Kraken Cryptocurrency Exchange šŸ™

Projects
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:bookmark: ITT I will be exploring the Kraken cryptocurrency exchange platform. I will experiment with market analyses, day trading strategies, and algorithmic trading.

:warning: This is not financial advice. @eric is not a financial advisor. Attempting to replicate the actions shown in this thread is not recommended.

Day Trading Cryptocurrency

Welcome to the Kraken cryptocurrency exchange! This web service offers APIs for analyzing cryptocurrency markets and executing trades. Most of my experience with blockchains comes from building them in projects such as WikiDeck, and I have very little experience trading or even using actual cryptocurrencies or NFTs. This series aims to change that. I am going to experiment with doing some day trading on this exchange and I will be documenting my progress in this thread. I will most likely lose money doing this, but my goal is more to learn than to profit (though I certainly welcome profits). If you have knowledge of trading strategies or upcoming cryptocurrencies, please let me know in a reply or in the live stream chat!

Algorithmic trading

Of course, using software to monitor the markets at all times will be much more effective than manually executing trades. I have an existing project that I used for algorithmic trading on Kraken in the past, but it will need to be updated and modified before being employed again. Also, there is educational value in trading manually, so I will likely not revisit algorithmic trading in 2025:Q4.

2

Exploring Concordium, Monero, Pax Gold, and Limit Orders

Checking in on our investments this morning, things are actually looking pretty good (much to my surprise). With the exception of Bitcoin, all of the coins we invested in last episode have increased in value over the past few days. Concordium and Monero have been my most profitable ventures, though I am also looking at Pax Gold and Ethereum as potential investments to make in the next episode.

Today I also experimented with placing a limit order at a valuation higher than the current market price with the intention of having it fulfilled later. This is in contrast to a market order, which is executed immediately at the current market price. The following excerpt from the Kraken documentation explains the difference:

What is a limit order?

A limit order lets you buy or sell at a fixed price that you determine, sometimes providing a better price depending on how the market moves.

The advantage of limit orders is that you know what you will get in terms of price: limit orders guarantee you wonā€™t be matched with a worse price than what you specified.

You can also use limit orders to wait for the market to reach a certain price target, rather than just taking whatever is available in the present. The disadvantage of limit orders is that thereā€™s no guarantee the order will completely fill (or fill at all).

What is a market order?

A market order is designed to be executed immediately. It is meant to buy or sell at the best available price in the order book (which you can view before placing an order).

Note that this is different from the last traded price. A common mistake is to think the last traded price is what you will get when placing a market order. The order book can change significantly since the last traded price, especially in less popular trading pairs. An order book is comprised of all tradersā€™ limit orders (see image below) for that trading pair.

The drawback of a market order is that youā€™re not guaranteed the exact price youā€™re trying to buy or sell at. It all depends on what is available in the order book when your order is being executed.

If your market orders are getting cancelled, check the order details. The order may be cancelled due to our Market Price Protection feature.

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This is a complex subject and I have a lot to learn. That said, I am encouraged by my initial results. The next stream is scheduled for Friday, November 7, 2025.

3

Placing a PAXG Market Order and a CCD Limit Order

Our investments havenā€™t changed much since our last check-in; however, I wanted to take the opportunity to place a couple of orders using what we have learned so far. One limit order to sell $50 of CCD to scrape profits off the original investment, and a market order to purchase $100 of PAXG.

Earlier this week I was placing orders more-or-less randomly; however, the orders I placed today felt much more informed both in terms of researching the underlying project and understanding the types of orders I am placing. Of course, there is a lot I still donā€™t know here, but this illustrates to me why I prefer to learn things though immersion. The most significant gaps in oneā€™s knowledge tend to make themselves apparent in such a situation. Things that are essential often become obvious.

4

I Bought More CCD Because They Liked My Video

That and I think the market value will start trending upward againā€¦ based on nothing. Iā€™ve actually only found one source discussing the topic, though it has a few citations one could explore.

Seeing the boost in YouTube traffic from having my video shared through Telegram is particularly interesting to me. Thanks to whoever did so! I forgot to mention in the video that this boost coincided with a higher percentage of traffic coming from searches for concordium, hence my thinking the share was related to that coin rather than Monero or PAXG. I would love to hear from whoever did this if they feel like leaving a reply!

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:warning: Correction: that article actually only had one source referenced several times. Neither make particularly definitive claims about the future of CCD; however, they seem vaguely bullish to me.

6

Buy The Dip!

Over the past few days I have been changing my strategy on the Kraken exchange. Rather than investing in several coins at once to be held for a period of a few days or weeks, I am now actively day trading based on real-time market conditions. The main difference is that I have pulled up several market charts side-by-side to be displayed at all times on a 4K television in my office. Being able to continuously monitor the markets allows me to respond in real-time to price fluctuations. At noon EST today, I noticed a dramatic dip in several markets, so I started this stream and made a few investments. Iā€™ll post an update on the results when I sell these positions later today.

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Too Much Dip

While I was able to take advantage of a large drop in the price of several cryptocurrencies earlier today, I failed to capitalize on them before a second drop occurred. Had I pulled off a smaller profit earlier, I would have been able to take advantage of this second drop as well. Again, I consider this to be a learning experience, so the few dollars lost here are simply tuition from my perspective.