Auto trading bots are everywhere these days in the conversations of crypto lovers. It can be found as far back as during MtGox glory time. Bitmex or Bitfinex are rumoured to be regularly governed and manipulated by BTC trading bots that regularly provoke liquidations. Also, you regularly see posts of crypto traders that are experiencing phenomenal returns due to bot trading.
To Bot or not to Bot?
Since the 1960’s robots have fascinated mankind. It started slowly with for example washing machines that would really help our mothers and grandmothers take care of the laundry, pain free. A vast variety of home appliances were also developed for a lot of daily tasks that would be repetitive.
Nowadays, our kitchens and houses are full of these things. At the industrial level, robots have entered factories where a thousand of workers used to do repetitive tasks. How many stories have we heard in the 80’s and 00’s? Thanks to automation, 24/7 availability, tremendous complexity and their low running cost, they have imposed themselves.
Unskilled workers are now forced to work in the service area. Computers also have revolutionised the way we work in offices. So, it is no wonder that cryptocurrency trading bots have emerged to help investors in their daily tasks. And because crypto have emerged thanks to a bunch of IT passionate it is no wonder that automation have been developed at all possible level.
The first bots were so-called arbitrage bots. They basically benefited from price difference between 2 exchanges on the same product. Implementation was not easy as you need money to be physically sent from one exchange to the other.
Then came the first commercial crypto trading bot that were package more like toolboxes. Traders that would not want to waste time developing their tool would use them. Creating them was easy. All was needed was to list the main features employed by traditional traders.
What people do not realise is that common people are not able to drive a formula 1 at full speed. To drive the best crypto trading bot of this class, you need to be fully trained and experienced. In this case, assessing performance is not easy as a bot is as good as its engineer. And the engineer is the user of the bot, the one that actually parameters it.
It is clear trading bot activity is for real, but what about true profitability?
Trading can be profitable and give amazing returns, however, you must be wise at the time of choosing who’s going to manage your money. There are some actors that have shown some good performance over the past years but be careful there are a lot of scams out there!.
The most popular and legit platforms are TradeSanta, Cryptohopper, 3commas, however, they just offer a marketplace where people can come and built their own bot or copy another ones bots, giving amazing tools to people to create. The problem here is that most of the proposed strategies are developed by amateur traders and not experienced ones.
They are some other actors such as NapBots that put some skin in the game and create their proprietary library of strategies.
They offer one of the best bitcoin trading bots in town. They are essentially offering a marketplace where you can cherry-pick the strategies you are interested in and make your own mix.
Their strategies have been designed by experienced pro traders and some of them are almost 3 years old which should provide comfort on this survivor bias risk. Also, they consistently developed new trading strategy to benefit from new data source.
They are providing Binance trading bot. Their service is also available on Bitmex, Bitfinex, Kraken, Bitstamp, OKEX and Bitpanda trading platforms. The team is really building its reputation on performance.
It is the main reason why they incentivize their customers to start using paying plans once they have tried a free crypto trading bot plan. We think these guys will set the market standard at a very high level and that any new marketplace will need to be of similar quality level with diversifying strategies.