One day, Tom came to us and shared an exciting phenomenon he had found recently. He’s new to crypto and what he likes is to DCA Bitcoin with his weekly paycheck.
“I found that most of the time, BTC rises first, and ETH follows the trend soon after. Even when I zoom out to a bigger timeframe, they stick with each other! No matter if it’s up or down!” he showed us this chart that put BTC and ETH together.
“Exactly! It’s because they are the top 2 coins, so they’re highly correlated.” We were surprised that he found this without anyone pointing this out to him. “And you know what, we can earn some Bitcoin from these interesting moves for the highly correlated coins.”
- Invest 1 Bitcoin when the price is $20,000, and ETH is $1,600.
- Bitcoin price rises first to $22,000, sell those Bitcoin and buy ETH at $1,600.
- ETH follows the trend and reaches $1,900. Sell those ETH back to BTC. Receive 1.1875 BTC back, and that’s 0.1875 BTC in profit!
Automate these trades 24/7 with Bot
To execute the abovementioned strategy, you need to stick with the chart 24/7 cause crypto never sleeps. And that’s where Pionex comes in. At Pionex, we built a bot that helps you to automate all these trades! Moreover, the bot allows you to swap your BTC and ETH between each other and, in the end, earn more Bitcoins! 👇 This is how it looks like when the bot is working hard to capture tiny fluctuations! Accumulate Bitcoin day by day! Finally, we got some luck, so the bot made +31.68% Bitcoin in just 39 days!
The bot didn’t make those profits from the air; it has a solid statistics assumption. When we look at the correlation between each crypto, we found that BTC and ETH are the most correlated coins out of thousands of crypto on the market.
Shown in the above image, it’s the correlation matrix between the top coins. The correlation factor ranges from -1 to 1, which means they’re highly correlated when the number is near 1. BTC and ETH are highly correlated at 0.85 on a one-year time scale.
Start the bot in just a few clicks
We don’t want you to hassle with hundreds of parameters, so we make it simplified for you! Follow the below instruction, and you can start the bot in just a few clicks!
What are the risks, and how to lower the risks while investing in crypto with the bot? We’ll cover that for you in the next article.