Do Cryptocurrency Automated Trading Bots Really work?
According to a report by Reuters, over 80% of stock orders on JP Morgan’s trading platform was driven by automated bots, and some days the number reached 90% as well. On the other end of the spectrum is the cryptocurrency market, which is booming, and billions of dollars change hands every day in bitcoins and other altcoins. However, in a volatile market that is active 24×7, keeping a tab on prices constantly to generate profits is daunting for even a professional trader.
The solution that automation provides is promising. With the advancements in technology and data processing, organisations and even individual traders can now create systems that monitor the prices, generate signals based on pre-coded conditions, and execute the trade on the exchanges. This is also called robot or bot trading. Bot trading is a complete hand-free experience and is rapidly gaining popularity. These methods are not new; big banks and funds have been using these systems for decades. The technology innovation has made it possible for retail users also to take advantage of automation.
With automation services now available at very nominal fees, manual trading is becoming more and more obsolete. These trading bots were majorly used in forex trading. However, they have now made their way into stocks, commodities, and of course, cryptocurrency.
This article discusses the pros and cons of CryptoCurrency Trading bots. The article also reviews 3 of the best platforms you should use to create a trading bot or rent a prebuilt bot to take care of the trading hassles for you.
Why Use Automated Trading Bots?
As bitcoin bot trading takes its place on the helm, it is imperative to understand its pros and cons:
- Trade 24×7 with a bot, and sleep while you trade.
- Extremely useful for new and passive traders.
- They are time-efficient and can execute trades in a blink of an eye.
- Eliminate emotion with bots and remove factors that cloud your judgement.
- Bot trading makes it easier to enter the crypto trading industry, as you don’t need extensive knowledge to start investing with these bots.
- Finding the right strategy is difficult, which can lead to a constant need for improvements and tweaks.
- Bots often implement stop losses, which do not take into account market rebounds, and investors may end up losing a lot of capital.
- Even though they are automated, bots need monitoring to ensure everything is running smoothly, as they are prone to digital anomalies.
Executing bitcoin bot trading can be extremely useful for traders, especially beginners. These automated bitcoin trading bots make it easier to enter the crypto trading industry, as you don’t need extensive knowledge to start investing with these bots. Moreover, these bots execute efficient trades and may not require constant monitoring to ensure profits. These bots are also time-efficient and can execute transactions in the blink of an eye, faster than humans, of course. Using these crypto trading bots, you can trade 24×7 without any issues and sleep while you trade.
Which Crypto Trading Bots You Can Use?
There are more than 50 crypto trading bot platforms out there, and each of them has something unique to offer. While some features are free, the platforms have paid plans to unlock additional features to help you take your trading to the next level. Let’s take a look at the three most popular automated bitcoin trading bots.
Mudrex, a cloud-based automated crypto trading platform, aims to bring automated crypto trading to everyone and is filled with the best crypto trading bots created by experts. These bots are spread across multiple exchanges and cryptocurrencies, allowing users to invest freely. Moreover, users can also build, backtest and publish their own trading strategies if they wish, without writing a single line of code. You don’t have to pay a fee to use the platform, but only pay a small fee when you invest in a strategy, which can be as low as $5, and you can start investing in bots with a minimal amount of $150.
CryptoHopper is another cloud-based automated trading platform and is very beneficial for expert traders. At CryptoHopper, traders can configure and automate their trades based on multiple technical indicators available for use. Like on Mudrex, users can backtest your strategies on CryptoHopper trading bot, and trade across multiple exchanges and offers many other advantages. This subscription-based platform starts at $19 and can reach over $100 for a plan.
GunBot offers many different features that are helpful for both beginners and expert crypto traders. The platform supports multiple crypto exchanges such as Kraken, GDAX, Binance and a lot more. Using automated trading tools, traders of all shapes and sizes can generate profits on GunBot.
In crypto trading, you will face many issues that may or may not be in your control. Using the best crypto trading bot can help you mitigate some of these issues and stay ahead of the crowd. These bots can include emotionless trading, swift execution and implementation of multiple technical indicators and strategies. However, these bots are also not risk-free. Like any other digital software, these may be prone to outages, scams, flash crashes, and many more. Therefore, choose a reliable platform to invest in automated crypto trading algorithms to generate consistent returns.