An Insight on Mt. Gox’s Bitcoin Sale and How it Has Affected the Bitcoin Price

According to many crypto experts and investors, One of the reasons responsible for the bitcoin price dip is that MtGox was selling its Bitcoins after bankruptcy.

MtGox’x cold storage address, which can be found here:

https://blockchain.info/address/16rCmCmbuWDhPjWTrpQGaU3EPdZF7MTdUk?filter=1

The estimates show that from the start of January 2018 there were approximately 37,000 BTC withdrawn (that is for about 0.22% from total bitcoin circulation supply, based on coinmarketcap). It is evident that this amount is not enough to affect the price.

Now there are still approx. 140,000 BTC in a wallet, which is 0.8% from total circulation supply).

To see if arbitrage still a working concept on the crypto market, William Belk, a founder of tokenspread.com, lists seven reasons for the continuation of arbitrage opportunities.

• Staggering regional competition between exchanges.
• Inability of exchanges to keep pace with demand.
• Massive proliferation of individual cryptocurrencies.
• Security breaches and hacking will continue to destabilize the environment.
• Regulators will not be able to keep up with the proliferation of exchanges.
• Transferring US dollars will remain a nightmare.
• The future of trading will be peer-to-peer.

Steps to go through to create your own cryptocurrency trading bot

• Get a boilerplate/framework installed.
• Walk through the core parts of the system, see what is where.
• Install and configure the software needed.
• Account creation at the brokerages, setting up the API keys for the scripts.
• Run tests and examples, get it ready.
• Set up websocket streams to get data.
• Finding strategies for our automated agents.
• Deep dive into Indicators and Candles available to us.
• Coding up our first agent.
• Testing the agent.
• Walk through the risks you are taking.

Main types of algorithmic trading strategies? 

Andrew Norry, an author at blockonomi.com, explains two of the main types of bot trading.

• Arbitrage
• It’s just about buying an asset for less and selling for more, and vice versa.
• Market making
• Where you try to capture the spread between the buy and sell price

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