Testing a Trading Bot Without Risk

Trading cryptocurrencies can be daunting, especially for beginners. Between market volatility, the variety of coins and exchanges to choose from, and the emotional rollercoaster of seeing your portfolio fluctuate wildly, it’s easy to make mistakes.

That’s why many crypto traders are turning to automated trading bots to take the emotion out of trading and systematically build their portfolios over time. But with so many bot options out there, how do you know which one is right for you?

I recently got to test drive a trading bot called Veles on a popular crypto exchange. Keep reading to find out what happened and if it’s worth trying for yourself.

Choosing the Right Exchange is Half the Battle

Before testing any trading bot, you first need to choose an exchange to connect it to. There are tons of options out there, but I went with Bybit for a few key reasons:

• Bybit offers leverage and derivatives trading, which suits algorithmic bots well.
• They have a simple API connection process so the bot can easily access my account.
• Bybit’s maker/taker fees are lower than most major exchanges.
• They offer up to $30,000 in signup bonuses, reducing my costs.

I signed up for Bybit using a referral link that gave me a discount on trading commissions. After verifying my account, I enabled futures and derivatives trading permissions.

Bybit has a smooth “one-click” API connection process. Just click the button, confirm permissions, and the API keys are generated automatically.

The key is to enable trading but disable withdrawals and transfers. This lets the bot open and close positions without jeopardizing your account.

Finding the Right Bot for My Goals

With Bybit ready to go, it was time to find a trading bot. I came across Veles after a friend mentioned it in passing. After researching it more, a few things stood out:

• Veles doesn’t require depositing funds. It trades using bonus credit.
• There are free video tutorials explaining setup and strategy.
• You can request a free consultation with their team for personalized help.
• It offers a $5 signup bonus to test it out risk-free.

Trading with bonus funds meant I could try this bot without any financial risk. And the free resources were the icing on the cake.

I signed up through a referral link for an extra $3 in bonus credit. After connecting my Telegram account to receive notifications, I was ready to link Veles to Bybit.

Seamless Exchange Integration

Connecting Veles to Bybit only took a minute. I just had to:

1. Go to my API keys on Bybit.
2. Click the “one-click” button.
3. Confirm permissions.

And that was it! The API keys were added to my Veles account automatically.

Alternatively, you can manually generate the API credentials on Bybit and input them manually on Veles. But the one-click method was faster.

With the exchange connected, it was time to pick a trading bot strategy and customize the settings.

Choosing the Right Bot Algorithm

Veles offers pre-made bots using different algorithms and settings. I started with a simple Long strategy on the BTC/USD futures contract.

Long bots bet that the price will go up. Short bots bet it will drop. I chose Long because Bitcoin was trending up.

Some key settings:

• Contract — BTC/USD futures in this case. You can choose different trading pairs.
• Algorithm — Long or Short.
• Amount — How much margin to use per bot. I used $500 of my $1000 budget.
• Leverage — Higher leverage means higher risk/reward. I used a moderate 3–5x leverage.
• Take profit/stop loss — Automated exit points for gains/losses. Optional.

The rest I left at default settings for now. I could tweak them later if needed.

Executing Hundreds of Precision Trades

Once configured, I let the bot do its thing! It began executing trades around the clock.

The bot makes small moves that an individual trader would likely miss. It buys on tiny dips and sells into incremental rallies dozens of times an hour. Each trade nets fractional gains.

But over time, these tiny profits compound into something substantial. It’s like micro-investing in hundreds of opportunities without having to watch the charts all day.

Meanwhile, I was free to go about my day without staring at my screen. The Telegram updates let me know how the bot was doing in real time no matter where I was.

Letting My Money Work for Me

After a week of hands-off trading, I checked in to see how my bot did. And I was pleasantly surprised by the results!

My Veles bot earned me 4.3% gains in just one week. That’s 17% per month or over 200% annualized. Not bad for setting it and forgetting it!

Now, past performance doesn’t guarantee future results. And different settings can produce different returns (some riskier, some more conservative).

But the key takeaway is that letting an automated bot trade for you 24/7 can significantly grow your portfolio over time.

How Veles Makes Money Alongside You

You’re probably wondering how Veles profits from this business model. It’s quite clever actually.

They don’t charge a subscription fee or require direct deposits. Instead, Veles takes 20% of the profits the bot generates, up to a $50 monthly cap.

So if the bot earns $100, Veles takes $20. If the bot earns $1000, Veles still takes the $50 cap.

This incentivizes them to refine their algorithms and settings to be as profitable as possible. The more you earn, the more they earn. It’s a win-win.

Is Automated Crypto Trading Right for You?

If you’re still reading, automated crypto trading may suit your goals and style. Here are a few key benefits to recap:

Hands-free passive income — Let the bot trade while you live your life. Compounding interest builds your portfolio.

Emotionless execution — Bots stick to the strategy and aren’t swayed by fear or greed.

Diversify across more opportunities — Algos can make way more trades than you ever could manually.

Learn the ropes risk-free — Trade with bonus funds first to test the waters before depositing your own capital.

Of course, bots aren’t a magic bullet. Markets can always fluctuate out of your control. But used properly, algorithmic trading can be a powerful tool on your path to financial freedom.