Crypto trading bots help you employ automated trading features on your favorite cryptocurrencies. It helps in various tasks: managing portfolio, backtesting, simplifying and distributing positions, and more. With bitcoin surging to new highs, market players are getting interested in these robots each coming day. In the saturated environment, it is becoming hard to select the right one.
Advantages of crypto robots
Traders find it hard to manage their executions trading a market that has a lot of volatility. Leaving your portfolio open to risk can cause huge drawdowns. A crypto robot presents solutions to many of the problems that you may encounter while trading these currencies that are open 24/7.
- Time-saving. Crypto bots help one save a lot of time by managing your trades, so they don’t have to sit at the trading desk all day long. This efficient and goal-oriented approach results in good profits.
- The automated trading crypto software is like a robot that keeps working even when everyone else is asleep. EAs can scan and exploit minimal changes in the markets based on coded information.
- Passive income. No dividends are available when working on crypto assets, which makes them similar to commodities. A passive income is readily available to traders via cryptocurrency robots. Such investment-type benefits may not be as fruitful as compounding dividends; nonetheless, it is a good option for traders who like to keep their position for the long term. The EAs also help in copy trading trades where they mirror algorithmic strategies set beforehand.
- Trading without emotions. Trading in such volatile markets is a cause of huge ups and downs on the psychological side for market participants. Such a roller coaster of feelings results in miscalculations and weak decisions that are detrimental for traders’ portfolios. A crypto trading robot has no such feelings and can trade currencies without emotions.
How do crypto trading bots work?
You need the following four steps for a crypto bot to work like a charm:
- Strategy implementation: You can code your trading robot to work as per your desire, so it knows what strategy to follow.
- Backtesting: backtesting your robot’s efficacy before you put it to work in real markets will give you an idea about its future performance. It is also essential to carry out the test under different settings such as spread, time frames, etc.
- Execution: after thorough testing, it’s time to place it to work in the real markets. It may also be possible to try it out on a demo account for further inspection. All the incoming executions from the EA will convert into API requests that your broker comprehends.
- Job scheduler: a job scheduler will help to set up that process automatically.
Types of crypto bots
There are four significant types of crypto bots:
- Arbitrage. Arbitrage robots trade based on the difference between prices among two separate brokers. You don’t transfer your assets, and all the long and short executions take place at the same second with zero to no latency. Initially, it may take some time to code the bot but remember it is always free to use afterward.
- Technical trading. No download is necessary to utilize these bots. As the name indicates, this automated trading software uses technology such as indicators and signals. They differ from each other in terms of strategy.
- Market-making. Such kind crypto bots can capture quick gains from the market by creating long and short orders simultaneously. A good example will be a hand-to-hand buy and sell of $19.9 and $20.1. $0.2 profit will be available in this scenario. You can utilize this EA to perform various functions, including implementing different trading strategies, indicators, and multiple order execution.
- Profile automation. Managing your portfolio is the main task of such EAs. Cost, averaging, rebalancing, SL/TP management, auto-tracking are a few things to mention. Using this automated trading software, you can set and forget your executions.
How can you choose the best crypto bot?
Keep the following points in mind before choosing a crypto bot:
- The team’s credibility. There is a combined effect of hard work and dedication of the team members who develop it behind every big thing. Take an overview of the group behind the bot. Top websites also feature the best companies with a good background in robot history.
- Robots s Your robot should also match the trading style you use. Checking out for user reviews on websites such as Trustpilot and forex peace army can be useful in this regard.
- All of your questions and inquiries should be answered by the support team promptly. Also, check out if the company’s team members have an active background and a good debate. The bot developers should provide regular updates.
- You get what you pay for may not hold when it comes to buying robots. Sometimes the free versions may provide even more advantages. Consider the pros and cons before spending your hard-earned cash on crypto bots.
- Performance under various market conditions. The market throws multiple ups and downs towards the participants each day. Your bot should be able to perform both through bad and good days. Drawdowns must not exceed a certain amount under poor trading conditions.
- Ease of use. Overcomplicating your trading is a sure way to enter amongst the losers. Your bot should be beginner-friendly and match your expertise level.
Top 10 Best Crypto Trading Bots 2021:
RoFx robot has been on the path to continuous development since its inception in 2009. The robot develops its methodology and trading strategy through the inbuilt neural network, whereas the company keeps modifying its services to provide the best to customers.
More oversized packages on the website can guarantee you a 100 ROI over a year as RoFx covers all the losses. You can fund your account via wire transfer, debit/credit card, and bitcoin. Recently the option to withdraw your funds is available after a short 70 day trading period. The whole process is automatic, where you only need to put funds in, and the robot handles the rest.
Quadency has 13 crypto bots, 13 exchanges, 1575 crypto assets, and 3873 trading pairs. With a free account, you can get your hands on the simple features, whereas additional ones that come via a pro or unlimited plans start from $39 a month.
Cryptohopper helps you manage your portfolio, use market-making techniques, arbitrage trading and backtest your strategy. Copy-trading features are also available, which are easy to use without any prior knowledge.
A large number of crypto exchanges are available on the web-based platform. Develop your crypto algorithms or use them that others have already made by using Binance and 3commas.
Binance, Kraken, Bitfinex are some of the 25+ crypto exchanges that Bitsgap supports. Strategy design, ready-to-go strategies, and more are available through the safe and secure platform.
It is a command-line botNode.js and Mongo feature backtesting, technical analysis, plugin architecture, demo trading, and configurable order database that Zenbot uses. The crypto bot supports top crypto exchanges alongside plugin architecture, paper trading, configurable orders, and a flexible sampling period.
More than 150 trading strategies are at hand with Coinrule to help one in the markets. No coding is necessary, and you can learn a lot of information related to crypto on their website.
Stacked Invest has certain useful features such as diversified crypto assets, pre-built indices, automatic rebalancing, and total asset management. The platform is entirely safe and secure, where one can analyze the performance of each bot.
One billion dollars and more than 120K are handled by Shrimpy each day, where it provides its clients with a copy trading platform, automated strategies, and account management services.
Hassonline has no trading fees, volume restrictions, and installs itself within a few seconds. Useful features such as exchange integrations, demo trading, backtesting, and HaaScript editors are available with the crypto trading bot.
Crypto bots are a top choice of many profitable traders as they help compound high profits from their trades. Trading manually comes with a cost of boredom and the inability to move as you glue yourself to the screen. Automated trading software does have some negative associated with their use also. However, through careful research and analyzing you can find a robot that will help you in trading by a significant margin.
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