Crypto Trading Bots
Given the rapid automation of digital services worldwide, it’s no surprise that crypto trading bots are also increasing in popularity.
Trading bots are defined as automated computer programmes
If you want to know why crypto trading bots can be either the best or worst decision you’ll ever make, simply keep reading on
Also, do not hesitate to sign up for our cryptocurrency trading course to become a pro in cryptocurrency trading
The History of Trading Bots
Blockchain technology can reshape our world to a point of no return, with cryptocurrency trading being one of the most popular financial markets. In fact, there are more than 47 million Blockchain wallet users across the globe, as of March 2020.
Believe it or not, the history of trading bots dates back to the 50s. It was Richard Donchian, known as the father of trend following
Today crypto trading bots have the potential to reshape the whole industry. These computer programmes are capable of processing high volumes of data
Interestingly enough, figures show that around 75% of trades around the world are done via automated platforms
Crypto Trading Bots: The Best Decision You’ll Ever Make
Cryptocurrency trading is an expanding field that is known for its high volatility
Trading bots offer numerous advantages as they are programmed to analyse complex data, including market volume, prices, trends, and trade
Moreover, cryptotrading bots don’t need their beauty sleep
Once programmed, trading bots are there to analyse the market 24/7cloud-based bots
Crypto trading bots benefit not only traders who do not have the physical time to monitor the market 24/7, but enthusiasts who do not trade full-time
Trading bots also allow users to explore different market strategies and trading ideas
Moreover, trading bots do not stress over the volatility of the cryptocurrency market, they’ll never trade out of greed or disappointment
By eliminating emotions from trading, crypto trading bots facilitate large and repetitive tasks and reduce human errors
In other words, trading bots can be the best decision you’ll ever make:
- They are able to analyse pre-defined criteria and complex metrics in a timely manner.
- Crypto trading bots facilitate the monitoring of market data 24/7.
- They guarantee high-efficiency and multi-tasking.
- Trading bots are immune to the emotional aspects of trading and human errors.
How Do Trading Bots Work?
Despite the wide range of crypto trading bots available on the market, we should note that all crypto trading bots have a few features in common.
Trading bots implement the following aspects : backtesting, strategy implementation, execution, and job scheduler.
Backtesting
Strategy implementation
Execution
After the execution stage, it’s time for the complete automation of the process and set-up of a job scheduler
What Are the Best Crypto Trading Bot Strategies?
Cryptocurrency trading is a complex and changing field, so traders must invest a lot of time in research and practice in order to establish a successful trading strategy.
Here we’ll discuss some basic trading strategies that can help traders become pros in cryptocurrency trading .
Note that different strategies can be implemented in different crypto trading bots
- Arbitrage bots are based on the idea of cryptocurrency arbitrage trading
- Market making bots are also popular. They are based on the so-called market making strategy
- Trend trading is another strategy that allows bots to execute trades based on specific trends and movements. The use of technical indicators
- Portfolio automation bots
- Mean reversion bots allow users to analyse the currency in relation to its historical fluctuations and average, assuming there’s always a stable trend and prices will reverse back to the mean.
- Last but not least, automated crypto trading bots
Crypto Trading Bots: The Worst Decision You’ll Ever Make
Though trading bots have numerous advantages in the constantly changing world of cryptocurrency trading, the truth is that they can become the worst decision you’ll ever make.
First of all, crypto trading bots are extremely expensivereliable and profitable
Transparency is another important factor to look for when choosing a trading bot. It’s not a secret that reputable developers can provide higher standards and transparency
Inexperienced users are not encouraged to use crypto trading bots. After all, trading bots require expert-based configuration and monitoring
Note that failing to set stop-loss limits
On top of that, when it comes to crypto trading bots, many security concerns
Though blockchain systems are hard to hack, hackers often target bots as these systems have access to your currency. That’s why users must always keep their keys safe and switch off automated withdrawals
In other words, trading bots can be the worst decision you’ll ever make:
- Crypto trading bots can be highly expensive.
- They require configuration and monitoring.
- Automated systems are not suitable for inexperienced users.
- Trading bots come with various security risks and poor quality software concerns.
Crypto Trading Bots: Which One to Choose
The cryptocurrency market is expanding constantly, with more and more crypto trading bots being developed every day.
Different trading bots support integration with different cryptocurrency exchanges (for example, Kucoin) and are available at different rates.
Though there’s no one-size-fits-all approach to trading
Though you have to do your own in-depth research, recent searches show that the most popular crypto trading bots
- Cryptohopper
- Gunbot
- Haasbot
- 3Commas
- NapBots
- Zenbot
- Gekko
- Crypto Trader
- CoinBot
- CWE
Note that we are not affiliated with any of the above, so always check user reviews for further details and user experience.
Key Points
- Crypto trading bots are software programmes based on different trading strategies and algorithms
- Trading bots allow traders to make trades based on profound analysis and technical metrics
- They can monitor market trends 24/7 eliminating emotions and human error
- Additionally, these systems can operate on the cloud
- Around 75% of cryptocurrency trades
- Crypto trading bots, however, require configuration and monitoring
- Such automated systems can be extremely expensive
- Security risks
- Though there are different crypto trading bots available on the market, trading bots should guarantee high efficiency, reliability, profitability, and transparency
- User-friendly design principles are also important, especially to help inexperienced users to get started.
- Some of the most popular crypto trading bots are Gunbot, 3Commas, CoinBot, and Haasbot.
To sum up, trading bots have different advantages and disadvantages. They can be either the best or worst decision you’ll ever makedo your research before choosing a crypto trading bot.
If you want to learn more about crypto trading bots and become a pro in cryptocurrency trading, then do not hesitate to sign up for our course .
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Tuesday, October 20, 2020