Jenna Arnold has always been fascinated by the stock market and the world of trading. Having dabbled as a part-time trader while at university studying English Language, she leveraged her insights into this world into a full-time career as a writer specialising in trading and broker reviews. Jenna joined TradersBest.com last year and now heads all of our trading content, working remotely from her home in Massachusetts.
Cryptocurrencies are prevalent assets in the financial market. They are incredibly volatile, which means prices are constantly changing, so traders are using ways to keep up with these changes in the form of a crypto trading bot.
In this TradersBest.com review, we will look at helping you decide whether or not automated trading is for you. Our team is fully equipped with a high level of crypto experts and financial traders here to help you discover the best cryptocurrency trading bot suited to your needs.
Cryptocurrency trading is one of the most popular financial markets to trade. A user speculates on the cryptocurrencies price movement using an exchange to buy and sell the coins or via an ETF trading account. Cryptocurrencies are highly volatile, which is one of the main reasons why they’re so popular. Prices are known to fluctuate in the space of minutes, which is due to influences like news announcements and company product releases. The crypto market can drastically change at any time of the day. Crypto trading is high risk but can also result in high profits if it is successful. You have the opportunity to trade 24 hours a day worldwide, which is another factor in being so popular.
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CFD trading
CFD trading allows the user to speculate on the crypto price movements without actually owning the coin. If you think the crypto will rise in value, you can buy, and if you think it will fall in value, you can sell. It is a leveraged way of trading which means you only need to invest a small amount of money known as the margin to gain access to trading in the crypto market. Leverage trading magnifies both profit or losses as it is calculated according to the total size of your position, not just the margin.
Round the clock trading
Although it is great to trade in the crypto market at all hours of the day, it isn’t humanly possible to do so. This is where a crypto trading bot comes in handy. They essentially do the monitoring for you and react to price changes in your sleep, thanks to their automated scanning tools and programming. The crypto market is known for its sudden changes, and having a system to react quickly to as many of these changes as possible will benefit the amount of profit made.
Automated Crypto Trading – to bot or not
In this TradersBest.com review, we researched automated crypto trading to give you an overview of the system. Automated trading uses advanced technology in the form of an algorithm-based system that scans the market to find the right time to execute trades for you. A crypto trading bot is designed through artificial intelligence (AI) and cloud-based systems. They follow the pre-set conditions made in the algorithm by looking at historical data and market research, interpreting it and calculating the potential market risk and then deciding whether or not you should buy or sell your position.
How crypto bots work
Using a crypto trading bot is like hiring an expert to do the trading for you at a fraction of the time while you monitor from a distance. The bots save you time and are cost-effective instead of hiring another human to do the work for you. There is a general process to consider when it comes to how an AI crypto bot works which we have included below.
Choosing a crypto bot
Firstly, a crypto trader has to find the most valuable bot to them and their trading needs. However, many bots and cryptocurrency trading software claim to be the best but don’t have the performance to back it up. We recommend you use our crypto trading bot review and some research to help you decide which developer is right for you. To make the most out of a crypto trading bot, the trader must know how to utilise it as a resource and feel comfortable using it too.
Setting up your account with the bot
Once you’ve chosen the right crypto trading bot, you can set it up to your account that you trade on. We recommend using a reliable platform and can accommodate using an advanced bot to carry out trades. Platforms like AtoZ Markets are beneficial as they encourage users to trial the bot first in their demo account available to all customers. It can ensure the algorithm based bot performs as well as its developers claim it does and eliminates worry or concern before using real money to trade with.
Crypto bots go to work
Once you’ve set up your account with the bot, you can start trading. It’s important to note that a bot is not a ‘get-rich-quick’ solution for the trader, as you’ll still need to put in the necessary time and effort for successful trades. Traders can still make the crucial decisions of when to buy and sell, but on the other hand, if you wanted to, you could program the algorithm to do that for you.
Crypto Trading Bot Examples – the most popular choices
In this crypto trading bot review, we looked through several of the most popular trading bot examples available on the market. We highlighted a few that stood out below.
CryptoHero
At TradersBest.com, we found that CryptoHero had one of the best mobile platforms to offer as well as its online website. It is efficient and easy to navigate within the layout. The app is easy to download and a preferred experience, as you don’t have to be stuck to a computer. You could be investing while you travel or commute too. There is the option to have a simple platform or a more advanced one that you’ll have to pay for depending on how experienced you are with crypto trading and what you want to get from CryptoHero. This crypto trading bot works great on the mobile app because it has a tutorial to help you create your own bot and invest from there.
Building a crypto bot
The idea of building your own crypto trading bot can be complex and challenging, but it is an experience that CryptoHero makes relatively easy for you. It is excellent for crypto traders who don’t have that much experience as it guides you through the process. There are tabs to follow on the platform that help you shape the bot, and your information is stored and found easily with their simple designed interface.
Cryptohopper
Another automated crypto trading software to consider is Cryptohopper. It is one of the most well-known platforms in the crypto trading bot industry. Cryptohopper runs entirely on the cloud, so you don’t have to worry about installing it, which also allows for 24-hour trading, seven days a week, to take place. In addition, you only need 5 minutes to set up their dashboard to start trading, which is another attractive feature. This platform is excellent for consistent connectivity due to its working on cloud storage.
As the crypto market is rapidly changing, even taking a short break could risk you missing out on generating a profit, and that is when you can rely on Cryptohopper. Even when your network is offline, your account will still be running. Any updates to the platform are done without interrupting your trades and your account as a whole.
CryptoTrader
We also looked at CryptoTrader, another cloud-based trading software. It provides its users with a fully automated trading system on the cloud, which means you don’t have to install the bot and take up storage. Some coding knowledge would be beneficial when setting up the strategies on the bot yourself, but they offer several free and paid features. It also features a backtesting tool to allow users to test if their algorithmic bot performs well enough. When setting up an account, it is good to note that Bitcoin is the only accepted currency when paying for subscriptions. CryptoTrader specialises in crypto trading bots, including a Bitcoin trading bot for all your Bitcoin trading needs.
Crypto Bot Advantages
At TradersBest.com, we researched some benefits of using a crypto trading bot and highlighted them for you.
Efficient Trading
Using cryptocurrency trading software will increase your trading speed in the market. The crypto market is already a fast-paced environment, so using a crypto trading bot will help to keep up with the constant changes. It takes a trader minutes, up to hours, to thoroughly scan the entire market looking for opportunities to execute trades. If you’re new to crypto trading, it could take even longer and add unnecessary stress trying to find something in the market with potential. Luckily, a trading bot will scan the market in a fraction of a second and enter and execute orders faster than if you were to enter the same orders manually.
Spending more time on the market
The crypto market operates 24/7 throughout the week compared to others like the forex or stock markets. It is great for users who want to trade during their free time. Like away from their jobs, at their lunch breaks or on their commute. The volatility of the crypto market means that changes could happen at any time of the day worldwide. Hence, a crypto trading bot helps scan the market at all times to find these changes and react to them while monitoring your positions.
Flexible Trading times
Not everyone can trade during the hours of the forex or stock market, for example. But the crypto market is lucky to be operating 24 hours a day, even on weekends. Having a crypto trading bot will act as an expert trader to manage your portfolio and make those decisions for you in times when you’re away from the market. You can choose what time you want the trading bot to focus on as one of the pre-set criteria or let it run throughout the day and night, scanning for the right trading opportunities.
Automated trading
Automated AI trading means you can remove your emotions from the trade. Emotion-based trading can come in the form of panic selling to panic buying with the fear that you’ll be missing out if you don’t. These and many other reasons could be why an individual decided to make a trade and why that trade has a negative impact on their funds. Relying on a crypto trading bot will remove the emotion-based trading feelings and focus on algorithmic data and logic, resulting in successful trades.
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Crypto Bot Disadvantages
With the advantages come disadvantages to consider when thinking about using AI trading bots in the crypto market.
Monitoring required
Using a crypto trading bot is great for when you don’t want to watch the market for long periods. However, you still need to make sure the algorithms are doing what they’re pre-set to do, and the performance of your portfolio is where you want it to be. AI trading bots are not entirely automated, so that should be considered if you want to use one. Whether it is a Bitcoin day trading bot specialising in only Bitcoin every day or other trading bots that focus on a range of cryptos, it’s up to you to ensure that it’s still following the parameters even with the ever-changing market leading to successful trades.
Time-consuming
Any form of financial trading can be time-consuming. But especially in a highly volatile market like crypto, where changes are sporadic and constant, it can take up more of your time than you think. There are many benefits of using a crypto trading bot, like efficiency. Still, just because it saves time executing trades, it doesn’t necessarily mean you’ll be monitoring the market any less.
Prior knowledge advised
We looked through several crypto trading bots, and although many come with predetermined settings and templates, you will need to know how and when to set these templates, so they’re executed at the right time. Some prior knowledge is advised before you consider using a crypto trading bot. If you’re new to trading cryptos or any other financial market, you may change the bot’s settings and end up resulting in a loss due to a lack of experience and understanding.
Conclusion – Bots work 24/7, so you don’t have to
Overall in the TradersBest.com review, we think using cryptocurrency trading software is a good idea. However, it may not be ideal for new crypto traders due to the amount of knowledge required to set up and change the bots to fit the market’s needs. It is excellent if you’re considering ways to trade more efficiently as it can scan the crypto market in a fraction of a second. It can also enter and execute the trades for you quicker than if you were to do it yourself manually. We recommend expanding your understanding of automated trading through useful platforms like AtoZ Markets that focus on developing trading skills with automated techniques.
Crypto Trading Bot – FAQ
💲Are trading bots free to use?
A crypto trading bot is available to use on many online trading platforms. They act as an expert trader, scanning through the crypto market to find the right opportunity to enter and execute your trades. Our TradersBest.com review looks at a few of the most popular trading bots on the market that you can create an account with and see what fits your crypto trading needs.
✨Do crypto trading bots actually work?
Trading cryptocurrencies can be lucrative once you’ve understood how the market works. It is essential to dedicate as much time as possible to understand why cryptocurrencies are so volatile and why a crypto trading bot is a popular choice to tackle this. A good understanding accompanied by practising your skills will lead to more successful trades in the long run.
❔What is the best AI crypto trading system?
When you’re choosing which crypto trading bot is right for you, it’s a good idea to think about what it can offer you as a trader. Do you want an algorithm that is simple or complex or can be both? Most trading bots should offer a backtesting feature that allows you to test if the performance is as good as it claims, ultimately improving your crypto trading experience.
