Cryptocurrency trading can be an excellent way to earn a profit, but it can also be incredibly time-consuming. The crypto market is open 24/7, making it impossible for anyone to watch it constantly. This is where crypto trading bots come in.
People use bots to trade even when they are asleep or away from the computer. With a Bitcoin trading bot, you don’t have to constantly keep an eye on the market, as the bot will do so for you and make your trades automatically.
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Crypto Trading Bots: How They Work
To use a crypto trading bot, you essentially input instructions for the bot, and then it executes them 24/7. In other words, you create a trading strategy and create a robot that will follow that strategy for you. You outline what conditions trigger a trade, and when they are met, the bot will automatically trade your crypto for you.
As mentioned, one advantage of a cryptocurrency trading bot is that they operate 24/7. That means you don’t have to keep your eye on your portfolio all day every day or rely on notifications. Another advantage is that the bots will automatically execute trades for you, and they typically do so much more quickly than you would be able to do yourself. This reduces the slippage or price movement before you can trade.
While robot trading seems like a nice idea, there are also some caveats to keep in mind.
Are Crypto Trading Bots Safe?
Put simply, no. There are some heavy risks associated with using robot trading. The issue comes from the fact that someone has to program the bot in the first place. That means that you put all of your trust into whoever programmed it. Even if they have a good success rate in the past, that doesn’t mean that they will continue to make a profit. Remember that the cryptocurrency market is highly volatile.
But there’s even more risk than the fact that you are relying heavily on the creator of the cryptocurrency trading bot. First, remember that that bot’s creator wants to earn a profit more than they want you to succeed. Yes, good results will boost their profits, but if they can earn profits in other ways, they are willing for you to make less.
On top of that, if you use crypto trading bots, you may be tempted to just ignore the market, assuming the bot and its creator have it under control. But what happens if the bot’s creator stops watching the market or makes a mistake? You can lose money before you realize what is happening.
Simply put, it is incredibly risky to use trading bots.
Do Crypto Trading Bots Work? Are Crypto Trading Bots Profitable?
If robot trading is risky, why do people do it? That is because it can work and the people who use it and make large profits are very vocal about doing so. If you choose the right bot, you can make a large amount of money. After all, the higher the risk, the higher the reward.
The key, however, is that there is never any guarantee with a crypto trading bot. You may make money, but you may lose money.
The profitability of the bot depends mostly on the skills and market knowledge of whoever programmed it. In many cases, that information isn’t readily available, so you don’t know if you can trust them.
Popular Cryptocurrency Trading Bots
We mentioned that Bitcoin trading bots aren’t necessarily safe, but some people still want to give them a try. Much of that comes from the fact that people tend to share stories of profits and not losses. The following are considered the best trading bots for crypto.
Earn Up To
On your crypto today!
*Haru Earn Plus/365days lock-up
Keep in mind that most don’t publish statistics about the average returns. Instead, you will have to find first-hand reports about returns. By its nature, this means that those reports are typically from traders with the highest profits.
Cryptohopper works with more than 100 cryptocurrencies and on multiple exchanges. Its website says that there have been 114,957,380 trades opened with these bots. But there are no official statistics about average returns. The best reviews claim they earned 20% daily, but this is likely only for the best of the best.
3Commas offers a trading bot as well as a platform. You can use the bot on 18 exchanges, and it has been around since 2017. According to its website, 1.2 billion trades have been created on 3Commas. Some of the best traders report profits of about 20% a month. One person claims to have earned 3,000% APY.
Huobi Grid Trading
The Huobi Grid Trading bot works with the Huobi Global Grid Exchange. You can see the top-ranked bots and strategies on its website, with just over 100% return rate being the highest at the time of writing. Most, however, are much lower than this.
Pionex GRID Trading Bot
The Pionex bot includes 16 free bots. This bot stands out with its low trading fees of just 0.05%. There is not any good information on expected profits.
What’s the Alternative?
As mentioned, crypto trading bots are incredibly risky. The strategies may not be good, and you are likely to have to pay high fees to access the bots. The best alternative is to find a solution that leaves the investment of your crypto to the experts.
Why Haru Is a Better Option
Haru is an excellent alternative. Like bots, Haru relies on trading algorithms, but there’s a very important difference. Haru’s experts continually monitor the market conditions and update their algorithm to increase your profit with minimal risk. This lets you take advantage of the benefits of a 24/7 investment algorithm as well as the expertise of the Haru team.
On top of that, you can trust Haru because the company publishes its performance figures. Remember that there are no official figures for the previously mentioned crypto trading bots. Haru, however, publishes performance updates biweekly. The most recent figures for the Haru Earn Explore account included 0.7547% for BTC (18.36% annualized). For USDT, it was 0.8339% (20.29% annualized), and for ETH, it was 0.7705% (18.75% annualized). That transparency makes a significant dihttps://medium.com/haruinvest/haru-earn-explore-performance-update-decembefference in the safety of your investments.
If you’re wondering whether a crypto trading bot is worth the risk, consider Haru instead.