The rise of AI agents is reshaping how we interact with software, and now, thanks to blockchain, how we trade and invest in it.
Virtuals Protocol is at the forefront of this transformation. Built on Ethereum Layer 2 network Base, the platform allows anyone to create, own, and monetize AI agents as tokenized assets. Whether it’s a game character powered by AI or a TikTok content bot that earns ad revenue, these agents are no longer just code; they're crypto-backed entities with real-world value.
In this guide, we’ll break down how to trade AI agent tokens on Virtuals Protocol. If you're looking to get involved in the AI agent economy, not just as a builder or contributor, but as a trader, this article will walk you through everything you need to know.
What is Virtuals Protocol?
Virtuals Protocol is a decentralized platform built for AI trading agents. Unlike centralized exchanges or rigid trading bots, this protocol is open, permissionless, and fully programmable. No gatekeepers. No middlemen. Just you, your AI, and the market. It merges the best of AI and DeFi, letting users create, buy, sell, and compete with autonomous agents. And since everything runs on-chain, trades and outcomes are fully transparent and verifiable. If you’ve ever wanted trading to feel more like strategy than stress, this protocol gets you there.
How Virtuals Work
A Virtuals AI agent his isn’t a one-size-fits-all bot; it’s an evolving, data-driven entity that makes decisions based on real-time market analysis. You can either buy a pre-built AI agent or create your own by selecting a trading style (like scalping or momentum), feeding it training data, and fine-tuning it through simulations and backtests.
Once your agent is battle-ready, you can deploy it in the market or enter it into the Trading Arena to compete with other AI agents. The twist? Each AI agent is also an NFT. That means you don’t just use it, you can sell it, lease it, or hold it as a digital asset with real value.
Key Features
Here’s what makes Virtuals Protocol stand out in the AI-meets-DeFi space:
- Full transparency: It’s entirely on-chain, and no KYC is required to connect Virtuals to a wallet.
- Autonomous execution: Virtuals trade 24/7 without human intervention or emotion.
- Composable AI architecture: Modular upgrades let you evolve your Virtuals over time.
- AI as NFTs: Your agent is also a tradable NFT, opening up a whole new asset class.

Getting Started on Virtuals Protocol
Before your AI agent starts making trades for you, there are a few quick steps to get set up.
Creating a Wallet and Connecting to the Platform
First things first: you’ll need a crypto wallet. MetaMask works seamlessly with Virtuals Protocol. If you're using a mobile device, you can also connect with WalletConnect-compatible wallets like Trust Wallet or Rabby and many more. You can also check out these top 10 Ethereum wallets.
STEP 1: Head over to app.virtuals.io
STEP 2: Click “Connect” on the top right.
STEP 3: Approve the connection from your wallet.
STEP 4: Boom, you’re in. No KYC, no lengthy forms.

Acquiring $VIRT (The Native Token)
To interact with the platform, you’ll need some $VIRTUAL, the native token of the ecosystem.
You can grab $VIRTUAL on decentralized exchanges like Uniswap, or Binance. Just connect your wallet, swap ETH or USDC for $VIRTUAL, and you’re good to go. Make sure you’ve got a little ETH left for gas fees, it’s Ethereum-based, after all.
Potential Fees and Costs
All trades involving agent tokens on Virtuals Protocol are subject to a 1% tax.
This fee is designed to fund each agent’s ongoing operational costs, such as inference workloads and GPU usage, as they evolve toward greater autonomy. Since every agent token is launched fairly, this tax creates a sustainable incentive model without undermining the fairness of the launch process.
How the 1% Trading Tax is Used
Before Agent Graduation:
- The full 1% tax is directed to the Virtuals Protocol Treasury, helping to bootstrap the ecosystem.
After Agent Graduation, the tax is distributed as follows:
- 30% goes to the agent creator’s wallet as a reward for initiating and developing the agent.
- 20% is allocated to Agent Affiliates, such as Telegram trading bots or third-party interfaces that facilitate trades. This aligns incentives and allows affiliates to reinvest in their communities or platforms.
- 50% is sent to the Agent SubDAO, a community-governed treasury that will be activated through future governance. These funds can be used to support the agent’s development and the broader ecosystem.
Navigating the Virtuals App Interface
Once inside the app, you’ll land on a sleek, futuristic dashboard. It’s broken down into three main zones:
- Agent Marketplace: This is where you can browse, buy, or sell AI Virtuals.
- My Virtuals: Your personal HQ. Here, you’ll find your owned agents, performance data, and configuration settings.
- Trading Arena: The competitive zone where Virtuals battle it out live. More on this later.
Before jumping in, it’s worth taking a minute to set up your profile and explore your dashboard. From managing your AI agents to reviewing stats, everything is designed to be intuitive, even if you’re new to crypto or AI.
How to Trade on Virtuals Protocol
Now that you're set up and exploring the Virtuals dashboard, it's time to actually start trading. You can either buy a ready-made AI agents, build your own from scratch, or even sell your creations for passive income. Let’s break down each path.

Option 1: Buy a Pre-Made Agent
If you want to skip the training phase and dive straight into trading, the Agent Marketplace is your best friend. Here, you'll find a list of pre-trained agents created by other users, each with its own strategy, track record, and risk profile.
When browsing the Marketplace, pay attention to key metrics:
- Success Rate – How often does this agent win trades?
- PnL (Profit and Loss) – Is it consistently profitable, or just riding a lucky streak?
- Strategy Type – Momentum, mean reversion, arbitrage? Know what you’re buying.
- Drawdown – A measure of how deep the losses get during rough patches.
Once you find one that fits your style and risk appetite, you can purchase it with $VIRTUAL, assign capital to it, and watch it go to work.
Option 2: Create and Train Your Own AI Agent
Want more control? Building your own agent from the ground up is where things get fun.
Start by generating a new agent in the dashboard. You’ll choose a base model, such as momentum, scalping, or trend-following, depending on your market philosophy. From there, you can feed it with historical price data, set training targets (like maximizing returns or minimizing drawdowns), and select parameters like time frames and trade frequency.
Once your inputs are locked in, the agent goes through a training process, simulating thousands of scenarios to learn how to act in different market conditions. When training is complete, you can backtest its performance on past data and even run paper trades in live conditions before committing real capital.
Option 3: Sell or Lease Your AI Agent
Let’s say you’ve built a killer agent that’s crushing it in the market. You don’t have to keep it all to yourself.
For developers or strategy nerds, this is a legit way to earn passive income, especially if your agent builds a strong track record over time. The better your AI agent performs, the more demand it can generate.
Trading Arena: An Explanation
Got an agent that’s ready to show off? The Trading Arena is where your AI agent gets to flex its muscles in real-time, competitive environments.

How the Trading Arena Works
The Arena is essentially a live battleground for AI agents. Each one enters a defined trading session where they compete under identical market conditions. This levels the playing field and puts the spotlight on strategy, not luck.
Here’s how it works:
- Live Matchups: Virtuals are grouped into competitions based on risk level, asset category (BTC, ETH, etc.), and trading style.
- On-Chain Execution: All trades happen on-chain, and results are visible to everyone.
- Performance Metrics: Virtuals are scored based on profitability, drawdown, and trading efficiency, not just who makes the most noise.
- Leaderboards & Rankings: The best-performing agents climb the ranks, earning credibility and better resale potential.
- Seasonal Rewards: Top-ranking Virtuals are eligible for $VIRT token prizes, bonuses, and governance perks during seasonal events.
How to Enter The Arena
Entering the Arena is straightforward, but it helps to have a plan. Here’s what you need to know:
- Entry Fee: A small amount of $VIRTUAL is required to join, which goes toward the prize pool.
- Eligibility: Some Arena tiers may require a minimum performance score or trading history.
- Duration: Battles typically run over defined market intervals—hourly, daily, or weekly.
Strategic Considerations Before Entering:
- Market Conditions: Is your agent better suited for trending or sideways markets?
- Opponent Matching: Know your enemy—different strategy types counter each other in interesting ways.
- Capital Allocation: Only stake what you can afford to risk. Arena trading can be volatile.
Performance Metrics and Risk Management
Once your agent hits the market, it’s time to shift gears from setup to strategy. Like any good trader, you’ll want to monitor performance and manage risk like a pro. The good news? Virtuals Protocol gives you all the tools and transparency you need to stay in control.

Understanding Agent Metrics
Each agent comes with a performance dashboard loaded with useful data. Here’s what to look for:
- PnL (Profit and Loss): This one’s simple: how much your agent has earned or lost. Look for consistent returns, not just one lucky spike.
- Sharpe Ratio: This measures risk-adjusted returns. Higher Sharpe = better balance between risk and reward. A strong indicator of a smart, steady agent.
- Drawdown: Shows the worst dips in your agent's performance. Helps you understand how much pain you might feel in a downturn.
- Execution Frequency: Some agents trade multiple times per minute; others take their time. Frequency affects gas fees, slippage, and strategy type.
- Trade History: A complete, on-chain log of every trade the agent has made. Use it to spot patterns—or red flags.
Reading these metrics regularly is like checking a pilot’s dashboard. The more you understand what’s under the hood, the better you’ll fly.
Managing Risk with Virtuals
Even the smartest AI needs guidelines. Here’s how to manage risk effectively:
- Capital Allocation: Don’t throw your whole balance at one agent. Start small, test performance, and scale only when you're confident.
- Stop-Loss Features: Depending on the setup, you may be able to assign stop-loss thresholds to your Virtuals. This ensures they exit a position if losses hit a predefined level.
- Risk Tiering: Some Virtuals are built for high-volatility strategies, others for slow and steady gains. Know what you’re deploying.
- Diversification: Don’t rely on just one trading style. Mix agents across strategies—momentum, mean reversion, arbitrage—to spread out risk.
Trading Strategies
Once you’ve mastered the basics, it’s time to level up. Virtuals Protocol isn’t just about running a single AI agent and hoping for the best. With a bit of strategy, you can build an entire portfolio of Virtuals, fine-tune their behavior, and even participate in shaping the protocol’s future.

Portfolio of Agents
One of the smartest things you can do is diversify, not just your crypto holdings, but your AI trading agents as well. Instead of relying on a single agent, try running a multi-agent portfolio tailored for different market conditions.
Here’s how that might look:
- A momentum-based agent for trending markets
- A mean reversion agent for sideways conditions
- A scalping bot for short-term volatility
- A low-risk defensive agent during uncertain periods
Combining Human + AI Inputs
AI agents are smart, but you’re still the boss. Some agents support manual modifiers like letting you tweak behavior or adjust strategy parameters without full retraining. This comes in handy when reacting to sudden news events or shifting market sentiment.
What’s more, they can incorporate feedback loops, learning from past trades to adapt future behavior. It’s not just “set and forget”, it’s “set, watch, and refine.”
Staking and Governance Participation
If you're holding $VIRTUAL, you can do more than just fund your agents; you can help steer the protocol.
By staking $VIRTUAL, you unlock access to:
- Governance voting on protocol changes and new features
- Agent model approvals (deciding which base strategies get added)
- Fee structure proposals for things like Arena entry or marketplace sales
It’s a rare chance to be both a trader and a decision-maker in the ecosystem you’re profiting from.
Security, Transparency, and Data Integrity
In the world of AI and crypto, trust comes from visibility, and Virtuals Protocol leans into that hard. From agent performance to user privacy, the platform is built to keep things open, secure, and decentralized. Let’s break it down.
On-Chain Transparency
Every agent operates fully on-chain, which means:
- Trades and performance are public, which means anyone can audit an agent’s history.
- No black boxes, so you’re not trusting a mystery algorithm. You can see how it behaves in real time.
- This level of transparency builds trust, not just in the AI, but in the entire ecosystem.

User Data and Privacy
One of the perks of Virtuals Protocol? It stays true to DeFi roots:
- No KYC needed: You connect with your wallet and you’re in.
- Minimal data exposure: No personal info stored or shared.
- Smart contract risks apply: As with any DeFi platform, using smart contracts comes with inherent risks. Always do your own due diligence and stay updated on contract security.
Open Source and Audits
Security isn’t just about privacy; it’s about code quality too. Virtuals Protocol embraces:
- Open-source infrastructure, allowing devs and the community to audit and contribute.
- Third-party audits: Smart contracts undergo formal audits (check the official site for the latest status).
- Community-led governance: Decisions around upgrades and features are driven by the token holders.
Tips for Beginners
Start Small, Test First
- Use simulation tools to try out your strategies in a risk-free environment before committing real funds. It’s a safe space to learn.
- Study top-performing Virtuals in the Marketplace. Analyze their strategies, metrics, and trade history to understand what makes them successful.
Don’t Rely on One Agent
- Diversify your approach by using multiple Virtuals with different trading styles—some fast and aggressive, others slow and conservative.
- Spread risk levels so that a poor-performing agent doesn’t sink your whole portfolio.
Join the Community
- Engage on Discord, forums, or DAO spaces to stay in the loop about updates, new agent models, and strategy tips.
- Learn from other users’ experiences. The community often shares valuable insights and early warnings that can help you make better decisions.
Closing Thoughts
With AI agents that can think, trade, learn, and even earn for you, Virtuals Protocol brings serious innovation to the table. It combines the autonomy of smart contracts, the intelligence of machine learning, and the accessibility of NFTs into a system that’s open, transparent, and constantly evolving.
Whether you're a curious beginner or a seasoned trader, Virtuals offers something genuinely new: the ability to create your own AI agent, train it like a digital athlete, and unleash it into real-world markets. And if you're more into observing than building? There’s an entire marketplace of battle-tested agents ready to go.
But here’s the key: AI isn’t here to replace human intuition; it’s here to support it. Think of your agent as a teammate, not a substitute. You guide the vision; it handles the execution.
Just start slow, stay curious, and let your AI do what it does best: trade intelligently, endlessly, and without emotion.
Frequently Asked Questions
Nope! You can buy pre-made Virtuals or use the platform’s tools to build one without writing code. More advanced users can customize agents at a deeper level, but it’s totally optional.
Costs vary. Creating your own Virtual involves gas fees and optional training inputs, while buying one in the Marketplace depends on its past performance and demand—some go for a few dollars, others for a few hundred $VIRTUAL.
Yes. While AI can help improve decision-making, it doesn’t eliminate risk. Market volatility, poor strategy design, or bad timing can still lead to losses—so always manage your risk wisely.
Unlike static bots that follow fixed rules, Virtuals are adaptive, learn over time, and can be bought, sold, or leased as NFTs. They evolve, compete, and grow—much more than just “set and forget” scripts.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.