Best crypto and Bitcoin trading bot
Crypto Trading Bot
Start trading cryptocurrency by deploying bitcoin and crypto trading bot? Discover here the beste crypto trading bot and learn more about how a Crypto trading bot works
Maybe you’ve already come across some things about crypto bots or crypto trading bots on the internet. But what exactly is this? And how does it work? Is it safe to use a bot or is it better to think twice before buying a crypto bot? In this article we’ll discuss all ins- and outs about crypto trading bots.
What is a crypto trading bot?
With a crypto trading bot you’ll be able to automate the trading process. The word ‘bot’ comes from ‘robot’. So it is a piece of software that executes a certain trading strategy. The bot follows the entered instructions to trade on the market.
A crypto bot trades according to pre-programmed rules. Users can adjust these rules and settings themselves, in order to achieve maximum success. The extent to which a bot makes a choice depends on the rules and price developments in the market. Often a cryptobot can follow market developments (such as price, volume, time and orders) and trade independently.
Why use a crypto trading bot?
First of all a crypto trading bot can be useful to make automated choices. A piece of software has no emotions and is not addicted to trading, as a result of which the bot will make choices which you might not have taken yourself. They could be more advantageous than when you’re trading with emotion. After all a crypto trading bot mainly looks at facts and analytical data.
Maybe you don’t have the time to trade yourself, or maybe you have something else to do than to be busy with the market. You don’t have to be on top of it 24 hours a day. Still, you keep acting, because you let the robot do the work. Very handy if you don’t want to be busy with trading full-time. With a crypto trading bot you’ll still be able to build up a nice portfolio, even if you’re not trading yourself.
The advantages of a crypto trading bot
A crypto trading bot has several advantages. For example, such programs are efficient and can perform multiple tasks at the same time. As a result of this you’ll actually hardly have to worry about trading yourself anymore.
A bot also has no emotions, but looks at analytical data. In this way, it may be able to make better decisions than a human being. But: there can be mistakes in software. It is possible that the robot makes the wrong decision, which results in the loss of money.
By using a crypto trading bot, you trade faster than humans. That way, profits can increase and losses can be reduced. This way you’ll always be online and available to trade.
The disadvantages of using a Bitcoin trading bot
Are there only advantages to using a crypto bone? Certainly not. A few drawbacks in a row:
First of all, these types of bots are really only suitable for experienced traders. As a beginner you can’t set up a bot and hope that it makes wise choices for you. You have to set all kinds of rules and variables yourself. You’ll only be able to do this properly if you know how to react on the market. In fact, a bot doesn’t do much more than: “If this, then do that.
Moreover, even crypto trading bots are not perfect. They don’t react perfectly in a volatile market. Precisely because they don’t know any emotion, but only analyze the facts, they can’t make a good decision. In case of a volatile market you actually need human knowledge. Of course bots lack that knowledge.
Not to mention the safety of such bots. They work with an API: a secret key with access to your account. This can be hacked, and there can be developers with false intentions. They pretend to offer a bot, but actually pull your whole account and wallet empty. Then all your crypto coins are gone and that’s a sin forever.
Best free crypto trading bot
It is important to use reliable services. Please note: the choice to use or not to use cryptobot is personal. Just like the choice to trade crypto or not. The choice of which bone to use is also your choice. So we can’t give you any advice on the best free crypto trading bot, but we can provide you with some advice about the best crypto trading bot.
Cryptohopper is the first shift we’re looking at. This bot works from the cloud and can therefore be controlled from any computer. By using the cloud, it is practically always online. It works in a simple way with simple rules. Within 5 minutes your bot is ready to use – if you know you’re eating.
The bot has integration for the largest crypto exchanges, such as Kraken, Coinbase, Binance and other exchanges. To be able to use it, you need to choose a subscription. Depending on the package you choose you can determine the number of positions, coins and triggers.
The biggest advantage of Gekko is that it’s free. This is a so-called open source bot. This means that developers can build on it for free. The system works on Windows, MacOS and Linux. It works with Bitcoin exchanges like Bitfinex and Poloniex.
Actually, the bot is not suitable for trading on high frequencies. By that, we mean you can’t use the bot continuously. On top of that, you have to set up the bot yourself and it has some peculiarities. Still, it is worth finding out how it works and if this is something for you.
Gunbot is a popular choice among traders. More than 7000 active traders use this bot every day. It has a number of beforehand built in trading strategies, as a result of which you’ll be able to start using it even if you don’t know everything about trading yet. You can choose between strategies like Step Gain, Gain, Bollinger Bands and Pingpong. You’ll be able to test every strategy and you’ll be able to adjust it to your own wishes. It’s not necessary to build up a strategy from scratch.
Why Gunbot is so popular can be explained by the possibilities. For example, it is compatible with major exchanges such as Binance and Kraken and is also available in different packages. You don’t pay per month, but per edition. Unfortunately, Gunbot is not cheap: the price varies from 0.1 Bitcoin to 0.25 Bitcoin. But you can access the bot for days at a time, and it works on Windows, Linux, and MacOS.
Is a crypto bot useful and profitable?
A crypto bot is useful if you want it to act the way you want it to: the program follows your personal strategy and doesn’t deviate from it. In principle, the program can make better decisions than you could make yourself. The biggest advantage is that you are not carried away in emotions. The bone analyzes itself. In that respect, a bone is useful.
The other way around, it also works as a disadvantage: a bone only analyzes statistics. It does not take current events into account. After all, a robot has not read or heard the latest news.
Is a crypto bot profitable? That’s a good question. They can work well and be profitable, but not for everyone. With an effective strategy it can be quite profitable, but a wrong trading strategy immediately results in nice losses. In fact, it is then possible to make more losses than profits.
In short: using a bone requires quite a bit of knowledge and preparation. It is certainly not meant for everyone. Trading on the stock market remains something personal and it will always involve risks. In that respect, it does not matter whether you act personally or use a bone. Be aware of the risks and make a careful assessment. For most, it is more convenient to buy Bitcoin and keep bitcoin than to trade.
In addition, we recommend that you only trade with money that you can spare. So converting your savings into crypto coins and using them for a crypto trading bot isn’t a good idea. So think about the fact that you’ll be able to win a lot, but you’ll also be able to lose a lot. This is the only way to trade responsibly. A more responsible and safe way of making money with Bitcoin is by staking Bitcoin.
A number of other popular crypto trading bots are: