Bitsgap is a popular crypto bot that is highly sought after by beginners and seasoned traders alike. While the platform has many options, features, and functionalities, two of its most famous offerings come in the form of Bitsgap Classic bot and SBot strategies.
If you are new to Bitsgap or plan to use it in the near future, you might be wondering which of these bot strategies are worth your time. To help you get a clear answer, here’s a lowdown on Bitsgap Classic vs Bitsgap SBot. By going through these details, you can determine what type of bot is suitable for your trading style.
☑️ What is Bitsgap Classic?
Bitsgap Classic is a grid bot strategy. When you use the Classic bot in your trading, you are able to buy and sell a fixed amount of your base currency for each order. The automated action is based upon market conditions and how it may affect your trades. But it never goes past the base currency limit that you have set within the platform.
For instance, if you are using Ether (ETH) as your base currency and set 10 ETH as your buying and selling limit, then the Bitsgap Classic bot will make it a point to buy 10 ETH at a price drop. Similarly, when the price is elevated, it will sell 10 ETH to make some profit.
This price drop and elevation as well as the associated actions are decided through the grid strategy. This means that if ETH’s original price was $100, then you can set levels of $110, $120, $130, and so on. When the price crosses these thresholds, your Bitsgap Classic bot will sell 10 ETH at each level.
This approach also holds true for price drops. Taking the example above, if you set the lowering levels at $90, $80, and $70, then your Classic bot will buy 10 ETH each time the price drops to the defined level. This gives you a certain sense of control over your trading even when it is being done through an automated algorithm.
✅ What is Bitsgap SBot?
Through the SBot strategy, you can benefit from an evolved version of the Bitsgap Classic bot. In SBot, you can set a specific limit in the quote currency for buying and selling cryptocurrency. This means that if you are buying or selling crypto, the limit is defined in fiat currency such as USD.
As an example, if you are trying to buy and sell ETH and set the quote currency limit as 1,000 USD, then each time ETH’s value goes down to a certain level, your bot will make a purchase of the cryptocurrency worth $1,000. Inversely, each time ETH’s value goes up, your bot will sell $1,000 worth of ETH to make you some profit.
These levels are decided by specific grids that correspond to your defined value. But this is where crypto fluctuation can cause your portfolio to be a little tricky to manage.
For instance, let’s use a hypothetical scenario where at the time of your bot setup, ETH is originally valued at $100 each. If ETH’s price falls to $90, it will mean that you can now buy a little over 11 ETH for $1,000 instead of the original 10 ETH. On the other hand, if ETH’s price tips are over $110 each, you will be able to sell 9 ETH instead of the original 10 ETH for the $1,000 limit.
This allows you to build a portfolio where you are able to accumulate the cryptocurrency that you are trading. If market conditions are favorable, this lets you generate profit in your base currency that you can effectively encash later on.
🤷 Are Bitsgap Classic and Bitsgap SBot the Same Thing?
Before you determine the difference between the Classic bot and SBot, it is important to learn what are the similarities between them both. This allows you to compare these bots side by side while also knowing what kind of actions to expect from each of them. From there, it becomes easier for you to understand why they are called different variations of the same strategy.
First and foremost, it is crucial to understand that both Bitsgap Classic and SBot are grid bots. This means that they use the grid trading strategy, where you are able to distribute your trading actions in order to profit through fluctuations in the market. The bots take action when there is a certain price movement in the upwards or downwards trajectory. This makes their actions simple to predict, while still allowing you to make some sort of profit through the action.
In grid trading, certain levels of value are defined right at the start of your trading activity. These values then decide thresholds at which the bots will buy or sell cryptocurrency. When the value faces a drop and touches one of the levels that you outlined earlier, the bot buys crypto to fetch some good deals. When the value increases, the bot sells your accumulated cryptocurrency to make some profit.
Both Bitsgap Classic and SBot work on this mechanism. This makes both bots similar in terms of how their actions are executed. With that being said, the details of this execution are what make them different.
📜 What is the Difference Between Bitsgap Classic and Bitsgap SBot?
The main difference is the marker of buying or selling cryptocurrency. In Bitsgap Classic, the action is defined by the value of the base currency. In Bitsgap SBot, it is dictated by the value of the quote currency.
Classic
When you use Bitsgap Classic, buying more cryptocurrency essentially causes you to shell out more of your fiat currency. But when you sell that cryptocurrency at a higher price, you are able to make a profit that also translates to higher fiat currency funds.
This makes for quite a fluctuation in your traded funds and allows you to make significant profits in favorable market conditions. You can understand this through the example of buying 10 ETH for $100 each and $1,000 in total. If ETH’s value jumps up to $200 each, selling that 10 ETH could generate you $2,000 instead.
However, this approach of Bitsgap Classic can also cause some problems. For instance, if you purchase a volatile cryptocurrency for $1,000 and then become unable to sell some or all of it for the same price, then you might either be stuck with your investment or need to cut your losses by selling the asset at lower than its purchase price.
SBot
When you utilize Bitsgap SBot, you are essentially putting a limit to how much fiat currency you can spend on a single purchase. This gives you an easier way to track how much of your funds are spent on trading. But when the purchased cryptocurrency’s price goes higher, you are also selling it only for the defined limit in fiat currency.
You can understand this phenomenon by the example of purchasing 10 BTC at $200 each for $2,000. Even if Bitcoin’s value goes higher up and becomes $400 apiece, you will be able to sell only 5 BTC to recover your investment of $2,000.
This means that the profit you accumulate in this strategy is essentially in crypto. This is especially true if you are trading in a highly volatile or fluctuating asset, which does not give you a stable value in terms of liquidity. This saves you from significant losses but also makes you lose traction if you want to generate profits in a solid fiat value.
👍 Is Classic Better Than SBot?
Both strategies have their pros and cons. While Bitsgap Classic promises you greater profits, it also has the risk of higher losses. On the other hand, while Bitsgap SBot gives you a safer way to trade, it also limits your ability to generate immensely high profits.
When Should You Use Bitsgap Classic?
According to Bitsgap itself, the Classic bot is best used when the market is on an uptrend. This means that if you are trading in a bull market where the value of cryptocurrency is on the rise, Bitsgap Classic would have the tools to help and support you through potentially profitable trades.
When Should You Use Bitsgap SBot?
According to Bitsgap, you should use the SBot when you are trading in a market with fluctuating or sideways trends. In other words, if you are trading at a time where the cryptocurrency price is unpredictable, making your trades based on fiat currency is a better option instead.
💡 Both Bots Hold Significant Promise
Due to the way that the Bitsgap Classic and Bitsgap SBot bots are designed, they both hold noticeable advantages for you. Since Bitsgap allows you to choose your bots at your own convenience, you should look into switching out your strategy according to market conditions.
This requires you to be in line with market updates and conditions, which needs you to put in some more work than just using a cryptocurrency bot. However, when it’s your hard-earned money on the line, this level of care is definitely worth it.
By using both of these bots interchangeably, you can get the most out of what Bitsgap brings to the table. At the same time, you can also steer clear of significant losses.
With that being said, make sure that the funds you are using to make trades do not have your livelihood or financial safety depending on them. In order to be financially secure, only use those funds for trading that you can afford to lose. As long as you keep this in mind, you can reap the rewards of responsible trading.