This strategy is not for everyone looking to invest in bitcoin or profit in bitcoin.
Investors should be confident in the long-term efficacy and value of bitcoin, but are looking for a way to decrease risk in their investment in bitcoin. With decreased risk, there is also decreased reward, should bitcoin raise significantly.
Sea of BTC works by connecting to your account via exchange APIs.
Via exchange APIs, withdrawing and transferring is not allowed, or can be set to be not allowed, therefor you retain full control of your account. You are also able to stop the service at any time by disabling the API access. Also, many exchanges offer the ability to "whitelist" specific IPs, so that only those IP addresses can connect and trade via your API key.
Once you have supplied the required API key and API secret, we are able to run our trade bot on your account. You can view your account's information and current trades at any time by logging into your exchange account.
We use a modified grid-trading system. A nice, short, definition of this is:
"A series of positions and open orders that are built with a predetermined spread defined by the trader."
A grid trading strategy has a few implications:
You will not get rich quick with this strategy. It is nearly impossible to make any significant life-changing gains here.
While you are hedging against bitcoin prices, there is certainly added risk by putting your money into exchanges. You must weigh this risk with some serious thought. Exchanges have disappeared in the past, and there will most likely be more in the future.
Given the nature of this strategy and risks, you should not invest 100% of your bitcoin holdings into anything, including this strategy and any exchange. If you're a long term believer in the idea that bitcoin price will rise significantly, the majority of your holdings should be in cold storage in a very secure place.
This will differ from exchange to exchange. Generally, you go into your account and find the API section. From there, you can enable an API, and choose the options for the API. Make sure trading and information are enabled as well. Most of the time, simply creating an API key doesn't allow for trading or getting info.
This would be a good time to also make sure that, if withdrawals are possible via the API, that you disable withdrawals. Also, see if there are any "whitelist" options. If there are, then you can just add Sea of BTC's IP to the list (ask me for it).
Any other questions about how it works? Did I leave something out? Feel free to email me: Harrison@seaofbtc.com