Trying Out NIOX Market Maker and Making Profits

Trying Out NIOX Market Maker and Making Profits

By BOI | BOI | 28 Jan 2021


Yesterday, I talked about NIOX, Autonio Foundation, and their upcoming Earndrop program that will last from 30th January until 9th of February. For every minute the bot is trading in your place, you will receive 1 NIOX token. It means, if you leave the bot for the whole time period, you'll earn about 12 thousand NIOX tokens. It would amount to a little over $600 with the current NIOX price. And not only that, the bot is making you profits!

Today I tried out their platform to see what this bot can do. Yeah, it's a trading bot. Some call them Market Makers and I even found a definition for you:

A crypto market making bot assure a tighter spread for a particular token creating liquidity for traders. The bot ensures that the traders do not have to wait for a long time to find buyers making the price of the coin susceptible to market volatility.

How do Market Makers make money?

Market Makers make money by profiting from the spread. The spread is the difference between the buy and sell price. In the market, these prices are called - the BID price and the ASK price. Here's an explanation you might want to read:

Imagine a situation where the bid price of LEO is $100 which means the price of 1 LEO equates to $100. It has an ASK price of $120 which means that the spread is $20. If you have bought LEO, for example, for $100 then it is a straight profit of $200 if you sell it at the ASK price.

It's essentially what Market Makers do. If the spread gets bigger (the market is volatile), there's a bigger room for a bot to play. That's what I understand, at least. And I have to say, I'm not an expert on this, I'm simply learning as I go.

So I tried it out

I went to maker.autonion.foundation, connected my MetaMask wallet (NIOX will be sent there), connected the bot with my Binance API, and tried out what this bot can do.

First Try - TOMO/USDT

As you can see in the first image, in one hour, this bot made 106 trades resulting in 40 cents gains. Not too impressive but this was only my first try and I didn't change any default setting. As you can see, the spread here is really small and only a fraction bigger than Binance fees which are 0.0075% per transaction if you have BNB in your account.

firsttry.PNG

Second Try - RUNE/USDT - (bigger spread and refresh time)

This time I chose a different coin, increased the spread to 0.12%, and refresh time to 40 seconds. As you can see, in 30 minutes, the bot made 41 trades resulting in $1.31 gains. It's not too bad and I'm happy and I'm not losing. After sharing this on their Telegram group, the admin told me I could easily increase the spread to 0.2% or even 0.25% so that's what I did on the third try.

secondtry.PNG

Third Try - RUNE/USDT (even bigger spread)

On my third try, I increased the spread size to 0.2% and in two hours, the bot made 53 trades and gained me more than $15 which is really nice. What I don't like is that I ended up with less RUNE than I started and if RUNE sky-rockets today, I won't be able to buy it back lower. Next time, I'll trade with tokens that I don't care about and not RUNE.

thirdtry.PNG

Conclusion

This Market Maker bot is more profitable in trading than I am. That's for sure. I'll definitely participate in the Earndrop initiative to stack up some NIOX coins and trade more with some other tokens. Who knows, maybe NIOX be worth a dollar or more in the future ($0.05 right now). The company works with TOMO, EGLD, and other well-known crypto projects. Read more about their Earndrop program on my first post or on their official page.

Thank you for reading!


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BOI
BOI

Crypto enthusiast. Writer. Creator.


BOI
BOI

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