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Can Koinfox change the way we trade on exchanges like Binance & Bitmex?

When we choose to review something new – sometimes it doesn’t have to be completely novel, just be unique, we spend time on explaining how it works as well.

A review of Koinfox is not more than 50 words long. But what is the point if a reader does not know what it is and how to use the system we review? That is why this is more of a tutorial for Koinfox, but in the process we will learn what works and what needs work when it comes to a platform that plans to offer multiple tools for efficient trading on several crypto exchanges.

What is Koinfox?

Koinfox is not an exchange but a tool. A tool that lets you connect to multiple exchanges and trade using APIs of your own exchange account (at press time, user can only connect Binance, rest of the exchanges will be made available in future).

But that is not all, the tool allows you to place bracket orders, set up with target price and a trailing stop loss as well. Now, brackets aren’t a novel concept per se, not in India at least, but having a dedicated platform to use your own account from other exchanges is pretty novel.

KoinFox Bracket Trading Terminal

Lets not forget that trading bots can offer a similar service but the UI isn’t very layperson friendly. Koinfox plans to add several tools for arbitrage trading, algo trading, mirror trading and token pools according to their website. But for now, we make use of Bracket Orders on Binance.

What are Bracket Orders?

Brackets are essentially a group on instructions for the trading engine to execute if certain conditions are met. For example, let us assume a user purchased one BTC for $3800. Now the user sets a target of $4500 for selling the BTC, but if the market falls below $3600, the user wants to get out of the position so he sets the stop loss at $3600.

If we add all of these instructions into one single request, it becomes a bracket order. Some bracket orders can also include a trailing stop loss instead of fixed ones to reduce losses.

Placing a Buy Bracket Order with sell targets, stop market price and trailing value.

In India, Bitbns launched Bracket orders for their exchange in October 2018. Koinfox is not an exchange, so the platform allows you to place brackets on connected exchanges such as Binance.

Using Koinfox

Much like any platform, Koinfox also requires registration. Just with an email address or google sign up, anyone can register on the platform. At press time, each new user receives $100 worth of KFT credits, which can be used to pay fees on the platform.

Signing Up

While I personally used Google ID to register because it is quicker, if you are privacy concerned, use the email option. Koinfox asks for a name, email and password to register. You can Sign up here.

Email verification is required for non-google sign ups.

Simulation or the Real Deal?

Once you sign up, you can either practice on the simulator (TestNet) or directly go to the live platform which is currently in Beta.

On the simulator user gets 8 BTC worth of different test coins to practice the strategies. For the live version however, user needs to install the Koinfox mobile app to set up the trading exchanges.

Choose between testing out strategies on simulator or live trading when logging in

Koinfox Mobile App & Mapping Exchanges

Koinfox mobile app is a multi-currency wallet as well. Albeit the wallet is still in “coming soon” mode. Meanwhile the app can be used to map your account with your phone, and also the exchanges you choose to trade on. Mapping the mobile app is a three step process.

Step – 1: Generate Koinfox key on the website

An alphanumeric key is generated to map user’s mobile app with the Koinfox account.

Step – 2: Scan the QR code from the Koinfox App

Either scan the QR code from settings, or type the alphanumeric key on the app.

Step – 3: Add your Binance account API Keys on the mobile App and click sync on the website.

To connect the exchanges and trade using Koinfox, user must generate API keys on their exchange account and enter them on Koinfox app. Once the API keys are added, user can start placing bracket orders on their exchanges using Koinfox.

Note: Be careful while mapping API keys from exchanges with third party applications. Do not provide access for withdrawals in your API keys. 

Trading with Koinfox

Now that the user has registered and mapped their exchanges, it is time to place bracket orders. For me personally, I placed three bracket orders and all three of my strategies failed so I was stopped out. That is why stop loss is extremely important, it reduces potential losses.

Once a user places a bracket order, he or she needs to approve it from the mobile app. Once approved, the necessary order is placed. After the buy/sell order is executed, the bracket is closed when either stop loss or target price is hit.

On Binance, you have to place a stop order and a target order separately. Koinfox places the target order once the bracket is opened. If the price touches stop loss, the order is closed immediately and target orders are cancelled.

The Target order placed on Binance using Koinfox is cancelled once Stop loss hits

What is the Verdict?

Personally I like the concept of Brackets. No one likes to lose money while trading. Stop losses can be annoying when they get filled in long wicks. However, a disciplined trader wouldn’t care about that. Brackets help because once you setup the trade, you don’t necessarily look back at it.

Speaking about Koinfox brackets though, it is genuinely great but it needs improvement. The user interface in blue is soothing to the eye and easy to use. The app is great, I am eagerly awaiting the wallet. However, there is a need for improvement on how the brackets are made visible to the user on the platform.

When the bracket is open, user cannot see the current price of the asset. User cannot know if their bracket is next to execution at stop loss or the target. That is pain point because user has to either log on to the website or use a third party to see the current price of the asset.

Similarly, if the bracket is completed, a user cannot know if it was completed by hitting the stop loss or the target. Ideally, a bracket completed by hitting stop loss should show loss and not gain. I informed the same to Koinfox team who will now deploy the changes in the next update. So the issue should be out of question in a few days.

All these brackets hit stop loss, but they show completed with Gain instead of loss.

Koinfox currently has over 10000 registered users and is growing as we write this. The platform will soon integrate more exchanges including Bitmex and add few more tools. It will be interesting to check them out. But until then I insist on checking out Koinfox and try it out.

Disclaimer: This is not an investment advice. Cryptocurrencies investment and trading are subject to market risk. Coin Crunch India cannot be held responsible for any losses.

Media Disclosure: We are currently running a separate advertisement campaign with Koinfox, the registration link on the article are specific to Coin Crunch India for tracking purposes. It doubles as a referral link as well. The end user will not be affected in anyway by registering on Koinfox using this link.