Automated Bitcoin Exchange Bot Using Custom Interac E-transfer API
Jan 12, 2022
Summary
This project is a Python-based Bitcoin bot leveraging Selenium for web automation, 2Captcha for captcha bypassing, and stealth techniques like IP and user-agent rotation. It operates on LocalBitcoins.com (where the premium / spread for transacting in interac etransfer was significantly wider than on large dollar denoted exchanges), profiting from the spread between buy and sell prices, typically earning 5-10%. To mitigate inventory holding risks, it hedges by purchasing long-term put options on Bitcoin at the average purchase price, yielding 3-5% per trade after paying premiums. Additionally, a custom API facilitates automatic e-transfers through bank logins for seamless buying and selling.
Introduction to the Bitcoin Trading Bot
In the cryptocurrency trading domain, efficiency is paramount. A notable advancement is a Python-based Bitcoin bot designed for trading on LocalBitcoins.com. This bot enhances profitability by automating trading processes, leveraging technologies like Selenium for web automation and 2Captcha for captcha solving.
Technical Architecture and Functionalities
The core of the bot is Python, utilizing Selenium to automate web interactions on LocalBitcoins.com. It employs 2Captcha for overcoming captcha challenges, ensuring continuous trading activity. Stealth techniques, including IP and user-agent rotation, are integrated to maintain security and anonymity, facilitating undetected operations on the platform.
Strategic Trading and Risk Management
The bot capitalizes on the price spread between buy and sell orders on LocalBitcoins.com, which typically ranges from 5-10%. A risk mitigation strategy is implemented through the purchase of long-term put options on Bitcoin, aligning with the bot's average purchase price, thereby securing a consistent 3-5% return per trade after premium payments.
Automation and System Integration
Automation is a key feature, driven by the need to increase trading volume and efficiency. The bot's custom API facilitates automatic electronic transfers via bank logins, streamlining the buying and selling process and enhancing operational efficiency.
Conclusion
This Python-based Bitcoin bot represents a significant evolution in cryptocurrency trading on LocalBitcoins.com, emphasizing automated operations and strategic risk management. Its innovative use of web automation, stealth techniques, and financial strategies establishes it as a powerful tool in the use of Bitcoin market making.