TLDR;

IF … you are long-term bullish on crypto and HODL coins

THEN … set up your Bitsgap bots with Bitcoin (BTC) as the quote currency rather than a stable coin or USD.

WHY?

Because in a given Bitsgap portfolio, over time the majority your holdings will end up being the quote currency.  This happens because in a CRYPTO/FIAT bot, the assumption is that over time, the crypto will appreciate more than the fiat.  (That’s why we invest in crypto … right?)

However, as the base currency (the one on the left, crypto in this case) appreciates, the Bitsgap bot slowly sells it and and buys the quote currency (the one on the right, fiat in this case).  So if you have an appreciating crypto, the price will tend to be at the upper bounds of the grid meaning that most of the crypto has been sold and most of your holdings are in fiat, most likely a stable coin or USD.

In CRYPTO/FIAT bots, around 75% of holdings are in fiat!

As someone who is long-term VERY bullish on Bitcoin specifically and cryptos in general, I didn’t like that so much of my portfolio, around 75%, was tied up in a quickly depreciating asset!  I wanted exposure to Bitcoin AND the potential to make bot profit.

Join the Bitcoin standard and get paid in Bitcoin!

Bots using Bitcoin as the quote currency not only have Bitcoin as the main component, but they also pay out in Bitcoin.  So when thinking about it in US Dollar terms, the value of your payout increases as the price of Bitcoin increases!  In other words, your profits are indexed to the price of Bitcoin, which has appreciated on average over 100% per year over the last 10 years.  When you trade with Bitcoin as the quote currency, it’s like HODLing  on steroids.  You get all the benefits of HODLing and each and every day, you add more Bitcoin to your account through bot profits.

Less out of range

When the base currency (left) falls far enough relative to the quote currency (right), the bot goes out of range.  Since crypto crashes tend to affect all cryptos in tandem, the chances of one of the currencies in the pair dropping that precipitously in relation to another crypto is much less.  The result is that the bots are out of range less.

But don’t CRYPTO/CRYTPO bots have less bot profit?

Yes.  Since the coefficient of correlation is less between cryptos than it is between crypto and fiat, the bot profit is slightly less.  HOWEVER, I’ve found some amazing pairs that have bot profits in a CRYPTO/CRYTO bot that are comparable to what I used to get in my CRYPTO/FIAT bots.  ETH/BTC is notoriously low since ETH and BTC are very highly correlated.  Binance.US has a limited number of CRYPTO/CRYPTO pairs so this strategy works better on Kucoin.  Even Kraken has enough CRYPTO/CRYPTO pairs to find some very good ones.