How does the service work?
The Zeta Broker system generates profits by trading between cryptocurrencies. We assume that you already have some crypto that is supported by our software. These are currently ADA, ATOM, AVAX, BTC, DOT, EOS, ETH, FTM, LINK, LTC, MATIC and XRP.
Supported cryptocurrencies in the system are called bases, we will refer to them as such later. The following examples are for ETH base, but we can work with other supported cryptocurrencies too. Moreover, Zeta Broker is able to work with up to all supported cryptocurrencies on the same exchange account at the same time, this is called a portfolio. You can read more about the portfolio later.
During the trading process, the base is converted into a leveraged token in two steps. Once the target price has been reached, it will be converted back into the base cryptocurrency at the start of the trade. Profit will be made in the process of conversion.
What are leveraged tokens?
Leveraged tokens can be traded on various crypto exchanges. The common feature of these tokens is that they can be bought and sold on the spot market, and their exchange rate moves by 1.25-4 times the price of the related coin. The price of ETHUP is related to ETH, the price of BNBUP is related to BNB, and so on. For example, if the price of ETH rises 1% against the USDT, the price of ETHUP will rise 1.25-4%, depending on the volatility of the market. The exchange constantly monitors exchange rates and adjusts the current multiplier accordingly.
During the trading process, the base is first converted to USDT with a sell order, and then ETHUP is immediately purchased with the USDT that is received. Unfortunately, the exchanges do not support the ETHUP/ETH trading pair, so the order must be executed in two steps. We will always sell a fixed amount, which is adjustable on the website. We will make a profit by monitoring the price of the ETHUP that we have bought and changing it back to ETH at a certain point in time. The exchange is done in two steps: First we sell ETHUP for USDT tokens, then we immediately buy ETH with the received token. We aim to buy back the original quantity. As the price of ETHUP increases more than the base because of the leverage, additional USDT is created on the account, this is our profit.
How much investment is required?
The investment limits are given by the restrictions of the crypto exchange. Staying with the above example, we can sell at least 10 USDT worth of ETH at the opening and then buy ETHUP from it. A calculator on the web interface will help you determine the trading volume. So for an opening order we need at least 10 USDT worth of ETH.
The exchange also limits the amount of ETHUP that can be purchased, which currently means a maximum value of 2500 USDT. This limitation can be resolved by using a sub-account, which is explained in detail in the documentation.
A long term strategy requires 50-100-200 units of capital. The software uses the available base cryptocurrency in small batches. You can execute new opening orders as often as you have the set trading volume in the amount of free base cryptocurrency. For example, if the exchange account has 10 ETH and the set trading volume is 0.1 ETH, then we are talking about 10/0.1 = 100 units of capital. If the trade is set too tight, the entire base can be converted into a leveraged token. Of course, if market prices start to rise, we will also exchange the original base cryptocurrency back in small batches. Spending our capital slowly will give us more safety but less profit. On the other hand, if we set the trading volume too high, we will get a higher profit, but there is a higher risk of running out of the available base cryptocurrency. If the convertible base is exhausted, the software will be forced to wait for the next price increase without being able to trade.
Based on this, we recommend that you invest at least 50 units of capital. Calculating the lower limit of the exchange, 50×10 USDT, i.e. 500 USDT worth of ETH or any other supported base cryptocurrency must be deposited.
What are the risks?
It is believed that there is no profit without risk. You should always consider whether the probability of return is proportional to the risk. In our experience, the return on crypto investment and the expected profit are in maximum harmony.
The following risks are considered:
The primary risk is a significant decline in the price of the underlying cryptocurrency. We have already assumed this risk by purchasing the crypto. Our underlying assumption is that the crypto market will rise in the long term despite temporary declines. The counterbalance to this risk could be to continuously buy base cryptocurrencies, for example in constant weekly/monthly amounts. This kind of investing is called DCA averaging. There is a lot of information about the DCA method on the internet.
The secondary risk in trading is that we currently pay the exchange 3.6% interest per year for holding leveraged tokens. Our software takes this interest into account and issues close orders accordingly. If we are unable to close a trade for a long period of time due to market conditions, we may not make a profit. This space is actually a lost profit.
Possible bankruptcy of the stock exchange is not a significant risk, but it should be mentioned. Our company executes orders on the leading crypto exchange Bybit. The risk of the exchange going bankrupt is very small, but it should be considered. We can reduce the risk by storing our unused base cryptocurrencies in an external wallet. This could be a mobile phone app, for example. However, the best solution we can offer is to buy a hardware wallet. There is a lot of information about hardware wallets on the internet.
What happens in a bear market?
Who do we recommend it to?
Who is it not recommended for?
Which exchange do we trade on?
How do you get started?
The first step is the registration process. The Start button in the header of the page will take you to the software login. From there, select Register and fill out the form. We need a real email address to which we will send status information about the system. Don’t worry, we won’t send you any marketing junk. When you register, we’ll send you a confirmation email to make sure the address you entered is valid. Once confirmed, you can log in to the system.
We recommend that you familiarize yourself with the service by opening a demo account, where you can see how it works with real exchange rates. In the Dashboard interface, under the ADD NEW GRID tab, select the Demo account option, then the basic cryptocurrency. The CREATE button will create a grid that must be parameterized before launch. Press the SET button and simply accept the offered values by pressing the APPLY button. The final step in the demo is the start of trading. Press the START TRADING button and then the START button. Several demos can be started at the same time. Once started, the demo grid will run for 3 days and will stop after an email notification. This limit is implemented to ensure fair distribution of resources among users. Once the grid has stopped, it can be restarted and your trading data will be preserved.
If you like our service, you can open real accounts. First of all you need a verified Bybit account. For detailed instructions on how to manage real accounts, please refer to the documentation.
What are the service fees?
The demo account is free without time limit.
If you have a real account, you will have to pay a system fee, which will be charged at the time of opening and closing. For information on current fees, please follow this link. For exchange fees and current interest rates, please visit the Bybit website.
Development directions: the future of Zeta Broker
The crypto market and client needs are constantly changing, so development never stops. Zeta Broker reached its current form after several revisions. During the development, we simplified the user interface to the extreme and focused mainly on functionality. There is a saying that you can’t finish software, you can only stop developing it. We still have a lot of features to develop, so there is still work to be done.
The security of the service is a top priority for us. We host our own servers in a secure, highly protected environment.