How I woke up with $5.000 in bitcoin15/02/2020
I woke up and checked my phone. The date reads February 15th, one day after Valentine's day. As I am scrolling through my notifications I notice something, a message from my Bitcoin exchange bot. Five thousand dollars was added to my bitcoin wallet. This cannot be right I thought, as I re-read the notification. Five thousand dollars had indefinitely been added to my wallet. How could this be possible?
I couldn't believe this was happening. To some, five thousand dollars may not seem to be that much, but to a twenty-year-old IT student, having over five thousand dollars being thrown at you makes you feel like a millionaire.
So how did I do it? How was I able to make over five thousand dollars in one day alone? The simple answer would be that I have created a bot that automatically trades cryptocurrency without needing human interaction. The more complicated answer would be that I created a cryptocurrency trading bot that is designed to perform arbitrations.
Arbitrations are a mechanism for resolving disputes between investors and brokers, or between brokers. In other words, my bot is scanning the market constantly, mainly monitoring the current value of a cryptocurrency and then looking into its order book. The order book will indicate how "squishy" the market is. When there are many orders on one side, it will get a big resistance when the price is moving that way. And when there are fewer orders in the order book, the chance that a trend will change to that direction is higher.
Based on this knowledge, my bot will make decisions without human interaction needed. The upside to using my bot instead of doing it yourself would be that my bot can make decisions in milliseconds. The bitcoin exchange prices are changing constantly and there is no time for human error, which is perfect due to my bot not having to deal with any of that. To be fast enough, I have to split all my money across the markets for my bot to take a tiny part of my funds and allocate it to an automatically detected cryptocurrency. The funds are not yet spent, instead, they are locked. This means it's no longer possible to trade them for other assets unless the bot cancels its decision, or unless the trade is complete. And this rare moment when a trade completes is exactly when I get notified. Trades often don't complete at all, it's most likely just a few trades that get done every month. However, even with this small amount of trades, that gives me a nice 2 to 3 percent monthly profit on my total investment.
The reason I made such a huge amount the other day is that multiple trades completed overnight, giving me a whopping five thousand dollars. And that's how I got "rich" while I was asleep.