Bitcoin Forum

A friend told me about some a project who is using an api to trade on your exchange account. So you keep your coins on your exchange account and accumulate more bitcoin instead of just holding.

What is your opinion on these kind of trading . Do you use any ?  Do you recomment any ?

it is not a "type of trading" it is a different way of doing the same exact thing: trading!

in simple terms when you want to trade you either open the website inside your browser and make your buys/sells or you open the website inside an application (technically you would just be fetching the data and submitting your orders through their API) and do the same thing in there.

making money (profit) doesn't depend on this, it depends on whether you can make good trades or not and whether you are familiar with trading cryptocurrencie in first place.

ps. don't trust these applications, there are lots of malware out there being sold with the name of "bots" with promises of big profit while they simply rob your coins.

API (https://en.wikipedia.org/wiki/Application_programming_interface)s in general gives you easy access to functions and all major exchanges got detailed explanation pages how to use them.
There are 3rd party services that can handle the trading for you with API access but as pooya87 said you need to trust them with your API keys and that is a risk.

I use a project called Dropil that allows you to link your Binance and Huobi Exchange accounts and does bot trading for you. I like it a lot. Sign up link is at dropil.io if you're interested.

Many exchanges provide api's so that developers can develop trading bots. That "project" that you have described is one of those trading bots. But first you should realize that you are essentially giving a third party nearly full control over your exchange account, and they can easily steal all your money. So, if you decide to use such bot, verify that the developer is trusted and that the code has been audited by a third party. Also, keep in mind that such bot is not guaranteed to make any profit, in fact it can even lose you money - a bot is just executing some trading strategy, and objectively there's no way to always make profit with trading, especially on a volatile market like Bitcoin's.

I don't think there is much difference in what you are saying. Trading through API is quite easy when you have the right tools like a trading bot like Gunbot (https://gunbot.ph). You could input there your API and start trading right away and automatically, 24/7.

As for the accumulation of Bitcoin, maybe you are talking about compounding your money and continuing to load Bitcoin until you have a lot of BTC? That's like what it sounds to me. Maybe you can clarify it a little bit more?

I won't try APIs for my trades simply because I don't always want to see that my trades are being automated by a program. Simply if you don't have the time to the kind of trading you want your choice is to do a different kind of trading the perfectly suits you. If you think that a bot can handle your trades with 100% profit then think again your success still depends on what you have ordered them to do so. Automated trades don't guarantee success and you don't have much room to have a back up plan if you can't even monitor the prices yourself. Another point to consider is the market is filled with fake APIs just want's to still your money and I don't think I would risk myself on downloading one.

Why not just run a regular tradebot by yourself?

yap . thats it ! i just keep some of my bitcoins on exchange , with a trading api , no withrawal , and a few months later i have more 10% btc , or 20% btc , instead of just holding in my cold storage wallet

gunbot ? have you use ? how much profit ?

gunbot (like any other trading bot out there) is not some magical tool that can give anybody profit! they are just helping tools that make certain things easier for traders. but the first requirement is for you to be familiar with cryptocurrency trading, the risks, the manipulations, how tos,... before you can even start using these bots.
in other words it doesn't matter if @crwth made profit or not. if you are new to trading you still would lose money with or without a bot.

I see that's understandable with what you are doing with your holdings, as long as your Bitcoins are safe in the exchange.

It really depends on the market, I have profited multiple times using a trading bot and luckily have kept in running in a good trend. Imagine sleeping and you traded in profit. You didn't have to monitor it. It all depends on your strategy and what type of market you are going in. Just like BrewMaster said, there's no magic into profiting but relying on bots could increase your chances but it is still solely your responsibility. Except if you are running an Arbitrage bot like BitRage (https://bitcointalk.org/index.php?topic=5134562.msg50714482#msg50714482)(which covers much automatically your trading account and take cares of your trades)

API is just for using external applications instead of the website basically.  I wrote a simple python buy/sell scalper bot for cryptopia a long time ago, its here cryptominingtalk.com/algo-trading-python-code-example/#more-774 if you are interested.  You can write the same thing for any exchange that has private API and code in whatever strategy you think is good.

thanks for all the info dudes !