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In 2018, Shrimpy, a crypto-focused automated portfolio management platform, came into the financial world. Its primary goal is to provide tools for automating trading strategies, rebalancing portfolios, and copy trading to new and expert traders in the crypto space.
Furthermore, its mission is to make investing in crypto easier and faster for those with no experience in the decentralized world. With an extensive list of features, users are introduced to a brand new system of trading cryptocurrencies that saves time, facilitates improved trading efficacy, and automates tasks that generally require tedious manual action.
The problem is that this solution was only available for centralized crypto exchanges (CEXs). However, Shrimpy is coming up with DEX trading options for DeFi investors.
DEX trading is a type of crypto exchange system that leverages only decentralized exchanges. Unlike CEX trading, DEX trading focuses on exchanging assets in a highly decentralized manner.
Shrimpy launched the first phase of DeX trading in October. The idea is to help investors access liquidity from thousands of liquidity pools and control assets through various portfolio management strategies. Investors can also engage in copy trading and mirror the successful traders.
So, how does this new feature work? Read on to discover how to use Shrimpy DEX trading!
Set up a Supported Wallet
To start trading, you need to link a 3rd-party crypto wallet supported by Shrimpy. Shrimpy has been adding top wallets to their list to make sure they reach the broad market first. So, these wallets include MetaMask, Trust Wallet, and Atomic Wallet. Also, you may use Authereum, Coinomi, Ledger Live, and Rainbow Wallet.
Out of all those wallets, MetaMask is the most popular one. For example, every Ethereum-based asset is compatible with the MetaMask wallet. Thus, you can set up a wallet on MetaMask or any other wallet on the list.
Link the Wallet to Shrimpy
At this stage, you need to link your wallet to Shrimpy. But how do you do that?
Here is a short step to connecting the wallet!
- Get the public address for your wallet’s asset and open your Shrimpy page.
- Go to connect a new wallet in the wallet section.
- Select the wallet you currently use. Remember to select the one whose public address you just copied.
- Now, select the asset you are interested in and paste your public key before tapping save.
- Repeat the process for every asset you have in your DEX wallet.
Access the Trading Terminal
After connecting your wallet, you are finally ready to start trading. Shrimpy features an intuitive and clean trading tab that allows you to monitor cryptocurrencies and execute trades. To find it, navigate the menu on the left side of the screen and click on the ‘trading‘ page.
Before you begin, you must first provide permission to trade. The process grants Shrimpy’s 3rd-party DEX aggregator 0x to use your assets to execute trades and swap tokens. Once approved, Shrimpy will make it possible for you to trade.
At this point, you can select the two assets that you wish to trade and choose the appropriate order size. Now, click the ‘preview‘ button to review the transaction details. Here, you will see details about your trade. If you are satisfied, click ‘swap,’ and the trade will be instantly processed.
Automate your new DeFi portfolio
After swapping tokens and building the perfect DeFi portfolio, it is time to passively manage it.
As previously mentioned, one of Shrimpy’s many great attributes is the ability to automate portfolios. The tools used to set up stop losses, rebalance portfolios, implement trading strategies, create indexes, backtest strategies, utilize trading bots, and other features can be found at Shrimpy’s dashboard, automation, and backtest tabs.
Investors interested in long-term profitability can set up a weekly rebalancing process to maximize profits or add a DCA strategy to slowly enlarge their portfolio over time.
Traders seeking short-term gains can automate their favorite trading strategies or actively trade via Shrimpy’s trading terminal. It is also possible to create custom indexes, invest in highly volatile assets, copy crypto investment funds, and invest in portfolios built by Three Arrows Capital and Alameda Research.
DEX Social Trading on Shrimpy
Apart from automated portfolio management, Shrimpy also offers copy trading services in the form of social trading, which you will learn more about in the following sections.
Choose your Leader
One of Shrimpy’s many purposes for DEX traders is to benefit from copy trading. Now, it’s time to link your wallet to a market leader.
A leader on Shrimpy is an investor whose strategies have been proven profitable. Their investment strategies have been creating good profits for them. Therefore, they are recognized by the community as expert investors.
On the Shrimpy dashboard, you will meet plenty of available market leaders in different wallets. Since you are interested in DEX trading, the Shrimpy bot automatically filters your selection. Select the investor whose strategy best suits your earning intentions.
When selecting the leader, one thing you must remember is that they at times make poor decisions. They could buy the wrong asset or delay in selling, and lead to losses. As a follower, please make sure you set the required stop loss.
Immediately after finishing setting up the wallet, the Shrimpy bot will start reading your data. You will now sit and wait as the market leader invests your money.
How the Auto Trading Works
At this point, you are looking into how the Shrimpy bot operates. So, how does the Shrimpy trading bot work?
When you link your wallet, the Shrimpy bot begins reading the data in about 15 minutes. It can scan your balances and start a new history for your account. After linking the leader, a new tool, the portfolio rebalancing tool, now begins its work.
Portfolio rebalancing is a process that involves changing the structure of the portfolio to maximize your earning potential.
In Shrimpy, the portfolio rebalancing autonomously rebalances your portfolio when the leader changes its structure. If the leader has sold some wrappedBTC for UNI, the rebalancing tool does the same in your portfolio. In short, the tool aids in automating the entire social trading service.
After the balancer changes the portfolio, the market leader might have made some amount of profit percentage. Since your portfolio structure is similar to theirs, you earn the exact percentage. If the resultant of a trade by the leader is a loss, then you incur a similar loss. However, you have the platform’s protection to some extent to stop the beating.
DEX trading in Shrimpy will be similar to CEX trading. However, in the case of DEX, you will use wallets like MetaMask and Atomic Wallet.
After signing in to wallet services, link them to Shrimpy, and select the market leader. Once you have everything set up, the portfolio rebalancing tool will do the rest of the work for you.
Getting started with Shrimpy is easy. You need to register for Shrimpy’s services. Also, choose a subscription option. The platform offers three tiers that start from as low as $15 a month.