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Getting Started with Crypto trading bots at Pionex

August 14th, 2022 - 7 min read

Disclaimer, the posts I am writing are only for educating purposes and do not represent financial advice, don’t follow any recommendations before making your own research.

TL/DR; Pionex is a trading platform / exchange, where you can easily use different crypto trading bots for investing (Buy-the-dip, Dollar-cost-averaging, etc). Every bot is explained in detail at their blog and Pionex is very beginner friendly. If you’d like to sign-up please use my Pionex referral link

How to get the app?

Download the Pionex app from the app store and install it. Follow the steps to signup and start the verification process. Level 1 is OK to get started. But I’d recommend doing the verification up to level 2.

How to transfer money from Coinbase to Pionex?

Before you transfer, always check that you are transferring to the right network. If you're not sure check with Google about the network that is used in Coinbase or do a small test transfer.

Transfers to the wrong address will cause an unrecoverable loss. Pick a cryptocurrency that is supported at Pionex. At the moment, not all are supported e.g. Solana is not available. Click on “deposit” in the app and select the cryptocurrency that you'd like to use for the transfer & copy the address.

You can use Algorand or USDT or Bitcoin and probably more. But these are the cryptos I've tested. For USDT use the ERC-20 address in Pionex because Coinbase only supports this network. USDT transfer is pretty expensive - 100 USDT ~ 5USD network fee (Coinbase to Pionex)

Cost for BTC transfer

I bought Bitcoin for around 200 USD (~0.009 BTC) to see what cost occur until the BTC amount is available at Pionex.

  • Bitcoin fiat to Btc → no fee at Binance
  • Transfer 0.009 BTC to Pionex → 0.0088 BTC transfer + 0.0002 tx cost Binance to Pionex ~4.8€ @22950 USDT(main net address) wait time can be up to 1h. Transfer started 19:46 and confirmed at 20:12 = 26 Min. So transaction took 26 minutes, until getting a push notification from Pionex.

BTC transfer is OK as you can create a bot with a BTC pair directly. So transfer USDT or BTC depending on your planned bot. Both have similar costs but no additional steps are needed in Pionex. If you're using BTC or USDT you don't have a currency loss risk that is difficult to see. If speed is important use USDT because BTC confirmation takes longer.

Currency loss risk

If you're using Algorand to transfer to Pionex and the ALGO price drops. You'll get less USDT or BTC for your ALGO. It's also possible that there is a gain but I would expect that most of the time that won't happen. But swapping at Pionex is also no problem and without a fee, if you're transferring in a different cryptocurrency.

So I'd recommend the following:

  • Pick the pair that you'd like to use for your bot e.g. BTC/USDT or ETH/BTC
  • Transfer the amount to Pionex based on the pair in USDT or BTC → no additional currency loss
  • Create the planned bot

What is a good first investment?

I'd recommend 50 USD as a minimum amount - better 100 USD or more for a grid trading bot. With 50 USD grid profit is small and around 5-10x higher than the transaction cost. In my case, it was like 1 cent grid profit multiple times a day with 0.2 cent fee per transaction. With 100 USD grid profit is higher.

I've started with two bots BTC/USDT and BNB/USDT each with 50 USD investment. You can add more capital to the bots later if you're seeing the bot is doing a good job. BNB/USDT 0.003 USDT typical grid profit with around 50USDT invested (0.00056 USDT (sell & buy cost))

How to pick the right pair BTC / USDT as the base?

This is not easy to answer but I'm looking at it like the following: The higher the volatility the better for the bot. Check on a 15min time scale and also try to pick one that's more likely to have a sideway chart on days and weeks. Downtrends without up swings are problematic as the bot is having a hard time selling.

Be patient & don't stop the bot too early

Some patience is required with bots. If it's started and you're having losses don't stop the bot immediately.

A rule of thumb if you're seeing that the grid profits after a week or two are catching the historical loss. Keep the bot active and maybe check if investing more money is a good idea.

But if the loss is too high it could be better to stop the bot.

What happens if the limits are exceeded at a grid trading bot?

You're getting a message about this event. That the bot can't continue and your action is required:

  • Either stop the bot and create a new one (if you don't like the bot or the performance is poor chose this)
  • Or adapt the limits - a rule of thumb is to adjust the limits to 80% or 120% of the current price (e.g 318 USDT/BNB at current price → lower limit 254 USDT and upper 382 USDT/BNB)

Before you're executing, you'll get some info on what will happen once you've clicked next.

When to release the profits of your grid trading bots?

You can always release but my rule of thumb is that I release all bot profits if the total is above 1 USDT. To release profits click the three dots in the bot view and click release profit. Next, select all profits and select the profits to release (here I'm applying my 1USDT rule).

This is working for me and I'm checking the profits at least weekly.

How to use the accumulated USDT profits from your wallet?

Once the USDT amount is high enough you can cash out to Binance / Coinbase or you can create a new trading bot.

There is a 1 USDT transfer fee. So don't transfer small amounts. I think a good minimal value is 100USDT or more. Then the fee is around 1% or below.

If you like to create a new trading bot, just check the minimal amount that is required to create the bot for the selected pair.

What is this trial fund 1288 USDT thing?

Maybe you have seen the 1288 USDT trial fund ad and you’re wondering what is it? You can use this 1288 USDT fund to do a dual investment. For more details about dual investment, please have a look here.

You’re not getting the 1288 USDT but you can use it to do the investment. Once the investment settles you’re getting the profit and the 1288 USDT will be transferred back to Pionex.

In short, dual investment is like “betting” on a settlement price. If at the settlement date the price is hit you’ll buy the crypto and get the reward. If the price is not met you will get the reward and your initial investment back. But read the manual in the above link to get a better understanding.

So it is safe to use the trial fund to check out the dual investment at Pionex. It’s not a scam and no problem to take and use this offer.

What profits can you expect?

A good running bot can make you about 15% profit or more. For example, invest 100 USDT and after 1 Month you're having 15 USDT profit.

My best running bots are MATIC/USDT, BNB/USDT, and BTC/USDT with around 13 to 15% of total profit.

Final words

I’m still learning how to use Pionex and I'm using it for around one month now. So if something is not correct, please let me know in the comments or send me a message on Twitter. Maybe I’m adding new learnings to this post - I’ll mark updates at the top of this post.

If you liked the post, please share it and if you’re planning to use Pionex, it would be great if you’re using my referral link - Pionex

My referral code is o7FKjZmD

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