitable for every investor, so please ensure that you fully understand the risks involved.

Users who make investment decisions based on the published content act at their own risk. The published information does not justify any liability claims.

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