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Front Running in Crypto Trading via Bots
#Front Running
#Crypto
#Trading
#Flashbots
#Tradingbots

Front Running in Crypto Trading via Bots

Front Running is a concept that has long been present in the trading markets. Back in the day, a trader would watch the big orders take place and jump the line to front-run the other trader. It helped him bag an easy profit. Today, front running has become easier with computers and trading bots. More so in the world of crypto where instant decisions can make the price spike.

Cryptocurrency markets can be easily manipulated with big transactions. Whales often pump the price of a currency by buying a big chunk of its supply. As the supply reduces the demand for a currency increases. This discrepancy among demand & Supply leads to a higher market price for the coin.

Front runners do the opposite of whales. Instead of creating demand, they look for a coin that is already being readily bought in the market. After getting in the front runner can then sell his holding at a profit.

Front Running in Crypto:

Cryptocurrency traders are aware of the market volatility. They need to take into account the factors such as trading volume and trading activity. The price of a coin can fluctuate between the time an order is placed and the time when it is executed. This concept is also known as slippage.

The front running can cause the slippage for a digital asset. Here is how they manipulate the price:

A front runner sees a trader place an order for a coin. They place the order for the same coin. Now if the front runner’s order is executed first then they are in a good position to sell the coin at a higher price because of its escalated demand.

Crypto traders also call it the “sandwich” maneuver where the purchase of one trader makes the price go up for the other potential buyer. Thus, the sandwich is completed when the first buyer sells for an easy profit.

Front Running on Decentralized Exchanges Using Flash Bots:

Decentralized Exchanges like Uniswap run based on the Ethereum blockchain. Transactions are visible before completion. Therefore, another trader can jump the line and purchase the order ahead of time. Moreover, the use of trading programs called ‘Flashbots’ has also increased the chances of traders suffering from front running.

Flashbots are faster than humans. They catch the opportunity in the blink of an eye. High-frequency trading allows bots to bag increased profits. A manual trader cannot outsmart the bot. Thus, the crypto community is debating whether front running is a legal practice?

Is front running illegal?

Front running is a fishy activity. It involves taking money out of other traders’ pockets. Many times the front running bots or front running traders offer a higher gas price so that the miner gives preference to their trades.

It is not an illegal practice but an unethical one. Front Running with the help of flashbots allows traders to make money at the expense of others. The manual orders get thrown down.

Conclusion:

Front running is easy on decentralized exchanges because data is available to everyone. You can see the buy and sell order and insert your own. This strategy is more effective with computer programs like flashbots.

The crypto community sees this as a manipulative practice. Hence, traders are often searching for ways to protect themselves against it. With flashbots, however, the competition is getting tougher.


T
Trading Bots
2022-01-17
Free Trading Courses Online With Digiebot
#Online Course
#Trading Course
#Crypto Course
#Crypto Trading

Free Trading Courses Online With Digiebot

Cryptocurrency trading is a financial tool. It helps in making money out of fluctuating prices of digital assets. There are more than 1,500 cryptocurrencies in the world right now. For new investors, it is often difficult to decide which currencies to choose. Therefore, traders are always on the lookout for free trading courses online. 

Crypto is a volatile market. The price of assets can surge or plunge within hours. This happens because crypto is still not a mainstream industry in many parts of the world. Countries and governments frequently try to regulate this growing industry. Thus, you never know what to expect. Nonetheless, professionals can teach you how to stay informed on happenings in the crypto market.

Digiebot is your go-to place when it comes to learning about cryptocurrency. We offer free trading courses online to crypto traders. Before we share the details of our trading classes, let’s look at what are free/paid trading courses.

Introduction to Free Trading Courses Online:

If you are interested in trading, you will have hundreds of such courses online. However, not every course is good for you. There are a few paid trading courses available online for free, while others are free trading courses for online audiences. In order to make your choice easier, here are the characteristics of the best day trading courses for beginners.

  1. The teacher/instructor has hands-on Experience in Trading:

Learning trading from a quack will cause more harm than good. When selecting a trading course, research the instructors. Check how many years of experience they have in trading. People with vast experience are particularly aware of working strategies. They can teach you specific skills for dealing with the different market conditions. Thus free trading courses online with experienced instructors are best for you.

  1. Method of Teaching is Transparent:

Transparency builds trust. A good trading course will provide the name of resources that instructors consult. This helps students in checking the resources themselves and see how the tools are applying in the learning. Moreover, this list of resources can help the attendees of the course after the course has ended. Hence, the best trading resources provide a lifelong learning opportunity to the students.

  1. Instructors are Approachable:

People who opt for the trading course are oftentimes already into the trading business. They can get stuck on a concept while trying to put lessons to work in day trading. In this scenario, approaching instructors becomes necessary for clarification and understanding. Best free trading courses online make it easier for students to communicate with teachers. Multiple communication channels are made functional to facilitate teacher’s direct communication with students.

  1. Clearly States the Risks

All types of trading markets like the stock market, forex market, and crypto market have an element of risk. Besides, some of the trading strategies hold more risks than others. For instance, advanced algorithmic trading is touted as the fastest method of amplifying your returns. Nonetheless, it is very risky for inexperienced traders. So the providers of the best day trading courses online will be honest about the risks associated with different tips and tricks.

  1. Tailored for a targeted Group:

Traders differentiate from each other in terms of experience, use of resources, and trading methods. The best trading courses are tailor-made for a specific group of traders. For instance, the day trading courses for beginners and advanced level traders have different course material to meet the needs of students taking these courses.

You will find two types of trading courses online: free courses and paid courses.

Trading Courses Online For Free:

These trading courses teach the basics of trading to users online for free. The trading services providers like Coinbase etc are often involved in teaching such courses. You can search for free courses on the website of trading exchanges and trading brokers. Choose the ones that are simple and according to your needs.

Crypto is a new industry. Therefore, the organizations operating in this sphere are enthusiastic about creating crypto awareness free of cost.

Paid Trading Courses for Free:

Paid Trading Courses are available for free on sites like Coursera, Udemy, and edx. You can audit these courses and start 

Here is our free trading course online available to traders around the world. Learn to trade in the cryptocurrency market with the efficient tools and data at hand. 

Best Trading Course for Beginner Traders:

Digiebot has put together a great team for helping beginners and advanced-level crypto traders with free trading courses online. Here is what you will learn in these courses.

  1. Analysis of the Market:

Paid trading courses for free teach trading with the perspective of the forex market. That’s why the lessons are often not relevant to the crypto market. Crypto is a new market. It has its own triggers and patterns. Therefore, our instructors teach students the following ways of analyzing the market:

  • Fundamental Analysis
  • Technical Analysis
  • Sentiment Analysis

You can gauge the direction of the market by looking at the above three factors.

  1. Trading Strategies:

Crypto market swings in unfortunate directions without a prior warning. Our trading professionals have experienced many such swings. As a result, they have come up with some strategies that help in managing the risks in the crypto market. The following strategies are taught for money management in the crypto market:

  • Cost Averaging
  • Long Term Hold (LTH)

You can keep your assets safe during bear market swings with money management.

  1. Trading Indicators:

Some trading indicators from the forex market work in crypto as well. However, crypto has its own indicators. We teach the basic and advanced level indicators that can help traders in making the best out of their trades.

  1. Algorithmic Trading

Our free trading course for online audiences also centers around algorithmic trading. Algorithmic trading is a kind of trading where algorithmic/automated trading software takes trades on the user’s behalf. It is a smart, efficient, and cost-effective method of trading.

In Digiebot’s zoom classes, we discuss which algorithmic trading software to choose and why. 

  1. Coin Selection:

There are hundreds of coins in the crypto market. Moreover, new coin projects are released every other day. This scenario confuses the traders with a minimal budget. They don’t know which coins will have potential in the future. Our instructors analyze the coin projects and guide students on where to put their money.

  1. Free Coupons

At the end of the trading classes, our instructors give free coupons for trading software to students. Free coupons are the best way for kickstarting your trading journey on trading platforms. 

If you are interested in taking free trading courses online with professional traders then sign up on this page. Our teachers have more than 40 years of collective experience in trading. You will gain specific knowledge regarding crypto markets at the end of these courses.

Conclusion:

 They say,

 A smart person learns from his mistakes, a real wise one learns from the mistakes of others.

Learn from professional traders in free trading courses online as well as paid trading courses online for free. Our trading courses for beginners will equip you with the expertise necessary for success in crypto trading.


C
Crypto Course
2021-09-22