Crypto exchanges never sleep, and prices change all the time. A lot of investors are familiar with the feeling of losing a lot overnight. Any uncontrollable results are potentially dangerous for traders, especially in the crypto space with its volatility and unpredictability.
Here come trading bots as a possible solution. They automatically monitor cryptocurrency exchanges all the time, allowing their owners to have a rest. There are dozens of free and paid tools with different efficiency at the moment, and we are going to check the best ones.
Features of crypto bots
As the very first automated program was designed for traditional markets, crypto bots are not an innovation. However, stock market tools are extremely expensive – the famous Bloomberg terminal, for example, costs more than $10,000. Old programs were available for brokers and large investment teams but not for occasional market players.
With the emergence of crypto, users created new trading bots – software solutions which interact with exchanges and place market orders there. Owners of bots can set preferences, modifying orders’ settings and limits. Based on these rules, programs check key market stats like price or volume and perform orders to generate profits.
It all doesn’t mean that crypto bots will make you rich in a moment. They require well-thought tuning and a deep understanding of market principles, as well as having a proper investment plan. Not bots but traders themselves are responsible for shaping their strategies. Additionally, a lot of services are poorly designed and can’t be helpful.
Types of trading bots
There are free programs with open source code and premium ones with more features. Prices of the latter start from $10 per month and may reach a few hundred. More importantly, there are two trading strategies utilized by crypto bots.
Crypto exchanges have different rates for the same coins. The arbitrage strategy is about trying to catch a price spread and make profits. Today, this difference is not significant, however, being fast enough, bots can help earn on it.
While humans are able to buy and sell coins within minutes, bots can make dozens of deals in a second, using several exchanges simultaneously. The market strategy is simple but powerful because trading programs outperform humans.
Further, we will list five of the most famous and useful automated trading programs for crypto investors.
Cryptohopper is a cloud-based service that doesn’t require installation. It features simple and quick set up, convenient dashboard, and a lot of trading indicators for both bullish and bearish markets. As its team claims, the bot is unique as it supports external signalers who send alerts about rising projects. Also, Cryptohopper provides handy templates for famous exchanges like Binance or Kraken.
Price: $19/$49/$99 per month depending on the chosen package. Zero trading fees.
Unlike others, CryptoTrader functions as a whole platform rather than just a bot. It has a market where registered users can trade successful strategies. The system supports backtesting and works with the most popular exchanges.
Price: 0.0042 to 0.0514 BTC or 0.515 to 6.436 LTC per month.
With nearly 6,000 of daily users, GunBot is one of the most well-known trading tools to suit both newcomers and experienced investors. The bot supports a full customization of trading strategies and has a simple interface. GunBot may use different techniques like Emotionless or Reversal Trading. This downloadable software works on PC, Mac, and VPS.
Price: 0.04 to 0.3 BTC depending on the edition. The package includes a lifelong support.
This is an open source bot with its code available on GitHub. Gekko utilizes basic strategies and allows creating custom trading plans. It also acts as a platform for backtests which allow checking how strategies would work. Finally, Gekko alerts users thanks to a few plugins compatible with Telegram and email services. The bot is perfect for new traders.
Haasbot was launched in 2014 and is loved by traders despite its significant fees. The program supports more than 500 altcoins and all the major trading platforms. Haasbot focuses on simplifying users’ experience, requiring only setting preferences at the beginning. The unique feature of this bot is the analysis of candlestick patterns which improves trading decisions.
Price: 0.028 to 0.08 BTC per 3 months, it also depends on the version.
Apart from the mentioned bots, there are dozens of other noteworthy projects which may suit your trading style. With a proper crypto bot, you can significantly improve your trading experience and save more time to yourself. The automated program won’t do all the work but it will embody your strategy to the fullest. Be sure to evaluate all potential profits and risks before getting started.