Wohooo it's been 20 days! A lot of action lately irl that I've really struggled to make this continuation post (thinking about it for a week and a half easily). A lot of tweaks & refinements have been done to my initial strategy so let's update the journal.
Not because the first is a bad one, it's more about the fact that Bybit has many features and integrations that interest me (being the first one Cointracking itself ha!).
I'm realizing that If you don't mind being a KYC-verified user, Bybit is a really GOOD exchange. Or at least this is my first impression after a few days of snooping around.
Okay, now I'm settled with my bucks into Bybit. What are doing people there to buy themselves the bread?
Many options, much wow
Copy Trading? Trading Bot? Metatrader 4? isn't that the Boomer charts thing?
And the list keeps going on? What does it even mean 'Dual Asset'? Why there's no HBD on 'Bybit Savings' yet? (seriously though, a proposal for that wouldn't be bad).
So many interesting options, I'll be exploring them within time.
I've made a plan for my CEX journey, it involves, staked Ether, Borrowed bucks and Trading Grid bots... These are the steps:
Until now I always managed ETH derivatives from my own wallet, which makes it cost prohibitive if you're operating with small amounts. Working through a CEX like Bybit (which is surprising me positively I have to say) opens up a lot of options since you're getting the best of both worlds.
I'm getting a daily drop of new ETH, without the hassle of the Ethereum network fees.
most attractive part is that it's possible to get loans using this staked ETH, so you're getting increased capital efficiency (as long as you're careful enough to keep healthy ratios).
65% LTV for stETH. Interest rates at 8%/year.
It's more than Ok, since the interest is almost offset by the stETH yield by itself. If you're able to make a profit on top of that 65% loan it's up to you. Best part of this Vs decentralized protocols like Aave is that you're avoiding gas fees (which as I said before escale quite a bit if you make moves frequently).
I took the following loan:
And then I started trying gridbots
I have a friend who tried these on Kucoin in the past, and it worked decently for him, fact is I tend to distrust automatic systems like these, specially when they're offered for free. Although I like how it's explained on Bybit, and the setup is pretty straight forward.
Basically you define a range and a number of grids, then the bot just splits your deposit between all the grids (in this example 97,56$/grid. And when the market ranges, you arbitrage teh difference everytime the price crosses across your grid points (in this example, everytime the price of BTC ranges around 97$).
The one that I configured (and is already working) have these params:
Took two trades in 24h and the current APR is +37%?! Holy crap. Definitively needs more time to give more detailed & reliable numbers.
Whatever the case, it's like playing the Market-Maker game, let's see how it goes. Look how beutiful is playing both sides of the market!
I'm definitively curious to see how this performs after a few months of DCA'ing (until I find the next shiny thing, you know I change fast plans)
Cointracking doesn't have a good way to show margin/borrowed amounts, so I'm keeping track in my own way:
Aaaaaaaaand... this is all folks, soon some charts.
Enjoy the summer!
Bybit reflink just in case you want to try: https://www.bybit.com/invite?ref=A1PGP
