Crypto Trading Bots and the Emergence of Trading Intelligence

trading bot

The market is changing. More and more people see the market’s inefficiency in terms of earning (a certain dynamic, a pattern that can be used to make money), making it less profitable (the more people use it, the less profitable it is). The crypto industry is transforming the digital market by adopting first-rate technological solutions at the end of the last millennium. In the rapid increase of demand for virtual assets, similar programs appeared on crypto platforms. Newbies who cannot use analytical tools sit at the computer for days, trying to capitalize on digital currency volatility. Such a business takes a lot of energy and nerves and does not always bring a positive outcome.

With the advent of a downward trend in the crypto market, investors in digital coins had to retrain into full-fledged traders. Many of the interested try to facilitate the trading process by using particular automated bots: https://light-it.net/blog/building-a-crypto-trading-bot/. We’ll dip our toes into this topic in our article.

Bot From The Wall Street. What is an algorithmic trading bot?

E-currency trading bots are programs designed to analyze the market and automatically make trades without human intervention using predefined algorithms of AI and ML. A developed bot algorithm analyzes recent historical data, indicators and is signal-guided. It looks through market actions such as volume, orders, price fluctuations, time, and quotes, defines patterns and trends, and carries out transactions in the space of seconds using the set of instructions.

What role do robots play in trading, and should newbies get involved?

Cryptocurrency trading bot is getting more and more advanced. Traders on stock exchanges have been using binary options robots since 2012 while getting closer to perfection and becoming necessary. Bots allow interacting with the crypto market without continually monitoring the market’s state. Moreover, a correctly chosen trading bot helps save time and protects against the constant stress associated with trading cryptocurrencies. You can use your PC or a specialized cloud service as hosting for many existing bots today.

The bot’s working principle is simple: buy when the price drops and sell when the price goes up. The algorithm will open and close transactions using the developer’s indications in the selected trading program.

When should you opt for a Crypto bot?

Market arbitrage(exchange) is one of the most popular options. It is used for making money on the difference in the price of an asset in various markets (say, on two exchanges) and market-making, that is, playing at the rates of coins and their derivatives.

Bots for an automated trading feature that corresponds to unique algorithms, trading strategies that are, in turn, created based on technical analysis of patterns. To conduct an independent investigation, it must have historical data on exchange rate changes (charts for at least the last twelve months). It is rational to analyze the context of the news. Furthermore, after determining the patterns, you can examine the previous data strategy and estimate the number of potential losses and profits. When the outcomes are satisfying, the robot’s trading strategy rules are created on their basis. Some bots use indicators to investigate the current market situation and analyze when certain market conditions occur.

A standard trading bot can be used for:

  • Evaluating the market situation, watch the course for a set period, forecast, and send notifications when the user trades manually.

  • Creating orders to sell or buy.

  • Providing profit & loss reports.

Types of Crypto bots

Algorithmic trading systems are used by both professionals, including financial organizations and non-professionals — ordinary digital coin owners trying to raise their capital. Solutions of this class vary in complexity and design principles. There are three main categories of software for working with crypto-exchanges:

  • Bots with pre-written logic;

  • Smart Bots based on AI and ML technologies;

  • Robots advisors.

Let’s take an unbiased look at existing popular bots and discuss how effective they are and whether it is worth mastering them for novice traders.

Type

Features

Exchange

Works on a specific trading platform. Earnings are made on different timeframes, from short to long.

Arbitration

Operates on two or more trading platforms. The original income is on the difference in rates between them.

Telegram

Looking for buyers or sellers in Telegram.

Faucets

These are online services that distribute Satoshi or other cryptocurrency pennies for free. They are pretty well protected from bots and require captcha. There are only promising, but not ideally working. There are no well-designed robots that can earn decent money on faucets until written.

Where can I get bots for cryptocurrencies?

There are three ways for getting robots for trading:

  • Create the program yourself.

  • Purchase.

  • Downloading the robot is free.

Create Your Bot. The bot can be developed exclusively for exchanges. The site must offer an API — a collection of data with a set of functions to start trading according to user-specified parameters.

Find Your Service Provider. This variant is better for those who do not know how to code or write their own application. Today, quite a few companies are producing this kind of software. Moreover, they can offer you a temporary lease of an advisor.

Check For Ready-Made Available Solutions— bots you can download for free without inventing anything, just writing programs or paying money. Yet you cannot be guaranteed that the advisor won’t, for example, transfer all your earnings to third parties’ accounts.

Disadvantages of cryptocurrency exchange robots

A developed algorithm may not always respond correctly to unforeseen shifts and brings the trader to bankruptcy or leaves him without profit. Furthermore, most crypto bots are not cheap and challenging for a beginner to tweak.

Though this is an easier trading method, it also requires training, as you need to understand how they work and act using commands and settings.

If configured incorrectly, it may bring unwanted results and even loss of funds. That is why it is better to apply automated trading strategies.

TOP bots for automatic cryptocurrency trading in 2021

Crypto Trader is a boundless cloud bot for robotizing exchanging techniques without introducing programming. It is a well-known Bitcoin bot that permits algorithmic exchanging alterations in no time and gives an “essential market” that empowers clients to exchange utilizing techniques. Another component is the backtesting instrument to test their exchanging approach against backtested data and diverse economic situations. Crypto Trader is supported by major exchanges, in particular Coinbase, BTCe, and Bitstamp.

BTC Robot 

BTC Robot is one of the pioneers of Bitcoin bots. It underpins major working frameworks, yet costs shift. Windows clients can buy a bundle called silver programming for just $149. Mac clients should pay more. This bot is not difficult to introduce and utilize. What a few people don’t observe, still, is that little specialized changes bring about extensive misfortunes. Others fear unassuming pay.

Gunbot 

The Gunbot exchanging bot has many inherent techniques, including Bollinger Bands, Gain, Step Gain, and Ping Pong. Most clients appear to assume that the Bollinger methodology is awesome and creates a progressive benefit. It offers three estimating bundles relying upon the highlights required, with costs going from 0.1 BTC to 0.3 BTC. Gunbot is upheld by numerous trades, including Bittrex, Poloniex, Cryptopia, and Kraken. It is proposed that clients focus on their exchanges as they are inclined to high market unpredictability.

Leonardo 

Leonardo is another bot upheld by Bitfinex, Poloniex, Bitstamp, OKCoin, and Huobi. The designers are rolling out huge improvements, and soon the product will be added to different trades. The bot is given two exchanging techniques: Ping Pong and Margin Maker. Leonardo is by a wide margin the richest and adjustable among others in this extreme rivalry.

Let’s sum up

If you are hoping to procure 3-6% per year on your cryptographic forms of money with an exchanging bot, you will likely discover one that suits you. In any case, we should confront reality — cryptographic money trading bots are not for everybody, as they can be puzzling being used, particularly for novices. Direct your examination and guarantee that the chose bot is reliable. I profoundly exhort doing paper exchanging and backtesting before utilizing any genuine cash. Exchanging bots give numerous advantages, and if you have extra money, you can attempt to use it. Without a practical examination, you may hazard losing your capital or losing your record on the trade. If the bot is chosen and adjusted accurately, the possible addition from exchanging is interminable.

I hope this article provided you with a good grasp of trading bots and will help you in your future decisions.

Comments are closed.