Note: This is not trading or investment advice. These are simply my own opinions. Always do your own due diligence.
Passive Income is defined as money you earn in a way that requires little to no daily effort to maintain. Anyone who says they don't want passive income has a serious case of denial. There are thousands of ways to generate passive income these days given our unlimited educational resources thanks to technology. Generating a passive income in USD (US Dollars) is great, but how can you earn a passive income in crypto? You can use a trading bot. Scroll to learn how.
Before I begin: I need to note once again, this is not trading or investment advice. Only invest what you can afford to lose. The cryptocurrency market is very volatile if you're looking at it on a daily basis. This volatility allows for a relatively strong passive income, but it can also result in losses of capital.
What is a crypto trading bot?
A crypto trading bot communicates with exchanges and automatically buys, sells, and/or holds cryptocurrencies on your behalf. These bots use your API keys (which you manually allow access to) from your exchanges to place trades in crypto which you specify under settings which you specify.
Which crypto trading bot should I use?
Cryptohopper! Their technology is first class and their customer support usually responds within minutes via their live chat if you need any help (you'll probably have questions). Sign up today for a 7 day free trial so you can play around with the settings before starting a subscription. You don't even have to give them a credit card to begin the trial.
How much does it cost?
After your 7 day free trial expires, you'll have to decide if it's worth it for you to pay for a subscription. The packages range from $19 per month to $99 per month and as you pay more, you receive more options.
I'd recommend starting with the Explorer @ $19 per month. If after one month you feel like you're not receiving a good return on your investment (ROI), you can cancel it.
I've signed up, which settings are the best?
I can't give this away, sadly. Not only because I went through lots of trial and error to figure out what works for me, but also because it works for ME. It doesn't mean it'll align with your goals. I will give you two hints:
Use USDT or USD as your pairing, not BTC. It is VERY difficult to consistently turn a profit while trading in a BTC pairing, due to volatility.
Use the Dollar Cost Averaging function
Which exchange should I link with my hopper?
I can't answer this either. It's based on your geographical location. If you're in Florida or New York, use the following links to determine where you can get started.
Here are the supported exchanges you can use with Cryptohopper:
Binance.US
Binance (N/A in the US)
Bitvavo (N/A in the US)
HitBTC (N/A in the US)
Poloniex (N/A in the US)
Bitpanda Pro (N/A in the US)
Bitfinex (N/A in the US)
OKEx (N/A in the US)
Huobi Pro (N/A in the US)
When choosing an exchange, you should look into their trading fees and coin selection as these factors will affect your profitability. For US Residents, KuCoin has the broadest selection of coins to trade in a USDT pairing.
How much can I really earn?
Once your account is set up, you've linked your exchange, gone through trial and error and found a strategy or signal which works, you can sit back and just watch. I'd recommend checking your account daily though, especially when Bitcoin pulls back. Every now and then you'll need to sell for a loss, but when you do, your hopper is usually ready to get back into gear and find the next target.
Your earning potential depends on the following:
Your initial start balance
Good settings
Good strategies or signals
Paying attention and selling when the market pulls back
If you allow your hopper to reinvest 100% of your assets on a daily basis, you will maximize your earning potential. I use this calculator to calculate my potential based on what I'm averaging each day in returns. With mediocre, easy to find settings in the Cryptohopper marketplace and proper coin selection, you can earn between 0.5% and 1.0% daily.
Doesn't sound like much, right? Think again.
The screenshot above shows how much you'll earn in 2 years with a starting balance of $100 if you maintain a 1% gain each day. $142,749.25 is what you're left with if you are able to keep that pace. There will be days where you gain 10%, and there will be days where you lose 10%, but balance is important. The more you earn, the harder you'll feel the dips as well. In your first month with a $100 starting balance, a big loss in a single day for you will be $5-$10. In a couple of years, that will be $7,000-$14,000, in a single day. It's important to always do your OWN due diligence and proper research.
Now that I have earned all of this USD or USDT, how do I get Bitcoin?
USDT (Tether) is a stable cryptocurrency which is designed to always be valued at $1. You can simply sell your USD or USDT to BTC if you want to go into HODL mode. (HODL: Hold On for Dear Life).
Closing
Feel free to reach out to me on Instagram or on my website if you have any questions about this article. I'm always happy to assist.
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