Let’s Start With The Basics
Hi and welcome to LazyEye! If you are new to trading or using bots this guide will give you a quick intro. If you are not, you can skip this one and go to the next guide. Always remember to DYOR (Do Your Own Research).
What is Crypto?
Crypto is short for cryptocurrency. Digital money registered on a digital ledger called the blockchain. Where normal money like dollars or euros are physically minted, cryptocurrency is created through mining (PoW) or staking (PoS). We call one piece of crypto a "token" or "coin". You can freely transfer tokens to other people, store them in a cold wallet or keep them on a hot wallet on a centralized exchange.
What is DeFi?
DeFi (Decentralized Finance) eliminates the need for centralized organisations like banks. You have total control over your funds. DeFi works by utilizing smart contracts that operate autonomously. The LazyEye bot works with the BNB Smart Chain (BSC), a decentralized network. To use this network you’ll need a crypto wallet.
What is a Crypto Wallet?
A cryptocurrency wallet is a digital wallet needed to store and use cryptocurrency. For our bot we need a wallet that can connect to the BSC. We use MetaMask. A browser-based wallet which allows users to connect to different EVM-compatible DeFi networks.
How Does Trading Work?
Trading means buying and selling assets to profit from price changes. The LazyEye bot opens Long positions. It buys a token aiming to sell it later at a higher price. That usually works out, but not always: a position can be held for a long time, and a loss is possible. The bot handles all of this fully automatically: analyzing the market, opening and closing positions, and reinvesting profits. You don’t need to make any trading decisions yourself.
What is Futures Trading?
Futures trading lets you profit from price movements of a cryptocurrency without actually buying and holding the coin itself. You open a “position” that increases in value when the price goes up (a “long”). When the price has risen enough, the position is closed and you keep the profit.
AsterDex uses “perpetual futures”. Futures contracts without an expiry date. Unlike traditional futures that expire on a set date, perpetuals can be held indefinitely. The bot opens and closes these positions automatically based on its strategy.
How the Bot Uses This
- It trades at 1x, so no leverage: no borrowed money and no liquidation risk beyond your deposit.
- It aims to close positions in profit, but a loss is always possible; not every trade ends positive.
- The bot continuously scans the market and decides which trades to take. The strategy is proprietary.
- You don’t need to understand the details. The bot handles everything automatically.
What is Leverage?
Leverage means opening a position larger than your actual balance by borrowing funds. For example, with 2x leverage and $500, you control a $1,000 position. This amplifies both profits and losses.
What is AsterDex?
AsterDex is a decentralized exchange (DEX) on the BNB Smart Chain. It offers perpetual futures contracts. Positions without an expiry date. The LazyEye bot runs exclusively on AsterDex Perpetuals.
Positions Can Get Stuck
One caveat of our strategy: sometimes the market moves against an open position and the bot has to wait for the price to recover before it can close the trade at a profit. During this time, the bot holds the position and does not open new ones. This can last days or even weeks.
This is why there is a monthly flat fee of €6. It covers the ongoing server and infrastructure costs even during periods when the bot is waiting and no profit is being realized.
You’ve made it through the basics! Always remember to DYOR and only invest money that you can comfortably lose.
Disclaimer: LazyEye is not a regulated entity. Cryptocurrency bot trading involves substantial risks, and past performance is not indicative of future results. Only engage in bot trading if you possess sufficient knowledge or seek guidance from a qualified advisor. By using LazyEye’s services, you acknowledge and accept the inherent risks involved in cryptocurrency trading.