In this article, we will review Botsfolio, which provides you pre-built trading bots to automate your crypto portfolio returns.
Table of Contents
- Botsfolio automates your portfolio building and futures trading on your crypto assets without any technical or strategy setup.
- No configuration /inputs required, set your risk level and the bots start trading for you.
- Secure — money or assets never leave your exchange.
- Only works with Binance for now.
- Pricing based on the net portfolio being managed by bots.
Bringing crypto trading bots to masses
If cryptocurrencies such as Bitcoin and Ethereum are ever to reach the market capitalization of popular stocks such as Apple or Google. It would require the masses to invest in crypto for longer-term and get better returns than equities.
However being a volatile market as it is, novice investors and traders find it hard to time the entry and exit in cryptocurrencies.
Not to mention the risk appetite it takes to be able to sleep at night knowing your crypto portfolio can go up or down by 40% in a single day.
Today we are reviewing once such a tool that makes crypto investing easier and smarter.
And enable non-traders to invest with confidence while reducing their portfolio volatility in the process.
The Wealthsimple of Crypto
It makes investing in crypto as simple as just linking your Binance account. Once linked, your out of the box bots buy and sell top cryptos (BTC, ETH, and others) to build you a well-diversified portfolio.
The trading bots don’t require any configuration or strategy input, at the start or later. Anyone with a Binance account can use the bots with zero trading or technical skills.
As Weathsimple diversifies your capital into different index funds. Botsfolio diversifies your money into a portfolio of bots (hence the name — Botsfolio) to run using different trading strategies on different time frames.
As a user, you get 4 bots out of the box each with its own trading strategy, and they run in parallel. The 4 bots are
- Long bot — Looks for long term buying and selling opportunities and builds your portfolio over time using 80 to 90% of your net investment. Invests in around 10 cryptos diversified by factors / use cases.
- Scalper bot — Scalps for small opportunities, making a few bucks every few hours from very small price movements.
- Swinger bot — Determines price swings in one direction and takes larger positions for longer time frame to profit few times a week or month.
- Trendy Bot — Looks for clear price movement ranges and trades whenever the market is moving in a clear trend.
- Hedge Bot — Waits for high volatility to take hedged positions and earn funding from futures until the underlying asset takes a clear direction and then cancels one leg of the trade.
Also Read: Different Types of Crypto Trading Bots
Reducing risk for casual investors
With the aim of attracting more investors into crypto, Botsfolio takes a number of steps to reduce risk for average investor.
Dealing with the inherent volatility in crypto markets, Botsfolio is designed to reduce and eliminate all unwarranted risks that novice investors often take.
- The bots can hedge your portfolio when the market volatility is high to preserve your net value (based on your risk setting)
- For low-risk appetite users, the bots can play straddled trades to essentially earn fixed funding from your position while keeping price movement risk at zero.
- The bots use only a small percentage of funds for futures trading to increase returns while minimizing capital at risk. The largest threat while using futures — liquidation is taken care of by automatic stop-loss orders.
- In case net portfolio value dips below initial investment, the bots adjust risk automatically to play very few trades with the smaller amounts until the original investment amount is recovered.
Pros and Cons
- No need to input strategy and set bot parameters into bots like other tools such as TradeSanta or 3commas.
- Build a well-diversified crypto portfolio that buys at dips and sells when overpriced to automatically grow your net worth over time.
- The bots trade futures when the market established a clear trend based on your risk level to give your crypto portfolio an edge
- The bots can also take hedged positions when markets are moving sideways to earn futures funding.
- Cheaper pricing than most competitors while giving more value.
- Only works with Binance. Other exchanges may be added in the future.
- Requires a minimum investment of 1000 Tether to get started.
- During our testing, it mostly traded ETHUSDT pair on futures.
While the performance for such a tool is dependent upon a large of number of factors (market conditions, money invested, risk profile).
We could only evaluate the futures trading part of portfolio building. We saw that for us there were more than double the profitable trades for every loss-making trade or around 70% of all trades were profitable giving us an average return of 5.5% return on net investment (monthly) or 66% annual return.
The returns quoted above were just from the futures trading bot which uses only 10 to 20% of net investment. Since there were no buying opportunities during our testing period, around 80% of our capital wasn’t deployed and kept liquid. We are guessing that if we were to stick around longer, the bots would have bought some portfolio coins, whenever that happens, upside to net returns would be much higher.
Disclaimer: Please note that the returns quoted above were from a small test period. Past performance is not an indicator of future outcomes.
The service is priced starting from $18 per month for managing a $1000 investment but bumps up-to $20 per month once all the capital is deployed into the portfolio.
The pricing is lower than most crypto bot services where the user has to set up strategy to run bots. Therefore, Botsfolio is clearly offering more bang for your buck.
The pricing increases as the portfolio value increases and goes up to $72 per month for $50,000 portfolio management.
Also Read: Five Best Crypto Trading Bots
While all the trading happens on exchange (Binance), assets are also kept on the same.
An API is used to connect Binance with the bots that allows them to place buy and sell orders for you.
The API has withdrawn disabled and hence the crypto assets cannot be taken out of your exchange account by anyone with the API. The API keys are stored in an encrypted form.
Even if stolen (say in case of a hack), it wouldn’t be possible for the hacker to send your money to another wallet using the keys. Hence in our understanding, the system is quite secure.
Botsfolio can work wonders for novice investors without increasing the risk.
Even for professional investors, the subscription-based service can pump up their portfolio returns while saving them hours of staring at charts.
It is also very useful for users who bought into crypto during the 2018 bubble and can now use the service to improve their returns.
The only downside is that it only works with Binance for now, and there is no way for you to move your assets say to say a cold wallet while using the service. But we are hoping they would be adding support for other exchanges in the future.
Let us know what you think about our Botsfolio review in the comment section. Or write a review on CoinCodeCap.