Profit From Steem by Providing Liquidity with NickelBot

Placing low buy orders and high sell orders on exchanges allows for profiting from your Steem. There is typically a spread of around 1-2% of the current price. These orders provide liquidity for buyers & sellers so the spread is not so large. There is competition to fill the orders around the spread. Bots compete to provide the highest buy order and lowest sell order while still making a profit. These bots can be very competitive and always jump right in front of other orders placed on the spreads. This is what fills the gap between the spread. It is possible to trade on the spread and make profits from doing so.

This post will show how to use a free bot to trade your Steem (or other cryptocurrency) on Poloniex. If the Steem in your account is not being used for curation, then it could be used for trading. NickelBot allows for trading on multiple different exchanges with out having to use a separate bot for each. Write a bot once, and it works across several of the popular exchanges. There are many trading bots available. This post will use Steem on Poloniex with NickelBot. You can run this bot on Windows/Linux/Mac OS X Web Server w/PHP. Apache is the most popular Web Server if you do not have one. Once you set-up your Web Server w/PHP Development environment, you will download NickelBot to your computer. You can find plenty of decent tutorials on setting up a Web Server w/PHP on Google if you don't know how to.

NickelBot can be cloned from GitHub:

https://github.com/AdamCox9/nickelbot

You can rent a 1GB Virtual Linode Server for $5 here:

https://www.linode.com/?r=4e873676b36301bbfc59d83d3b0a0986ae88a9c1

You will need to set up an account on Poloniex if you do not have one already. Log into your account to click the Tools icon and API Keys link. From this screen, you will create a new API key/secret. Copy & paste the API Key & Secret into lines 65 and 66 in config.php (GitHub:

    $poloniex_api_key = "INSERT_API_KEY_HERE";
    $poloniex_api_secret = "INSERT_API_SECRET_HERE";

Now, you will edit comment out the exchanges that you do not want to use from config.php lines 72-79 (GitHub:

    $Adapters = array();
    //$Adapters['Bitfinex'] = new BitfinexAdapter( new Bitfinex( $bitfinex_api_key, $bitfinex_api_secret ) );
    //$Adapters['Bitstamp'] = new BitstampAdapter( new Bitstamp( $bitstamp_api_key, $bitstamp_api_secret, $bitstamp_api_number ) );
    //$Adapters['Bittrex']  = new BittrexAdapter( new Bittrex( $bittrex_api_key, $bittrex_api_secret ) );
    //$Adapters['Bter']     = new BterAdapter( new Bter( $bter_api_key, $bter_api_secret ) );
    //$Adapters['Coinbase'] = new CoinbaseAdapter( new Coinbase( $coinbase_api_key, $coinbase_api_secret, $coinbase_api_passphrase ) );
    //$Adapters['Kraken']       = new KrakenAdapter( new Kraken( $kraken_api_key, $kraken_api_secret ) );
    $Adapters['Poloniex']   = new PoloniexAdapter( new Poloniex( $poloniex_api_key, $poloniex_api_secret ) );

Change the IP address in start.php line 3 (GitHub to the IP address of your Web Server:

    if( ! isset( $_SERVER['REMOTE_ADDR'] ) || $_SERVER['REMOTE_ADDR'] != '76.24.176.23' ) {

Change the Base currency in start.php on line 51 (GitHub:

    poloniex_light_show( $Adapters['Poloniex'], 'ZRX-BTC' );

Run the bot:

php start.php