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Crypto Trading Robots

In this article, we will walk you through the importance of automated crypto trading robots, what are the best practices while using it and what must be avoided.

As technology is evolving continuously and with time we’ve experienced a new development in our technological landscape.

The advent of the latest technologies like Robotic Process Automation, IoT, Blockchain, and SCADA pave the way for the industrial revolution and the massive digitization. Blockchain- driven application cryptocurrency plays a vital in the digitization of various financial services sectors like a bank.

Many countries and enterprises unleash the hidden potential of blockchain technology to streamline their regular operations. For instance, the Dubai government has recently framed a Blockchain-oriented governance model that aids in a significant reduction in government expenses and employees working hours.

On the other hand, blockchain-based cryptocurrency plays a vital role in changing the perception of masses about the value and store of money.

Soon after the advent of cryptocurrency, it hasn’t received too much traction from the masses and quite a few peoples envisage it as a lucrative investment vehicle. But the dramatic surge in the crypto prices in 2017 has skyrocketed the demand for crypt coins.

Since then, many retail investors and institutional investors start diversifying their investment portfolios with crypto-backed assets. Many cryptocurrency aficionados are of the view crypto provides better returns over investment than any other traditional investment vehicle like bonds, equities, CFDs, or commodities.

The historic surge in the demand of crypto assets incentivizes many technology companies to devise a technology-driven solution for simplifying crypto trading particularly for those who don’t have adequate knowledge for manual trading.

As manual trading demands extensive knowledge of the crypto market that’s why it’s not feasible for newbie traders.

This is where the power of automated crypto trading robots comes into play.

For instance, recently eToro launched its automated crypto trading software that allows novice traders to mimic the trading strategy of successful traders to streamline the trading process. eToro product is enjoying the reputation of the exemplary automated crypto trading robot in the market.

In this article, we will walk you through the importance of automated crypto trading robots, what are the best practices while using it and what must be avoided. Apart from that, I’ll also discuss some state-of-the-art automated trading robots for cryptocurrency enthusiasts.

Overview of Cryptocurrency Trading Robots

As I’ve discussed earlier, automated trading robots have been there for a very long interval, however, only a few trading robots have managed to gain widespread popularity.

This is due to the fact only a few automated trading robots have managed to fulfill the expectations of a crypto trader. Crypto trading robots work 24/7 and they ensure the maximum profitability from each deal.

Additionally, some crypto trading robots are ahead of the market thereby they ensure not a single profit-making opportunity is missed.

Apart from that, automated trading robots are equipped with AI-driven algorithms so they thoroughly analyze the whole market to glean valuable inside from the market.

Some automated trading robots are free and open-source, while some are paid.

Working Methodology of Crypto Trading Robots

Crypto trading robots are a specialized kind of computer program that attach themselves to the financial exchanges. Generally, these trading robots unleash APIs to digest all the recent news regarding cryptocurrency that will affect the rise or fall of crypto prices.

For instance, recently the government of Venezuela has decided to use cryptocurrency as an alternative to traditional fiat currency in their monetary system. This recent development will trigger the price appreciation of cryptocurrencies.

After analyzing news, crypto trading robots devise their investment opportunity accordingly to buy or sell cryptocurrency.

Crypto trading robots place an order of buying or selling cryptocurrency on behalf of its users based on information gathered from the market, price chart, and other pre-defined criteria.

Generally speaking, these trading bots keep an eye on certain specific things like market volume, current orders, price patterns, and the time. Additionally, these bots are customizable to do more complex tasks.

Normally, traditional trading robots are beyond the range of an ordinary person due to their hefty costs and un-accessibility. For instance, one of the terminal that Bloomberg leverages to automate crypto trading costs them $24,000 per year.

Almost all cryptocurrency exchange platform attempts to incentivize their users by providing them direct access to the crypto market and their exchange order book which makes the process of crypto trading with an aid of automated trading robots much simpler and cost-effective than ever before.

Dos and Don’ts Crypto Trading Robots

So far we’ve discussed quite a bit about automated cryptocurrency trading robots. These trading bots come with plenty of extremely beneficial features like portfolio management, rebalancing, data collection, smart orders, and routing. But to reap the full benefits of automated trading bot there are some good and bad practices. 

In this section of an article, I’ve decided to nail down dos and don’ts of automated crypto trading bots.

Highest Success Rate

Before purchasing any automated trading robot make sure it has the highest level of success rate. Do not select the bot that has a low success rate. Low success rate depicts very few trades ends in profit whereas a high success rate depicts almost all trades end in profit with a very few exceptions. 

Open-Source Algorithm

Make sure your trading bot is designed with an aid of open-source algorithm using the most sophisticated development methodology. 

Experience Level

Check the experience level of the firm whose trading bot you are using. If they have a good past track record and enjoy a good reputation in the market then you can go with them otherwise, it is strongly recommended to avoid them. As there are too many scammers in the crypto market so the credibility of the company developing trading bot must be taken into account.

Due Care and Due Diligence

As the name, autonomous trading robot suggests it is fully automated software, but automation doesn’t mean you can rely completely on these trading bots. You should have to monitor the performance of your asset.

Periodic Rebalances

An ideal trading bot allows you to automate the repetitive task thereby a lot of valuable time is saved. Automated trading bots can help you to automate the repetitive task via periodic rebalances. As the name suggests, portfolio rebalancing means balancing your crypto portfolio after every few hours.

You have 2 available options to get this job done:

  • Set an alarm after a few intervals of time to mitigate the risk factor
  • Configure your trading bot to rebalance your crypto portfolio continuously till the end of the time

Timing

Time and a higher level of accuracy are crucial for becoming a successful crypto trader. Every singly trade that gets executed via automated bot could have a tremendous impact on your earning potential. You need to ensure your trading bot is ahead of the market and can monitor the performance of the market so the chances of profitability maximized.

Crypto Trading Robots

Crypto trading bots are fully automated and extremely precise computer software which can perform both the buying and selling of cryptocurrencies in real-time on behalf of its users.

Time and a higher level of accuracy are crucial for becoming a successful crypto trader. Every singly trade that gets executed via automated bot could have a tremendous impact on your earning potential. You need to ensure your trading bot is ahead of the market and can monitor the performance of the market so the chances of profitability maximized.

Cryptohopper

This is arguably the best trading bot for crypto traders. It is a cloud-based platform that comes into the picture in 2017. This trading both comes with plenty of handy tools like technical analysis tools, paper trading, and stop losses.

The most distinguishing aspect of Cryptohopper that makes it set apart from its counterpart is its user-friendly design and user interface. Apart from that, it is supported on several credible cryptocurrency exchanges like Binance, Bitfinex, CoinPro, Cryptopia, Kraken, Kucoin, and Poloniex.

3Commas

3Commas is a phenomenal crypto trading bot designed specifically to simplify crypto trading. As of today, this trading robot has a total of 33,000 active users and the total volume of trade managed by this platform is $10 million.

3Commas offers a free trial to all its users so the users can explore all the features of this trading bot before purchasing. You can also compare different subscription plans to decide which plan best suits you.

Arbistar 2.0

Arbistar was first established in January 2019 and lays down the foundation of automated crypto trading robots. It was initially established in 2018, but its initial project has some inefficiencies and shortcomings that prevent its massive adoption. The company has paid too much heed to its customers’ satisfaction and has soon managed to overcome all its flaws. All of the efforts of Arbistar is geared towards developing technological solutions for the commonly occurring problems and repetitive tasks.

Arbistar has developed an automated product that allows its clients to dip their toes into multi-million-dollar markets. Most of the automated bots developed by this brand are designed specifically for a crypto market.

Cryptocurrency is an ever-growing market with a market capitalization of 300$ billion. Bitcoin is the most prominent and widely occurring cryptocurrency. Crypto assets have gained too much traction from the retail investor due to the volatility, verifiability, and anonymity feature of these assets.

As the crypto market is free from all the bureaucratic hurdles, therefore these currencies are traded at different prices at different exchanges. Leveraging the opportunity created by a price difference is regarded as an Arbitrage. 

Keeping this fact in mind, Arbistar 2.0 has recently developed Arbitrage trading bot that buys cryptocurrency at a low price and sells it at the highest price. All this process occurs automatically without the users’ intervention.

The most prominent and magnificent product of Arbistar is Personal Bot Pro (PBP) that has the highest level of success rate. PBP comes with an extraordinary feature triangular arbitrage designed particularly for those willing to earn maximum returns over their investment. All the features of this trading bot are extremely customizable.

Kvazar

KVAZAR is a universally acknowledged company for developing and distributing autonomous trading bots. It allows individuals to unleash the lucrative crypto market irrespective of his/her technical background. 

For the sake of convenience of my readers, I’ll be listing some of the highly convincing aspects of KVAZAR trading bots:

  • 14% monthly average profit
  • 31% maximum monthly profit
  • Almost 99% of trades end in profit during the last 11 months

KAVAZAR emphasizes highly on making the crypto investment easy and reliable for all.

All the products of the KVAZAR capital platform allow you to safely and easily invest in crypto-backed assets. Apart from that, this platform allows its users to smartly manage risk by diversifying their funds in a wide range of different accounts.

There are 4 investment options in KVAZAR:

Moon Bot

Moon Bot is developed by the seasoned programmers of  KVAZAR. Its trade strategy is reliant on the analysis of VSA and Channel Breakout Volumes. Trades executes via this trading bot are in fully automated mode in the BTCUSDT pair and on the Binance exchange

Mars Bot

Mars bot is another phenomenal product developed and deployed by the well-versed development team of KAVAZAR. This automated trading bot ensures maximum profitability by replicating the trading strategy of successful crypto traders. To keep the risk at a bare minimum, it makes use of an aggressive trading style characterized by the high frequency of transactions with moderate profitability.

Trade Bot

Trade Bot supports the fully manual trading under the supervision of the KAVAZAR capital team. The trading account on this bot is always subject to consistent balance volatility. Before placing a trade order, fundamental analysis and other factors are taken into consideration. Any transaction that occurred through this platform won’t take more than two weeks to settle down.

Arbitrage Bot

Arbitrage bot trading on the difference in exchange rates between exchanges. The bot real-time considers the discrepancies between the same type of contracts on different exchanges, and when the discrepancy increases to the desired indicator, the bot conducts an arbitrage transaction.

Fortunately, there are numerous automated trading robots. For the sake of convenience of my readers, I’ll be discussing some state-of-an-art crypto trading robots.

Gunbot (Gunty)

Gunbot is an astonishing trading robot that is envisaged as a veteran in the crypto trading landscape. This trading bot unleashes back-end APIs to connect itself with various cryptocurrency exchanges like Cryptopia, Kraken, Bittrex, Binance, Poloniex, Bitfinex, Bittrex, CEX, Huobi and Kucoin.

Hassbot

Hassbot is an autonomous trading software completely owned and governed by the company Hass Online Software which was initially established by Stephan Hass in 2014.

It is one of the highly reputed cryptocurrency trading robots that can be fully customizable. This trading bot is programmed in C#.

This platform is cross-platform compatible so the users can install and operate it on both the windows and Linux platform and it place trade orders on behalf of its users 24/7.

Conclusion

Exchanges can reap the benefits of automated crypto trading bot because the trading volume has increased dramatically in the past few years. Before start using any automated trading bot, you need to fully understand how best to manage and mitigate risk.



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