The Simple Guide to Passive Income for Women with Crypto Bots in Bitsgap

Investing in cryptocurrency might sound complicated, but with automated trading bots on Bitsgap, it becomes easy and fun! Crypto bots aim to earn profits by automating trades based on pre-set strategies, unlike regular crypto trading, where investors manually buy and sell coins as the market dips and rises. These bots use algorithms and real-time market data to execute trades faster than humans, taking advantage of small price fluctuations. Strategies like Grid Bots profit from market volatility by buying low and selling high, while Buy the Dip (BTD) bots accumulate assets at lower prices for long-term gains. Unlike manual trading, where emotions can lead to poor decisions, bots trade 24/7 with precision, maximizing opportunities even when the market is unpredictable. Last year, I personally averaged about $700 a month in passive income with a $10,000 investment following these strategies. Some months were nearly triple that, other months the market was down and I didn't withdraw any profit. This guide will help you get started, practice safely, and set up your first crypto trading bot—all in a way that’s easy to understand!  

Step 0: Get a Super Secure Email Provider

This step is optional but highly recommended. It's important that your financial data is secure so I recommend using an email provider that has excellent security features and setting up an address that you will use exclusively for trading crypto. I use Proton mail which I love because it gives ten+ email addresses (depending on the plan), includes VPN, calendar, documents, digital wallet and much more. Its a full suite of services but most importantly it prioritizes privacy and security. You can get it here: Proton.me

Step 1: Get a Crypto Exchange Account

To trade crypto, you first need a place to buy and sell coins, called an exchange. Popular choices include Kucoin, Binance, Kraken, and Coinbase. If you are in the US, you are somewhat limited in choices. You basically have Kraken, Coinbase, Crypto.com and Binance.US to choose from, and these have limited trading pairs compared to Kucoin or Binance (the regular or international Binance, not Binance.US). I use Kraken exclusively because they offer low fees and a broad list of U.S. approved pairs; Coinbase and Binance.US list slightly fewer or different pairs and may have higher fees. Crypto.com is relatively new on the scene and I don't have much experience with them.

1. Go to the exchange’s website, ie Kraken

2. Sign up using your email and create a strong password. Keep track of all your passwords and API keys. If you lose them, you will not be able to access the crypto that you buy.

3. Verify your identity. If you are in the US, this is known as "know your customer" or "KYC." Follow the prompts in your exchange, it can be involved.

   
   

Step 2: Add Money to Your Exchange

Now that you have an account, you need to add money (fund it) so you can buy crypto. But no rush! You can actually hold off on this step until you are comfortable trading with Bitsgap's fake money in demo mode. When you are ready, how much money do you need to start? I recommend starting with about $300 - $3000 so you will have options as to what kind of bot and settings to choose from, have some buffer to account for trading fees and still make a profit. Depending on the specific bot settings you use however, the minimum amounts required by Bitsgap may be anywhere from about $300 to $3000 to start a bot, so if you have limited funds to start with or just want to test the waters, you can start with less.

1. Log into your exchange.

2. Go to Deposit and choose your payment method (bank transfer, credit card, etc., different exchanges have different options). Its a good idea to test this with a tiny amount of money, like $10, to make sure you know how to get it into your exchange account. For crypto transfers, if sent money to the wrong address, you will never be able to retrieve it. So test to make sure!

3. Transfer funds and wait for them to show up in your account. This may take up to a few days.

Once your money is in the exchange, you could buy crypto like Bitcoin (BTC), Ethereum (ETH), or USDT (a stablecoin that stays at $1) if you just want to HODL (hold it) it long term. But don't do that now. If you plan to use crypto bots, you will buy crypto, or "trade" it within Bitsgap itself.

Step 3: Open a Bitsgap Account

Bitsgap is a platform that connects to your exchange and lets you use bots to trade automatically. It is the best platform in my opinion because of their demo mode function and because it is very user friendly. If you are new to crypto, or just investing in general, there is a lot of jargon that will be new to you but the Bitsgap interface makes it easier to understand that other platforms I have seen.

1. Go to bitsgap.com and click Sign Up. You can use a free account for practicing with demo bots and don't need to pay until you're ready to invest real money. Plans start at $23 a month currently.

2. Enter your email and create a strong password.

3. Log in and connect your exchange using an API key (found in your exchange settings).

Now, you can trade (buy crypto) within Bitsgap, without having to log into your exchange or manually move money into and out of trades. Remember, Bitsgap does not hold your money - it only interfaces with your exchange (where your money is stored) whether you make regular trades or use a bot. If you just want to use demo mode for a while, you don't have to connect your exchange or even fund it until you are ready. Now, on the the fun part...

Step 4: Use Demo Mode to Practice

This is the most important step! Before using real money, you will want to practice with Demo Mode extensively, especially if you are new to cypto bot investing!

1. In Bitsgap, turn on Demo Mode by dropping down the menu under the "person" icon in the top, right corner. This gives you fake crypto balances to practice trading bots with.

   

2. Try different coin pairs and different settings (see steps 5 and 6) and watch how bots trade automatically. Start all your demo bots with the same amount (for example, $5000) so you can easily compare how they are doing. Take a screen shot of your settings so you have it for your records and analysis.

3. Here is where the learning starts: Observe your bots daily for at least few days, ideally up to a month. Make notes on what happens. Did the value of your coin pair go up or down? When it goes down, your bot buys more crypto. The total bot value will be lower but your bot will have more crypto to sell when it goes back up. So don't worry about it going down. Its still a good thing! Check the bots every day to see how they are doing. I recommend practicing in demo mode for 1-3 months before starting with your own money. Once you feel comfortable, you can switch to real trading.

4. When you are ready to start a bot with real money, its a good idea to run your chosen coin pair and settings in demo mode for at least a few days before starting the bot with real money, to make sure it is going to do well for you.

Step 5: Research Best Coins Using CoinGecko

To choose the best coins for your bot, check CoinGecko.com, which ranks crypto currencies based on performance. Picking the right coins helps your bot trade successfully and make more profits.

• Go to coingecko.com.

• Look at the top 25 or so coins and find ones with steady growth and high trading volume. You are only looking at non-stable coins. Stable coins are those that stay stable in value with the US dollar. For example, USDT and USDC are common stable coins.

Step 6: Choosing Your Bot and Settings

Bitsgap currently offers four different types of bots. This is a big subject and exactly which settings to use is the magic information that everyone is looking for and the subject of much proprietary knowledge. I'm not offering exact proprietary settings, just a general range of settings that have worked well for me. The two types of bots I use are the Buy the Dip Bot and the Grid Bot and those will be the ones I discuss.

Start by going to the "Bots" tab at the top left of the Bitsgap interface. Then, select the orange "start bot" button at the top right of your screen to open the bot options window, then select the type of bot you want to run.

BTD Bot (Buy the Dip) – Best for Volatile Markets

I like this bot because if the market goes up, you can close the bot to take profits and if the market goes down, the bot takes money from the top of your grid to buy "the dip."

• Select your exchange from the dropdown menu, ie Kraken. I recommend only choosing the exchange(s) in demo mode that you will actually be using when you put in real money. That way you have realistic expectations of what the actual coin pairs will do.

• Select your chosen coin pair by using the dropdown menu. Start with your chosen coin that you've researched (ie, BTC, XRP, DOGE, etc) and "pair" it with a stablecoin, like USDC, USDT, or my favorite, USD. If you choose USD (U.S. Dollar), you won't have to buy any stable coins so that is easiest. If you opt for one of the other stable coins, you can buy it on the "Trading" tab at the top left of the screen. That is beyond the scope of this article and as a beginner, I recommend using USD until you get more comfortable with trading and the Bitsgap interface.

• Drag the "high price" and "low price" bars in the graph at the left, or click to expand the "Manual Adjustment" dropdown to input values directly. Set a fairly wide price range so the bot "buys the dip" over time with most of your "lines" above the current price, ie, the "red lines." This allows the bot to buy more crypto as the price dips by selling off the top of your chart. Expand the "Manual Adjustment" dropdown to select your "Grid Step %." This tells the bot how much of your investement should be allocated to each grid line that your bot has. If you set your high and low price range, then if you increase the grid step, you decrease the number of grid lines. More lines = less money on each line. Less lines = more money on each line.

• Toggle on "Trailing." This allows the bot to buy more crypto as your coin price goes below your grid by extending the grid lower without adding new capital; it reallocates quote currency freed from filled sell orders. This bot trails down.

• Set your "Investment" amount. This is the amount of money you want to invest into the bot, or said another way, it is the amount of money the bot will distribute across your whole grid to use for trading when the price of your chosen coin lands on each gridline. Some settings have a minimum investment requirement. This is where demo mode is extremely helpful in figuring out what you want or can invest in a particular bot.

• Before starting your new bot, click the "Backtest" button to get an idea as to how well the bot will do for you. A 30-day result of less than 5% is not great but if you are using a top 25 or so coin, you should make a steady, modest and low-risk profit. And in some markets, 5% might be the most you can hope fore. A 30-day result of between 5-10% is fair and this is where most of your bots will be if you are using a US exchange and following these guidelines. If you can find a result over 10% while following the safety advice in this article (especially using top 40 or so coins), you are in luck! Try it out in demo mode first for a few days, then if it looks good, go for it!

• Click the "Continue" and then the "Start Bot" buttons and wait for the bot to start up. It may take a few minutes and you can watch the grid as it is built.

  
  

  Here is an example of a Buy the Dip Bot setup similar to what has worked well for me:

  
  

  

Grid Bot – Best for Steady Price Movements or "Sideways" Markets

This bot buys low and sells high in small steps, making many small profits. Best not to use when the market is erratic because if the market drops dramatically, this bot will fall out of the grid, meaning it won't be making trades or profit for you and you may have to wait a long time for the market to come back up so it will make money again.

• Select your exchange and a strong coin pair as explained above for the BTD Bot.

• Set a wide price range so you have room for the market to move up and down. I typically set it up with more green lines than red so there is more room for your bot to "trail down" if the market goes down. Drag the "high price" and "low price" bars in the graph at the left to set your price range. Expand the "Manual Adjustment" dropdown to select your "Grid Step %."

• Toggle on "Trailing." This allows the bot to buy more crypto as your coin price goes above your grid. Trailing Up raises the grid when price climbs, continuing to capture small profits. This bot trails up.

• I don't use the "stop loss" button myself as I just wait for the market to go back up if it goes below my grid, sometimes it takes a while.

• You can toggle the "Pump Protection" button off if you have a higher risk tolerance. I leave it on.

• Click on the "Backtest" button as described above to get an idea of how this pair has been performing, and then click "Continue" and "Start Bot."

Here is an example of settings similar to those that have worked out for me for this kind of bot:

Conclusion

Using bots like BTD and Grid Bots makes crypto trading easy and fun, and it allows you earn another stream of passive income. Here are a few final words of caution to help you keep it that way!

1. Any investing has a risk of losing money and crypto bot trading is no exception. Using the top 25 or so coins in CoinGecko and practicing in demo mode are your best habits to follow.

2. Keep track of all your passwords, API keys, passkeys, pass phrases, etc. The importance of this cannot be overstated and people have lost millions due to losing their ability to log into their accounts.  If you lose them, neither your exchange nor Bitsgap nor the government will be able to help you out. I use 1Password for everything but I also keep a handwritten record of this information in my physical safe.

3. Make sure you know where you are sending your money when funding your exchange. Again, the importance of this cannot be overstated! Pay extra close attention to the codes that designate where money is going and remember, lost digital money is not retrievable. When I move money in or out of digital accounts, I always do a test run of a small amount like $10 to make sure I have the right address, before sending a larger deposit to an exchange, digital wallet, etc.

4. Do not be tempted to try coins that are lower down on CoinGecko, and especially leveraged coins like BTC3L or ETH2s until you are a seasoned pro. They may have a high 30-day profit result in the backtest but they are not worth the risk if you are starting out or have limited funds to work with. Play it safe!

5. If you see something called MEV or arbitrage bot codes being given away on Youtube or somewhere else with promises of making a lot of money, or even a modest amount of money, they are scams giving fake codes that allow hackers to take your money. Avoid completely. MEV bots are unethical to begin with, but if a hacker makes a MEV bot code that actually earns money, they will not be sharing it. These are not the type of bots we are using in Bitsgap! Stay in Bitsgap to be safe.

If you follow these steps, be reasonably cautious, and practice with Bitsgap's demo mode you could make a good supplementary income with crypto bots and have a lot of fun doing it.

Necessary disclaimer: This article is an introduction to crypto bot investing based on my personal experience. I am not your financial advisor and nothing in this article is financial advise. It is purely for entertainment purposes!