Watchdog appeared in mid-2019 with a goal to launch a platform that would keep crypto investors informed and up-to-date. The idea was to take all the information available scattered over various websites and combine it in one platform that would have it all. The platform was launched in Q3 of 2019, but the development was riddled with problems that were largely outside of the Watchdog team's control. The platform was shut down in December 2019 and the project has been hibernating since. New team members have been added to the Watchdog team, and they are now looking to make a fresh start with a new use-case.
2. Some background
Those of you new to crypto will probably have started looking at the big cryptocurrencies first. Most people are sucked into crypto because they have heard about Bitcoin (BTC). Bitcoin was the first cryptocurrency that came into existence. It was created by Satoshi Nakamoto back in 2009. Some other big names you might know are probably Ethereum (ETH) or Ethereum Classic (ETC). And those currencies usually pull you into the biggest crypto exchanges like Binance, Bittrex or Kucoin.
Trading on exchanges in crypto space can be a daunting task. There is not a lot of help to be found and it is pretty much learning by doing. You will likely lose some money before you start earning some. Some people lose enough so they leave the crypto space and never return, while others might try again. Some others might be lured into accepting the help from people that actually are only interested in taking your newly acquired Bitcoin off you. Dealing with cryptocurrencies, exchanges, and people in crypto space is a little bit like walking around in a neighborhood you have never been to before, where you don’t know how to behave and dress. On top of that, you probably have a backpack on your back and hold a map in your hand, when asking for the way, making you an easy target for robbers and other dishonest people. Most people will usually have a bad experience until they learn how to dress and behave to fit in like a native.
On top of that, trading on crypto exchanges is also very different from trading anywhere else. First of all, the markets never close. Crypto trading is done 24 hours a day. The right moment to sell or buy might be at times when you sleep. You might lose a fortune or alternatively you might miss out on earning a fortune while asleep, as the right moment to sell or buy passes you by. Additionally, trading in the regulated world is often done through agents and handlers. Not only do they carry out your buy and sell orders, but they might also advise you if it is a good idea or not. They have experience trading and most of the time know what signs to look for in the markets. They are usually bound to regulations and regulators. For most people trading is complicated and out of reach, while in crypto you can do it all yourself from behind your computer. This is both good, and bad.
So trading with Bitcoin on a crypto exchange can be done by trading bots. Some of the names that come to mind are Cryptohopper, Comma3 or Gunbot and more can be added to this list. I don’t endorse any of them, but what is common for them is that there are usually a lot of buttons and parameters that need to be set. For the inexperienced trader, this can easily lead to some profit initially, leading to a massive loss after a few days, weeks or months. So what do we do…
3. A new use-case
The new Watchdog will be using a market arbitrage trading bot to trade with Bitcoin on two exchanges, one of which is the biggest crypto exchange around. It will trade between Bitcoin and other crypto currencies if the exchange rates between those different trading pairs allow for a profit. The idea is that people can invest Bitcoin in the Watchdog trading pool and the Watchdog team will be trading with those funds you invested using a trading bot that was developed in-house.
The Watchdog team has experienced and dedicated trading bot handlers that will keep a constant eye on the performance of the trading bot. Parameters will be adjusted if necessary to maximize profits. If you were already considering using a trading bot, then there is every reason to take the service the Watchdog team is offering into consideration.
It will offer an easy way to start using automated trading, without having to worry about what settings to use and whether or not they should be changed when the bot has been through a period of disappointing results. Watchdog offers a service, where trading with Bitcoin is handled for you by experienced bot traders.
4. The risks
The risks that come from trading on crypto exchanges using the services provided by Watchdog, will be no different from trading in the regulated world. Or from trading yourself either manually or by using a trading bot. There is always a risk, that a trade can go in a different direction than you anticipated, causing a loss. As with any trading solution, the end result should be that Watchdog does more trades that make a profit, compared to trades that make a loss. Investing in a trading pool like the one offered by Watchdog, should always be considered a long term investment, to let the good days compensate for the bad days. Watchdogs experience in this field should ensure that you have a better chance at a profit than you would have yourself. But in the volatile crypto markets, trading always carries a high risk.
5. The product
Watchdog will be delivering a service for trading with your Bitcoin on a large crypto exchange. They will be offering to trade with your Bitcoin using their expertise and knowledge in this field. Watchdog is offering that they will worry about what settings to use for each market condition to maximize profits, taking that worry off your shoulders.
5.1. Gaining access to the service
What makes Watchdog different from any other service, is that Watchdog has its own blockchain and cryptocurrency. Watchdog will use this currency to implement a queue system and at the same time create a demand for their coin (WMP). In order to gain access to the trading bot, you need to collect enough WMP to qualify for one of the 4 tiers in their offering. Frozen WMP is your ticket to the trading platform.
Watchdog is offering 4 tiers of access to the trading service. Each tier offers access to private channels, in which you can receive tips, tricks and news from the traders at Watchdog. The cheapest tier is labeled as School, while the next tiers are labeled Tier I, Tier II and Tier III. To gain access to each of the tiers, an investor needs to have the specified amount of WMP on the VAULT.Investments platform and it needs to be frozen or locked, meaning that the WMP is not available for withdrawal.
The most expensive Tier III is defined as shown below and requires 2000 WMP to be frozen on the VAULT.Investments platform. It provides an opportunity to invest in the bot as spots become available. A spot is an opportunity for an investor to invest Bitcoin in the trading pool:
New spots will be made available at random intervals. A lot depends on the market, how many trading bots are operational and how safe it is at any given moment to add more Bitcoin to the trading pool. When new spots are available, it will first be offered to those that have accumulated and frozen more than 2000 WMP on the VAULT.Investments platform, and qualify for the highest tier. If there are no investors in Tier III that are interested, investors that are in Tier II will be offered the opportunity to invest in the trading pool. This continues down the tiers until the free spots have been offered to all 4 tiers.
5.2. A spot
Once you have been offered a spot, an opportunity to invest Bitcoin in the trading pool that the bot is trading with, and have accepted it, you will need to decide on 2 things. First, you need to choose an investment scheme, and second, you need to decide on the amount of Bitcoin you want to invest with. This is the amount of BTC that will be added to the trading pool and will be used by the bot to trade.
You will have 2 different investment schemes to choose from:
OPTION 1: With this option, the investor does not pay commission, but gets a fixed monthly 8% dividend over the investment.
OPTION 2: The second option offers a variable dividend. In this case, you get the actual profits the bot made over a month by trading with your investment in the trading pool, minus 25% commission.
Once an investment option has been chosen, the investor will need to decide on the amount of Bitcoin to invest. Watchdog has decided that one spot can invest between 0.01 BTC and 0.2 BTC.
The Watchdog team is committed to transparency. They intend to provide reports of the trading results for each investor in Discord and the Telegram channels. The weekly reports will ensure that the investors remain anonymous. Every investor will know what their number in the reports is.
6. The buyback program
Watchdog will be trading with the remaining funds from the original Watchdog project. The profits made from those trades will be used to buy WMP from the exchanges. This is to remove WMP from the market, which combined with the fact that Watchdog is still in the CRYO, should help the price stability with limited demand in the early stages of the relaunch.
7. Some final words
The trade bot has been running since February 2020 in live testing and has returned a respectable average daily profit of 0.5% with a total profit of over 15.9% for March alone. The bot experienced a rough first week of April, which resulted in a 9.5% loss for that week. The total profit since February 2020 was on 6. April 2020 still a respectable 14%.
Whether or not you decide to trade in cryptocurrencies or whether or not you want to use a trading bot yourself or use the Watchdog automated service where everything is done for you is, up to every investor to decide for him or herself. Investing always contains an element of risk, especially when investing in cryptocurrencies. The gains can be high, but unfortunately, they can also result in a total loss.
You should always do your own research and invest only what you can afford to lose.
To find more information:
Watchdog website: https://watchdog.expert/
Watchdog Discord: https://discord.gg/nAjuADA
Watchdog Twitter: https://twitter.com/watchdog_expert
VAULT.Investments website: https://www.vault.investments
VAULT Twitter: https://t.me/vaultinvestments
VAULT Discord: https://discord.gg/AEMFDAd
CRYO explained on BitcoinTalk: https://bitcointalk.org/index.php?topic=5164441
VAULT.Investments on BitcoinTalk: https://bitcointalk.org/index.php?topic=5151203.0