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 or crypto 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.
What is Automated Crypto Trading
The process of automated crypto trading involves using software to execute trades on your behalf. In some cases, this can be done using predefined rules that you set, while in others, it can be based on complex algorithms that attempt to predict market movements. A number of advantages can be gained from automated crypto trading, including the ability to scalp small profits, minimising emotions during trades, and freeing up time for other pursuits.
It’s important to remember that automated trading is not risk-free, and that you should always test your system before trading live. Crypto trading automated can be a valuable tool if used responsibly.
The biggest appeal of automated trading is its ability to save time. You don’t have to watch the market 24/7 as you know your bot or algorithm will execute the trades that you would. Some people opt for automated trading so they can profit from cryptocurrency market fluctuations even when at work or asleep. Other people use it because of trading bots’ ability to instantly execute a trade. This can be seconds or even minutes faster than if you had to execute the trades yourself; that speed helps prevent missed opportunities.
How Crypto Trading Bots Works
Crypto trading bots simply follow rules set by platforms or individuals. These rules or complex algorithms are used to execute trading moves. Trading bots usually execute trades by connecting to exchange accounts using APIs.
It may seem like a secure way to begin automated crypto trading, but investors must be cautious. Platforms should be carefully chosen.
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.
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 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.
Therefore, the trading bots need to be updated constantly based on market conditions and dynamics.
Simply put, it is incredibly risky to use trading bots.
Are Crypto Trading Bots Profitable?
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.
Which Currencies Can Be Used for Automated Trading?
Theoretically, you can use any currency like Bitcoin, Ethereum, USDT, etc. for automated crypto trading. You would just need to find a platform that supports the cryptocurrency in question and bots or algorithmic trading. However, most automated trading focuses on the biggest cryptocurrencies due to their higher liquidities.
Best Cryptocurrency Trading Bots and Automated Trading Platforms
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.
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.
If you want the convenience of automated crypto trading but want to make a safer choice, then consider Haru Invest. This is an automated cryptocurrency investment account that uses an expert-created and maintained algorithm. You don’t have to worry about monitoring the algorithm or your account, as the experts at Haru constantly do so for you.
While you could find similar crypto investments, they tend to come with incredibly high fees as well as high barriers to entry. Anyone can open a Haru Invest account with a minimum of just $10. By contrast, most other accounts require tens or even hundreds of thousands to invest.
Why Haru is different than others?
Haru Invest changes its strategy automatically based on market conditions and does all it can to minimize risk while maximizing returns.
Other crypto trading bots require you to monitor the market and find the best-automated trading strategy to work in that condition. In Haru Invest, we simplified everything for you. Visit our Haru Earn page for more information.
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. So, there’s no transparent explanation about the figures.
Coinrule is working as a process builder. It allows users to join several pre-defined rules and follow them. There is a dedicated template library for this purpose and users can select one of them. There are more then 150 pre-set rules exist.
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 18 crypto trading bots. This bot stands out with its low trading fees of 0.05%. There is not any good information on expected profits. Here’re the bots;
- Grid trading bot,
- Leveraged grid bot,
- Spot-Futures arbitrage bot,
- Martingale bot,
- Rebalancing bot,
- Dollar-Cost averaging (DCA) bot,
- Smart trade terminal.
Smart trade terminal allows traders to create their stop-loss, take profit numbers.
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.
Check out our homepage for more information.