Coinbase trading bot

About Coinbase

Coinbase is one of the main Cryptocurrency spot-trading exchanges out there. San Fransisco based Coinbase was founded in June 2012. Coinbase provides a digital currency wallet service and a platform where users and consumers can transact with digital currencies like bitcoin, Ethereum, and Litecoin and many more. With over 7 million monthly users and 30 million registered users, Coinbase is known to be leading the digital currency exchange seen with its side by side competitor, Binance. Coinbase has reported $150 billion of traded volume on its platform. 

Besides its wallet services, Coinbase provides other services across the digital currency space. Coinbase has launched services such as Commerce which enables businesses to accept Cryptocurrency for payment of their goods and services. Moreover, Coinbase has launched services such as institutional custody as well as CoinbasePro (formerly GDAX) which is a platform for automated and more sophisticated traders interested in the cryptocurrency market. 

Coinbase API

With Coinbase API firms and traders could expect a reliable trading setup. Coinbase has provided a dependable API connection which minimizes connection issues in order to help its traders to increase profitability and lessen trade emotions.

Coinbase Pro APIs are divided into two categories, for trading and feed. Feed APIs brings market data and it is available for the public. Trading APIs require authentication and provide access to placing orders and other account information. For order management and trading, Coinbase has also provided a FIX API, a de facto standard for institutions in traditional markets.

Coinbaise REST API has an asynchronous REST client class with full access to the account management, trading, and market data functionality. The REST supports user authentication and a built on aiohttp which is the asynchronous HTTP client/server framework

Coinbase Websocket is also an asynchronous client class with callback hooks for managing every phase of a Coinbase Pro WebSocket session, which includes, all market data access as well as supporting user authentication. 

Coinbase trading bots

At Empirica, we have integrated our trading bots with Coinbase Pro API, so that our customers can use it out of the box. Let’s name some trading bots that can be applied through API integration on Coinbase Pro:

  • Market Making bot: the service of quoting continuous passive trades prices to provide liquidity, and also be able to make some profits throughout this process. 
  • Arbitrage bot: takes advantage of small differences between markets. It is a trading activity that makes profits by exploiting the price differences of identical or similar financial instruments on different markets.
  • Price mirroring bot: this bot uses liquidity and hedging possibilities from other markets to make the markets in a profitable way.
  • Triangular Arbitrage bot: using this bot a trader could use the opportunity of exploiting the arbitrage opportunity from three different FX currencies or Cryptocurrencies.
  • Basket Orders bot: with this bot, it is possible to execute trades on multiple coins at the same time with the possibility to hedge against other coins.
  • VWAP bot: using this bot a trader can achieve the best price with large order by splitting it into multiple smaller ones throughout the trading day.
  • Smart Order Routing bot: with this bot, the trader can find the best price for your order on all crypto exchanges and execute it.

In case you would need help from professional software developers to help you build proprietary trading bots and integrate it with API of Coinbase or other crypto exchanges, you can consult with our quant team.

Have you implemented other trading bots?

We have implemented following bots and algorithms: