How to Find and Evaluate the Best Bitcoin Trading Bots
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Cryptocurrency is a 24/7/365 market that provides endless opportunities for traders and investors to engage with markets worldwide. Because of the volatility of digital currency, trading bots are now the go-to tool to stay up-to-date with an ever-changing crypto market. As new currencies hit the market, many new trading bots emerge. Some are licensed and charge fees and others are open platforms. Because of the differences, it is not always so easy for consumers to tell their differences. For a fact, the trading bot you choose may underperform and cost you unnecessarily, which is why research becomes necessary. If you are trying to learn how to find and evaluate the best bitcoin (BTC) trading bots, here are a few things you should try.
What Is a Trading Bot?
When you invest in a trading bot service, you are receiving a software application that assists you to interact with various cryptocurrency exchanges. You have access to application programming interfaces (APIs) that help you analyze information like market changes, pricing, volume and graphs based on your predetermined settings. Trading bots are also helpful in working when you cannot.
This technology has been used in stock markets for many years. As an example, people wonder how investors know when to buy in or sell their stocks. It is because of software that mines for data and determines trading practices that make stocks lucrative. A recent study by the University of Southern California found the software that monitors consumer chatter enable traders to know when it is time to buy or sell based on how they react to products. Consumer complaints are indicators of when stocks will rise or fall. This type of stock market technology would cost in excess of $10,000. Today, bots are much more affordable thanks to the disruption of traditional investment practices.
How is cryptocurrency different? Cryptocurrency market traders have direct access to blockchain ledgers, so it is a more straightforward process. The problem is that there is much data to analyze, which is where a reputable trading bot application comes in handy. To make trading lucrative, you need a software system that overcomes high data volume challenges.
The Top Trading Bots
Here is a look at some of the highest-ranking cryptocurrency trading bots:
Bitcoin Trader was originally started by a group of cryptocurrency traders but has since expanded to include a diverse group of traders. It is rated among the top trading bot software applications because of its mining accuracy. Bitcoin Trader test results show it has a daily profit margin of €13,000 ($15,186 USD) and a 99.4 percent rate of success among its users.
Another benefit of this trader bot is that your initial buy-in is $250 but your payout is 99 percent, which shows its trading fees are much more affordable than other systems. The advanced technology also scales as your knowledge does. Whether you are a novice or an expert, you have a manual or autopilot mode to correspond with your growing skill set.
Gekko is a free, automated open source trading bot on the GitHub platform that provides access to major cryptocurrency exchanges. It provides access to the essential trading tools, but it is not as technical or advanced as other platforms. Unlike other pay-per-use bots, this trading software is limited to low-frequency trading and lacks arbitrage trading capabilities.
HaasBot is a multi-currency trading bot that ranges in cost as high as .32 BTC for a three-month user subscription. This trading bot is designed for heavy traders who can afford to navigate a volatile cryptocurrency system knowledgeably.
CryptoTrader is an automated cloud-based bot platform that requires installation on your operating system to participate in the market. You can create a marketplace to buy and sell cryptocurrency development strategies. You can also engage in live trading or backtesting development market performance.
BTC Robot is a fee-based trading bot that requires users to buy license plans that range as high as $498. Platform users can either download the bot or use the cloud. Users also find that the tools are directed more toward high-volume traders since this bot does not offer high-profit margins like Bitcoin Trader. The developers also note that the bot is not designed to predict market changes, which raises the risk of loss.
Gunbot enables its users to customize their requirements based on the trading strategy. It is also limited to cryptocurrency exchanges like Binance, DGAX, Poloniex and Kraken. You have downloadable or virtual private server access, which enables manual coin selection.
As a cloud-based bot, Cryptohopper can operate nonstop whether you are actively participating or not. This bot is an automated system that depends heavily on market signals that determine a user’s performance to buy, sell or trade. You also have access to a highly functional dashboard and a wizard that is fully customizable.
3commas’ bot analyzes many of the top cryptocurrencies including Binance, Poloniex and BitFinex. As this bot is a web-based application, it works around the clock based on your specifications. You can also monitor your dashboard on various iOS devices.
USI Tech is a bot developed for foreign exchange (forex) traders although it also has access to Bitcoin. Unlike the other bots, users have no control over the software even though they profit 1 percent based on their preferred investment package, including initial contribution and setup.
Learn More Before Taking the Plunge
There are numerous Best Bitcoin Trading Bots on the market, and many have district differences between paid and free platforms. While they all offer users some market interaction, some of them provide specialized tools that improve user probability of return on investment. Many of the bots do not specifically cater to passive investors who want to buy and sit on their currency long-term. For short-term traders, bots offer ideal tools to compete with other users in the cryptocurrency market. To lower your risk, you ultimately should either take the time to learn more about cryptocurrency or have knowledge of financial trading strategies before using a bot.