- When operating on Chatex, a trader needs to deposit Bitcoins or other currencies to the wallet:
- At first, a trader must buy cryptocurrency on some exchange at a good price to profitably sell it after.
- Transferring crypto from the exchange or an external wallet does not occur instantly.
- Crypto can sometimes be stored for a long time. Thus, a trader can lose money due to the exchange rate differences, especially when the rate drops.
- The user must start different cryptocurrencies in the bot if he wants to trade each.
- A trader sometimes sells at a loss.
- If a trader wants to withdraw the crypto from Chatex to an exchange, the process will take extra time.
After adding the Exchange API:
All cryptocurrency is stored only on the exchange (for now there are only Kuna/Exmo, other exchanges are coming soon):
- You can keep only one base currency on the exchange (USDT for example). Usually, it is a stablecoin or fiat money that helps you fix your finances and not suffer from a sudden drop in rates.
- You do not need to deposit all cryptocurrencies to the bot. They are automatically visible on Chatex and purchased at the time the transaction begins.
- A trader can always indicate the exchange rate compared to the exchange’s one so that if the transaction is successful, he will receive a fixed profit to his card or wallet (for example, Binance + 10% BTC/USD).
- A trader does not transfer the crypto to the bot. It is sent to our corporate account on the exchange. And at the time of a successful transaction is conducted, the crypto appears on the buyer’s Chatex account.
- If there are no transactions, the trader’s money remains in the base currency. So his trading does not depend on exchange rate differences.
- A trader reduces the risks of selling at a loss.
- Crypto is not stored in the bot. It is always stored only on the exchange.
- A trader can manage his finances on the exchange.
- A trader transfers his crypto from the exchange to fiat at a better rate than the one offered by the exchanges.
That is how it works on Chatex:
On Chatex, you can attach one exchange wallet: [Profile] => [API Keys]. Complete manuals for each exchange (Kuna / Exmo) are presented in our recent articles on the Chatex website. The process of validating the keys from the exchange takes up to 1 min. After the successful attachment, you will see a tick near the exchange.
In your account, you will see not only the actual balance of the Chatex wallet but also separately the balances of the exchange attached. The total wallet balance sums up only the main currencies. Exchange amounts are not included.
The base currency for KUNA Exchange is USDT. It is not used in the transaction and cannot be withdrawn. It displays the balance of the trader’s wallet on the exchange for the base currency in a 1: 1 format. The minimal amount should not be more than what a trader on the exchange actually has. If the value is less than the minimum, we show 0.
Other currencies that are lower, “Imaginary Balance of the Exchange”, are also available on the user’s balance (for example, KUNA BTC). With this amount, a trader can already carry out transactions. This is not only a case for KUNA BTC. There may be other cryptocurrencies. It all depends on the available pairs listed on the exchange.
That is how we got the “Imaginary Balance of the Exchange”: divide base KUNA USDT and the cryptocurrency purchase rate on the exchange. Actually, this value is approximate. At the time the transaction begins, it may vary slightly.
The user can perform operations in the bot: withdraw funds, create vouchers, make deals with the use of the actual balances.
But if the exchange wallet is attached, and the user does not have a zero “Imaginary Balance of the Exchange” for particular crypto (for example, BTC), then transactions for selling BTC are conducted from the KUNA BTC balance.
When making a transaction, you buy on the BTC exchange for USDT. The purchase process takes up to 1 min. Then transfer Bitcoins to the corporate account on the exchange. After a successful transaction, the crypto buyer receives BTC to his actual balance in the bot.
When a transaction is canceled, we change BTC to USDT and return money to the user at the exchange’s basic balance. Try to make at least one deal and everything will become clearer. Just do not forget about the minimum transaction limits for a particular exchange.
Balances are synchronized with the exchange every few minutes. Therefore, when manually replenishing the balance of the base currency on the exchange, some time may pass.