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- 1. Compare the 11 best bitcoin robots in 2023
- 2. Best crypto trading bots overall for 2023
- 3. Where can I find the best crypto trading bot?
- 4. Top 11 crypto robots in 2023, reviewed
- 5. Read crypto robot reviews
- 6. What are auto-trading crypto robots?
- 7. Are crypto trading bots legit? Will they make me money?
- 8. How to choose your perfect cryptocurrency robot
- 9. Quick answers to key questions
- 10. How to set up a crypto trading robot safely
- 11. Should I use a Bitcoin robot?
- 12. Methodology: How did we choose the best Bitcoin robots?
- 13. FAQs
Compare the 11 best bitcoin robots in 2023
The cryptocurrency industry is still evolving. To navigate the curve of this emerging investment opportunity, crypto traders are looking for ways to gain an edge and finding the best crypto bot can help to optimise trading performance and maximise profits.
Best crypto trading bots overall for 2023
- Immediate Edge: Best for analysing historical crypto data to make trade predictions
- Bitcoin Up: Best for automated crypto trading during volatile markets
- Bitcoin Motion: Best for using artificial intelligence to trade crypto
- BitIQ: Best for finding crypto trades based on statistical modelling
- GSIC: Best for crypto signals by a pro-trader
- Oil Profit: Best for finding trade opportunities in smaller markets
- Bit Index AI: Best for using AI and machine learning to trade Bitcoin
- Bitcoin Bank: Best for using AI to place your own manual trades
- Bitcoin Code: Best for a trading bot that combines experience with technology
- Bitcoin Era: Best for placing trade orders to execute at a certain price
- Bitcoin Prime: Best for placing automated trades through regulated brokers
Where can I find the best crypto trading bot?
After careful analysis, we’ve identified and compiled the best crypto bots on the market. Take a look at the results below. Read on to find out more about how the best Bitcoin trading bots can help you to optimise your trading performance.
Top 11 crypto robots in 2023, reviewed
1. Immediate Edge: Best for analysing historical crypto data to make trade predictions
Pros & Cons
We love Immediate Edge because it uses AI to analyse historical crypto market data and identify winning trends. The Immediate Edge algorithm can be applied to 250+ cryptocurrencies and has a 99% success rate.
The Immediate Edge software is simple to get started with. Customer support is available after registration, when you’re assigned your own account manager to create a bespoke trading system and help with any questions you might have.
The fees: Immediate Edge is free to use, but you must make a $250 minimum deposit in order to be able to place live trades. Each trade is charged a trading fee of 2%.
2. Bitcoin Up: Best for automated crypto trading during volatile markets
Pros & Cons
We love Bitcoin Up because it’s a trading robot designed to work best during times of high volatility. The bot works best with Bitcoin, but can be programmed to trade Ethereum and other cryptocurrencies as well.
Using AI-powered algorithms, the robot can see through the noise to pick out profitable patterns. With a few clicks you can set it up so that it sends trade signals automatically to your broker, meaning that the whole process needs very little time or oversight on your part.
The fees: Each trade is charged a commission, which varies but ranges from less than 1% to 2-3% depending on the size of the trade. There are no other fees for using Bitcoin Up.
3. Bitcoin Motion: Best for using artificial intelligence to trade crypto
Pros & Cons
We love Bitcoin Motion because it uses AI to identify winning Bitcoin trades. The Bitcoin Motion software applies machine learning to the cryptocurrency market, and you can set it up to trade top cryptos, including Bitcoin, Ethereum, and Litecoin.
There’s a free demo account for you to test the software before signing up. Once you do, all trades are placed through regulated brokers. Leverage up to 400:1 is available with all of Bitcoin Motion’s partners.
The fees: The software is free to use but you have to put down a minimum deposit of $250 before placing any trades. Trading fees are variable depending on the broker you place trades with.
4. BitIQ: Best for finding crypto trades based on statistical modelling
Pros & Cons
We love BitIQ because it offers a trading robot backed by statistical algorithms. BitIQ is designed to work best with the top ten cryptocurrencies but its model can be applied to any crypto coin.
The BitIQ bot boasts a 95% success rate on crypto trades, but for your peace of mind you can still test the platform with a demo account once you sign up. It places trades through third-party brokers, which are regulated in their own jurisdiction.
The fees: There is a minimum deposit of $250, which effectively acts as the sign up fee. You must also pay trading fees, which can range from $0 to 1-2% of the trade amount, depending on the broker you use.
5. GSIC. Best for crypto signals by a pro-trader
We love GSIC because of the range of signals on offer and how simple it is for beginners to use. With GSIC you get signals backed by decades of trading experience alongside a start-up kit to help you understand the method behind the trades.
Get Started in Crypto is owned and operated by Lisa Edwards, a trader with 20+ years experience trading and one of TradingView’s Top Traders. There are two subscription options, one for the signals and one more comprehensive package that sets you up to trade the signals automatically.
The fees: A GSIC paid signals subscription costs $69 per month. The ‘LisaBot’ automated trading package is $169 per month. You can pay for both subscriptions with fiat currency or cryptocurrency.
6. Oil Profit: Best for finding trade opportunities in smaller markets
Pros & Cons
We love Oil Profit because it makes commodity trading accessible to everyone. The Oil Profit software is designed to work best with commodities but you can apply its algorithms to cryptocurrency and stocks as well.
Oil Profit partners with brokers that are regulated by European authorities, such as CySEC. That regulation offers investor protection so that your money is safe. You can also test the software with a free demo account before depositing any money.
The fees: You must put down a $250 deposit before you can use the software. Trading fees range from 0-2%. The demo account is free but you must download the software in order to use it.
7. Bit Index AI: Best for using AI and machine learning to trade Bitcoin
Pros & Cons
We love Bit Index AI because of the way it combines artificial intelligence and machine learning to predict crypto market movements. The Bit Index AI bot offers automated trading on 50+ cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin.
Bit Index AI uses brokers regulated by European financial authorities in Cyprus and abides by KYC regulations to keep your money secure. There’s a free demo account available so you can test the bot before depositing any money.
The fees: Free to download the trading robot but you must make a minimum deposit of $250. Trading fees may also apply but these vary depending on the broker you use.
8. Bitcoin Bank: Best for using AI to place your own manual trades
Pros & Cons
We love Bitcoin Bank because it’s a trading robot that works on all types of currencies, whether they’re digital or fiat. Bitcoin Bank uses decades of past price data to train its software to identify winning patterns and trends.
All of that data is then available to you, so that you can either automate trades or manually place them based on the information at your disposal. This flexibility is a key selling point, as it allows you to utilise advanced technology while still maintaining control over your money.
The fees: The software is entirely free, and you can use a demo account for free as well before depositing any money. You may have to pay a trading fee on each trade. The exact amount is set by each individual broker, but can be as high as 2-3%.
9. Bitcoin Code: Best for a trading bot that combines experience with technology
Pros & Cons
We love Bitcoin Code because it’s a trading bot built by Wall Street Traders. It combines industry know-how and experience with advanced computer algorithms. The result is a crypto trading bot that can predict future market moves with unerring accuracy.
All Bitcoin Code’s affiliated brokers are registered and regulated by EU authorities. There’s also a demo account that you can use to try before you buy. Once you sign up, all your questions are answered by a customer representative who’s on hand 24/7.
The fees: There are no fees for using Bitcoin Code. The only cost is that charged by third-party brokers, through which the software places trades. Each trade is charged a commission of between 1-2%, depending on the size of the trade.
10. Bitcoin Era: Best for placing trade orders to execute at a certain price
Pros & Cons
We love Bitcoin Era because it combines top-tier security with a simple trading interface. You can use the Bitcoin Era software to trade more than 100 cryptocurrencies, from market leaders like Bitcoin to small-cap cryptos like Dash and Algorand.
The Bitcoin Era robot uses military-grade encryption to protect your money. All trades are placed through CySEC regulated brokers. There’s also a free demo account so you can trial the software before putting any money in.
The fees: You must place a minimum deposit of $250 in order to download the software. Each trade may be charged a commission, but the amount depends on the broker. Expect to pay between 1-3% per trade.
11. Bitcoin Prime: Best for placing automated trades through regulated brokers
Pros & Cons
We love Bitcoin Prime because it uses advanced computer code to pick out winning trades in the crypto market. The Bitcoin Prime robot was created by an ex-software developer named Steve McKay and works for Bitcoin, as well as other leading cryptocurrencies.
The Bitcoin Prime software can place trades faster than is possible for humans trading manually. It starts to send orders to CySEC regulated brokers on your behalf automatically as soon as you make your first deposit.
The fees: There are no fees for using Bitcoin Prime but you have to make a minimum deposit of at least $200 when you sign up. Each individual trade is charged a 1% fee.
Read crypto robot reviews
Aren’t sure how to choose? That’s exactly why we’ve provided reviews for you to read and compare best cryptocurrency trading bots available. Find reviews for the most recognised crypto bot brands like Bitcoin Trader, Bitcoin Code, Yuan Pay Group and Bitcoin Prime, all thoroughly investigated by our team of reviewers.
Here’s a full list of the top crypto robots to trade Bitcoin with;
What are auto-trading crypto robots?
Crypto bots are automated services that buy and sell crypto for you. Bots (which are also known as automated trading software, expert advisers, trading robots, or Bitcoin robots) normally use some kind of software to create a series of guidelines and then execute trades according to those rules.
Each advanced crypto trading bot has its own set of guiding principles and you can adjust them to suit your preferred trading style. They constantly monitor chart patterns and market news, among other indicators. The bot then uses this information to search the crypto market to find trading opportunities based on the criteria you set. After analysing the available information, they can execute a trading order within seconds.
While trading robots have been available for decades in other financial markets, they are relatively new to cryptocurrency. They are also pretty affordable. Access to Bloomberg’s trading terminal would cost thousands, but the transparent nature of crypto allows a user to directly access an exchange’s order book for far less money.
What types of crypto trading bot are there?
The most common are trend trading bots, which use a range of different tools to help identify which way price will move and then execute orders in line with the current market movements, and crypto signal bots, which analyse the crypto market and then send trade alerts whenever they see a pattern that indicates a buy or sell opportunity.
Here are some other popular types of bots:
- Grid trading bots. A grid trading bot follows a particular crypto trading strategy known as ‘grid trading’. It involves placing a number of trades at predetermined values around a fixed price. A grid bot, as the name suggests, constructs a grid around that fixed price point then executes trades automatically, buying more crypto when prices are below the value and selling more when it’s above.
- Arbitrage bots. An arbitrage bot is designed to place crypto trades with different crypto exchanges in order to take advantage of small differences in price between them. Arbitrage trading is a common crypto trading strategy. For instance, if the buy price of a coin is higher on one crypto exchange than on another, the bot automatically places crypto trades to buy at the lower price and sell at the higher one, making a small profit each time.
- Rebalancing bots. A rebalancing bot works to ensure that the ratio of crypto coins in your portfolio remains the same as the value of each coin rises and falls. If have $500 of BTC and $500 of ETH, then the price of BTC falls, it would automatically sell some Ethereum to buy more Bitcoin and keep the ratio the same.
Other forms of AI crypto trading bot perform scalping trades. These are much more high frequency crypto trading bots that look to take advantage of very small price changes, or price inconsistencies across exchanges.
There are also bots that follow other crypto trading strategies, such as dollar cost averaging bots, which invest automatically at regular intervals, or Martingale bots. A Martingale bot is designed to gradually reduce your average position cost over time by selling as prices rise, and buying as prices fall.
How do Bitcoin robots work?
In basic terms, crypto trading bots work by sending and receiving data from an exchange. Cryptocurrency exchanges allow developers to attach their auto trading program via the use of an API and the API sends market data to the bot. Using technical indicators and its pre-defined algorithm, the crypto robot calculates a trade and sends the execution details to the API. Finally, the same interface sends the order of trade, which is then automatically executed by the user’s exchange account.
Many crypto trading bots can also be used to carry out trades based on your rules by inputting pre-defined conditions. This is particularly useful for crypto markets because they are active 24/7 all year round. For example, a user might input the condition of executing a long position as soon as the price of 1 BTC crosses $20,000, while maintaining the stop loss restricted to 4% volatility. This enables the BTC robot to execute the trade automatically, as soon as the conditions are met.
Read more: How do Bitcoin trading bots work
Are crypto trading bots legit? Will they make me money?
Yes, many popular crypto trading bots are entirely legitimate. However, as with almost any market, there are some scams, so a sensible degree of caution is advisable. Be particularly careful of anything that advertises itself as a completely free crypto trading bot, as they often come with a catch or are outright scams.
A Bitcoin trading robot can be thought of as a tool to help in the development and execution of your crypto trading strategy. Trading robots use artificial intelligence, machine learning, or other forms of computer algorithm to take emotional and psychological considerations out of the equation. They can be ideal for new crypto traders, or anyone who struggles with self-discipline.
While there are advantages to using cryptocurrency trading bots, there are no guarantees. Many of the trading strategies they use can be profitable in some conditions, or at certain times, but they’re unlikely to be successful all the time.
Are crypto robots safe and secure?
Yes, the best crypto trading robots have proper security protocols in place to prevent you from getting hacked. Scepticism towards them is understandable as they use third-party API applications to connect with user accounts, but access can be withdrawn at any time by deleting API keys on the crypto exchange.
The important thing is to always keep the API keys for your Bitcoin robot safe and do not disclose the information to anyone. You should also turn off automated withdrawals and do them manually, and keep the private keys to your crypto wallet secure. Ultimately, the most important thing is to do your own research thoroughly before choosing a crypto bot.
How do I find a genuine crypto trading bot?
There are a few tell-tale signs that can help you find a genuine cryptocurrency trading bot as opposed to a scam. Here is a list of what to look out for to identify a genuine platform.
- Clear information about how the crypto trading bot works. Legitimate Bitcoin trading bots explain how the software works in detail, and allow you to sign up to test the platform without depositing any money first. Scams tend to speak vaguely and hide behind terms like ‘advanced technology’ or ‘quantum computing’ and promise unrealistic returns.
- Names the brokers or exchanges it partners with. Crypto bots work by sending trades to brokers or exchange platforms in order to execute them. Genuine bots state clearly who those brokers are, and you should look for reputable firms like Binance, Kraken, or Huobi. Beware of any platform that doesn’t name its partners, as it means they are likely unregulated and could be dangerous.
- Professional website. A genuine service will have a sleek website that looks like something a real company would have. You will be able to easily find information about the company, who works there, and it should have a support page. Fake crypto trading bots have websites that are usually just one or two pages with no information about the team behind the bot.
- Doesn’t hide behind celebrity endorsements. Some fraudulent crypto trading bots often make wild claims about famous personalities who have used or endorsed the platform in lieu of hard facts about the service. Any crypto bot that claims to be endorsed by the likes of Elon Musk or Bill Gates is almost certainly a scam.
- Low minimum deposits. A genuine crypto robot is likely to require only a small starting deposit, such as £10 or £50. It will also offer a free trial period that you can use before you deposit anything to test how the platform works. A scam will ask for $250 or more, and may promise a demo account but you won’t be able to access it until you’ve made the deposit.
- Unique description of the platform. Browse around a few crypto robots and you’ll see that the genuine ones each have a unique selling point and are notably different. By contrast the scams all make very similar claims; trading success rates of 80% or more, $250 minimum deposits, and require a call with a ‘customer service representative’ before you can complete sign up.
How to choose your perfect cryptocurrency robot
We’ve compiled a list of factors that help you to select a Bitcoin bot to suit all your needs. This can help you choose the best Bitcoin robot and create the perfect trading system.
- Backtest its performance. The best Bitcoin robots allow you to backtest your present crypto trading strategy against historical data. Backtesting allows traders to create an optimum strategy and improves the likelihood of success.
- Find the right pricing plan. Study the fee structure for any crypto robots you’re considering using before you sign up. Most of them have more than one plan, with basic and advanced packages available. The most advanced crypto trading bots might have a sliding scale of subscription options, from a free trial version to extensive paid plans. The fee structure varies from around $20 per month to as much as $100 for advanced or pro packages.
- Review compatible exchanges. Check if your selected crypto robot is compatible with the exchange you generally trade on. The most popular robots typically support prominent exchanges including Binance, Bitfinex, Bitstamp, Bittrex, and Kraken.
- Look for multiple payment methods. Most crypto trading bot service providers offer common payment methods, including wire transfer, credit card and PayPal. In addition to traditional methods, many software providers have also started offering Bitcoin and other cryptocurrencies as payment options.
- Check deposit and withdrawal limits. Deposit limits may vary between service providers. Bitcoin robots require you to fund your account with a minimum investment. Robots like Bitcoin code have a requirement of $250 per month.
- Prioritise reputation. Before you choose your Bitcoin bot, take a close look at any online testimonials you can find and verify if customers are completely satisfied. We also offer genuine reviews that should help you to make a well-informed decision as to which are the top crypto trading bots.
- Use a secure API. The crypto trading bot will be connected to your exchange account so make sure it uses a secure API to transmit your trades. The best Bitcoin robots have tutorials and video guides to help you. Be wary of any cryptocurrency trading platform that just asks you for money and doesn’t offer any guidance on how to stay safe.
- Test it to make sure it works for you. The user-interface and design of your chosen automated crypto trading bot should be intuitive and easy to navigate. Sign up for a free demo account to familiarise yourself with the software before you deposit any money. Demo trading is a great way to test a Bitcoin robot before you risk your money.
Quick answers to key questions
Is it legal to use a cryptocurrency trading bot?
It is perfectly legal to use a crypto trading bot in any jurisdiction where crypto trading is permitted. Automated trading is a widely accepted practice in traditional finance and many stock market trades are placed automatically. A crypto bot is simply a means of trading that doesn’t require a human to manually place the trades, and it doesn’t bend the rules in any way.
However, there are obviously some caveats to this. Some crypto bots are outright scams, while others use tactics which are unethical, if not openly illegal. That can include things like ‘pump and dumps’, or services that direct crypto investors to unregulated brokers who will simply take your money and run. Those bots operate outside of the law.
Similarly, you must still abide by investing laws in your country. Some countries have banned crypto trading outright. You can’t use a crypto bot if you’re a resident in those places.
Will I also need an online exchange account?
Yes. A Bitcoin trading robot finds trading opportunities but it doesn’t place the trades itself. It sends the trading signals to an exchange, where the order is executed. You can connect a Bitcoin robot to the exchange via an API.
Choose one of the best crypto exchanges and set up an account. Then go to your account settings where you can find details about how to connect to the account via an API. You need to find the API key, then enter that into your Bitcoin bot to connect the accounts together.
What are the fees for using automated crypto software?
Each crypto robot has its own pricing structure but you usually have to pay a subscription to use one. Often there are multiple packages available depending on how many different trading strategies you want to run. These can range from $10 up to $100 or more for the most advanced package.
There may also be other hidden fees as well. Along with the subscription you may have to pay trading fees or commissions. These can mount up quickly and make running a Bitcoin robot quite expensive. Make sure you pick an exchange with low trading fees if you plan on sending a lot of trades.
Some crypto trading platforms choose to avoid a subscription fee altogether. Instead, you may be asked to put down a minimum deposit of $250 before you can start trading. This is how Bitcoin Prime sets out its fee structure and the same is true of many other trading robots.
Do I have to pay tax on automated crypto trading?
Yes, if profits from crypto transactions are taxable in your location (and most are), then it is highly likely that using automated software will result in having to pay tax. How much you have to pay depends on a wide range of factors, such as where you live and the size of your annual income, and you should contact a tax professional or accountant if you aren’t sure about the laws where you live.
In most countries cryptocurrency is classed as property or an asset. This means any profits you make using the best Bitcoin trading bots will be subject to a capital gains tax. In the UK for example, you have to pay tax when your total capital gain exceeds £12,300. In other regions, profits from cryptocurrency trading can attract an income tax.
Where can I find free crypto trading bots?
Social trading networks are one of the easiest ways to find free bots. Firms like eToro and ZuluTrade have led the way in social trading and offer a place that connect experts with beginners. Experts link their trading accounts to the network, and other users can copy the trades automatically into their own accounts.
Other options include simply using Google – although this can be time consuming and puts you at risk of signing up to scams – finding bots through online reviews, or using open source robots that are freely available. Open source crypto robots like Zenbot and Gekko can be quickly installed and customised. To get the best use out of them you’ll need to have some coding skills, but these bots have active online communities where you can find and share ideas.
Can I use a Bitcoin trading robot on MetaTrader4 (MT4)?
Yes, if your broker has the Bitcoin market available with MT4 then you will be able to use a bot on the platform to trade it. On MetaTrader 4, robots are referred to as expert advisors (EAs) so if you buy automated trading software, you’ll need to make sure it works as an EA.
All you have to do is buy an EA online or from the Metaquotes app within the MT4 platform. Your Bitcoin robot will be a file that you’ll save to your computer, usually in the C drive. Open up the file called ‘experts’ within your MetaTrader 4 and paste your robot into it.
Next, open up the MetaTrader 4 platform and find the ‘expert advisors’ section. Click the ‘plus’ sign and select the EA you just transferred. Finally, drag it onto any chart and it will be ready to go. We recommend that you use a virtual private server (VPS) when using an EA on MT4. A VPS makes sure your crypto bot trading platform is operating around the clock, which is especially important for Bitcoin as the market is open 24/7.
Can I create my own crypto robot?
If you have coding knowledge then making your own Bitcoin trading robot on MT4 is easily achievable. You will have to use MQL4, which is a coding service offered by Metaquotes. Alternatively, there are lots of third party vendors that allow you to create a Bitcoin EA for MT4 without any coding experience.
How to set up a crypto trading robot safely
Each type of robot is set up differently and may require different skills in order to get it to work. For example, if you buy a crypto trading bot online, you just have to connect it to your exchange or broker platform. If you design your own, then you may need to write some computer code before it works properly.
It’s more common to buy a robot online or to subscribe to an automated service. Here’s a quick guide that explains how to set up a bot you’ve acquired online.
- Choose the type of bot to use. The safest way to use bots is to pick crypto trading bots that offer you lots of control over your risk and allow you to set up a system with a low level of risk tolerance. It’s a good idea to select a few options so that you can spread your risk around. You may want to consider trend trading bots and DCA bots, as these both take a longer term view of the markets.
- Download the crypto trading bot. You can either purchase a bot, or sign up for a free Bitcoin trading bot. Whichever option you go with, you’ll most likely need to download it onto your computer. This usually as simple as a drag and drop once you’ve downloaded the file to your desktop, but you can follow the instructions from the developer. Some of the best crypto trading bots operate in the cloud and don’t need to be downloaded, in which case you can skip to the next step.
- Allocate your funds. The safest option is to spread your capital across a few different bots. This is generally better than putting all of your eggs in one basket, although it depends on whether you are confident managing a few different platforms at the same time. Multiple bots are better able to withstand price fluctuations by utilising different strategies. If one bot is performing poorly, others can make up for it.
- Connect to exchange or broker. To connect a bot to a crypto exchange you will require certain information. You’ll need both an API key and an API secret key. You can get these from your exchange account. You then need to go into the settings of your bot, enter your exchange name, and details of both keys. You can connect to multiple crypto exchanges if you want.
- Configure the settings. It’s important to make sure that the settings of your robot are working properly and that they match how you want the crypto bot to operate. That means adjusting the risk tolerance, and how aggressive you want your limit orders to be. All this is normally pre-installed, but it’s a good idea to check them.
- Start live trading. Most crypto bots will start live trading as soon as you give them permission to do so. It is important that you make sure it’s working and set up correctly before you start using it. You should also make sure you regularly check up on your bot and make sure it’s operating as expected.
If you opt to design your own cryptocurrency bot, you can follow the above process to set it up. However, you need to use a programming language to code it, which requires fairly advanced technical knowledge. If this is something you are unfamiliar with, there are many services online that allow you to design and create your own Bitcoin trading bot on easy to use platforms.
How to make passive income from cryptocurrency trading robots
Setting up a crypto bot to earn passive income requires a bit of work before you can get the perfect performance. Here are five top tips to give you the best chance of success.
- Find a profitable crypto bot. You won’t be able to make passive income unless you use a profitable crypto bot. You can either develop your own, buy one, or find a free automated trading bot. You can search for trading robots online, or use the many independent reviews we have on Invezz to find one that’s profitable.
- Set it up right. Many crypto auto traders are sold as ‘set and forget’ software, but most require some adjustments if they’re to work at peak performance. You can decide what strategy you want the bot to follow, what you want it to trade, and set the risk protocols. It’s important to do all of this before you set your bot to work.
- Manage your risk carefully. During the process of setting up your cryptocurrency trading bots you will be able to set your risk parameters. If you want to make passive income using a bot it’s important to keep your risk at a level that is able to sustain the volatile market conditions which are often experienced in cryptocurrency.
- Check in on the bot regularly. To make the most amount of money you will have to check up on your bot at regular intervals. It is risky to not pay attention to how your robot is performing. If your bot is not generating as much passive income as you’d like you may be able to change its settings, or adjust your risk parameters.
- Use multiple bots. There are lots of types of crypto bots and making passive income can be easier if you use more than one. You could use a scalping robot to capitalise on short term price movements when markets are slow. You could combine it with a swing trading bot to earn money from trending markets.
Should I use a Bitcoin robot?
It’s up to you to weigh up the benefits of Bitcoin bots. There’s no doubt that a good trading robot has the potential to seriously upgrade your trading capabilities, but It’s important to keep in mind that robots don’t guarantee profits. While a Bitcoin robot can add speed, accuracy and discipline to your trading, you should regard it as a tool to be deployed intelligently rather than a fix-all solution.
If you have never used an automated trading bot before, you should spend time researching the market and reading online reviews before you sign up to anything. Look for websites that seem professional and where you can backtest the software’s performance against historical market data.
When you do settle on a trading platform, it’s a good idea to set up a demo account before you start trading. Even the best Bitcoin bots take a while to get used to and the cryptocurrency market moves quickly. You need to understand the price fluctuations and market trends before you dive into trading for real.
What are the benefits and risks of using an automated Bitcoin trading platform?
There are many reasons to choose a Bitcoin bot but it’s normal to be sceptical, as there are a few scams out there. Here is a quick summary of the pros and cons of using a Bitcoin robot.
- Auto trading software automatically carries out trades as per your instructions.
- Bitcoin robots trade around the clock so you can continually make trades
- Software offers the tools to back test a trading strategy allowing traders to finetune their ideas
- Robots act with enhanced speed and can enter and exit a trade with precise timing
- The best Bitcoin robots have a mobile app so you can fine tune your trading strategy from anywhere
Methodology: How did we choose the best Bitcoin robots?
The crypto trading robots listed on this page were selected by our experts. Each Bitcoin robot was extensively tested to find out how easy it was to go through the registration process and sign up, making a payment, connect to an exchange, and place a trade. We also checked if the results generated from the Bitcoin trading robots were honestly reflected on their vendors website.
While comparing each automated trading system we used a combination of our own research and online reviews. None of the trading signals listed on this page had any influence into how we ranked them. On occasion, we may receive an affiliate commission if you click a link and register an account. Find out more in our review process.
This is completely dependent on your trading ability. If you are an experienced trader, a Bitcoin robot can be a useful tool to sharpen your skills. Equally, if you’re just starting out, a trading platform can provide a service to help you improve your trading skills. But do keep in mind that Bitcoin robots don’t guarantee profits.
Yes, auto trading robots are used for various financial markets including forex markets.
Yes, most of the top Bitcoin robots are pretty simple to use. You should be able to check out the user-interface by signing up for a demo account on a Bitcoin robot that interests you.
Yes, you can use one with prominent exchanges including Binance, Kraken and Bittrex. Make sure your chosen Bitcoin robot is compatible with your favoured exchange, and the exchange supports cryptocurrency trading.
Yes, or at least they should be. The best Bitcoin robots are backtested and will let you analyse the results before you make a deposit.
Be ware of any Bitcoin trading bots that hide their data or don’t allow you to test it before you start. While many automated trading robots are legit, there are some that only exist to deceive you into transferring money to them.
Bitcoin robots are legal in countries that allow cryptocurrency trading. In the UK, it is legal to trade crypto and use robots. The only thing you may be asked to do is provide some ID when you sign up for a trading account. This is so that the trading platform can comply with KYC regulations.
A Bitcoin robot will be associated with your exchange account which typically stores your digital identification. It’s very difficult to remain anonymous while you use a Bitcoin robot.
The trading platforms that do offer anonymity usually do so for a reason, and that reason can be malicious. Every regulated trading platform must comply with KYC regulations and so must ask for a form of ID when you create a trading account. If it doesn’t ask for that information you should be careful about transferring any money.
Your trading history can be found on your crypto exchange trading account. Your Bitcoin robot sends all trades to an exchange for them to be executed, so the information is all stored in the exchange account.
If your exchange platform has a mobile app, you can find a complete record of all your trades via the account settings on your phone.
Yes, although this depends on whether you make money. The amount of tax you’re required to pay depends upon the profits you generate over the course of a year. For example, in the UK, you are liable to pay a capital gains tax if your Bitcoin bot profits exceed £12,570.
You can find crypto tax software companies that help you to manage this side of things.
Tax regulations differ from one country to another. Check the local regulations where you live for the full tax laws.
Yes, in the UK, CFD platforms and Bitcoin robots are regulated by the FCA. If you’re not from the UK, please check the regulatory status in your home country.
Most likely yes, as crypto trading has only been banned in a handful of countries.
China is the most high-profile country to have banned cryptocurrency completely, but it isn’t the only one. Here is a quick list of the nine countries where cryptocurrency, and thus using a crypto bot, is illegal:
Some other countries, such as Turkey, have restricted the use of cryptocurrency. That normally means a ban on using crypto to buy things, and it’s still legal to buy and sell it as an investment.
It may be possible to pay zero taxes on your crypto robot profits, although this is usually only achievable if you live in a region where cryptocurrency is tax free. For example, in countries like Singapore and Portugal, profits from cryptocurrency automated trading are tax free (for now).
More of the best crypto rankings
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