Automatic transactions between cryptocurrencies

[Arteche]

Dear all,

I'm learning to use the Shapeshift API with the intent of automating transactions between different cryptocurrencies.
I have a wallet in coinbase (which supports different currencies as you know). I have seen that the API has commands to make transactions given addresses. But I'm wondering if there is any way to automate this process so it does not require of my authorization.
Do I require to install a node in my computer to do that?

As you see I'm quite new in bitcoin.

Thanks!

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[bob123]

Since you are new to bitcoin: If you don't own the private keys, you don't own the BTC.
You are relying on a company to give you BTC when you want to withdraw. If they lose the keys through an incident, you are out of luck.
I'd suggest you take a look at all the wallets which exist, and choose one which does allow you to store the private keys.

Now, back to topic.
You don't need a node on your PC to use shapeshift.
But to use it automatically you need to write a small program/script which will (1) handle your private keys to create/sign transaction to shapeshift and (2) will query shapeshifts API to get deposit addresses.

Is there a specific reason you want to automate this via shapeshift? Exchanging coins via exchanges is way cheaper and more reliable/trustworthy.
Most exchanges do have an API. So anything regarding trading/deposit/withdraw can be programmed.

[Arteche]

Since you are new to bitcoin: If you don't own the private keys, you don't own the BTC.
You are relying on a company to give you BTC when you want to withdraw. If they lose the keys through an incident, you are out of luck.
I'd suggest you take a look at all the wallets which exist, and choose one which does allow you to store the private keys.

Now, back to topic.
You don't need a node on your PC to use shapeshift.
But to use it automatically you need to write a small program/script which will (1) handle your private keys to create/sign transaction to shapeshift and (2) will query shapeshifts API to get deposit addresses.

Is there a specific reason you want to automate this via shapeshift? Exchanging coins via exchanges is way cheaper and more reliable/trustworthy.
Most exchanges do have an API. So anything regarding trading/deposit/withdraw can be programmed.

Hi and thank you.
That is very informative.
Could you recommend a wallet that I can use in Linux and control my keys?

Also, I'm not sure what you mean by 'exchanges'.

The reason I want to automate it is that I was thinking in using some machine learning technique to transfer my funds to the most suitable currency at the moment.

[suchmoon]

Hi and thank you.
That is very informative.
Could you recommend a wallet that I can use in Linux and control my keys?

Also, I'm not sure what you mean by 'exchanges'.

The reason I want to automate it is that I was thinking in using some machine learning technique to transfer my funds to the most suitable currency at the moment.

What is "most suitable"?

Since you're on Coinbase already - check out GDAX. It might do what you need at better rates than Shapeshift. GDAX is an exchange.

[Arteche]

Hi and thank you.
That is very informative.
Could you recommend a wallet that I can use in Linux and control my keys?

Also, I'm not sure what you mean by 'exchanges'.

The reason I want to automate it is that I was thinking in using some machine learning technique to transfer my funds to the most suitable currency at the moment.

What is "most suitable"?

Since you're on Coinbase already - check out GDAX. It might do what you need at better rates than Shapeshift. GDAX is an exchange.

To compute suitability I was considering a black box approach, such as a neural network to decide when to shift from one currency to another iteratively.
Thanks for the tip, I will analyze GDAX and also search for a better wallet.

[bob123]

Could you recommend a wallet that I can use in Linux and control my keys?

There are 2 wallets which are considered the 'best ones'.
You can either choose a full node wallet (downloads and verifies the whole blockchain; does take a lot of time to sync with the network): https://bitcoin.org/de/download
Or you can choose a light-weight wallet (does not download/store the whole blockchain; it does get the information from an online service): https://electrum.org/#home

The more suitable for you would probably be electrum.

If you do hold a big amount of crypto, you might consider buying a hardware wallet. Those are way safer and more secured than a traditional desktop wallet.
Hardware wallets do contain the private keys in an 'airgapped' environment. A compromised computer does not lead to a loss of cryptos stored on a hardware wallet.

Also, I'm not sure what you mean by 'exchanges'.

Exchanges are institutions/companies which allow you to trade cryptos (e.g. coinbase/GDAX).

The reason I want to automate it is that I was thinking in using some machine learning technique to transfer my funds to the most suitable currency at the moment.

Then i would suggest that you have a trading stack on an exchange (e.g. binance) and write a small program which does buy/sell depending on your logic via binance's API.

[buwaytress]

Hi and thank you.
That is very informative.
Could you recommend a wallet that I can use in Linux and control my keys?

Also, I'm not sure what you mean by 'exchanges'.

The reason I want to automate it is that I was thinking in using some machine learning technique to transfer my funds to the most suitable currency at the moment.

I always recommend Electrum. It's easy enough to learn quickly, it has the mnemonic phrase you're looking for as a backup (seed), and it even has certain advanced features that'll help you discover more about using Bitcoin before moving on to others decribed above. And there's really good support for it if you run into problems.

Exchanges are trading platforms. You buy or sell Bitcoin for other currencies (exchanging BTC, essentially). Think Forex (foreign exchange) for cryptocurrency. You'd get far better rates at most exchanges than Shapeshift, but at the sacrifice of time and convenience. Probably also not friendly to your ML scripts.

[Arteche]

Then i would suggest that you have a trading stack on an exchange (e.g. binance) and write a small program which does buy/sell depending on your logic via binance's API.

Exchanges are trading platforms. You buy or sell Bitcoin for other currencies (exchanging BTC, essentially). Think Forex (foreign exchange) for cryptocurrency. You'd get far better rates at most exchanges than Shapeshift, but at the sacrifice of time and convenience. Probably also not friendly to your ML scripts.

Thank you guys. Definately these are useful guidelines that put me on track to start to explore cryptocurrencies.
It is not a big amount that I'm going to invest; at the moment I will only test the water and see how it goes.