Recent posts lead me to believe that not everybody using this bot is up on the basics. To that end, I am going to jot up on the board some key points you should know and research if you are going to trade in Crypto.
1. HiMe. Why believe me? Don't. Do your own due diligence; but this should get you pointed in the right direction to do that.
That said, in "real life", I am a trade consultant and trainer, and I charge for it. I have no affiliation with ButterBot except as a user.
2. CryptoKnow your trade. Know Bitcoin, how to use it and move it. Crypto is extremely easy to move around, that is a large part of it's power. Posts about not being able to access/move/exchange one's funds are a massive case of cart-before-horse in-over-your-head trading. Don't take offense, learn what you are doing wrong and fix it... I will show you how.
3. PortalVery first on your "I-wanna-b-a-trader" checklist is your portal. You need to be able to exchange USD for BTC in minutes; not days. Do not confuse your portal with your exchange. At the exchange, that is just money on books. I am talking about getting real, physical paper $20 bill into BTC and back again.
EXAMPLEI "park" my mortgage payment in a trade account each month until the day it is due. This past month, a very good month, that mortgage payment made me more then $700 in profit in the time it sat there. This is the power of a good portal.
Use your portal to move your money between your bank account and the exchanges, _not_ the exchange withdrawal/deposit system.
I use and recommend Coinbase as my portal.
4. ExchangeSo much info is available on the different exchanges it seems redundant to write anything on this, but based on a post here earlier, I guess not everybody reads as much as I do, so I will address the 4 largest, in descending order of "respect":
BitStamp: Widely regarded as the standard leader at this point. This said, they are going through a spot of growing pains, and often get overwhelmed in heavy trading.
BTC-e: Located in Russia, this exchange has continued to surprise and impress. They do not have the volume of the larger exchanges (for you whales out there), but they are solid, and I have never experience a single problem trading there. Low fees and predictable curves have made it the most profitable butter accounts for me & mine.
BTCChina: New on the scene, and taking the lead. They do not deal in USD, however, so have not had much to do with them
GOX: What can be said here that is not already splashed all over the news & internet?
Stay away!! They are a mess, a risk, and just not worth the headache.
If you are trading larger amounts (>$10,000), I recommend spreading the investments across more then one exchange. This diversification helps manage risk and reduces the shock to the market when Butter buys/dumps large sums.
5. Strategy Hundreds of thousands of books have been written on this part. If you read them all, you may or may not be able to beat ButterBot, because it uses a pretty solid strategy for the Crypto trade right now. Butter has made over 40% returns for me in the time I have been using it (a couple of months). I know few people that have been able to beat that.
So for the purposes of this forum, the strategy I recommend is to tune your settings carefully to the exchange you are using,
and leave it alone. I check/re-tune about once a week. That is too often, but I feel useless if I don't.
If you need a Coinbase account, feel free to use this link; it will kick us both back $5:
https://coinbase.com/?r=5170cd8e09b9d96e2f000009&utm_campaign=user-referral&src=If you have not purchased Butter yet, feel free to use this link... again, we both get a kickback:
https://butter-bot.com/?r=82a121d4If any of the above helped you, feel free to buy me a cup of coffee:
1QGr5R2An47fmM1fAjeaG1JAnfis81wTNC
Sean
This is super helpful, Sean. Thank you so much for posting.
One question: Could you elaborate on how you tweak your bot settings? I notice the recommended Bitstamp settings (20/42) are a little slow on the draw lately. Maybe that's a good thing.
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