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 that trading robots can help to optimise trading performance and maximise profits. In this guide we’ll explain the benefits and drawbacks of autotrading and help you to choose a robot that matches your needs.
Where can I find the best cryptocurrency trading robots?
After careful analysis, we’ve identified and compiled the best crypto robots on the market. Take a look at the results below. Not sure what you’re looking for? Read on to find out more about crypto robots and how they can help you to optimise your trading performance.
Read crypto-robot reviews
Aren’t sure how to choose? That’s exactly why we’ve provided reviews for you to read and compare the auto traders available. Find reviews for the most recognised bitcoin robot brands; Bitcoin Lifestyle, Bitcoin Revolution, Bitcoin Era, and more.
What is autotrading?
In simple terms, auto trading software is designed to execute trading on your behalf. You can set up an auto-trading robot to trade without any intervention and the software will use technical analysis indicators to determine the best trading times and combinations. In theory, a trading robot should help you to maximise profits.
What are auto-trading crypto robots?
Crypto robots (aka, automated trading software, expert advisers (EAs), trading robots, bitcoin robots) execute auto trading using different algorithms, constantly monitoring chart patterns and market news, among other indicators. 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 crypto trading. 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.
How do crypto robots work?
In basic terms, crypto trading robots work by retrieving 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 crypto robot. Using technical indicators and its pre-defined algorithm, the 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.
A crypto robot 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 $8000, 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.
Are robots legit? Will they make me money?
Yes, many popular robots are entirely legitimate and designed to maximise crypto trading potential. However, as with almost any market, scams are not uncommon, so a sensible degree of caution is advisable.
Autotrading crypto robots can be thought of as tools to help in the development and execution of trading strategies. They also take emotional and psychological considerations out of the equation.
However, while there are advantages to executing trades using robots, especially in the cryptocurrency industry, they don’t come with a guarantee of profits.
Are robots safe and secure?
Yes, popular trading robots have proper security protocols in place to prevent you from getting hacked. Scepticism towards crypto robots 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 exchange.
Here are a couple of strategies that should help to ensure security:
- Keep API keys for robots safe and do not disclose the information to anyone.
- Protect your crypto wallet’s private keys.
- Although inconvenient, it is better to turn off automated withdrawals and do them manually.
- Do your own research thoroughly before choosing a crypto bot.
How to choose your perfect cryptocurrency robot
If you’re a beginner, choosing suitable auto-trading software that meets your requirements can be tricky. We’ve compiled a list of factors that help you to select a robot that suits all your needs.
- Backtesting – The best robots allow you to backtest your present trading idea or strategy against historical data. Backtesting allows traders to create an optimum strategy and improves the likelihood of success.
- Fees and cost – Study the fee structure for any robots you’re considering using before you sign up. Most of them have more than one plan, including basic to advanced packages. The fee structure varies from around $20 per month to as much as $100 for advanced or pro packages.
- Compatible exchanges – Check if your selected 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.
- Multiple payment methods – Most robot 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.
- Deposit and withdrawal limits – Deposit limits may vary between service providers. Robots require you to fund your account with a minimum investment. Robots like the bitcoin code have a requirement of $250 per month.
- Good reputation – Before you choose your robot, 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.
- Security – The crypto robot will be connected to your exchange account so make sure it uses a secure API for information transmission.
- Design and ease of use – The user-interface and design of your chosen software should be reasonably intuitive and easy to navigate. Sign up for a demo account to familiarise yourself with the software.
Will I also need an online exchange account?
Yes. crypto robots will be connected to your exchange account using an API. If you haven’t already signed up for an account, we suggest selecting one from this list of bitcoin exchanges.
The advantages of using automated trading software
Check out some of the advantages of using an auto trading robot for cryptocurrencies.
- Eliminate emotions – One of the advantages of using a robot is that it can help to keep emotions in check. Autotrading software automatically carries out trades as per your instructions. It isn’t influenced by emotions like fatigue or stress.
- Longevity – Crypto markets run round the clock and are extremely volatile – a matter of hours can entirely change the complexion of the market. Auto trading robots offer a way to continually monitor markets.
- Accessibility – Crypto trading is risky, especially if you’re a novice. Crypto robots lower the potential for losses by executing trades based on proven algorithms.
- Backtest – Crypto robots provide you with the tools to backtest a trading strategy or an idea. By backtesting an idea based on historical data, a trader can finetune their strategy.
- Capacity – Auto trading robots can process many gigabytes of data in a matter of seconds. It is impossible for a human to factor-in such volumes of data and make effective trades based on complete knowledge.
- Entry speed – The volatility of crypto markets means that it’s possible to make a huge loss very quickly. Robots act with enhanced speed and can enter and exit a trade with precise timing.
What are the drawbacks?
- Advanced programming – To conduct effective trades, a certain degree of advanced programming and basic technical analysis knowledge is required.
- API access – If a hacker can gain entrance to your API any crypto funds you have on the exchange platform are vulnerable to theft.
- Over-optimisation – Over-optimisation of trades can result in negative results. Useful tools like backtesting don’t guarantee success. Live trade results can turn out to be very different to backtested trade outcomes.
Should I use a bitcoin robot?
It’s up to you to weigh up the benefits of crypto trading robots. There’s no doubt that a good 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 robots can clearly add speed, accuracy and discipline to your trading, you should regard them as tools to be deployed intelligently rather than fix-all solutions.