What is Gunbot?
Gunbot is an automated bot (robotic software) for trading cryptocurrencies, primarily trading Bitcoin with other crypto coins (‘altcoins’). It was coded by Gunthar De Niro (‘Gunthy‘) with support from the Bitcointalk community.
The theory for trading with Gunbot is relatively straightforward:
- You deposit some Bitcoin on a trading exchange.
- You request remote access to your account via an API Key and give the Key details to the bot.
- You setup the bot, using particular settings to specify how you want it to trade (e.g. what level of risk/reward, etc.).
- You start the bot. It runs 24/7 and when the trading conditions are right it buys and sells coins on your behalf using the Bitcoin in your account.
- The intention is that it will buy an altcoin at a low price, determined by its trading history, and hold on to it until its price goes above a certain threshold (allowing for trading fees) when it will sell it.
- In most cases this works well and makes a profit, and the bot is then ready to make the next trade.
- In a small proportion of cases the altcoin price goes down steadily and cannot be sold (this is known as ‘holding a bag’). At that point you need to step in and, in some cases, sell the altcoin at a loss.
- With good settings, and regular monitoring, in my experience trading with Gunbot will make more money than it loses and can produce a significant income over time.
Preparing to Use Gunbot
Before you use Gunbot for the first time it is worthwhile to learn about how it operates and what its features and limitations are.
- Spend some time in the Gunbot Wiki to get familiar with the bot, how it runs, what strategies it uses, etc.
- Read at least the last dozen or so pages of the Gunbot thread on BitcoinTalk to learn about recent changes, and any issues or bugs found. Join BitcoinTalk if you aren’t already a member.
- Do the same for the Gunthy forum.
- When you feel ready to take the plunge buy a copy of Gunbot from an authorised reseller.
- Get an API key for your exchange(s) and have it linked to your Gunbot licence by your reseller.
- Join the Telegram group to get support (the link will be provided once you’ve bought the bot).
When you’re ready, see my next blog post and learn how to install and setup Gunbot.