Trading bots can earn you some extra bitcoin.
You can earn a satashi or two clicking on things, but that won’t even afford you a coffee a day.
So I don’t think that’s why you’re here.
Then there are the other ways that you can really make a killing.
They require time and resources.
Sometimes both.
There is no middle ground.
In this guide, we’ll go through the time-wasters so you can avoid them.
And we’ll also learn about how automation can level up your trading.
Section 1: The ‘don’t waste your time’ strategies.
This guide is about saving you time and helping you to make money through investment channels. This first section will serve as a quick overview of the strategies and ‘opportunities’ that you’ll run into while looking for ways to make money with automated trading.
Bitcoin Tasks
If you’ve got a spare computer lying around, there are plenty of tasks you can run on it to generate small amounts of bitcoin.
Sites like CoinTasker partner with other businesses who pay them to perform small monotonous tasks like watching videos, clicking on ads, and solving captchas.
You won’t be able to make a living doing this unless you figure out a way to automate the tasks. The easiest plan of attack would be to make or buy a bot that can complete the tasks for you.
Even then, the margins are thin because you have to pay for proxies and the bots themselves.
But if you just want to earn a little extra bitcoin on your free time, it’s totally legit.
Verdict: Not quite worth it
Bitcoin Faucet Automation
Faucets are websites that give away free bitcoin. Many times, you just need to click a button that will add a minuscule amount of bitcoin to your wallet. The button renews every hour.
Websites like FreeBitCo and FaucetCrypto have many other tools and options to maximize earnings. For instance you can gamble your free bitcoin in a hi-lo game. You can also just hold your bitcoin and reap 5% interest (which doesn’t really amount to much).
Collect bitcoin one satoshi at a time, or plugin a bot and proxies and earn 100 satoshis a day. This isn’t guaranteed to work all the time, because of bug fixes and anti-bot measures, but it’s free – what do you expect?
Verdict: It’s okay…
You don’t have to do much to earn a small amount of bitcoin. There’s also no risk to you. Still – there’s better ways to earn bitcoin.
Section 2: The ‘large investment, large return’ strategies
There are some ways to make bitcoin that require hefty upfront investment. You will either need a lot of time, or capital to invest.
Trading Bots
Trading bots don’t really work unless you already know what you’re doing. Otherwise, you’re just automatically losing money. You’d be better off getting married. (Eaaaasyy, that’s a joke. Sorta.)
If you practice proper risk management and understand crash cycle logic, then you may be able to use bots to your advantage. There are many free resources to learn from. You can start by learning from experienced professionals who understand the truth about money like Kazonomics.
When using bots, it’s important to conceal the IP address because most websites will detect and ban IPs that use automation such as crypto bots, trading bots, and arbitrage bots.
There are plenty of tools out there that need a whole guide to examine, but you can see a thorough list of them on Benzinga.
Verdict: On the fence
Trading often stirs up a lot of emotions, which contribute to making trades that are illogical. Bots can take the emotions out of the trades, but you still need to know what you’re doing.
Investors that make money in the stock market and crypto don’t need bots, and if you think you need them to trade successfully, you are using them for the wrong reason and you will pay the price.
Bitcoin Mining
Mining is the process of creating new crypto coins like bitcoins and ethereums. It’s like mining for gold, but the pickaxe and shovel are computers and code.
It requires a large amount of computing power and electricity. This means that if you want to mine new coins, you need to upgrade your hardware or buy more hashing power.Ā
You can also use cloud mining services like Genesis Mining. They provide access to hash power from multiple miners in order to reduce the variance in your earnings.
The problem with these methods is that they require a significant up-front capital investment. You may be able to find a way to leverage them into something profitable, but it won’t happen overnight.Ā
Another option is to join a mining pool where you team up with others to mine crypto coins. You share the hardware and resources, but also the payout.
Verdict: Decent
If you have capital to invest in the hardware, mining bitcoin can be an easy way to make money while you sleep. However, this is not a beginner level strategy, and requires a lot of homework and due diligence.
Section 3: The ‘informed’ strategies
This section is all about data collection and implementation. We will look at how to collect data that you can use to inform investment decisions, or monetize in a number of ways.
Scraping Market Data
Web scraping is a rapidly growing industry. The internet is somewhat dependent on web scrapers and web crawlers to communicate and transmit information. Additionally, data is valuable to any sector if it can give an advantage over competition.
Monetize Market Data
To capture data and analyze it fast and accurate enough to draw actionable insights is impossible without automation. You can program web scrapers to comb through crypto exchanges to catch trends and identify trigger levels. You can also collect information like keywords throughout forums and platforms like Reddit and Facebook. The volume of terms can give you an idea of what commodities are picking up interest.
There are already some websites that provide this as a service, like QuiverQuant.
In this way, you can set up a subscription-based group that has access to members-only intel.
Another option is to create a social channel and make money through advertisements.
Verdict: Good in the long term
You won’t make money right off the cuff, because you first need to build a following of subscribers. If you want to learn more about web scraping, check out this article about web scraping APIs.
Use Market Data
Even if you don’t have a lot of people paying for your research efforts, you can use them to invest more effectively. In fact, if you can successfully implement your market research, it gives more credit to your market intel.
Proxies for automation
Most industries rely on data to get ahead of competition and understand their markets. The only hiccup in data collection is that most websites block IP addresses if they use bots and send too many requests. The solution to this is using proxies to hide your IP address. It’s possible to rotate to a new IP address for each request you make, using rotating proxies. To completely avoid bans and blocks, you would want to use rotating residential proxies.
Do you have any secret methods to earn crypto?
Please share your experience in the comments below.
(But if it’s really good, PM me.)
