Aldrin (ex-CryptoCurrencies.ai) — The next generation DEX
By: Hagop Demirdjian
Tags: Smart Trading, Decentralized Exchange, Dex, Cex, Crypto

Decentralized Exchanges are great, but…

Raise your hand if you’ve already lost money because you weren’t able to put a Take Profit or a Stop Loss on a trade on Uniswap.

I think we’ve all been there: you find a great trade setup, the levels are clear, you are almost sure that you can get an easy 3R trade. But the pair you are trading is found on Uniswap only, this means no Limit Orders, no Take Profits, Stop Loss or Smart Trades. You know you won’t be able to fully monitor the trade so you should be reasonnable and wait until you can.

The opportunity is too tempting though, the price is near the perfect entry point, too high by only a few %. You decide to take the trade before entering the dreaded reunion room for a useless meeting. The only thing keeping you from falling asleep during the next two hours is the stress induced by the trade.

When you finally take a look at your trade, you’re in disbelief. The price went down first, it reached the perfect entry at support and then shoot up reached your target to the tick. It then rejected hard! So hard that the price is now nearly back at your entry level. You could have made that 3R if only you had been available to click “sell”.

You’re boiling inside but hey! that’s life. You just need to drive home and start monitoring the trade properly. You promise yourself you won’t miss the next move up!

You know how the story ends. You arrive home to a lost support and a price under what would have been your Stop Loss. You take your loss cursing Uniswap and promise yourself you’ll never trade on a DEX ever again!

If only you had had access to basic tools you can find on all Centralized Exchanges, if only…

CryptoCurrencies.ai

What makes CEXs better (or worse!) than DEXs?

If you take trading seriously, you need some tools to automate your trading. You may still enter or close trades manually, but unless you’re a 1-minute timeframe scalper and never stop looking at your screen, you need to be able to set Limit Orders.

All Centralized Exchanges offer basic Limit Orders to buy or sell at a given price. These allow you go to bed knowing that you will be able to enter or exit a trade while you sleep.

Some CEXs also offer sophisticated orders. For example conditional orders like “if price gets lower or higher than x, then market buy or sell, or set a limit order”.

Binance even has a “One Cancels the Other” (OCO) order that allows you to put a limit order and a stop loss at the same time. The name says it all, when one is executed, the other one is canceled.

So why would you ever want to trade on a DEX when all these tools are available on CEXs? For a few reasons:

“Not your keys, not your crypto”. To trade on a CEX, you first have to deposit your tokens. CEXs are custodian. If anything happens to the CEX, (the website goes down or is hacked, withdrawals are suspended), then there is nothing you can do. Your funds are unavailable for some time in the best case, lost, in the worst. On the other hand, a DEX is non-custodial, your crypto stays in your wallet until you trade it for another one.

Limited liquidity. Depending on how much you are trading with/which pair you’re trading, you might find yourself unable to trade properly simply because the exchange has not enough liquidity. You don’t need to be a whale to face this problem: second tier exchanges are filled with markets where buying the equivalent of a few hundred dollars of tokens will move the price up xx%!

Token not listed. Last but not least, sometimes you just can’t trade anywhere else than on Uniswap: it currently lists seven times more tokens than Binance, the top CEX in terms of volume (source: Coingecko)

Number of tokens listed on Uniswap and top CEX — June 2021 — © Coingecko

In an ideal world, you would be able to trade on a DEX with all CEX tools available… That’s the main value proposition of CCAI!

CCAI — The next generation DEX — © CCAI

CCAI — The DEX with all the essential CEX features

CryptoCurrencies.ai, CCAI in short, offers both the advantages of a DEX (non-custodial, large liquidity) and a CEX (limit orders, sophisticated orders).

In my opinion the most interesting feature of CCAI is the Smart Order. Those of you familiar with 3commas already know what it is: a Smart Order allows you to set an Entry Point, a Take Profit and a Stop Loss, all at the same time.

For those unfamiliar with this concept, let me make things clear, this is probably the most important tool you will ever need to automate your trades! Let me prove it to you.

If you had had access to CCAI’s Smart Order in the trade described in the first paragraph, you would have:

Set the Entry Point at support, the “ideal” entry, instead of being forced to buy because you couldn’t wait anymore. You could even set a Trailing Buy parameter to get a lower entry.

Taken Profit automatically at your target. Set a Trailing Profit parameter to follow the price if it kept going up.

And in a worst case scenario where your target were missed and the price fell, the Stop Loss would have limited your loss.

A Smart Order would have made the whole story completely different. Smart orders reduce risk, and increase profits.

Even more features

Bringing the Smart Orders is enough for me to make CCAI my go to platform for DEX trading, but it is loaded with many more interesting features:

Fast. It is built on Solana for nearly instant and free transactions.

TradingView alerts. You will be able to automate your trading with TV’s alert.

Portfolio performance monitoring.

Portfolio rebalancing.

API access for developers.

I will describe all of the above more in details in a follow up article, in the meantime, you can have a look at the Dex platform already accessible here: https://dex.cryptocurrencies.ai/.