Cryptocurrency enthusiasts have shown a keen interest in automated trading bots over the past few years. Finding the right tool to make cryptocurrency more accessible is still a work in progress. HodlBot is an interesting offering in this regard, even though it still requires some trust in the creators’ skills.
The Concept of HodlBot
Although the name might not suggest it, HodlBot is a full-fledged trading bot for cryptocurrency enthusiasts. This project is not about holding onto one’s coins, but rather creating a diversified trading portfolio. It mainly relies on the Binance exchange, which is one of the largest cryptocurrency trading platforms in the world today.
How Does it Work?
The purpose of HodlBot is to provide users with an algorithmic trading solution using their own exchange accounts. Investors are then able to select long-term strategies for use with their cryptocurrency portfolios. After that, they can simply sit back, relax, and watch the HodlBot do its thing. It does require that users have a Binance account, but that is not entirely surprising. Given the platform’s popularity, this choice makes a lot of sense.
Providing any third-party software with one’s API keys for a given exchange is always a bit risky. Although it seems HodlBot does not record this information, it is still a bit of a security risk. Then again, so are most trading solutions which offer a high degree of convenience. There is always a bit of a trade-off in this regard, and thus HodlBot isn’t doing anything out of the ordinary.
There is a $200 minimum account balance requirement to use HodlBot, which may confuse a lot of people. According to the team, this limit is in place because Binance maintains a minimum trading limit, and the $200 minimum was put in place to let people create a fairly balanced portfolio. The monthly fee to use HodlBot is $10, though the first month costs $1.
Should You use it?
Anyone can manually create and maintain a balanced cryptocurrency portfolio. With HodlBot, that process becomes completely automated, but outside of users’ control as well, to a certain degree. Shared API keys do not require withdrawal access, which is a positive sign. The team is still working on expanding the number of portfolio options, as only one is available right now. It’s an interesting project to keep an eye on.
You may be interested
150-Year-Old MetLife Pilots Diabetes Insurance Payments on a Blockchain in SingaporeBrian Evans - Aug 21, 2018
MetLife has started tests on an automated insurance solution that will see enrolled pregnant women in Singapore get an automatic payout in case they are diagnosed with…
Apple’s Steve Wozniak Plans to Get ‘Involved’ in Blockchain Project for First TimeBrian Evans - Aug 21, 2018
Steve Wozniak, co-founder of Apple, reveals plans to get “involved” in a blockchain startup for the first time, praises the technology
Rally Ahead? Bitcoin’s Price May Be Charting a Previous Bull PatternBrian Evans - Aug 21, 2018
Bitcoin is mimicking the price action witnessed in early April, which indicates the corrective rally could gather pace in the next few days.