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Trading Bots | Trade-to-Mine Method

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June 8, 2020 | 

Dan Mitchell |  0 Comments| 

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Get Into Cryptocurrency Trading Today

If you are looking at speeding up or better informing your trading activity, there are a few options and tools on the market at your disposal. We are going to look at a few here, with a primary focus on automated trading...

Automated Trading: Terminology

#1.Trading Bots

Trading bots are programmable tools for automating the cryptocurrency trading process. Bots can be set up with programmable rules based on their personal trading strategy - and execute command strings based on market data variables such as token price.

The trader using bots may be informed by personal analysis of the markets, external sources, or a combination of the two.

If you want to maintain manual control over your trading activity, whilst also onboarding external advice and information, then you may want to take a look at trading signals and copy trading.

#2. Trading Signals

Trading signals are advice and suggestions regarding investment positions in cryptocurrencies, however, signals also exist for other forms of investment. Essentially they suggest when you should purchase and subsequently sell the token, which can inform stop loss / automated bot programming for each specific trade.

They may be generated by one or a combination of a human expert, or a bot (utilising machine learning algorithms).

#3. Copy Trading

Unlike trading signals copy trading data is always provided by a human expert. Copy trading is informed by the activities of other traders, where the user receiving the information literally ‘copies’ these decisions with the expectation of achieving success when the trader they are copying achieves success.

As such, users/customers on these platforms are offered a range of high performing traders to follow and potentially copy from.

Trade to Mine: What is It?

Trade-to-Mine is a model implemented by some cryptocurrency exchanges that enable the traders to earn revenue in tokens, proportional to the number of trading fees incurred/settled. Investors can obtain tokens by trading, rather than by using high energy mining machines (pools, farms and ASIC devices).

To achieve this: trading bots are set up and configured by users with a number of customisable variables to inform their decision-making. The more (‘successful’) trades = the greater the income a trader can earn.

Whilst inspired by Bitcoin and PoW models, Trade-to-mine essentially represents a Proof-of-Stake model, where staked funds represent mining power: however in this case rather than representing voting and network power, it merely dictates material rewards. 

Examples
#1. Cryptorg

One such company offering a trade-to-mine to its users is Cryptorg. Its primary product is a service which lets users automate trading on several different cryptocurrency exchanges, by using customisable trading bots.

Founded in 2017: Cryptorg offers full 24/7 availability of services, high liquidity; and is designed to operate on multiple exchanges, including Binance, Cryptorg Exchange, Bittrex, Bitfinex, KuCoin, HitBTC, OKEX, BTC-alpha, Coinsbit, Livecoin, PrizmBit, ERC20 based CTG tokens.

#2. ABCC exchange

ABCC exchange was launched on May 1, 2019 - with a proprietary ethereum-based ERC20 based token, on the Ethereum network (ERC20 Cryptorg Token, CTG). It offers mining (trade-to-mine) via trading bots, wherein rewards are distributed to users which are ‘charged’ with each successful trade.

trade to mine

Whilst it sounds like a promising premise, we conclude that Trade-to-mine appears to be little more than a rebranded / buzzword representation of a traditional rewards scheme - offering users compensation in the future for their financial contributions today.

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