Crypto Trading Bots – Guide to Best Auto Trading Platforms

If you have just went into the cryptocurrency sector, then you will realize that it is a different world with varied tools and options. Of course, one tool is that crypto trading bot options that can help to make life easier for traders and speculators alike.

From those who are in the crypto and bitcoin sector in a new fashion to those who have been there for a while, everyone sings praises of these smarter platforms and look to them as the next best thing since sliced bread.

In their essence, one can realize that these augmented bot solutions are applications that typically operate through a computer. Remember that they get this moniker due to their simple but automated actions. They can also perform certain actions without constant human intervention.

These solutions tie into reputable blockchain token oriented exchanges and perform buying and selling trades through preset strategies. These trading bots ensure that your blueprints are followed to the letter, and keep making the right trades throughout the process.

By doing so, these encrypted asset bots assist speculators to profit from the environment, regardless of their availability to execute these plays manually.

Read this full guide to automated crypto trading bots to know everything that might be connected to the topic: starting from the basic theoretical questions and ending with the actual criteria for choosing the best platform.


What about the Legality of the Matter?

These digital asset mechanisms are legal in all jurisdictions where speculation of this sort is legalized. Since these software solutions perform trades through popular crypto exchanges, we know that they follow the trading practices presented in institutions instead of having any access to your funds.

This is possible through the application programming interface (API) keys. Remember that this feature lets bot tools work with your account without transferring assets to another place.

Use the right API connectivity settings and know that these trading bots will trade your cryptocurrency assets on the designated platform only. Thankfully, you are more in control of these situations.

This ensures maximum safety and keeps your chosen digital value exchange as the holder of your accrued value instead of these automated tools. This is also why the speculative bots’ legal status in each region is tied to the legality of cryptographic item solutions.


How Does an Augmented Speculation Tool Differ from a Human?

Know that there is a wide swath of variations between a speculation bot and a trader that is of human origin. There is a couple that you need to realize and that is the significant part. They are important due to how they directly affect the trading capacity and ability of each digital item and its related environment.

Round-the-clock Trades

Remember that automated augmented solutions work each day and all day. They require minimal to no supervision after being set up. This establishes them as a viable way to make crypto trades even when you are away from the device of your choosing.

If you select a cloud-based or server-run digital asset tool that doesn’t require your computer to operate, you can even let it make trades on its own. Due to human necessities, this is not the case for even expert traders.

Accurate Analysis

Remember that these bot solutions are purpose-built to view the minutest of market details that one can miss with their naked eye. This is a blessing because it shows market fluctuations not usually easy to identify. Benefit from deals that would have otherwise gone amiss. This offers chances to generate value from trading that is technical analysis in nature.

Alternatively, remember that humans shan’t go into in-depth analysis without the help of specialized instruments, and even then the process remains far more complicated as compared to digital asset trading tools.

Varied Strategies

Crypto trading bots arrive with many strategies that let you speculate through different market gyrations and mechanisms. That means there are more chances and way to alter your speculation approach, it also lets you not lose money by falling into the trap of monotony. These strategies come in preset packages or customizable slots. Trade your cryptocurrency assets on your own terms.

In comparison, humans possess a few tricks up their sleeves - which is especially relevant if one is left with little to no experience in the arena.

Ease of Use

Best digital asset trading platforms use cutting-edge technology that allows even beginner-level traders to benefit from this sought after sector. These tools are based upon a graphical user interface (GUI), which makes them simple to utilize through a point-and-click mechanism. The ability to follow and replicate common trading ideas from winning traders is also a major part of modern cryptocurrency tools.

Alternatively, learning crypto trading manually brings a steep knowledge enhancement curve for people. That is a hindrance and a stumbling block in the long term.


The Best Crypto Trading Bots

There are quite a few auto trading platforms to choose from, but the following three bots stand out due to their ease of use and their overall features.


Bitsgap

Based out of Estonia, Bitsgap is making waves in the Bitcoin, Ethereum, and altcoin market due to its intuitive platform and power-packed solutions.

Launched in 2018, the speculative tool supports over 25 facilitators, including reputable institutions that hold a global presence.

Other than that, it offers these:

  • Over 1,000 signals, which detect and move value in favorable conditions.
  • Arbitrage speculation, that lets traders purchase lower-priced cryptocurrencies at one facilitator and divest them at another institution at a profitable rate.
  • Affordable pricing, this is necessary as it lets you control your expenses.

TradeSanta

Launched in 2018, TradeSanta is yet another name in cryptocurrency trading bots that stands out due to its easy to use yet power-packed services.

The entity gives support to 7 major places of trade and offers its solutions via devices and mobile apps. The entity makes it simple to bring in new strategies and tie into exchanges, which also makes it a starter friendly option.

TradeSanta’s key features are present with:

  • User-friendly interface, which makes it a beginner-friendly bot for even those who know nothing about cryptocurrency.
  • Target profit chase set your ideal profit level and allow the augmented tool to automate its deals to help you reach your goal.
  • Template-based strategies, premade mechanisms, or customized approaches to pack a punch with your trades.

3Commas

Established in 2018, 3Commas has a great emphasis on the aspect of social investing.

The instrument allows people to replicate successful traders and follow their success with their individual funds. With support for 11 facilitation entities, it works well and is something that several people will use.

3Commas has various benefits, immediate impressions include:

  • Easy to use terminal, which makes setting up and using the trading bot a breeze for even novice traders.
  • Social strategy tracking, which allows users to view and copy the templates of other successful traders.
  • Futures trading, which lets users trade cryptocurrency-based assets that go beyond virtual coins.

What are the Types of Trading Bots?

Whenever you are selecting auto bots, you will stumble upon two major kinds of solutions.

  • Market Making
  • Arbitrage

Most automated instruments turn to the approach of market making. That means that they participate in trades in one single area. These trades incorporate both purchasing and divestiture of available cryptocurrency. Since such trades “make” the market, hence the popular name.

Whereas, arbitrage refers to the act of comparing different cryptocurrency prices, only to acquire the asset from an exchange where it is valued lower and sell it to a place where it has a higher value. This approach is a bit more complex and involves some additional steps as compared to market making. But when it is followed with a larger trading capital, it can prove to be beneficial in more ways than one.

Depending upon your main goal from this form of asset speculation, delve into each of them.

While market making is available widely through a host of solution providers, arbitrage is present with a few. But if you choose a credible instrument, know that you can make waves with ease.


Automated Trading Strategies

These stratagems help these digital contraptions to act a certain way according to current market conditions.

Playing with different plans changes the way your bot functions. There’s no one-sided perspective but a more varied and holistic one.

Some of the rather conventional automated cryptocurrency trading strategies include:

  • Grid Trading
  • Signal Trading
  • Bollinger Bands
  • Ping Pong
  • Breakout Strategy
  • Ping Pong

They are famous for bringing a unique yet potentially profitable path to automated crypto bots. Select or form your own strategies by overlapping these mechanisms with other widely known stratagems.

The instruments have much to do with the choices. Not every contraption allows you to make use of one option or another. Similarly, not all are the best fit for the breakout strategy. To obtain optimal benefits from your speculation, it is essential that you use most of these popular trading tactics in the right way.


Are Crypto Trading Bots Valuable to the End User?

The short answer: Yes, cryptocurrency trading bots are definitely valuable in many situations. Humans act in one way and these contraptions act in a different way. That alone gives the value that we don’t know about in general.

The long answer: autonomous trading, immaculate analysis, and regular operations: the bots bring succor to traders of all stripes.

Whether you are working with a small capital or large scale funds, you can be free of the constraints of limited human speed, possibility of errors, and the consistent need for operational breaks. Since a trading bot isn’t limited by physical capacity, unwarranted mistakes, and constant exertion, it is able to steer clear of these shortcomings.

Overall, using bots is an optimal solution for those traders who hold a day job as well as those individuals who earn their livelihood through day-trading. In either case, hold significant advantages that are lacking manual trading.


Are Bitcoin or Other Cryptocurrency Trading Bots Similar?

Bitcoin is legendary. It is the granddaddy. It is the one that everyone knows for a specific reason. Due to these factors, it is synonymous with the existence of cryptocurrency, “Bitcoin” is interchangeably used to relate to digital assets in the mainstream sector.

However, for those in the realm, the difference between BTC and other cryptocurrencies - often called “altcoins” - is clear as day. Each cryptocurrency is its own entity, brand, and trading asset. That’s why so many that trade Bitcoin only stick with it. There is a wide variety of advantages to sticking with that one asset overturning to others and risking some problems.

Don’t choose between Bitcoin and other cryptocurrencies. Most crypto trading bots can buy and sell all of the digital assets that are traded on their supported exchanges. That is what makes them special and is only one way that they can be helpful to you in your journey to become a legendary speculator yourself.

You still need those that explicitly mention their limitations on trading certain cryptocurrencies. While these solutions are largely outdated, they still exist in some corners of the web. Keeping this in mind, you need to be vigilant about picking your trading bots and be wary of certain factors while you are out shopping for these solutions.


What Should Best Trading Bots Have?

While searching for your perfect automated speculation platform soul mate, you must have a few points that you pay attention to now and in the future. Without them, the contrivance may fall short of meeting the right expectations and ruin your chances of massive success.

Rule of thumb: make sure that your chosen aid excels in these areas.

Trading Strategy

A trading gizmo worth its salt has multiple stratagems in its arsenal. This gives the flexibility to mix and match various tactics according to varying market parameters. You should always go with a trading bot that offers solutions that you can turn to in many scenarios.

User Interface

Even when you can rock some code, it is better and simpler to use one with a GUI. The streamlined interface lets you jump into many different asset movement goodies, and functionalities at literally the click of a button. Simplicity is necessary in a busy world such as ours.

We don’t want to learn to code or tinker, we want to figure out how to increase our income as quickly as possible. It is not that we are lazy it is more that we need to have more plug and play options to stay strong and relevant in the economically constricting world.

Ease of Use

It is essential that your solution is built with the right needs at the forefront. A GUI is great but make sure to also look for an intuitive interface. Design is essential from an aesthetic and from a use standpoint.

Speed

Performing a few transactions every hour isn’t really worth your time. Remember to find one that is able to study market essentials accurately while also being able to act fast on its trades. What is the point of something that will only move at snail’s pace? We are living in a world of high-speed trading and we can’t move around as we have to dial-up. It doesn’t work.

Cost

Paying an arm and a leg on trading bot fees does not ensure value against your efforts. Instead, it only lightens your pockets before you have even made a single cryptocurrency trade. Make sure that you are selecting a bot that has a competitive pricing structure that goes in line with other trading solutions on the market.

Security

A trustworthy one only acts through API keys and never asks to move money away. It also provides additional security mechanisms in the form of an HTTPS website as well as a secure application. Look for these factors. When possible, ask the customer service representatives about how they ensure your security.

Reputation

Looking for reviews by existing users of an augmented gizmo is critical to assessing its viability. It explains the areas of robustness and fragile points, allowing you to see the red flags regarding the service. For the sake of your initial portfolio value and security, please, again, please remember to select one that strikes a chord with its users.

Exchanges

Last but not the least, it is prudent to select a proper solution that will help you out on different facilitators like Okex through Binance. But why?

Remember that it is through reputable hubs of speculation that activity that saves you from fraud and security compromises while enabling you with larger asset volume.


A Breakdown of Some of the Prominent Exchanges

Speaking of digital hubs of activity, always realize that it is the best of interest of people like you to have full information like what exchanges are good to be within the long run.

By default, these entities allow the use of such advanced trading and their choice to benefit from this modern mechanism. It is not difficult to find reputable exchanges that are in line with these online gizmos.

To help you along the process, check out this list of places that will support your decision:

  • Binance
  • Bitfinex
  • Bitmex
  • Bitstamp
  • Bittrex
  • CEX.IO
  • Cobinhood
  • Coinbase Pro
  • Exmo
  • Gemini
  • HitBTC
  • Huobi
  • Kraken
  • Kucoin
  • OKEx
  • Poloniex
  • Yobit

Your adventures have just started and you must be aware of these different options that are prominent to be in the know.

Keep in mind of features with their solutions. For instance, while Coinbase Pro is an established entity that resides in the U.S., it used to lack a wide breadth of cryptocurrencies to trade with. That was the past, now the place is swarming with your hard assets and your tokens that are there for fun.

Similarly, while Binance has one of the largest selection of cryptocurrency markets, it is not accessible in territories such as the U.S.

This is why it is important that you are wary of these factors while making your selection. You may very well have an account at one of these exchanges. In such cases, make it a priority to find a trading bot that supports your existing platform, since it keeps you safe from having to sign up at different exchanges.

Overall, it is advised to select one that offers high liquidity and a large selection of cryptocurrencies. This unlocks plenty of opportunities for you and those who you would work with this on this journey.


Cost-effective Trading Bots

Oh, what is that? You do not want to make a heavy out of the pocket investment at the start of your cryptocurrency adventures? That is fine, you can go with a cost-effective solution to find your footing with this mechanism. This allows you to test the pros and cons of augmented sophisticated speculation when applied to your personal situation.

On present writing, a few online gizmos strike a good balance between functionality + affordability. By sticking to an open license approach, their solutions have become free but offer some powerful features. With that being said, they often lack the valuable GUI, turn to these through coding and text-based interfaces.

Here are some of the most popular and reliable free crypto bots.

  • Gekko
  • ZenBot
  • Hummingbird
  • Catalyst

Remember that these appliances bring basic yet reliable functionalities through a cost-effective program. Explore and utilize them when you can, and see how these crypto trading platforms are in line with your trading style. When comfortable with this process and when you are turning a little bit more money, then you can move on to more premium solutions.


API and Trading Bots

It is safe to allow API access to a bot platform. Just remember to practice caution and that you ensure it doesn’t seek access to move money around from accounts. This is an immensely crucial aspect that relates directly to security, which is why you should never ignore it.

As long as you keep this point in mind and steer clear of any bots that ask for withdrawal access from your API key, you can safely provide trade and balance access.


Should You Utilize a Crypto Trading Bot?

Remember that there are short windows of opportunity. Aspire to benefit from fluctuations, run orders when you are away from your computer, by utilizing a cryptocurrency trading bot when you do it on a regular basis on the whole.

With accurate analysis, algorithmic predictions, and automated trades, you can most likely get an optimal return of investment in your selection of moves. Always keep in mind that using a bot will not solve everything for you. It is not a magic bullet.

It is something that is present that helps to change things and pushes you forward in some form or fashion. But remember it is not smart to the point that it will take care of everything for you. That is something that you must account for yourself at the current moment.

A cryptocurrency utensil does offer a veneer of added functionality and simplicity makes it easier for one to gain more value from this innovative financial sector.


Trading Bot FAQs

Are cryptocurrency bots legal?

Yes, they are legal and supported by popular entities.

Are bots free to use?

Advanced digital asset gizmos that arrive with GUI and intuitive features come with a service fee. But find open-source solutions that lack a GUI.

Are they safe?

Credible ones that don’t ask for access to withdraw your funds are safe. When coming from reliable platforms, these things don’t do anything illicit with your funds and don’t transfer them.

Is there a limit on which cryptocurrencies you can trade?

There is no restriction that can be traded via these operations. Remember that if you go with the more wonderful tools and beautiful entities, your life can be so much easier and you can be well on your way to where you want to be overall.

Do these bots offer guaranteed profits?

Since this is a dynamic mode of acquiring and divesting digital assets, none of the bot solutions can guarantee any profits. Guarantees are not present in life except by corporations on select products. Profits are always uncertain and it is up to each individual to figure out how they will proceed.

Do these bots require any maintenance?

Yes. While they work after the initial setup, it is still advised that you look through their results every other day. This helps you fine-tune any settings that aren’t working and allows you to benefit from the latest market conditions.

What should you keep in mind while trading with automated bots? These solutions are here to help you. They have been here for a while and they will continue to be present as you progress in your journey. More developers might offer more of these.

It is up to understand the nuances and realize that they can help but they are running on your brain and presets. Success in your hands and so is your downfall.

Keep it light and always optimize for more simplicity.