Beginner’s Guide to Crypto Trading Bots — Part 8— Growth Bots

Strategically Increase Your Crypto Holdings

C.W.Morton

Apr 09, 2024

Strategically Increase Your Crypto Holdings

Source : Kapwing Image Generator. Prompt : Bitcoin Growth

Using simple arbitrage applied to different cryptos paired up, instead of different markets, you can achieve a steady acceleration of compounding crypto growth.

Growth Bot

Profile
Best for : All Markets
Profit Expectation : High, Long Term
Risk : Low (dependent on the chosen crypto itself, and time of bot creation relative to market conditions, best to start when the market is low)

What is a Growth Bot?

In the second part of this Beginner’s Guide, we established that you needed to define whether you intended to grow your native currency balance, or your crypto.

A growth bot is really a Grid Bot, choosing a crypto/crypto trading pair, instead of a Crypto/USDT pair.

The focus here is growing your target crypto through arbitrage, NOT earning more native currency.

This is an important distinction.

The value of crypto can fluctuate against the US Dollar, or any other native currency, but you are completely ignoring that and focusing only on accumulating more and more crypto.

Trading Pairs

The second crypto in any trading pair is the target crypto for accumulation.

If you create a normal Grid Bot with ETH/XRP as your pair, you would be trying to grow your XRP balance.

If you create a normal Grid bot with BTC/DOGE as your pair, you would be trying to grow your DOGE balance.

Make sense?

Pionex makes it even simpler by offering the Bitcoin Growth Bot.

This has proven to be a most effective way to increase BTC holdings.

The initial investment amount was around $12,000 at the time, and it made a profit of about $300,000 in the last bull cycle.

An impressive 2,460% return in USD value.

When you select the Bitcoin Growth bot, you get the option to set up your grids, because this is essentially just a grid bot with a pre-selected pair of ETH/BTC.

You can choose from the most profitable recently backtested AI Settings, or you can customize your own settings.

Source : Pionex Mobile App, Bitcoin Growth Bot

Customizing settings will allow you to control the bot according to your own preferences, but it is strongly recommended to use the AI settings unless you are good with configuring grid bots already.

If you have selected the Bitcoin Growth bot, it will automatically buy and sell ETH with it’s sole mission being to accumulate more and more BTC.

If you have created a customized Grid Bot with a Crypto/Crypto trading pair, it will automatically buy and sell with its sole mission being the accumulation of the second crypto in the trading pair.

The ETH/BTC pair is a secret weapon for many pro crypto traders, due to the pairs price history and somewhat steady growth.

These are the best bots to run with a HODL balance, and will tend to earn more over time than lending for interest, staking, or any other attempt at stable yields on balances.

However, it is for this reason that it is better to only use this strategy for cryptos you are betting have a strong forward future.

Note from CWMorton, the author of the blog :

Bot’s that are paired with USDT or USDC, might work great for personal income bots and be simple to understand because they translate easily to the local value you can spend on goods and services, but for serious long term growth of your assets, accumulation of crypto has won over attempting to accrue a local currency that is rapidly INFLATING, not DEFLATING, and loosing much of its spending power.