The cryptocurrency market goes up and down swiftly. For traders, this is paramount to living with unpredictability. You can wake up to a market crash or a boom out of nowhere. However, the use of crypto trading bots can make investment choices much easier. It automates the trading procedure. That’s why cryptocurrency traders are increasingly relying on bots.
What is Crypto Trading Bot
In order to give you a heads up on crypto trading bots, here is an explanation of what they are and what they do in simple terms:
A cryptocurrency trading bot is a piece of software that does the trading on investors’ behalf. It has access to exchange data. Trades are placed by the bot on its own. This process is fast with lower chances of error.
Bots do not make arbitrary choices. There is a certain set of rules for their work. Bots analyze the key indicators such as price, volumes, time, and orders. Investors can determine the preferences and the bot will adhere to that while buying and selling orders.
Reasons for Preference over Manual Trading:
Bots work efficiently 24/7. You may sleep but the bot will never. It saves time by analyzing the market on its own and making trading moves to maximize the profit. Most of the bots are cloud-based so there is no need to keep the computer on all the time. This is precisely a time-saving technique.
Humans have emotional biases that can impact choices. However, bots are emotionless. They work on a pre-programmed investment strategy. Their choices are well informed and responsive to signals of the market.
Contrary to popular belief regarding robots, crypto trading bots are very easy to handle. It only requires 1 or 2 hours to understand how to customize them. Bot providing companies offer free demo to their customers. So, both frequent and infrequent crypto traders can take advantage of bot trading.
The bot is not working and deciding everything on its own. Traders have to say in redefining and modifying strategies for bot operation. Once the strategy is automated, bots work on them continuously and repeatedly.
Crypto trading bots optimize investments in the market. The traders keep gaining and losing. With an efficient bot and accurate strategy in place, profits surge and surge.
How to Choose the Best Crypto Trading Bot:
There are tens of crypto trading bots out there. All of them manage different tasks that can range from a single strategy to multiple ones. For you as a trader, getting a different bot for every small task is not economical. Hence, it is better to jot down what you need your bot to do and then look out for the choice.
Here are some of the things to consider when picking up a bot:
For any sort of investment business, keeping a track of your money is crucial. The same goes here with the selection of bot. Try to get as many benefits on as little money as you can. However, security and quality shouldn’t be compromised.
Pick a bot that is user-friendly and easier to handle. The whole point of getting the bot to work for you is to reduce the complexity associated with trading work. Make a wise choice by keeping your experience with computer software in mind.
There are hundreds of Cryptocurrency exchanges. Bots with the ability to support maximum exchanges will prove profitable. This quality is useful, especially in arbitrage. The bot will buy assets in one exchange and sell them on the one that has a different price in order to make gains.
The bot should have the ability to imitate the trading strategies of other buyers. This way market activity is easily dealt with.
Signals of the Market Bot Responds to:
Signals are generated automatically or manually to suggest that it is a good time to make trades. Bots respond to this and buy/sell assets.
“In crypto trading bot terminology, signals are like alarms. For example, someone might craft a signal based on a combination of factors like moving averages, volatility, and social media mentions, and when those factors move in a way that’s believed to indicate a good time to trade, the alarm is triggered.”
Best Cryptocurrency Trading Bots in 2020
Here is a list of the top 5 crypto bots that can help you make trades in 2020. They can prove ultimately profitable if used intelligently:
This bot was introduced in 2017. It has been consistently updated and improved since. There are close to 200,000 Cryptohopper customers around the world. It is the most popular crypto trading bot up until the writing of this article.
Cryptohopper takes market-making, strategy innovation and social trading to the next level. The most admirable feature is that it is embedded with external signalers. It helps in getting signals from experts around the globe.
The process of setting up cryptohopper bot is very simple. It takes only a few minutes to complete and afterward you are directed to the dashboard. It comes with seven days free trial which gives you sufficient time to experience its working in fast-paced world of cryptocurrency.
Cryptohopper also gives the newbies a chance to build their own bot. You have the liberties to decide specific signals which bot reads and the subsequent actions it takes.
The pricing plans for this bot start with a free package. The other paid packages can be selected on monthly or yearly payment plans. The first paid package is available at $16.58 a month.
According to an estimation trade of almost $60 million dollars is done through 3commas daily. It has a community of 70,000 traders at this point. Unlike cloud-based cryptohopper bot, this is a web-based bot.
3commas gives the option to manage all you trade in one place. It is user friendly and comes with a very intuitive interface. The option of taking profit and stopping loss helps traders in playing safe in the market. According to the 3commas site, this is bot’s very own ‘Smart Trade Terminal’.
3commas gives traders the option to customize signals through trading view. It supports up to 23 exchanges in all of its plans. This means that trader is able to take multiple orders at the same time.
Pricing Plans of 3commas start with $14.5 a month which is lower than Cryptohopper’s explorer plan. The pro plan gives full access free for the first 3 days.
Gunbot is a highly sophisticated bot. It is best for people with coding skills. However, beginners can also take advantage of preprogrammed features. It comes with built-in strategies but can be customized by traders as well.
Gunbot runs on the computer as it isn’t a cloud-based bot. The three popular operating systems Windows, macOS, Linux, or Raspberry Pi support the working of Gunbot. New updates are added free of cost and bot keeps improving itself.
Gunbot has a community of over 6000 users. New innovations are brought in with traders’ reviews in order to make the bot more and more efficient.
A downside with Gunbot is that it is compatible with only a few exchanges. If you are looking to earn money through arbitrage then this is not for you.
Gunbot has four pricing plans starting with 0.02 BTC. Multiple trading strategies and unlimited pairs with lifetime licensing are available at affordable prices.
HaasOnline started providing its services in 2014. It works with dozens of exchanges. The bots types like Arbitrage and Flash crash help making money in every situation. With Haasonline cloud you can access bot from anywhere.
HaasOnline supports dozens of exchanges. It only requires a minimum amount of input for doing a lot of your work. It is compatible with Linux, Mac, and Windows. Traders are allowed to choose from more than 10 bots available with HaasOnline.
An Exciting feature of HaasOnline is the ‘Refer a Friend’ Program. This gives up to 25% commission on every customer you refer to.
Haasscript is an advanced-level Crypto scripting language. With the help of it, you can create some complex automated trading algorithms, technical indicators, generate and interpret signals, and much more.
Being 3 years older than Cryptohopper, HaasOnline has earned a name in the market. So if you are interested in crypto trading bot, do give Haasonline due consideration.
HaasOnline provides 3 plans. They are available at discount prices with 6 months and 12 months period. It is slightly expensive than Gunbot.
Zignaly (Free Crypto Trading Bot):
Zignaly is free of cost, cloud-based crypto bot. It needs no money and doesn’t need to be on a hardware device. It gives services of copy trading to everyone. One has to simply find traders who are on top of their game and then imitate their trade moves.
Zignaly is best for both beginners and experts in crypto trading. Trading terminals and trading bots can help traders with trailing stop loss and catching market signals. With no withdrawal rights, Zignaly won’t be able to take out your money.
At this moment Zignaly is supporting only two exchanges but much more is coming soon.
It is safe and secure.
Are Crypto Trading Bots Worth Buying?
Well, it depends on you. Crypto bots don’t work with the ‘set and forget’ strategy. You have to continuously monitor them. Learn new things, apply new strategies, buy new features, and have patience. Those who do complete homework before automating their trading will have the highest reward.
If you want to learn more about the best crypto trading bots available in the market, please check out this blog on the top 20 free crypto trading bots.