Crypto Trading Robots
Are you a full-time investor in cryptocurrency? Or have crypto trading robots simply sparked your curiosity, just like roboadvisors?
Crypto trading is a hot topic these days. You can purchase cryptocurrency, a digital asset, from anywhere in the world, at any time. Thousands of people have profited from their investments in cryptocurrency, and crypto bots make this investment even more effortless.
Well, you, as an investor, have to spend most of your time manually analyzing graphs to make the right financial decisions. And that’s a taxing chore! However, you can now count on crypto trading robots to do the hefty work for you.
Crypto trading robots take the convenience of cryptocurrency one step further. They are a shining example of how technological advancements facilitate us today.
Yes, crypto trading robots can save you those long hours and all that mental energy. Many people are already using these bots to great success! After all, for these people, time is money.
Surely, you have many unanswered questions about crypto robots at this point.
Worry not! This article will tell you exactly what crypto trading robots are and what they do. We will also discuss the concept of auto trading itself, as well as mention some of the best crypto robots in 2020.
Stick around till the end for some useful strategies to hardcode into your bot!
Best Crypto Robots in 2020
Now that we’ve established the essential features of a good crypto bot, to help you out further, we’ve compiled a list of the three best crypto robots for 2020.
This cloud-based crypto bot can work with many different types of crypto coins and exchanges.
Being cloud-based means that it can function around the clock and can be set up quickly.
One useful and rare feature that CryptoHopper boasts is external signalers. These external signalers enable you to receive information from analysts all over the world. The bot gets and uses these signals for trading.
CryptoHopper works with most exchanges such as Binance, Kraken, Cryptopia, Coinbase, Huobi, and many others. It lets you manage all these exchange accounts from one place.
CryptoHopper’s service offers several strategies, analysis tools, and multiple bot types. It comes with an arbitrage tool to benefit from the difference in prices of exchanges.
CryptoHopper even allows you to test your trading strategies without any risk of losing money by simulating real-time trading. Hence, you can backtest your strategies freely.
Packages and Pricing:
There is a week-long free trial.
3Commas Crypto Bot
3commas is a web-based crypto trading bot. It’s one of the most popular crypto trading bots with more than 70,000 users, and there is over $60 million worth of transactions on it every day.
3Commas is exceptionally functional.
The user interface displays accurate, detailed analytics and several functions. Not only does the bot let you create your strategies for trade, but it also enables you to set up stop-loss targets and take profits.
Moreover, the bot supports more than 12 exchanges, which lets you keep track of your orders on different exchanges with ease. 3Commas’ Mobile app is available on both iOS and Android.
3Commas also comes with several tools that allow you to backtest portfolios. You can also copy other successful traders’ strategies. Also, you can create advanced orders which may not be present on some exchanges such as trailing take-profit orders.
Furthermore, you can set up the price at which to sell to make a profit and the one at which to sell to stop losses. This allows you to maximize profits without suffering a loss. These features are available in the bot’s SmartTrade terminal.
And the functionality doesn’t just end there. If you’re looking to organize all your trades in one place, 3Commas has a trader’s diary that does just this. It conveniently collects all your trades across various exchanges and stores them in one place.
Packages and Pricing:
All the above charges are per month with annual payment.
All plans come with a free Binance trader subscription.
Although new, TradeSanta has already built up quite a reputation. This is a cloud-based tool and is highly capable.
It comes with a user-friendly and straightforward dashboard that even traders who are just starting can easily use.
It supports basic order types, but it also able to execute very advanced crypto trading strategies. You can also use its features on the go thanks to its mobile app, which is available on both iOS and Android.
Another fantastic feature of TradeSanta is a custom template. You can expand the abilities of the bot by adding custom tools. It also has a long bot template, which is for when you expect the value of an asset to rise. There is also a short bot template, which is for when you expect the cost to drop.
Also, this bot provides you with technical indicators. These include volume filter, trade filter, and Bollinger signal. Other useful features include buying coins for a commission and an extra orders feature.
TradeSanta supports many of the biggest crypto exchanges, such as HitBC, Bitfinex, Huobi, Binance, Bittrex, etc. Furthermore, the bot has no trading fees and robust security measures in place.
Packages and Pricing:
Minimum Free of cost
Basic $15 per month
HitBTC Promo $20 per month
Maximum $100 per month
It comes with a 5-day free trial of the Basic package.
What Are Crypto Trading Robots?
Crypto trading robots are automated computer systems that can buy and sell cryptocurrency. They time this buying and selling to earn as much profit as possible.
These bots are programmed to study and analyze the market situation. They observe the fluctuation and make intelligent decisions about when to buy and sell your cryptocurrency.
What makes crypto bots’ role even more critical is the volatility of cryptocurrency. This volatility means
Its value fluctuates a lot and both ways.
It’s five times more volatile than traditional asset classes!
Moreover, the market is open all the time.
This constant and uneven change in value makes cryptocurrency potentially very profitable.
If you manage to buy a cheap share when the market is down and sell it when it is back up, you can make many times more money than you initially invested.
However, this can also go the other way around. If the market dips after you invested at a higher price and you are forced to sell it for a lower price, it can be a significant loss in a matter of hours.
Therefore, crypto bots play an important role in automated trading. The decisions made can result in significant losses or gains.
Advantages Of Crypto Robots
Crypto trading robots have a number of advantages over human beings:
Greater Capacity to Process Data:
Bots can process several gigabytes of data per second, which is an amount that humans can’t process in the same amount of time.
Faster Decision with No Emotions:
Humans need time to think and react, especially when it comes to a decision that can result in potential profit or loss. Bots, on the other hand, act instantly as they are programmed with all the information necessary to make the right decision.
As we discussed earlier, bots are not subject to greed or fear. They make rational decisions based on statistics and the likelihood of success.
Ability to Work Constantly:
Unlike humans, robots do not need a break to rest, eat, or relax. This feature becomes especially beneficial here as the cryptocurrency market never sleeps.
Can do Repetitive Tasks:
You can save a chunk of your time and energy by using a crypto bot because of their ability to handle repetitive tasks. The same task can simply be copied and done repeatedly by the bot once it has been set up.
One such task is periodic rebalancing: buying or selling to maintain a certain amount of risk.
Can Handle Complications:
Some trading strategies can be extremely complicated. Hence, they can prove quite tricky for a person to implement. Bots can execute these strategies easily.
What Is Automated Trading?
Automated trading, also known as auto trading, is the use of computers to automatically execute trade entries and exits based on specific rules established by traders and programmed.
You can essentially set a specific criterion for your automated trading system to follow. This feature lets you set rules for everything, such as money management. It is then up to the computerized system to make decisions based on the set rules.
The rules for trade entry and exit can both be simple and basic or extremely strategic. Based on these specifications, the system, a crypto robot in this case, continually monitors the market, searching for the right chance to buy or sell, in this case, cryptocurrency.
There are many Auto trading benefits, such as:
Before implementing a set of rules, you have the option to test them on previous data and checking how well the system handles it.
The computer makes a purchase or order instantly as soon as the conditions for it are met. For example, if you wish to buy a share at a certain price, the computer will do it quickly before the price rises again.
Where a human being might experience emotions during buying or selling, a computer simply executes logically, based on the set conditions. For instance, a bot will not feel anxious or fearful of loss and make an emotional decision to sell to buy or sell at the wrong time.
How Do Crypto Robots Work?
There are three moving parts of any good crypto bot:
A Signal Generator
The signal generator takes data as input and outputs a buy or sell signal based on the bot’s predictions.
After a buy or sell signal has been generated, the next decision is about how much amount should be bought or sold. Making this decision is this part’s job.
This part carries out the trade based on what seems like the best decision. The bot buys or sells based on where you are likely to get a price in your favor.
Building Blocks Of A Crypto Bot?
Let’s talk about the building blocks of trading bots online.
We’ve already gone over backtesting while discussing the advantages of automated trading. Here’s a quick recall: backtesting is testing your bot on historical data.
You want to make the backtesting as accurate as possible by including all sorts of factors such as latency and trading fees. You can collect useful market data for backtesting from exchange APIs.
Implementing the Strategy:
This step involves feeding your robot a trading strategy. You will need to establish the patterns, calculations, and logic that your bot will use to make decisions about whether and when to buy cryptocurrency or sell it.
Make sure you conduct backtesting after you doing this to see the kind of results your strategy produces.
In this step, you will execute your strategy in real-time. The logic will be turned into API (Application Programming Interface) requests, which the crypto exchange can make sense of.
Finally, you must set up a job scheduler that will use your strategy to do trading automatically.
How To Choose The Best Crypto Robot
There are some factors you will want to keep in mind while choosing the best crypto robot when crypto trading.
It should be reliable:
Since the crypto market is open all day and night, you can miss many opportunities if your bot is not online for even a little while. Hence, reliability is an essential factor when choosing one.
To ensure that it is reliable, the best source of information is its user reviews. Choose a bot that has been used by many costumers and satisfied most of them.
This one is obvious. The whole point of investing in a bot in the first place is to maximize profits. Therefore, research a bot’s profitability before you spend your time and money on it.
Easy to Use:
One of the reasons you’re looking to invest in a bot is most likely convenience. Hence, make sure that the one you choose is easy to operate. Look for a bot with a user-friendly interface and controls that are simple to understand.
This point is highly significant. Since your bot will have direct access to your currency and assets, it must be secure. This is probably not a risk that you would want to take.
It isn’t easy to accurately judge a bot’s security before buying it, but the best way is to choose one that is known by its users to be completely secure.
Best Strategies For Crypto Robots
Now that you know what makes a good crypto robot as well as three of the most efficient bots, let’s talk strategy.
As mentioned before, trading strategies are hardcoded into bots, which then interpret data and make decisions based on them. Here are a few of the best strategies for your crypto bot:
In momentum trading, you, or your bot, in this case, analyzes the rise and fall of the market. One of the best approaches is to follow a positive momentum wave and then to sell your assets quickly when the momentum seems to reverse.
The belief behind this strategy is that the price of an asset will rise above its average value briefly and then fall when it loses momentum. When following this strategy, the timing of the purchase and selling transaction is crucial.
This strategy is based on a simple yet logical assumption. If the value of the currency rises or falls from its average cost, it will eventually return to it. For instance, if it rises too high, traders will sell most of it, which will bring the price back down.
Similarly, if the price drops, traders will try to take advantage and buy it in bulk, which will make the price rise back up.
This strategy is based on the fact that the price of the same cryptocurrency or asset can vary from one exchange to the other. Hence, to maximize profit, the goal is to buy it cheaper from one exchange and sell it for a profit on another exchange.
The speed of crypto bots, an advantage we discussed that they have over humans, is very beneficial here. This is because a buying and selling operation is carried out almost at the same time across multiple exchanges.
Crypto robots are undoubtedly a fascinating piece of modern technology, combining the art of trading with that of computer programming.
Before you begin crypto trading with bots, it’s important that you understand the basics. This article provides all the information that a newbie would require. Put it to use and make some profit in crypto trading bots today!