
Ask HN: What is a good way to get into trading cryptocurrency as a developer? - pszczurko
I have limited knowledge about trading cryptocurrency, so obviously I need to educate myself about that first (feel free to suggest some resources). I do have a strong CS background thus specifically I&#x27;m looking for advice&#x2F;resources that could show me how to utilize my CS knowledge in cryptocurrency trading.
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elorm
I'm assuming you're talking about algorithmic cryptotrading here since you'd
like to utilize your CS skills. No need to inform you that trading by bots is
extremely risky, i'm sure you already know it.

Well here you go:

 _Grab some foreknowledge of cryptocurriencies from_
[https://github.com/Xel/Blockchain-stuff](https://github.com/Xel/Blockchain-
stuff).

 _Sound knowledge of Quant,Stats and Economics in general_. Also grab the
Black Swan by Nassim Taleb if you can.

 _Learn a bit of technical analysis: Familiarize yourself with indicators_

You'd need to spend some time on exchanges that have APIs, play around with
the system a bit.

Learn about what kind of trading is allowed and what types of orders you can
make.

Trade by hand just to get a feel of what trading is like. Some exchanges have
demo trading in built when you sign up. Play around until you're comfortable

Find the trading strategy you're comfortable and begin to automate it.

 _Be prepared to lose lots of money!!!_

Also join telegram chats of the various cryptogroups. Their analysis is so
spot on, it sometimes feels like insider trading. Good luck

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himlion
Can you suggest some good telegram chats?

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elorm
Bitstash chat is a small community, but incredibly helpful

WhaleClubBTC

ICOcountdown - If you're into pump and dump for quick money. This is heartless
way of making money IMO

TheCoinFarm

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mbrock
The top comment in this thread is very informative:

[https://www.reddit.com/r/BitcoinMarkets/comments/1rhtv1/eli5...](https://www.reddit.com/r/BitcoinMarkets/comments/1rhtv1/eli5_how_do_cryptocurrency_pump_dumps_work_how_do/)

The "pump & dump" dynamic is extremely important in cryptotrading.

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jake_rd
I'm not too sure that CS knowledge would be that applicable (for trading) at
least. Trading cryptocurrency for profit is speculation - essentially the same
as trading a stock on the stock market. Unless you're working in HFT or trying
to build out an algo to trade for you, besides some basic math skills, I can't
see how CS knowledge would apply.

~~~
teapot01
Trading stock is not pure profit speculation, there are a number of
alternative strategies including for example statistical arbitrage. Much of
this requires simple statistics understanding for the basics, and a Phd to be
particularly useful.

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cdvonstinkpot
I found Cryptotrader [1] interesting years ago, & found myself wishing I knew
how to code so I could get in on maybe making some money there.

Was using a minimal bot that came as a Chrome extension called "Butter-Bot",
but it stopped working right after that one Thanksgiving when it broke $1k-
when the market started going sideways. The developer was building a newer
version called "Butter-X", which looked promising, but was never completed
after money ran out.

[1]

[https://cryptotrader.org](https://cryptotrader.org)

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itamarst
1\. Go to bank.

2\. Withdraw large pile of cash.

3\. Put it in a metal garbage can, away from any flammable materials.

4\. Light the cash on fire.

This will get you to the same destination, only much faster.

~~~
the_hn_sux
Why? If cryptocurrencies have value, the value will likely increase in the
future. So why not buy?

~~~
dsacco
_> If cryptocurrencies have value, the value will likely increase in the
future._

That's not axiomatic. You really want to do more to prove this is indeed the
case.

~~~
bbcbasic
As long as there is a limited supply, speculators and draconian governments
and crime it'll keep going up. I'll bet it'll keep going up.

Threats are hacks, quantum computers and crypto currency competition.

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meric
You absolutely can make money with bots in cryptocurrency - there are times
when different exchanges have $100 differences in the price of bitcoin. During
times of volatility you can have bots making money off arbitrage.

~~~
cdvonstinkpot
At least circa whenever it was that BTC broke $100, the state of exchanges'
APIs was such that arbitrage wasn't practical. I remember reading about it on
an old bitcointalk.org thread when the Butter-Bot developers were soliciting
feedback regarding what direction their paid customer base wanted them to go.

The only working arbitrage software I ever saw was this short-lived one with a
circular UI (IIRC), & it wasn't fully automated.

I'd be interested to learn the current state of affairs on the subject.

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airbreather
Start with this

[https://anders.com/blockchain/](https://anders.com/blockchain/)

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kleer001
never forget to only play with what you're willing to lose

