Best Investments 2020 – Smart Crypto Funds, Trading Bots & Other Investments

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Best Investments 2020 – Smart Crypto Funds, Trading Bots & Other Investments

I´m spending a lot of time reading about financial instruments and opportunities like crypto currencies, traditional Forex trading, different investments funds and automated trading systems. Here on this site and the following (Check out the menu in the header) pages I will review several automated trading systems, trading robots for binary options, crypto or forex and other forms of investment opportunities! make sure to check this page from time to time to learn more about the best investments in 2020!

Risk Disclaimer: There is never a guarantee that you will make money with your investment! Always do your own research and make your own decision!

How to Avoid to Lose Money?

Depending on the product, here are a few tips on how to test before you risk real money!

If it is a signals service or trading bot/software, ensure to first try it inside a demo account! It is not hard to find a demo account provider for Forex, binary Options or any other trading instrument, do it and use your demo account first!

If it is some kind of investment fund or cryptocurrency investment scheme, make sure to get some information from different sources! There are many scammers out there and many well minded products won´t work!

IF it is copy trading or social trading for binary options, make sure to choose the people you follow with care! Also it is a good idea to split your investment between different trader, but remember that you need a minimum investment amount for every trader, depending on their trading strategy and risk management!

Do some research about the team in the background and see what the community is talking about!

The opportunities here on my site were tested by me, and they are working right now for me. I will also tell you here if something stops to work! Anyway, this is not a guarantee that you will earn using these products or services. Previous results are no proof for future results!

Best Investments 2020 List

Best Social Trading Systems Tested

Pocket Option Social Trading – Pocket Option as well as IQ Option are both offering a social trading option inside their binary options platform! You just need to make a deposit, choose the trader to follow, and define your risk management! Click here to read more about this option!

Os melhores corretores de opcoes binarias 2020:
  • Binomo
    Binomo

    O melhor corretor!
    Conta demo gratuita e treinamento para iniciantes!
    Inscreva-se bonus!

  • FinMax
    FinMax

    Corretor de opcoes binarias confiavel! Boa resposta!

MT2Trading System – here you can follow experienced traders and copy their trades to one of the supported binary options broker on autopilot! You can also build your own automated trading system and use it to trade automatically!

World Markets – This is some kind of Trading AI managing your meta trader account! So you always have the full control over your investment, you just let a artificial trading intelligence trade for you! Click here to find out more about World Markets and how it works in detail! (They are mentioned many times and won many prices over the past 18 years)

Best Automated Binary Options Trading

MT2Trading System – Instead of using this tool ro follow experienced trader, you can also build your own or get a ready-made binary options robot, trading for you 24/7 on complete autopilot! Read my MT2Trading System review to learn more!

Best Trading Funds

Here you invest into automated trading systems trading crypto currencies on autopilot! The advantage is the strong market moves you can see often when it comes to crypto trading! These systems exploit these opportunites to generate a monthly or yearly income!

Nexo – Nexo is crypto lending platform, where you can get a loan with your cryptocurrencies as collateral, or you can invest money to earn 8% return per year, paid on a daily basis!

Amfeix – This is a Bitcoin Trading fund generating variable returns per months (by now between 6 – 13% per months), 20% of you profit goes into the fund, the rest can be accessed whenever you like! You own the private keys for your wallet here, so it also offers a high level of security! By now, it brings the highest returns form all options I´´ve tried when it comes to cryptocurrencies investments! Click here to learn more! Or read my Amfeix Review here!

Best Investments 2020 – Conclusion

Depending on your capital, i suggest to split your money between 2-3 forms of investments. best to split it between different forms of investments, like a trading fund and Nexo (Providing 8% yearly interest), for example! Feel free to comment below if you think I should add something unqiue to the list of best investments in 2020!

Top 5 Best Blockchain Mutual Fund Alternatives in 2020

While there are hundreds of crypto funds that invest in blockchain startups and digital assets, there are currently no blockchain mutual funds in which investors can invest.

Mutual funds have investment constraints that allow them to only invest in specific assets for their portfolio. High-risk investments such as shares in blockchain startups or digital assets are generally not permissible for traditional mutual funds.

To provide you with alternatives, we have composed a list of the top five best blockchain mutual fund alternatives that you could invest in today.

Blockchain ETFs

Arguably the easiest way to add blockchain exposure to your portfolio is to purchase blockchain ETFs. Currently, there are around a dozen blockchain exchange-traded funds (ETFs) that invest in shares of publicly-traded companies that are involved in the development or the deployment of blockchain technologies.

The two largest blockchain ETFs (by assets under management) include the Amplify Transformational Data Sharing ETF (BLOK), which invests in “transformational data sharing technologies” with a focus on blockchain technology, and the Reality Shares Nasdaq NexGen Economy ETF (BLCN), which invests in companies that are involved in the research, development, or deployment of blockchain technology.

Blockchain ETFs are the closest alternative to blockchain mutual funds as they can easily be bought and sold on regulated stock exchanges, can provide investors with a low-cost blockchain exposure, and can be purchased by any type of investor.

Exchange-Traded Blockchain Investment Products

Alternatively, you could also invest in exchange-traded blockchain investment products such as digital currency ETNs and tracker certificates.

For example, the XBT Bitcoin Tracker One, which has been trading on the Stockholm Stock Exchange since 2020, provides investors with exposure to the price development of bitcoin without having to buy and store the underlying digital currency itself.

Alternatively, you could purchase the Swissquote Multi Crypto Active Index Tracker Certificate, which trades on the Swiss Exchange (SIX) and provides buyers with exposure to a basket of leading digital assets, including bitcoin, Ether, Litecoin, and Bitcoin Cash.

Tokenized Blockchain Funds

Blockchain technology has enabled the emergence of a new type of investment vehicle, called the tokenized investment fund. Tokenized investment funds enable investors to gain exposure to venture capital or digital asset investments through the purchase of a single digital token.

For example, through the purchase of SpiceVC’s SPICE token, investors are able to indirectly hold a stake in promising blockchain ventures such as Bakkt, InvestaCrowd, Lottery.com, and Securitize, simply by holding a digital token.

Alternatively, investors who want broad exposure to the leading digital currencies and tokens could purchase Crypto20’s C20 token, which provides a stake in the Crypto20 tokenized index fund that tracks 20 digital assets.

Crypto Hedge Funds

While blockchain mutual funds are not (yet) available, there are many crypto hedge funds and venture capital firms that you could invest in to gain blockchain exposure.

The minimum investment requirement for these type of funds, however, is usually quite high and a large number of funds can be difficult to get into if you are not a high-net-worth individual with connections in the industry. Having said that, there are enough crypto funds out there that will allow you to invest, even with smaller capital contributions.

The main benefits of investing in crypto funds are that your money is being managed by professionals and that token storage is being taken care of by the investment firm. For investors who prefer a hands-off approach, crypto funds (similar to blockchain ETFs) provide a good alternative to blockchain mutual funds.

Invest in Digital Assets Directly

Finally, you have the option to build your own digital asset portfolio. By investing in the digital tokens of the most promising blockchain projects in the market, you can gain broad exposure to the growth in the blockchain technology sector.

Constructing your own portfolio will involve researching the digital assets you want to invest in thoroughly to ensure that you are choosing the digital currencies and tokens that suit your risk-return profile.

Additionally, you will need to manage your own private keys, which means securely storing your digital asset portfolio in secure cryptocurrency wallets (preferably offline).

Until the first blockchain mutual funds are launched, the above-mentioned alternatives should provide you with a sufficient amount of blockchain exposure for your investment portfolio.

Related Articles:

If you want to discover more blockchain and digital currency investment opportunities, subscribe to the Bitcoin Market Journal newsletter today.

Compare and learn about cryptocurrency trading bots

Your guide to the benefits and risks of automating your crypto trading.

Updated Jun 15, 2020

Cryptocurrency markets are famous for their volatility, which presents a lot of opportunities. Crypto trading bots are designed to leverage these opportunities better than a human could alone.

Need help choosing a cryptocurrency trading bot?

Find which cryptocurrency trading bots best suits your needs.

Learn more

Let’s take a look at what cryptocurrency trading bots can do, what they cannot do, and what to consider if you’re thinking of using one.

Compare some of the world’s most popular crypto trading bots side by side so you can see the differences and find the one that’s best for you.

Want to keep it simple? You could try a pre-programmed crypto bot

Want more advanced options? You could try building your own cryptocurrency trading bot

How cryptocurrency trading bots work

Trading bots are computer programs that log in to cryptocurrency exchanges and automatically make trades on your behalf.

How good they are depends on how they’re programmed, and how suitable their programming is to current market conditions.

There are many different kinds of bots to suit different market conditions and individual needs. Different types of bots are known as different strategies.

For example, “scalping” is a strategy for making small but consistent profits in a sideways market. A “scalping bot” would be designed to automatically place the trades required to shave those profits out of the market. Scalping could be the right strategy for a sideways market, but wouldn’t be ideal in a more bullish or bearish situation.

So the first challenge is to know which kind of strategy to use at different times. The second challenge is to find a bot which can effectively execute that strategy based on market activity and signals.

What are signals?

In crypto trading bot terminology, signals are like alarms. For example, someone might craft a signal based on a combination of factors like moving averages, volatility and social media mentions, and when those factors move in a way that’s believed to indicate a good time to trade, the alarm is triggered.

Trading bots can be programmed to automatically respond in specific ways to these signals. You can create your own signals or use a third party’s signals. And just like bots themselves, some signals are more consistently accurate, while others are more error-prone.

How to get and use a cryptocurrency trading bot

There are two different ways of getting and using a crypto trading bot.

You can either use a pre-programmed one, or build your own.

��️ Build your own

These are bots that you create. You decide which signals the bot will read and which trading actions it takes in response.

Once you’ve created a bot, the next step is usually to backtest or paper trade with the bot against actual market movements, to see how it fares in real-world conditions before you entrust it with real money.

Building your own bots will always require some trading experience, but it won’t necessarily require any technical experience. On the easier end of the scale you can build you own bots with simple and intuitive graphical user interfaces. On the harder end of the scale you’ll need to have enough programming know-how to code your bot.

All platforms will let you build and customise your own bots to a certain extent, although the number of tools they provide for doing so will vary between platforms.

�� Use a pre-programmed bot

The other option is to use a bot that someone else has built. These will often be purchasable from the creators, and some platforms include bot marketplaces for people to buy and sell pre-programmed bots.

Other platforms will include a range of their own pre-programmed options, which are included as part of the subscription package.

In many cases bots will only be partly pre-programmed, meaning you won’t be able to trade with them directly “out of the box,” but will instead need to customise and adjust them

You’ll still need to know which kind of strategy is best to use in a given situation, and can often choose which signals to feed it, but will be able to use those pre-programmed bots to execute those strategies rather than needing to build your own.

Copy trade features, such as is found on a platform like eToro, is an example of a trading bot. In this case the bots just automatically mimics other traders. Some platforms will also let you use copy trade bots to get the same functionality on other exchanges.

Choosing a cryptocurrency trading bot in 7 steps

When comparing crypto trading bots, make sure you consider the following 7 factors at least:

  • Trading strategy. What strategy or strategies can the bot implement? What sort of market data and technical indicators can it analyse and what parameters can you program in?
  • Ease of use. Some bots have pre-programmed strategies set up and ready to go while others allow you to program them however you want so you can implement your own strategy. The right platform for you may depend on your level of trading and coding knowledge, so make sure any program you choose is easy to understand and use.
  • How to make changes. How easy is it to adjust your trading strategy and parameters? Is the bot designed to automatically rebalance your portfolio on a regular basis, or is it up to you to make adjustments as you see fit?
  • Cost. Some bots don’t charge trading fees but many do. Compare the cost of different options and make sure you know exactly what you’re paying for.
  • Longevity. How long has the bot been around? Is it a new program or does it have a long history of successful use?
  • Reputation. Does the bot have a good reputation among the wider crypto community? Check online forums for reviews from other users to see if the bot is legit and if they would recommend using it?
  • Exchanges. While most reputable bots will work with most reputable exchanges, make sure any program you choose will allow you to trade on the exchange(s) you want to use.

Benefits of cryptocurrency trading bots

Crypto bots can offer a number of advantages over manual trading.

  • 24/7 trading. Unlike stock exchanges with their regular trading hours, global crypto markets are open 24/7. Humans have to sleep eventually, but a bot can keep trading 24/7. With cloud-based trading bots your computer won’t even need to be on for the bot to keep working.
  • Fast execution. Cryptocurrency markets can shift extremely quickly, and some opportunities last only seconds. Bots can automatically process and act on information that humans can’t.
  • Reduced human error. Manually entering trade details yourself always introduces the risk of human error. By automating trade execution via a bot, this risk is reduced. Just make sure you don’t make any mistakes while setting up the bot.
  • Take the emotion out of trading. Effective trading is about having a plan and sticking to it, rather than running with gut feelings. Crypto trading bots take emotion out of the equation and react to pure data only.
  • Ability to diversify. Using a bot can allow you to trade across numerous accounts or try out various trading strategies. This can help you spread risk across a variety of crypto assets.
  • Backtesting. Want to test a trading idea? Use a bot to backtest, which is where you test your strategy using historical market data to see how it would have worked. You can also paper trade, which is when you use a bot to trade pretend money against the markets of today.

Risks of using crypto trading bots

Bots are not free money machines, and they’re not without some risks and downsides

  • Scams.Scams are an ongoing problem in the crypto trading bot space. It’s essential that you thoroughly research any bot before use to help safeguard your funds against scammers. For example, if you come across a bot that promises “guaranteed” substantial gains, this should sound alarm bells.
  • Setting and forgetting. There’s a common misconception that once set up, a bot can simply be left to do all the hard work for you and make money while you sleep. This isn’t the case. Rather than being passive income generators, crypto trading bots need ongoing monitoring and adjusting as market conditions change.
  • Poor-quality software. The quality of software varies from one bot to the next and using a poorly coded bot could cause you to lose money. That’s why you need to look for a reputable bot with a proven track record of success.
  • Bad strategies. The crypto market is constantly evolving and trading strategies need to keep adapting to achieve success. If you choose a bot with an outdated or simply inadequate strategy, or match the wrong bot and signals, program it incorrectly or otherwise make mistakes, expect to lose money.
  • Failing to set stop-loss limits. In the event of a “flash crash”, where the price of a cryptocurrency plummets rapidly, traders that have not set stop-loss limits could potentially suffer heavy losses.
  • Crypto market complexity. There’s only so much that exchange data can tell you about what is happening in the crypto market. From tech developments to the online rumour mill, there are many other factors that can drive price movements.

Crypto trading bots can be used to implement a wide range of trading strategies. Some of the most commonly used strategies include:

Arbitrage

Cryptocurrency arbitrage is a strategy that allows you to take advantage of price differences between crypto exchanges. For example, buying bitcoin on an exchange where the price is low and immediately selling it on an exchange where the price is at a higher level.

Specialist crypto arbitrage bots are designed to track price movements and differences across exchanges and then execute the necessary trades.

Market making

The market making strategy involves continuously buying and selling cryptocurrencies and digital currency derivatives contracts in order to profit from the spread between the buy and sell prices. Market makers earn a profit by providing liquidity to other traders by placing limit orders on both sides of the order book and making their income from price fluctuations.

For example, if Ethereum is trading at $500, you could create a buy order for $499 and a sell order for $501. When both orders are filled, you earn $2 profit.

Trend trading

This strategy involves programming a bot to identify the price trends of specific cryptocurrencies and then execute trades based on those trends. By analysing which way the price of an asset is moving, this strategy is designed to assess when trends are forming and then profit from the resulting price change. In other words, buy when prices are trending upwards and sell when they’re heading down.

Mean reversion

The key underlying principle of the mean reversion strategy is that there is a stable trend in the price of a particular cryptocurrency. So while the price may fluctuate in either direction, it will eventually return to its mean.

Based on this assumption, you can program a bot to execute trades depending on where the price of the currency sits in relation to its historical average.

Want to learn more about trading cryptocurrency?

Check out our comprehensive cryptocurrency trading guides:

Bot trading safety tips

There are some basic rules whenever you use a bot for the first time:

  • Don’t give your bot withdrawal access. In most cases, there’s no need to give a bot permission to withdraw funds from your account, so preventing withdrawal access can be a simple way to protect yourself. Of course, if you’re performing arbitrage trades between exchanges, you will need to grant withdrawal access.
  • Don’t share your API secret. In order to put your bot to work, you’ll need to create an API key and secret on your chosen crypto exchange. API secrets are like crypto wallet private keys. If someone has your API key and secret they can place trades from your account, so never share with anyone.
  • Use 2-factor authentication. Enabling 2-factor authentication on all exchanges, accounts, wallets and crypto programs can provide an extra layer of protection for your funds. As always, make sure you also set strong passwords.
  • Backtest your strategies. Backtesting allows you to trial your trading strategies using historical data. While there’s no guarantee that a strategy which would have worked in the past will be profitable in the future, it’s worth running some simulations to determine whether it might be worth putting your strategy into use in the real world.
  • Limit your losses. Use tools like stop-loss orders to ensure that losses are minimised when the market moves against you.
  • Develop an understanding of technical analysis. The more advanced trading bots can assess a variety of technical indicators when executing trades, so developing an understanding of cryptocurrency technical analysis could help you get more out of your bot.
  • Don’t over-commit. Bot trading can be quite complicated and may take a while to wrap your head around, so start with small amounts as you build your knowledge and confidence.
  • Track your trades. Finally, don’t forget that your trades will have tax implications, so keeping records of your crypto transactions is essential.

Bottom line

Cryptocurrency trading bots can be an extremely handy tool for traders, but only when used properly. They offer a handful of key advantages, such as being able to constantly interact with the market and taking the emotion out of trading, but they’re certainly not a “silver bullet” that can guarantee you’ll make a profit.

The many risks associated with crypto trading bots mean the best approach is to proceed with caution. If you know what you’re doing and you’re prepared to constantly monitor performance, trading bots can form an important part of your overall trading strategy. However, going all in and using bots as the be-all and end-all of your crypto trading strategy is not recommended.

Finally, make sure you thoroughly research any bot to be sure of its legitimacy and whether or not it could be a useful trading tool for you.

Os melhores corretores de opcoes binarias 2020:
  • Binomo
    Binomo

    O melhor corretor!
    Conta demo gratuita e treinamento para iniciantes!
    Inscreva-se bonus!

  • FinMax
    FinMax

    Corretor de opcoes binarias confiavel! Boa resposta!

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