Trading Guru’s are so Old-School
By now pretty much everyone who has a social media account may have encountered numerous advertisements offering help in generating passive income through trading. Be it forex, stocks or even cryptocurrencies; the number of legitimate programs and also scams are on the rise. They promise over-night success by peddling their trading strategies or bot algorithms. Do these actually work? No one knows for sure. Why pay thousands in these untested projects when you can do it yourself?
We know what you are thinking. No, this is not another offer for trading strategies! Plus, you don’t have to learn any programming. However, having some knowledge of technical analysis (knowledge of some basic indicators) would be neat. Even if you find the subject daunting or have little time to invest, there is still a cool way with what we are about to share here. This article presents an amazing development in the field of decentralized finance with automated trading bots. All the technical wizardry happens behind the scenes while you accomplish of allocating your portfolio to the right strategy. No more guessing if that trading ‘Guru’ will deliver all that is promised or having to break your bank to pay for that super advanced algorithmic trading.
Now everyone can beat the ‘Guru’!
Yes, this is not a far-fetched claim. Bitcoin and Ethereum are the best performing asset over the last couple of years and will remain so for the foreseeable future. The transition from Finance 1.0 to Finance 2.0 is already taking place. Code is better, faster and frictionless compared to transactions with traditional financial institutions. This does come with a caveat though. Not all code can be trusted especially if the developers create back doors to access funds or if there are security vulnerabilities. Fortunately, this issue has been solved by technology companies focusing solely on code audits for the threat outline above. Code audits are now becoming the industry standard for ensuring that a decentralized protocol remains secure on all digital fronts.
One such decentralized finance application is the Set Protocol. This decentralized application offers you the chance of setting your trades on autopilot. There are numerous trading strategies presented on the website with more being added by the day but the ethos of fire and forget remains very much alive. Set Protocol’s webpage is fairly simple and intuitive in terms of it’s user experience. Offering Web 3.0 capability, the site is able to form a direct connection with cryptocurrency wallets of various types (online, mobile or hardware wallets). On the site, you will also find strategies crafted by other traders and standard bot powered strategies. Having these two options, you could either decide to follow traders of your choice or leave the trading to the bots. Instead of having to guess which strategy to pick, each list presents live performance figures. This is critical especially if you need to validate the claims from a certain strategy against it’s actual performance. Something which you can’t do with the trading ‘gurus’.
Decentralized and low on fees
Competing companies offering trading algorithms as a service do not stand a chance against Set Protocol’s Tokenset product. Firstly, they don’t require you to deposit any funds into a custodial account. All funds remain in your wallet with the smart contract either locking up or releasing funds when you perform transactions. Tokens generated from a particular trading set can also be freely transferred to any wallet that supports the ERC20 standards for long-term storage if you intend to go long.
In addition, the Tokenset product also enables trading with no fees at the moment, although there is a small amount of slippage that occurs as assets are exchanged. Minimal fees charged by the platform demonstrated one of the many advantages of decentralized finance. As the cryptocurrency markets are live at any time of the day irrespective of public holidays or other events, you have the luxury of buying or selling sets at any time.
Portfolio management made easy
Take away the stress of monitoring the charts by allocating your investments into different sets. Tokenset as the name implies provides you with a representative token that is equivalent in value to two different assets held by the smart contract. Deposits are accepted in Ethereum or the Dai stablecoin and the smart contract takes care of the allocation into the two asset pairs. Depending on the underlying strategy employed by the sets, you can expect returns when the bot automatically rebalances assets based on the pre-defined threshold or criteria.
For example, if you are keen on capitalizing on the dollar value of Ethereum, the ETH 20 days MA crossover set would be ideal. In a bull-market, the price of Ethereum rises along with your portfolio. If there is a pullback and the price of ETH crosses the 20 days moving average, ETH will be sold and converted in USDC (an ERC20 stablecoin). The reserve happens automatically when the market starts crossing the 20 days moving average again to the higher side. In effect, you are buying more ETH when price dips and selling ETH when the price is higher. All of this is taken care of by the trading bot and therefore frees your time for other pursuits.
Like what you see here? We will be releasing a step-by-step guide on how to maximize your gains on Tokensets using a mixture of strategies while taking into account the underlying market structure. Do, check back again soon on instructions on downloading the e-book.
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