The Most Profitable Crypto Trading Strategies Are Hiding In Plain Sight

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ZUG, SWITZERLAND / ACCESSWIRE / June 2, 2023 / Trading is an incredibly difficult business, requiring emotional mastery, impeccable market timing, effective risk management and extensive practice. The volatile nature of the crypto market exacerbates these obstacles, often resulting in significant losses for traders.

Bprotocol Foundation, Friday, June 2, 2023, Image from the press release

However, hidden in the depths of the world of decentralized finance (DeFi) is Carbon – a revolutionary new protocol designed to revolutionize the way you trade. As a pioneer in the rapidly growing DeFi space, Carbon enables users to create and execute automated on-chain trading strategies with seemingly unparalleled efficiency and ease.

The following article will explore the possibilities and benefits of Carbon’s on-chain trading strategies, providing tips on how to embark on your journey with this innovative protocol.

What is Automated DEX Trading?

Carbon’s automated DEX trading strategies are very similar to traditional trading robots – set conditions and the strategy executes when the conditions are met. For example, “buy ETH when its price reaches $1,800 and sell ETH when its price reaches $2,000”. But Carbon has several key differences from traditional trading bots.

Before diving into what sets Carbon apart, it’s important to briefly consider the role of decentralized exchanges (DEXs) in this larger context.

DEXs represent a separate sector within DeFi, serving as peer-to-peer marketplaces that enable non-custodial cryptocurrency trading, without intermediaries to manage funds or facilitate transfers. Simply put, you can transact without having to store tokens on a centralized exchange. Following several centralized crypto meltdowns, including FTX and Celsius, DEXs are seeing an increase in activity. This growth is supported by the fact that hot tokens often appear on DEXs before being listed on centralized exchanges, allowing users to potentially be exposed to outsized gains in a token’s early days.

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Despite these advantages, a significant drawback of existing DEXs such as Uniswap or Pancakeswap is the lack of automated trading support. Things like limit orders, dollar cost averaging, and grid trading robots are still missing on DEXs. Carbon fills this gap by offering automated trading strategies – programmable orders that are ready at any time to buy or sell within custom price ranges, eliminating the need for manual limit orders.

Carbon’s Unique Business Features

Carbon is a fully decentralized protocol for automating on-chain strategies on the Ethereum blockchain. The protocol is designed with a diverse range of advanced trading tools and features that allow for unprecedented levels of flexibility and trading potential. Some features are as follows:

Automated Strategies: Your orders are automatically executed by third-party traders, 24/7, allowing you to profit from volatility while you sleep.

Self-custody: Users retain control of the funds in their wallets, unlike centralized exchanges.

No-Fee Swaps: Arbitrators or other traders who trade against your strategies pay fees on your executed trades.

Recurring: Set your policy once and it runs repeatedly until you choose to stop the policy.

Rotating Liquidity: No need to pre-fund multiple limit orders – just fund an order with a single deposit, and your tokens are automatically used to buy and sell when the market price enters your predefined price ranges.

Any ERC-20 token: Carbon strategies can be developed for any standard token on Ethereum, the largest blockchain ecosystem.

MEV Resistant: Carbon natively protects users from the most common form of maximum extractable value (MEV), called “sandwich attacks”.

Types of strategies with carbon

Without a doubt, the most exciting and potentially rewarding aspect of Carbon is the distinctive strategies enabled by its automated features. Here are several automated strategies that could take your portfolio to the next level:

Swap the crab:

Crab-type markets refer to conditions where prices move up and down within a range for a considerable period of time. Recent studies indicate that nearly four in five professional investors (79%) anticipate continued turmoil in the crypto market over the next two years.

Carbon offers a strategy specifically tailored to trading in these markets, allowing traders to capitalize on the natural volatility of sideways markets with recurring buy low, sell high strategies. These strategies resemble “grid trading” bots, where users set buy and sell areas above and below a set price based on where they think a given token is going. will be in commerce.

Follow the trend:

So far in 2023, the crypto market has seen nothing but fireworks – with Bitcoin (CRYPTO:BTC) up nearly 70% since this article began. This made trending a great strategy to capture that upside volatility.

Carbon offers a robust strategy designed to follow the trend by allowing investors to move in and out of the market by placing orders across a range of prices. For example, if you think BTC will get close to $30,000, but you’re not sure exactly where, you can set an order to “raise” (or sell) between $29,000 and $30,000.

Similar assets from Arb:

Various assets in the cryptocurrency world are intrinsically linked to each other – for example, stablecoins that track the price of the US dollar, such as USDC, USDT, and DAI. However, the prices of pegged assets frequently diverge via momentary “depegs” and subsequent “re-pegs”.

You can use Carbon to take advantage of these frequent events in stablecoins and other pegged assets like liquid staking derivatives (wstETH, rETH, etc.). For example, set up a DAI/USDC strategy that buys DAI when it dips below USDC and sells DAI when it pegs, or an ETH/rETH strategy that buys ETH when it dips below USDC. lowers below the price of rETH, and sells ETH when it realigns with the price of rETH.

How to use carbon

To use carbon, all you have to do is go to app.carbondefi.xyz. Connect your wallet, then choose a trading pair, for example ETH/USDC. Next, choose whether it is a one-time or recurring strategy. Set buy and sell ranges and amounts. Click create. You have finished. It’s so simple. See this guide for a walkthrough.

Bprotocol Foundation, Friday, June 2, 2023, Image from the press release

Conclusion

Overall, Carbon could provide a valuable opportunity to leverage some of the most profitable yet hidden strategies in the DeFi space. By taking advantage of automated swing-trading strategies such as following the trend, arbitraging similar assets, or trading the crab, traders could unlock new opportunities and optimize their trading experience.

Interested in creating your own DEX trading bots? Join the Carbon beta and start building.

Photo presented by Viacheslav Bublyk on Unsplash.

About carbon

Carbon is a decentralized trading protocol allowing users to perform automated trading strategies using limit orders and on-chain custom range orders, with the ability to combine orders to create automated strategies buy low and sell high. By design, Carbon shifters are irreversible at runtime, easily adjustable directly on the chain, and resistant to MEV sandwich attacks. These capabilities provide users with an unprecedented level of control and automation to execute new on-chain trading strategies.

About Bancor

Bancor is an ecosystem of decentralized and open-source protocols that enable on-chain trading and liquidity. Bancor invented the first blockchain-based automated market maker (AMM) in 2017. All protocols in the Bancor ecosystem are governed by the BancorDAO through the staked BNT.

About the Bprotocol Foundation

The Bprotocol Foundation was created in 2017 to promote the adoption of the Bancor protocol and decentralized on-chain trading and liquidity.

Contact:

Bprotocol [email protected]

SOURCE: Bprotocol Foundation

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