What are crypto-trading-bots? Well, they are computer programs that trade on your behalf with a given set of instructions or rule criteria to act on, so that might be something like buying a specific amount of cryptocurrency if a certain price target is hit.
Once that rule of criteria is met, then the bots will automatically execute the trade you wanted. This means that to use a crypto-trading-bot, one will need to connect it to a crypto exchange account using something known as an API or application program interface.
Basically, API gives trading BOTS the ability to place trades programmatically at the exchange results; and one can execute trades in their sleep.
What are the Uses of Bitcoin Trading Robots?
There are multiple benefits of trading-bots. Some of them are portfolio management, simplifying the complications, managing repetitive tasks, easy data collection, and rebalancing.
But, before choosing your ideal bitcoin trading robot, you must consider the following few points.
- By using automated trading robots, does not mean you can simply enjoy watching and do nothing. It requires proper monitoring and continues working with the trading strategy to get profitability.
- Finding a good trading robot is quite hard. Several scams are out there. And the legit ones are poorly coded and hard to use.
- Automation may help in doing most of the repetitive tasks that involve pointless complication.
- Bitcoin trading bot reduces the risk, especially for beginners. A Crypto-trading-bot uses a certain algorithm to lower the potential for losses.
- One of the major benefits of using a trading-bot is that it eliminates emotional trading. These bots carry out trades as per certain instructions or algorithms.
Pros And Cons Of Trading Bots
Here are a few of the cold hard truths trading bots.
- One major benefit is that these BOTS enable trades 24/7and execute trades while asleep which means one will never miss out on another trading opportunity ever again due to being in the land.
- Trading BOTS helps to enjoy crypto trading; one can simply set the rule criteria or instructions in the bot and leave those trades to execute if the criteria are met, which means one should be less at risk to FOMO or panic selling.
- Another benefit of using bots is that they allow users to backtest their trading strategy. That means a bot can take that strategy you’re using and apply it to all that historical crypto price data and tell how successful it is to say goodbye to trading in the dark.
- Trading bots simplify trading; however, they are pretty expensive given that a crypto-trading-bot can access and simultaneously carry out multiple trades across multiple different exchanges. A user only needs a mere laptop to be trading a game.
- Many people seem to be under the illusion that trading BOTS is a magical money printing machine. Get one, switch it on, and one will make money all day long.
But no, it doesn’t work that way; with a trading bot, one has to tweak the trading strategy that is working constantly, and it is certainly not a set and forget it money printer.
- There are several scams out there, even if one finds a legitimate site or app, they are so poorly coded that it’s going to be impossible for you to execute a single profitable trade. Be careful with some crypto-trading-botS, in case it looks so legit, sometimes it probably is.
- Many people do not realize that crypto BOTS needs to be monitored. Do not expect to switch on the trading bot and be laughing all the way to the bank. The market is cyclical trends come and go all the time; basically, a bot is not a substitute for being a smart trader
Here Are The Most Popular Bitcoin Trading Robots
Here are some top-rated crypto BOTS to use. These trading bots are best to keep your funds on an exchange. There are several highly secured and reputable exchanges out there but hacks do happen.
So be aware before choosing any of the top bitcoin trading bot, it is highly advisable to do research beforehand to avoid any problematic circumstances. So here are top crypto-trading-bot;
This bot is cloud-based and has a solid reputation with over 42,000 active users, 12,000 active trading BOTS, and 1.7 million completed trades.
However, it may take you a while to get used to some of the functionality in case of the available features. Trade center offers a longboat template to use when you expect a crypto asset to rise in price, a short bot template when you think it will fall, and a custom template that gives you the freedom to leverage the bot’s full functionality.
In addition to all that trade center offers you a plethora of technical indicators to digest. These include things like Bollinger signals trade filters, and volume filters to monitor the bot’s progress
It has also gotten covered with an iOS and Android app when exchanges Trade Center supports.
The gun bot is affectionately known as “gun T” it’s a pretty popular crypto bot that is compatible with Mac Windows and Linux. It has amazing features along with amazing strategies like step game gain and ping pong. Those are all real trading strategies
With Gunbot, one may easily customize any trading strategy; the bot will execute those trades. Mobile support gun bot is actually pretty well mobile optimized gun bot. It also supports a ton of top-tier exchanges like coin base Pro and margin trading.
In short, this bot provides expert trading tools without the need for coding skills. Best for people with more advanced trading stuff like market making and exchange arbitrage.
It has a marketplace that boasts the overabundance of trading templates strategies, and signals to choose from. These signals allow you to subscribe to professional analysts worldwide, and crypto hoppers use these signals to trade.
For support, they have Android and iOS apps. Crypto hopper offers a 7-day free trial to try it out.
3 Commas is one most popular BOT out there, with over 120,000 users and 60 million dollars in trade volume every day. It has a super intuitive interface packed full of detailed analytics and a ton of functions.
The bot also enables one to set stop loss and take profit targets and craft own trading strategies
3 commas offer backtesting dollar-cost averaging BOTS, a ton of different trading tools, a trader’s diary to keep your portfolio at one place, and you developed a signals marketplace that allows you to mimic and automate the trades given by the top signals providers.
Undoubtedly a good bitcoin trading robot has the potential to increase your trading capabilities, but it’s not a guaranteed money-making scheme.
Although bots can add speed, accuracy, and discipline to your trading skills, it is sometimes risky to leave everything on them. Also, it requires monitoring to gain profitability from these trading bots.