This Purchase Checklist can be used to initially compose your BOTS-portfolio.
If you are new in Bots and Crypto, use the Tips & Terms section to get acquainted in this area.
You need to buy a selection of Bots with different trading-strategies, markets, coins and Risk Classification.
For most users the smartphone user-interface will satisfy the BOTS-App reporting capabilities. It shows the current total value, invested value and the yield per BOT.
If you are a advanced user this information may not be sufficiënt. If you are one of those peoples, we offer you a BI Excel Spreadsheet as a good starting point to manually monitor your ‘annualized return’ of your entire BOTS-portfolio.
- ✅ Determine you portfolio goal or target.
Perhaps the first question is: what is the money you want and can invest? This should be only a small percentage of your available capital. Next question may be: what amount can you afford and feel comfortable to lose?
Then compare it to what your investment had yielded otherwise. Then, after at least a quarter, halve- or full year, sell (= stop) under performing bots and put the money in the remainder of your portfolio by upgrading the remaining bots. Or start an other that better fits your targets.
- ✅ The Base Coin can become the starting point of your Bots-portfolio.
In case of a declining cryptocurrency market, bots are able to “hide” in their basecoin. If this is USDT, the most stable-coin, your investment is most safe. Although the other basecoins are important cryptocurrencies, the are more volatile.
So that is the bad news. The advantage is that in a upward market the bot will yield extra, even when trading in a different coin or multiple coins. This makes investment in crypto through bots less risky.
Bots don’t win as much in a growing crypto market, but are able to protect your gains in a declining market. Therefore, choose your bot, and let it work for you like an asset-manager, in good times and bad times, but always for a longer period of time. Do not trade with bots yourself other than when stopping a Bot, Bots or part of your whole portfolio. In case of a declining cryptocurrency market, bots are able to “hide” in their basecoin, usually USDT (stable-coin). In other words, they get out of crypto positions.
Contrary to direct investment in crypto (not through bots) it makes investments in crypto through bots less risky. Bots don’t win as much in a growing crypto market, but are able to protect your gains in a declining market.
Therefore, choose your bot, and let it work for you like an asset-manager, in good times and bad times, for a longer period of time. Do not trade with bots yourself. Use the spreading criteria from the Selection & Spreading page.
- ✅ Determine the historical performance of your Bots when available.
The base coin is importante compared to the transaction currency and can strongly influence the bot performance.
The €uro value can be significantly different than the base coins, e.g., in many cases not the is USDT. USDt (=Tether) or TUSD (= TrueUSD, Etherium based) which is close to $, USD.
Multiple bots can cover the loss you may get under bad market conditions, from one or more bots you own.
Spreading means different algorithms in strategies and different and multiple cryptocurrencies (also see DCA).
- ✅ Risk Classification: low risk “0” to high risk “12”, 0/12 to 12/12.
Unfortunately the RC is dynamic and can change over time, based on performance. For the purpose of selection and spreading this is very inconvenient.
From our experience: selects the most applicable trading-strategies for your targets with the best performance.
- ✅ The Bot Creator is one of the considerations when buying a Bot.
- ✅ Trading cost and frequency, although included in the yield, is part of the performance of a Bot.
Depending on the algorithms in trading strategies the cost can be substantial.
Crypto-bots come, more or less, in two flavors.
Say the “intelligent-bots”, genuine bots, and the more housekeeping type bots: HODL, Portfolio, Re-balancer bots. Some Bots are between the two categories, with regard to intelligence and trading-cost.
The latter type of bot does not trade as such but simply buys a coin or a set of coins and keeps, holds it. Called “Buy and hold”, for example ETF.
In most cases the latter involves more (under the cover) costs. In Creator BOT-Names you find some importante aspects of bots.
These costs will mostly not be clear. When possible take these aspects into account. Depending on the performance of a Bot, this may not be any problem to you.
- ✅ Prices, investment capital and availability.
Based on the outcome of the affordability questions in check-1, determine how much you want to invest in the separate Bots and in your (bots) total portfolio. Then check the availability of your desired Bots.
When the Bots status is "almost full" or "full" you may have to reconsider your choice.