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How to swap cryptocurrencies using SimpleSwap?

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instant swap

Introduction

SimpleSwap is a non-custodial crypto exchange used for instant swapping of cryptocurrencies. This platform offers flexibility in swapping of cryptocurrencies. Users can connect their wallet or purchase crypto using the available payment methods to initiate swaps. Instant exchanges like SimpleSwap typically do not require any sign up. They use liquidity provided by their partners to facilitate trades.

The primary disadvantage of using instant exchange is that they often charge higher fees compared to traditional crypto exchange. However, some of the instant exchanges offer competitive rates. SimpleSwap, for instance, aggregates liquidity from multiple sources to provide the best market rates.

How SimpleSwap Works

Being a non-custodial platform, SimpleSwap does not require any sign up and it also does not store users’ funds. User connects his wallet to transfer crypto to the SimpleSwap, which is then converted to another cryptocurrency. SimpleSwap uses the aggregated liquidity to process the transaction. If user selects fixed rate and initiate a transaction, the crypto is swapped at specific predefined rate. If the user selects the floating rate option, the transaction will be executed at the current market rate, which may fluctuate during the processing time. The processing of transaction typically takes several minutes. SimpleSwap converts the transferred cryptocurrency to desired cryptocurrency and sends it to user’s wallet.

For dedicated users, SimpleSwap offers a Loyalty Program with various plans. This program provides cashback rewards for every transaction made on the platform, enhancing the user’s overall experience and benefits. In order to join the program, user needs to register an account.

Swapping Cryptocurrencies

The process of exchanging cryptocurrencies is simple. You don’t need to register any account or complete KYC process. Here’s a step-by-step process to exchange crypto:


1. Visit SimpleSwap

Go to SimpleSwap website or mobile app.

2. Select cryptocurrencies

Select the cryptocurrency you want to exchange from the dropdown menu in the “You Send” section. Then, select the cryptocurrency you want to receive from the dropdown menu in “You Receive” section.

3. Enter Amount

Now, enter the amount of cryptocurrency you want to send in the “You Send” section. The corresponding amount of receiving cryptocurrency would be automatically calculated and displayed.

4. Select exchange rate

Choose “Fixed rate” or “floating rate” option.

Fixed rate: The rate is fixed for a limited time, and you will receive exact amount of cryptocurrency shown.

Floating rate: The rate can change during transaction, depending on market conditions.

5. Enter recipient address

Enter the wallet address where you want to receive the converted cryptocurrency. Double-check and ensure you write the address correctly.

6. Confirm transaction

Review the transaction details, including the exchange rate and the recipient address. And then click “Exchange” to initiate the transaction.

7. Send cryptocurrency

Simpleswap will generate a deposit address or QR code. You need to enter this deposit address manually in your wallet or scan the code to transfer crypto to the SimpleSwap. The transaction processing would take several minutes.

8. Receive cryptocurrency

Once transaction is completed, you will receive desired crypto in your wallet. SimpleSwap will send you a confirmation message. You can also check transaction summary and status on SimpleSwap website.

Concluding Remarks

SimpleSwap simplifies the swapping of cryptocurrencies. Without registering any account, users can instantly swap crypto at good market rates. This provides seamless experience for both beginners and professional traders. Additionally, SimpleSwap also offers Loyalty Program which provides cashback rewards. Through various plans of this program such as Bronze, Silver, Gold and Platinum, users can earn cashback rewards in BTC. The amount of cashback rewards that user receives depends on the loyalty level. Platinum provides the most rewards on each transaction.

Top 5 cryptocurrencies shaping the future of finance

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crypto

Introduction

Cryptocurrencies have revolutionized the way we store and transfer value by eliminating the need for intermediaries like banks. Utilizing blockchain technology, cryptocurrencies create a decentralized financial system that operates without central authority. This decentralization streamlines financial transactions and facilitates cross-border payments with greater efficiency.

The world’s first cryptocurrency, Bitcoin was specifically designed to create decentralized financial system. Unlike fiat currencies which can be printed and subject to inflation, Bitcoin has limited supply. This limited supply is intended to create scarcity to prevent inflation.

Financial Utility of Cryptocurrencies

Cryptocurrencies can be effectively used as store of value against fiat money inflation. The price of cryptocurrencies depends on various factors such as supply, current demand, macroeconomic events like interest rates, and regulatory developments. These macroeconomic factors affect investor confidence leading to sell-offs and buying sprees. Crypto investors capitalize on inherent volatility of crypto prices to make profits. During economic downturns, cryptocurrencies can attract interest as alternative investment opportunities.

In addition to being used as store of value, cryptocurrencies are also widely used for business payments. Their decentralized nature facilitates cost-effective cross-border payments, reducing transaction fees compared to traditional financial systems. This utility makes cryptocurrencies a practical option for many consumers and businesses looking to streamline financial transactions.

Top 5 Cryptocurrencies Shaping the Future of Finance

  1. Bitcoin (BTC)

From since its creation, Bitcoin has always been dominant crypto with most share of market. Currently BTC holds 56% market share, and it also has largest market capitalization. It is considered a great investment asset with a potential to grow further in the long-term. Bitcoin is used in both short-term and long-term investment strategies. Recently in 2024, there has been growing demand of BTC, fuelled by multiple factors such as halving event and approval and launch of BTC ETFs.

In the previous years, the adoption of Bitcoin as payment asset has increased significantly. Many companies like Microsoft, AT&T and Shopify allow crypto payments. More businesses in the future are likely to adopt crypto payments because it provides several benefits such as expansion of customer base, lower transaction costs, and access to unbanked population.

  • Ethereum (ETH)

It is second largest cryptocurrency in terms of market capitalization, currently having a price of $3250. It is also a great investment asset widely used by DeFi community. Despite losing most of the value in 2023, it has surged again in 2024 and reached peak of $4000. Many analysts expect its value to grow in long-term due to its rising adoption fuelled by DeFi protocols. Ether is native coin of Ethereum blockchain, which is most widely used for DApp development.

The growth of DeFi directly fuels ETH’s demand because this crypto is used for transaction fees, collateral, and participation in various financial products. This crypto is also particularly used in staking to generate passive income.

  • Tether (USDT)

Tether is the most popular stablecoin that is pegged to real-world asset like US Dollar. Due to its stable value, Tether is widely used in trading pairs with BTC and other cryptocurrencies. While stablecoins cannot be used as investment assets since their price remains the same, they have many other financial utilities. Traders and investors also use Tether (USDT) to hedge against market volatility of other cryptocurrencies. By holding this coin, they protect their portfolio’s value without needing to convert to fiat currency.

This stablecoin has great use cases in decentralized finance (DeFi) applications. It is used for lending, borrowing and earning interest. By staking Tether, investors can obtain predictable rewards, providing a stable and reliable way to participate in DeFi ecosystems.

  • BNB

BNB is native coin of Binance Smart Chain (BSC). Originally launched as ERC-20 token on Ethereum blockchain, later it transitioned to BSC. It is also widely used as native coin of Binance ecosystem. Binance traders can get discount on transaction fees by holding and staking BNB. This coin is also used in staking and other DeFi activities. One interesting use case is that it provides the ability to participate in token sales on Binance launchpad.

As of now, BNB is priced at approximately $589, and it reached its all-time high (ATH) of $698 in June 2024. If you are a Binance trader or actively use DeFi protocols built on Binance Smart Chain (BSC), BNB could be a valuable investment for you.

  • Solana (SOL)

It is fourth largest cryptocurrency in terms of market capitalization currently priced at $185. It is native coin of Solana blockchain, which is known for its high-speed transactions and scalable capabilities. The popularity of SOL has been largely driven by the robust ecosystem of DApps and DeFi protocols built on the Solana network.

This cryptocurrency is not only used in investment but also used in various DeFi activities. Many investors use this coin for staking to earn passive income. Beyond staking, this coin is actively used in Solana ecosystem for other DeFi activities such as lending, borrowing, yield farming and trading NFTs.

Crypto.com Review 2024

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crypto exchange reviews

Crypto.com: The Most Secure Crypto Exchange

Crypto.com is a popular crypto exchange used for spot, derivatives and margin trading. It offers comprehensive ecosystem for crypto investors. There are over 350 tradable cryptocurrencies and 21 assets for staking. Alongside browser platform, mobile app is also available which is user-friendly and suitable for beginners. Interestingly, platform offers high-speed trading and deep liquidity.

Crypto.com is considered the most secure crypto exchange because of its regulatory compliance and security certifications. The platform has millions of users around the world. Its focus on regulatory compliance and global expansion has strengthened its position as a prominent crypto exchange.

Pros and Cons

ProsCons
350+ tradable cryptocurrenciesHigher fees without CRO staking
Mobile app also available 
Crypto staking to earn rewards 
Crypto visa card for earning cashback rewards 
DeFi wallet also available 
  

Trading Fees

The fees are high for users who have not staked CRO. Traders with monthly trade volume below $250,000, pay 0.075% fees. They can get discounts by staking CRO. Here’s the complete detail of the transaction fees without CRO staking:

TRADING VOLUMEMAKER FEETAKER FEE
Less than $250,000 (Level 1)0.075%0.075%
$250,000 to $1 million (Level 2)0.07%0.072%
$1 million to $5 million (Level 3)0.065%0.069%
$5 million to $10 million (Level 4)0.06%0.065%
Above $10 million (Level 5)0.00%0.05%

Trading Experience

Crypto.com provides complete set of trading tools for professional traders. Under the single trading interface, you can choose either trading bots or manual trade. The charting system comes with complete set of tools for technical analysis. By trading on Crypto.com, you can access multiple advanced order types such as OCO limit, OCO market, stop-loss limit, stop-loss market and others.

Crypto.com supports three types of trading including spot, derivatives and OTC trading. OTC portal provides competitive rates for large-volume trades. You can trade wide range of futures and perpetual contracts. Overall, the platform is suitable for trading in multiple markets.

Other Features

Apart from trading, Crypto.com offers many other interesting features. The platform offers staking service for users who want to earn passive income with crypto. Users can earn up to 19% APR. Currently, 21 assets which also includes stablecoin such as Tether, can be staked.

Crypto visa card is Crypto.com’s best feature specifically designed for those who want to use crypto for everyday purchases. This card provides cashback rewards depending on user’s CRO holding. Being a native coin of Crypto.com, CRO provides various incentives. You can get maximum cashback rewards for CRO staking of $400,000.

Another interesting feature is DeFi wallet that can be used for storing and swapping cryptocurrencies. It also provides access to various DeFi procotols.

Customer Service & Satisfaction

Crypto.com provides multiple channels for customer support. Customers can use the live chat feature or send emails if they have any queries or any problem. Additionally, Crypto.com educational resources are also very helpful for customers.

On G2, there are 13 reviews about Crypto.com which makes the overall rating 4.2 out of 5. Most customers seem to admire various products like visa card, and native token like CRO, ease of use, and diversity of tradable assets. On the other hand, some customers also complain about slow speed of the application.

Company Overview

Crypto.com company was founded by Bobby Bao, Kris Marszalek, and Rafael Melo in 2016. Originally named as “Monaco”, the company rebranded to Crypto.com in 2018. Initially, it focused on crypto trading services, but later evolved into a cryptocurrency ecosystem and now provides multiple financial services. The platform also offers margin and derivatives trading. Crypto.com also partnered with Shopify in 2022 to enable merchants to take payments in cryptocurrency.

Crypto.com has also registered with FinCEN organization as a Money Services Business. This crypto exchange is regulated in many regions such as Europe, and Australia. The platform has sustained robust security measures and earned security certifications.

The ultimate guide to DCA for crypto trading

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investment strategies

How DCA strategy works?

DCA or Dollar Cost Averaging is a popular trading strategy that is specifically designed to reduce the impact of market volatility on investment. In the process, you divide your large investment into small chunks and invest each of them regularly at specific intervals. This averages out the cost of investment. If you purchase a large amount of crypto at once, the impact of price volatility can be large which can lead to losses if price drops significantly.

Suppose you want to invest $1000 in BTC. You would invest $100 weekly, and after 2.5 months you would have invested all amount. Current price of cryptocurrency is $66,369 so you wait until price drops to lower weekly point like $63,000.

WeekBTC Price (USD)Investment (USD)BTC Purchased
1$63,000$1000.001587
2$62,000$1000.001613
3$60,000$1000.001667
4$58,000$1000.001724
5$55,000$1000.001818
6$58,500$1000.001707
7$62,000$1000.001613
8$65,000$1000.001538
9$68,000$1000.001471
10$70,000$1000.001429
Total–$1,0000.016119

Now you have acquired 0.016119 BTC. Now, let’s say, BTC price rises to $72,000 from $70,000. The value of your investment would be:

 0.016119 BTC x $72,000 = $1160

$1160 – $1000 = $160 profit

If you invested lump sum instead of DCA at price of $63,000, you would have acquired 0.01587 BTC. Value of your investment would be:
0.01587 x $72,000 = $1142

$1142 – $1000 = $142 profit.

This comparison shows that by using the DCA strategy and buying crypto at multiple low-price points, you could potentially acquire more BTC and achieve a higher profit than with a lump sum investment. However, if price does not decrease as expected, you might need to adjust your investment timing.

DCA vs Other Strategies

DCA is a long-term strategy mostly used to capitalize on downward trend and volatile situations. If price is consistently increasing in long-term without significant downturns, you cannot capture low-price points to acquire more of crypto. In that case, lump sum trading or other strategies can yield higher profits. Another popular strategy is grid trading which can be considered as a short-term or long-term strategy depending on how it is implemented. Grid trading is also suitable for crypto assets when their price is consistently increasing in long-term.

DCA strategy can be particularly effective if price of an asset is fluctuating around a mean point. It mitigates the risk of buying all investments at peak price by spreading out your purchases over time. When price fluctuate around mean point, you end up buying more share of asset when price is low and fewer shares when price is high.

Mitigating impact of price volatility

By making multiple small investments over time, the average cost of asset holdings would be closer to mean price, reducing the risk of having bought at peak price. Rather than investing lump sum of $1000 at price of $63,000 for BTC, you can invest small amounts at low-price points. This approach can effectively increase your asset share and reduce the impact of short-term price volatility.

Creating a DCA plan

The DCA strategy provides a disciplined approach of trading and eliminates risk of emotion-based trading. While the DCA strategy involves breaking large investment into small parts, the timing of investments or size of investments can be adjusted based on changing market conditions. While a per-week or per-month investment schedule is common, many traders prefer a dynamic schedule. In this approach, investments may be paused for some time to wait for low-price points. Similarly, the size of investment would be reduced when price is above the mean price. The strategy is to capture as much crypto as you can at low prices. However, at high prices, you can choose to reduce the size of investment. This disciplined approach can lead to better returns.

While DCA strategy inherently involves regular investments, it allows flexibility in adjusting the investment amount and timing based on changing market conditions to optimize the acquisition of assets.

Executing and Monitoring the Strategy

Once you have created a DCA trading plan and selected a cryptocurrency, next step is to execute it. Choose crypto exchange with high liquidity, such as Binance or OKX, to facilitate your trades. If you proceed with manual trading platform, you may need to set calendar reminders to execute buy orders at your chosen interval. Use charting tools and indicators for identifying appropriate buying opportunities. Execute buy orders at price below the mean price to acquire more assets at lower cost.

Keep records of each purchase, date and time, asset amount and price. Use spreadsheet or other tools to monitor the performance of each investment. If $100 investment yields less BTC compared to previous condition, then it is not the ideal time for investment. For the maximum profit, investments must be made at lower price point, typically below mean fluctuating price. To calculate mean price, you can use various technical indicators like Simple Moving Average SMA or MA.

Dynamic DCA strategies involve adjusting investment timing or size based on market conditions and can be more complex. While traditional DCA which involves investing a fixed amount at regular intervals, can be suitable for beginners.

Alternative methods for DCA

Despite the profitability of DCA strategy, there are potential risks. If price of asset is in consistent downward trend, then profits cannot be obtained unless price recovers to a specific point. If price is in consistent upward trend, then strategies like grid trading are better. Additionally, it is also important to observe market conditions to identify the optimal time for starting DCA trading.

Many traders also use automated trading to execute DCA strategies. They use DCA bots for this purpose. These bots automate the investment process enabling a more disciplined approach to trading. Users can set parameters such as investment amount, investment frequency, target asset, start and end dates, buy limits and conditions. While most bots use market order type some bots also use limit orders enabling the execution of buy orders at specific limit price.

Binance Trading Bots Review 2024

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trading bot reviews

How Binance Trading Bots Work

Apart from manual trading, Binance also allows automated trading with complete customization. Users can utilize spot grid, futures grid, and Arbitrage, Rebalancing and Algo Order bots. All these bots are designed to capitalize on specific market conditions to generate profits. But the profitability often depends on the parameters set by user, and timing of trades. Each bot has built-in trading strategy.

Spot grid bot executes buy or sell orders in specific price range. Futures grid also uses that strategy with the only difference that it deals with futures contracts rather than assets. Binance’s arbitrage bot is different from other arbitrage bots. It works by taking opposite positions on two different markets such as spot market and futures market. The bot exploits the funding rate difference to make profit.

Pros and Cons

ProsCons
Diverse range of trading botsCan be overwhelming for beginners
Both manual configuration and AI-based configuration availableBots are not immune to market risks
Template strategies also available 
Fast trade execution 
Auto-invest feature which uses DCA strategy 
  

Trading Experience

On the trading interface, you can select various bots including spot grid, futures grid, Arbitrage, Rebalancing, and Algo Order. By utilizing the advanced charting tools, and technical indicators, users can gain insights to set the bot parameters. Specifically in case of grid bot, users can manually configure the price range, and number of grids or use AI-based configurations which are decided by AI. Additionally, they can also copy pre-built templates all of which have varying Return-On-Investment (ROI). Some of these templates have more than 50% ROI. Although these can be profitable but same results are not guaranteed due to dynamic nature of crypto market.

Apart from bot trading, Binance offers auto-invest feature that utilizes DCA strategy to generate profits. This feature allows users to set custom auto-investment plans for regular purchases. Users can choose:

  • Single Token Plan: For investing in one cryptocurrency.
  • Portfolio Plan: For investing in multiple cryptocurrencies.

Some of the purchased crypto are automatically deposited into Simple Earn, where they can generate interest. Auto-invest feature helps users benefit from both price appreciations and interest earnings.

Profitability and Risks

Despite the mitigation of human error and boosting investment performance through strategy-based trading, profits are not always guaranteed. Spot grid bot can face losses in case of continuously declining markets. DCA strategy also requires stable price movements or long-term upward trends, but it may not perform well during high volatility. Moreover, setting parameters for bots require expertise in strategy-based trading.

Both spot grid and DCA bots can generate good profits if asset’s price has stable movements. The profitability of arbitrage bot is only affected if price discrepancy between different markets is decreasing. Binance provides the option to launch multiple bots to diversify your investment which can potentially increase the profits. Despite having your bots set up in optimal market conditions, monitoring the trade performance is also important.

Concluding Remarks

Binance supports both manual trading and automated trading, offering various trading bots for executing different trade strategies. Futures traders can utilize Binance’s unique futures grid bot, which is not widely available on other platforms. Specifically for automated futures trading, Binance is suitable platform. Users can also leverage templates to simplify bot setup. Profitability mostly depends on bot parameters, prevailing market conditions, and bot’s underlying strategy. Crypto assets with stable price movements or long-term upward trend are better for investment. Remember that this overview is not financial advice, as market conditions can vary for different individuals.

The Best Trading Bots to Maximize Profits

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trading bots review

How Different Trading Bots Work?

Trading bots are algorithms that execute trades at fast speed based on predefined parameters. They utilize real-time market data provided by APIs and data feeds to gain awareness of market conditions and employ order book system to assess market liquidity, determining optimal price for entering or exiting a trade. While all trading bots work by using these tools, they differ in their respective strategies. For example, DCA bot utilizes DCA or Dollar Cost Averaging strategy which involves buying or selling assets in specific quantities at regular intervals to reduce effect of price volatility on investment. Similarly, grid bot operates within a price range enabling traders to capitalize on optimal price points.

They also enable high-frequency trading, which is not possible through manual trading. These bots work with minimal latency and execute trades in milliseconds, reacting to market conditions and placing orders instantaneously. In contrast, manual trading involves small delays which can lead to lower profits.

Grid Bot Review

This trading bot is well-suited for beginners who are just getting started with automated trading. Unlike long-term strategies which can be sophisticated, grid strategy allows traders to take benefit from short-term price movements in both directions. You select a specific price range such as $50,000 to $60,000 for BTC, if current price is fluctuating around $54,000. If you use grid spacing of $1000, the bot will place buy orders at $53,000, $52,000 and $51,000 and sell orders at $56,000, $57,000 and $58,000.

It’s important to note that bot does not execute trades if price of asset goes outside the predefined range. This strategy is similar to day trading, where you focus on short-term price movements within a specific range.

Various dedicated platforms such as 3Commas provide grid trading bots. You can also use crypto exchanges like Binance and Pionex for automated grid trading. On Binance and Pionex, you can either manually configure the parameters or let the AI decide the optimal parameters for you.

DCA Bot Review

It is a bot that uses Dollar Cost Averaging (DCA), which is one of the most popular trading strategies. In this strategy, a large investment is divided into smaller parts all of which are bought or sold in specific intervals. The effect of price volatility is spread across these small investments. If big investment is done at single time, it can lead to bigger losses. That’s why, DCA strategy is very effective in reducing the impact of price volatility.

The profitability of a DCA bot depends on long-term price trends. The bot purchases assets at regular intervals, regardless of the asset’s price at the time, which averages out the cost of the investment. The strategy works best when the asset’s value is gradually increasing over time. By consistently buying assets at lower price points during downturns and selling at higher prices during uptrends, the bot generates profits.

Arbitrage Bot Review

Arbitrage bot leverages multiple markets rather than focusing on single market. It uses price discrepancies between different markets or different exchanges to generate profit. The amount of profit earned depends largely on size of price discrepancies. For example, if BTC costs $55,000 on exchange A and $55,250 on exchange B, the bot would purchase BTC from exchange A and sell at exchange B, resulting in profit of $250.

Arbitrage trading can be challenging without the use of bots because manually executing trade can be slower and price discrepancies may disappear before trade is executed, resulting in missed profit opportunities.

Managing The Risks

While bots are very effective in achieving higher returns on investment by capitalizing on high-speed trading and built-in strategies, there remains chances of losses if market keep moving unfavourably. That’s why, doing a technical analysis prior to automated trading is crucial. It is also important to define risk tolerance and set specific loss limits to protect long-term profits.

Understanding potential price movements, and defining risk limits, help in setting effective parameters for bot trading. An important tool you can leverage is simulated trading, which allows you to gain experience and see how your trading bots would perform under different market conditions.

Top 4 Trading Bots in 2024

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top trading bots

Manual Trading vs Automated Trading

Automated trading has become popular in the recent years due to the advantages it provides. Key benefits include fast trade execution and the ability to trade at high frequency which many traders find advantageous. Automated trading systems or trading bots utilize built-in strategy and execute trades automatically based on predefined parameters. This allows fast and efficient trade execution often in milliseconds.

In contrast, manual trading requires you to manually place orders. The trade execution speed can be slower in this case. Automated trading also comes with its own risks. In volatile and declining markets, a bot may continue executing trades based on predefined rules which can lead to losses if market moves unfavourably. Automated trading is considered as rule-based trading because it involves specific strategy. This also eliminates human errors, or any decisions based on emotion.

Top 4 Trading Bots

Trading bots utilize real-time data provided by APIs and data feeds to make trading decisions. Different platforms offer varying degree of customization for the bots. Some platforms allow you to set specific technical indicators for your trade strategy while other platforms require minimal configuration for the bots. When choosing a trading bot platform consider factors like security, ease of use, customization and flexibility, costs and performance, and reputation. In this article, we review different trading bot platforms.

  1. Coinrule

It is an automated trading platform that allows investors to create and deploy trading bots without coding knowledge. The user-friendly interface allows beginners to easily navigate the platform. Free plan is also available for those who are just getting started with automated trading.

Coinrule currently offers 250+ trading strategies. Users also have the option to create their own strategy. Apart from free plan, there are three other plans with advanced features. The Hobbyist plan and Trader plan are priced at $29.99 and $59.99 respectively and provide advanced features such as multiple connected exchanges, advanced indicators, copy trading and more. While the Pro plan costs $449.99 with better features. Additionally, Coinrule also allows backtesting of strategies.

  • 3Commas

It is a popular platform used for automated trading. 3Commas provide comprehensive set of trading tools including trade bots, portfolio tracking tool, and others. This platform is suitable for experienced traders who have sound knowledge of various trading strategies. Through 3Commas, users can also access trading signal marketplace and use specific signal for their bot.

3Commas provide DCA, grid and signals bots for specific trade strategies. You can also monitor the performance of trades executed by bots through the dashboard. 3Commas support popular crypto exchanges like Binance, OKX, Bitfinex, Bybit and others. Free plan is also available with limited features. All paid plans are affordable and give access to multiple bots.

  • Shrimpy

Shrimpy is one of the best platforms for automated portfolio management. You can run automated trades and also test different trade strategies. The platform is easy to use and gives a comprehensive dashboard. This platform empowers traders by enabling them to manage multiple virtual portfolios. Smart rebalancing feature and DCA strategies are also available. One thing that sets Shrimpy apart from other platforms is the smart order routing which provides the best rates for traders. Free plan is also available along with paid plans. For automated trading especially automated DCA strategy, Shrimpy is a good option.

  • Cryptohopper

It is trading bot platform suitable for both beginners and experienced traders. It can be used for automated trading and portfolio management. Social trading option is also available for those who want to copy other professional traders. Users can set specific trade bots with predefined parameters. Moreover, you can connect to multiple exchanges and easily manage your portfolio. Cryptohopper also supports trailing orders specifically designed to lock on profits or reduce losses.

If you are unaware of how strategies work, you can utilize the paper trading feature to simulate trades to gain experience. You can also backtest strategies. And lastly, Cryptohopper’s strategy designer can be useful for creating your own custom strategy using a combination of technical indicators without coding.

Top 3 Yield Farming Strategies

by
earn with crypto

How Yield Farming Works

The Automated Market Maker system (AMM) has revolutionized the decentralized finance. It allows anyone to independently provide liquidity for the crypto markets of decentralized exchanges (DEXs) to facilitate trades. AMM system is widely used by most DEXs that allows users to fund the liquidity pools to earn rewards. Yield farming not only encompasses the liquidity mining, but also lending and staking or the combination of all. In some DeFi platforms, the yields you earn can come from a combination of transaction fees and the interest generated by lending. Harvest finance is an example of such yield aggregator platform.

In the process, users deposit their crypto assets in a liquidity pool which is basically a smart contract which fuels AMM system. As a result, they receive LP tokens which represent how much liquidity they have provided. When trade occurs through the assets in the pools, a portion of trade fees is granted to liquidity providers. In some cases, users can also stake their LP tokens to earn even more rewards. Afterwards, they can also compound the rewards by reinvesting them into other liquidity pools – the process can be automatic in some platforms. The most common risk it carries is the market volatility of crypto assets. If price decreases, the value of their rewards can decrease leading to a loss.

Earning Potential

Yield farming is beyond just providing liquidity and earning transaction fees. The earning potential varies depending on the employed strategy. In simple yield farming, you deposit crypto assets in a specific pool and earn a portion of transaction fees. Some pools also provide incentive rewards which can increase the APR rate from 50% to more than 100%.

Some platforms provide auto-compound strategy in which rewards are automatically reinvested into new pools. This strategy gives better returns but also has risks like impermanent loss. The auto-compound can increase the APR rate by 10-30% compared to non-compound yield strategies. Yearn Finance and Beefy Finance are some of the platforms that provide this feature.

Another great strategy is to use yield bots which are algorithms or tools that automatically invest assets in various pools to maximize the rewards for users. These bots can give better returns compared to manual yield farming. The yield bots can provide APR up to 200% or above. This is made possible by dynamic allocation of crypto across multiple liquidity pools, lending platforms and other yield farms based on predefined rules and market conditions. The bots can adjust the current investments in real-time to maximize profit. Interestingly, these bots rely on APIs and oracles to access real-time information about various DeFi platforms and markets. That’s how they identify the best possible yield opportunities across the DeFi ecosystem. These bots can also auto-compound.

Risks

One of the major risks is the price volatility of the assets that you deposit in liquidity pools. This also exists in case of staking and lending. That’s why, assets with stable price movements are better to be used in staking and yield farming. Even if this risk is ruled out, investors can face impermanent loss. This occurs when value of assets in the pool changes compared to simply holding them. This can be mitigated if you invest in pools with high trading volume and incentive rewards.

Other risks are present at the platform level. Bugs or errors in the smart contract code can lead to unauthorized access or loss of users’ funds. Additionally, while encryption and network security protocols (like firewalls) provide security, vulnerabilities can still exist. However, the platform-level risks can be mitigated by choosing a secure and reputable DeFi platform.

Top 3 Strategies

  1. Stablecoin Yield Farming

This strategy involves the use of stablecoins which are stable assets pegged to real-world assets. You can deposit popular stablecoins like USDT or USDC in yield aggregator platforms or DEXs to earn stable or predictable yields. The risk of impermanent loss and price fluctuations is minimal. Whether this strategy is better than the one involving normal cryptocurrencies depends on various factors such as risks, and profitability. The risk of impermanent loss is ruled out, but stablecoin pools offer lower APR rates due to reduced risk and high trading volume. Specifically for this strategy, yield aggregator platforms like Yearn Finance can be good option.

  • Liquidity Provision

Liquidity Provision means depositing coins in liquidity pools in decentralized exchanges to earn transaction fees and other incentive rewards. Pancake Swap is a good platform for earning boosted yields because it also allows staking of LP tokens. It has diverse range of pools known as Farms. You can earn up to 300% APR. The impermanent loss can be a major risk in this strategy. Pools with high trading volume and additional incentive rewards can help reduce that risk.

  • Yield Aggregation

Yield aggregators have become popular in the recent years. These are platforms which use algorithms to find the best yield opportunities across multiple DeFi platforms by utilizing the real-time information through APIs and oracles. The process is mostly automatic and supports auto-compound. The impermanent loss is also reduced through this strategy because the algorithms monitor the performance of investments and adjust asset allocations. Yearn Finance and Beefy Finance are some of the best yield aggregators in 2024.

Trust Wallet Review 2024

by
crypto wallet reviews

Overview of Trust Wallet

Trust Wallet is a DeFi wallet that can be used for storing, swapping and staking cryptocurrencies. Being a self-custody wallet, it gives users full control over their private keys. Although it is managed by centralized authority like Binance but enables decentralization of funds due to its non-custodial nature. Multiple payment options are available including credit/debit card and bank payment to purchase crypto.

This wallet is one of the most secure crypto wallets whose open-source code has also been independently audited by industry experts. It has around 100 million users most of which came from Binance. Crypto exchange’s large user base has helped boost its popularity.

Pros and Cons

ProsCons
Supports millions of crypto assets across 100 blockchainsLimited customer support
Access to staking serviceDoes not support 2-Factor Authentication
User-friendly interface 
Strong security 
  
  

How Trust Wallet Works

Being a decentralized application, Trust wallet interacts with multiple blockchains. Each blockchain independently manages the transaction data while Trust wallet stores private keys on user’s device. Using the private key, user can access his funds across different blockchain networks. The private keys are used to sign transaction and to prove ownership of crypto assets. If device is lost, then seed phrase is used to recover your wallet account and regenerate the private key.

Once a user downloads the browser extension or mobile app and signs up, a new wallet is generated with a set of private keys and seed phrase (recovery phase). He can manage coins across blockchains like Ethereum, Bitcoin, BSC and others. To make a transaction, user enters the crypto amount and recipient’s address. The transaction data is recorded on the blockchain. Furthermore, Trust wallet’s partnership with payment providers also enables purchase of crypto within the app.

Trust wallet have maintained community-driven nature of the platform just like other decentralized applications. New updates and improvements are regularly added with community feedback and suggestions. Recently, blockchain support has expanded and includes new blockchains like Moonbeam, Mantle, Neon, ThunderCore, etc.

Features

The top feature of Trust Wallet is its extensive cryptocurrency support. It supports millions of crypto assets across 100 blockchains. You can also access a diverse array of tokens. Currently, 24 coins are available for staking with good APR rates. Not only you can store and swap coins but you can also earn passive income by staking.

Trust wallet provides efficient swapping of crypto at low gas fees and the best rates. Interestingly, the distribution of orders on multiple DEXs offer slippage protection. Moreover, you can purchase crypto with over 100 fiat currencies at the best rates. Trust wallet’s DApp browser allows users to interact with these applications.

Security

The backing from Binance, provides Trust wallet the industry-leading security features. Multiple tools including monitoring systems, encryption technologies, and cloud backups, ensure safety of the application. Moreover, users can connect a hardware wallet with Trust wallet which adds additional layer of security. The platform is also independently audited by multiple auditing firms to identify any vulnerabilities in code. Trust wallet also runs a Bug bounty program to incentivize people to identify security vulnerabilities.

Concluding Remarks

Trust wallet is a reliable crypto wallet with versatile utility. It provides access to millions of crypto assets and NFTs. Apart from storing and swapping crypto, users have ability to stake their coins to generate passive income. Trust wallet’s DApp browser is one of the best features. Overall, Trust wallet is a good option if you plan to store crypto. The industry-leading security provided by Binance ensures the safety of application. While the web-based nature of this wallet does not completely eliminate chances of hack, but safety on software and network level is achieved. Users can also connect their hardware wallet with this wallet to increase security of their funds.

How to start spot trading?

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spot market

How Spot Trading Works

In spot trading, you buy or sell the crypto assets at market price. The trades are executed immediately through order book system which matches the buy and sell orders. Specifically in spot trading, you fully own the asset and can also hold it for long time. In derivatives trading, you only hold a contract based on underlying asset, not the asset itself. The speed of trade execution depends on liquidity of the specific asset – the higher the liquidity, more easily trade would be executed. Crypto markets with higher liquidity reduce price slippage, which occurs due to large orders.

You can place a buy or sell order using various order types depending on your trading requirements. Market order type is commonly used to buy or sell crypto asset at current market price, ensuring immediate execution. For more specific conditions, you can use advanced order types like stop-limit orders. These allow you to set both a trigger price and a limit price. When the trigger price is reached, the order becomes active, aiming to execute at the limit price or better. This type of order can help manage risk, providing more control over trade execution in volatile markets.

Creating an Account

When you are just getting started with crypto trading, make sure you select a reliable and secure crypto exchange. Most of the exchanges have implemented the KYC process in the account registration process. You can sign up by entering your details including email, password, phone no., etc. In KYC process or identity verification, you need to provide images of your government-issued ID card. Once completed, you can deposit crypto in your exchange account. You can transfer assets from another crypto wallet or simply purchase crypto by depositing fiat currency in your account.

Placing First Crypto Order

Here’s the step-by-step process. Move to the spot market or trading platform of crypto exchange you are using. Now, you can select from several trading pairs such as BTC/USDT, or ETH/BTC depending on what type of crypto you already have. If you have USDT and want to buy BTC with it, take a moment to analyse the current BTC market conditions using charts and other trading data. You can set various technical indicators like Moving Averages (MA) and Relative Strength Index (RSI) in the candlestick chart. RSI is an effective indicator used to identify oversold or overbought conditions based on changes in price movements.

Then, select market order type and enter the amount of BTC you want to purchase. Now you can click Buy to execute the order immediately at the current market price. Review the order details and confirm transaction. Afterwards, you can check new account balance which includes some amount of BTC.

Monitoring Your Strategy

If you plan to sell BTC later when its price surges, it’s crucial to remain in touch with market conditions of Bitcoin. Technical analysis, fundamental analysis and information about market sentiments can aid you in the process to identify perfect time to sell BTC. The specific signals of future price movements that multiple indicators can give are very helpful. For example, when RSI value is above 70, and when short-term Moving Average cross below long-term Moving Average, it is a good time to sell your asset. The fundamental analysis involves identifying specific events that can impact crypto’s price like halving event, and regulatory crackdowns.

Alternatively, if you didn’t purchase BTC but want to buy it at its lowest price point, RSI indicator and MA can be helpful. RSI value of below 30 is an indicator of oversold condition and a good time to purchase a cryptocurrency.

Alternative Ways of Spot Trading

Many traders have shifted focus from manual trading to automated trading. Automated trading involves the use of trading bots that utilize custom parameters to execute trades automatically. Most common trading bot is grid bot which allows users to trade in specific price range, which is a strategy used in day trading. Most of the trade bots like DCA bot, and Arbitrage bots have built-in strategies allowing traders take benefit of these to make better profits. Although bot trading is a good option if you want to trade in spot market, but it requires sound knowledge of how these works and specific risks associated with these bots. These bots perform trade based on parameters determined by user, and in some cases cannot prevent losses when price downfalls occur. In a situation of continual market decline, grid bots or DCA bots may keep buying assets according to predefined parameters set by the user, which can lead to further losses. That’s why, monitoring the performance of trades executed by bots is essential part of automated trading. In cases of declining markets, it may be necessary to disable the bots. Usually, these bots are more effective when used with assets that have long-term upward trend.