What is a Crypto Trading Bot?
In layman’s terms, a Bitcoin bot, crypto bot or crypto trading bot all refer to the same thing: a piece of software that executes cryptocurrency trades, like bitcoin or altcoins on its own, according to predetermined parameters.
Trading bots interacts automatically with crypto exchanges, using API’s.
Crypto trading bots trade for you, according to your rules without you being in front of the computer. What’s not to like?
A thing that you should also consider when pondering wether or not to use trading bots is the fact that they are completely emotionless. They do not bear your biases, do not feel the urge to make up for a loss nor are too greedy.
Bots make decisions by monitoring the market’s price movement and reacting to the rules you set.
A trading bot will be able to analyse market actions, like volume, orders, price, etc. Many trading bot are able to use indicators like Ichimokus, Fib retracements and you should be able to set them up so they can act exactly as you would with your favorite and optimal cryptocurrency trading strategy.
Why use a crypto trading bot?
Trading crypto is complicated. Many have gained and lost small – and big – fortunes on the crypto market and yet it can be the opportunity of a lifetime.
Let’s face it, the market is full of scam coins, the volatility is huge and trading bots are taking over.
How are you supposed to compete with emotionless crypto bots that execute each and every trade according to a predefined strategy?
How many times have you been triggered to sell when you should have waited?
How many times, despite what your favorite indicators were showing have you listened to that small and scared inner voice that told you to follow your “guts” only to find out later it was not the perfect move?
If you have, congrats, it means you have been battle tested an might not need a bot if you can stare at your screen all day long.
But if you are here, maybe there is a part of you that wants to do something about it..
The thing is, there are a lot of options on the market for crypto trading bots and the sector is becoming increasingly popular.
Which one should you pick to automate your trading strategy?
We’ve got you covered with this ranking of the best cryptocurrency bots available!
Do Trading Bot Actually Work?
Yes they do. But they will not magically make you rich. They operate as intended, meaning they execute trades on your behalf but that doesn’t mean that those trades will be great or even profitable.
This is a very important thing to understand, it is not a plug-and-play, miracle crypto trading solution. If you ever think this, you will have a hard awakening.
How Much Does a Trading Bot Cost?
There are trading bots at all prices. Some are completely free like Zignaly and others can costs upward of $100 per month.
Usually, prices vary between $19 and $80 for a monthly subscription.
Those that offer the most features will generally be more expensive, though that is not always the case and this why it is important to learn more about the trading bot you plan on choosing.
Are Trading Bots Safe?
Yes, trading bots are safe. When connecting your crypto exchange to your bot via API, you should beware of the authorizations you are granting.
You should only enable:
You should NEVER enable:
One other important facotr is to secure your account on the bot platform you are using.
You should always implement 2FA as well as have a secure password.
If you are following these simple guidelines, your funds will be totally safe.
Is there a Free Trial for Trading Bots?
Yes, the vast majority of crypto trading bots available provide a free trial in order to test the platform.
Free trials usually range between 3 days to 1 week.