Trading Bot and crypto trading: our guide
It’s an adrenaline rush to monitor the crypto markets on a daily—or even hourly—basis, but is it the most efficient approach to trade crypto? If you want to be more efficient, algorithmic crypto trading bots can assist your
What exactly are cryptocurrency trading bots?
Cryptocurrency trading bots are computer programs that generate and submit buy and sell orders to exchanges according to the rules of a pre-defined trading strategy. A simple trading bot, for example, may be designed to sell ETH when its price reaches a specified level.
In a nutshell, crypto trading bots allow traders to trade based on facts and patterns rather than emotional impulse. In the end, this usually increases revenues, reduces risks, and lowers losses across exchanges. Bots can also make money for you 24 hours a day. While sleeping, biking, giving a presentation, or doing anything else, you could be benefiting from automatic trades.
A rising number of platforms enable automated trading, but we’ve done the research and compiled a list of our favorites, along with some practical background and advice on how to make them work for you.
Bot tactics that are commonly used
Bot strategy for arbitrage
An arbitrage bot is a computer program that compares and examines coin values across exchanges in order to perform automated transactions that profit from price differences. For example, a bitcoin arbitrage bot might notice that BTC is selling for $200 more per token on Kraken than it is on bitFlyer, causing the bot to buy BTC on bitFlyer and sell it on Kraken shortly thereafter to earn a profit.
Bot tactic for the grid
A grid bot is easy to use and suitable for novices. For a given cryptocurrency, you just define various “grids” with upper and lower pricing boundaries. The bot then executes a series of interchangeable deals in order to build up profit incrementally. Assume you had the following COMP parameters:
$1,000 is the lower limit.
$2,000 is the upper limit.
Number of grids: ten
When you program the bot, the price of COMP will be $1,500, and you will have 4 open sell orders and 5 open purchase orders. If the price rises to $1,600, the bot will place two paired orders: one to sell at $1,600 and one to buy at $1,500. The profit of $100 is credited to your account.
Buying and selling cryptocurrencies for profit is what cryptocurrency trading entails. Cryptocurrencies have their own digital currency exchange where people may trade coins, similar to how traditional currencies have a foreign exchange (forex). Cryptocurrency trading is a 24-hour market, unlike typical stock exchanges that close at the end of the day.
Cryptocurrency CFDs are a type of contract-for-difference
CFD trading is a type of derivative that allows you to bet on bitcoin price changes without having to possess the underlying currencies. You can go long (‘buy’) if you believe the value of a cryptocurrency will rise, or short (‘sell’) if you believe the value will fall.
Both are leveraged securities, which means that full exposure to the underlying market requires only a small deposit (known as margin). Leverage magnifies both earnings and losses because your profit or loss is still decided by the entire size of your investment.
Buying and selling cryptocurrencies using a cryptocurrency exchange
When you buy cryptocurrencies on an exchange, you’re essentially buying the coins. To begin a position, open an exchange account, deposit the asset’s entire value, and keep the cryptocurrency tokens in your own wallet until you’re ready to sell.
Because you’ll need to get your brain around the technology and find out how to analyze the data, exchanges have a steep learning curve. Many exchanges also have limits on the amount of money you can deposit, and maintaining an account can be costly.
Selling Bitcoins has grown much easier than in the past, whether through cryptocurrency exchanges, P2P (peer-to-peer) networks, or Bitcoin ATMs. Let’s start by going over the basic processes involved in selling BTCs.
Step 1: Choose the currency you want to withdraw in.
If you’re in the United States, you’ll undoubtedly want to sell the most valuable cryptocurrency and cash out in US dollars (USD). You may choose to cash out in Euros if you are in one of the European Union countries. In the United Kingdom, you may desire to sell your Bitcoins and receive payment in Pound Sterling (GBP).
Because many exchanges or services don’t support certain currencies or don’t support any fiat currencies at all, determining the fiat currency is critical.
Step 2: Open an account on a cryptocurrency trading platform.
You must open a trading account on a platform that lets you sell Bitcoin and get payment in your favorite fiat currency, such as USD, GDP, EUR, or another currency.
Many cryptocurrency exchanges (such as Coinmama and Coinbase) allow you to sell Bitcoin and get payment in US dollars or other major fiat currencies.
Localbitcoins and many other peer-to-peer (P2P) platforms can allow you to sell coins and receive cash in person.
If you want to stay anonymous or offline, you can sell BTCs at Bitcoin ATMs (BATMs). In fact, you could sell them to a friend at a Bitcoin meetup without having to create an account.
The process of opening an account on a cryptocurrency exchange differs from platform to platform. However, with slight differences, the technique is nearly identical on each platform. The steps are, in general, as follows:
Step 1: Make a username and password for yourself.
Step 2: As part of the KYC (Know Your Customer) process, provide information. In this phase, your identity is verified.
Step #3: Use a two-factor authentication technique to secure your account.
You may have to wait for the verification of identity confirmation process to complete before you can buy. You already have an account if you purchased Bitcoin from a cryptocurrency exchange. To sell it, all you have to do now is utilize the same account
Step #3: Transfer your Bitcoins to the platform where you want to sell them.
For the protection of their Bitcoins, most users store them in BTC wallets, either software or hardware wallets. You can sell them directly from the wallets if you want to. You must do so by transferring your money from your wallet to the platform (be it exchange or P2P platform).
Step 1: Once you’ve created an account, all you have to do now is deposit your cryptocurrency on the exchange. All you have to do is press the “deposit” or “send/request” buttons.
Step #2: After that, you’ll be given a QR code or a wallet URL to enter.
Step #3: Scan it or type in the wallet’s address.
Step #4: Transfer the desired quantity of Bitcoins.
If you’re selling your BTCs in person, all you have to do is send them the digital currency and they’ll deliver you the cash.
Step #4: Create a sell order
After you’ve set up your account and transferred your cryptos, you’ll need to post a sell offer on the platform where you’ll be selling BTCs. The selling process differs from one platform to the next. In general, the procedure entails the following steps:
After entering into your account, look for the “sell” or “trade” tab on the platform.
You can sell Bitcoins at a broker’s suggested price. If you don’t like the pricing, you can use an exchange order book to generate a specific sell order.
The only difference is that you’re selling with a broker at a spot price (minus a certain fee).
P.S. Always remember that you can sell Bitcoins for any price you want. However, keep it competitive; else, there would be few takers. The nicest part about selling Bitcoins on a cryptocurrency exchange is that the fees are usually lower than brokerage fees.
Right Now’s Best Crypto Bots
With the growing popularity of cryptocurrencies, it’s now easier than ever to get started with a bot to help you improve your investment approach. Now, let’s look at a few of our top cryptocurrency trading bots.
With the growing popularity of cryptocurrencies, it’s now easier than ever to get started with a bot to help you improve your investment approach. Now, let’s look at a few of our top cryptocurrency trading bots.
Trality is the best option for beginners.
Trality is a platform for anyone who wishes to build incredibly complex, super-creative algorithms within an educational, community-driven architecture that encourages traders to learn and grow.
The platform, which was founded in Vienna in 2019, has quickly become one of the most popular choices for both beginner and advanced crypto traders around the world.
They created a cutting-edge tool called Rule Builder — for those who don’t know how to build complicated trading algorithms. A graphical user interface that allows you to drag and drop indicators and strategies to create the logic of your trading bot.
Trality’s browser-based Code Editor is the most advanced of its kind for advanced users who know Python coding. This application enables developers to use their coding skills to design complex and advanced methods in a secure and timely manner.
Both of their tools allow you to run lightning-fast backtests to validate your algorithms before releasing your new bot into the live market, as well as paper trade to check how it is performing right now without risking any real money.
Trality is completely free to use and has a variety of price options for different types of users.
Pionex is the best option for high-volume traders.
Pionex is a cryptocurrency exchange with trading bots built in. You can use 12 different trading bots for no extra charge. These bots allow you to automate your investing approach so that you don’t have to keep an eye on the market all of the time. Pionex offers reduced trading commissions as well as a fully functional mobile app. Pionex, we believe, would be an excellent choice for high-volume, mobile investors.
Pionex’s major offering is their trading bot selection, which facilitates manual trading via crypto-to-crypto conversions. When precise, pre-defined market conditions are met, a bitcoin trading bot is an automated program that executes buy and sell orders without the need for manual input.
Pionex charges a maker-taker fee, which means you’ll be charged when you place transactions that “create” liquidity on the market and “take” liquidity off the market. You’ll be charged a maker fee if your trade isn’t promptly matched by an outstanding order on the books. You’ll pay the taker fee if you place a trade order that is instantly matched with an outstanding order.
NapBots are the best for strategic copy trading.
NapBots was created by Napoleon Crypto Group to assist you in connecting to your favorite crypto exchanges and using automatic Napoleon signals to invest in strategic copy trading. BTC, ETH, BCH, LTC, XRP, EOS, and BNB are the most popular cryptocurrencies on the platform. It’s an excellent platform for people looking to profit from market volatility, make quick money, and trade cryptocurrency on a regular basis.
Depending on the degree of service you desire, sign up for the Silver, Gold, or Platinum plans. Connect to Bitpanda, OKEx, Bitfinex, Phemex, FTX, Binance, BitMEX, Bitstamp, or Kraken, select the bot that most suits your needs, and leave the rest to NapBots.
Increasing your account’s gains can be as simple as using automatic and strategic copy trading. You can also seek assistance from the company’s customer care team or study their instructional resources to learn more about crypto investment.
Shrimpy.io is the best for connecting cryptocurrency exchanges.
Shrimpy.io allows you to manage your portfolio by connecting to one of 18 exchanges. You can connect to as many exchanges as you want, and you can add as many wallets as you want.
Choose whether you want a Starter, Professional, or Enterprise account. You can easily keep up with Shrimpy and let the bot manage your investments when you don’t have time because of the low prices.
To examine your investment possibilities, use a demo account. To emulate an expert, use social trading. This is a simple platform that allows you to consolidate your investments if you have money distributed over multiple exchanges.
Cryptohopper is the best option for reliable connectivity.
When you rely on a bitcoin trading bot, even brief periods of inactivity can result in lost gains. Cryptohopper is a trading bot that is available 24 hours a day, 7 days a week and runs purely on cloud storage.
This means there is no downtime for the bot, and updates are delivered without disrupting your trade or putting your account on hold. Your Cryptohopper account will continue to function even if your network is down.
Cryptohopper also has a simple and intuitive sign-up process that requires no credit card information. Sign up for an account and start investing right away – no platform installation is required. The bot also incorporates social sentiments from other investors, which can help you refine your strategy and improve your trading.
Coinrule is the best option for pre-set strategies.
It’s difficult to top Coinrule’s collection of preset trading methods when it comes to delivering the most options. Users can now tailor their investments with more than 150 trading templates that are automatically performed when market conditions meet predefined criteria. Coinrule is regularly adding new templates to its platform, ranging from accumulating to long-term holding techniques and stop-loss settings.
Coinrule offers a free package with 7 complimentary template tactics and up to $3,000 in monthly trading volume, though the number of templates you’ll have access to will change based on the plan you choose. Advanced charting options, limitless template usage, and even one-on-one trading tutorials and courses are included in subscription packages.
CryptoHero is the best mobile platform.
CryptoHero is a one-of-a-kind platform with a gorgeous user interface and website. Their mobile app, on the other hand, is even better. The app is simple to install and does not overheat your phone, consume excessive memory, or take a long time to load.
Before you start trading, you can pick between the free and paid platforms when you sign up for CryptoHero.
A brief lesson is included in the mobile app to assist you in creating your first bot and investing. You can see your active orders, realized profits, W/L ratio, and total number of trades on the Deals tab, which is divided into In Progress and Completed sections. You can also look at your Dashboard to check your current orders, realized profits, W/L ratio, and total number of trades. Without having to wade through a complicated UI, you can get to all of your information quickly.
While the concept is complex, and creating your own trading bots is a specialized skill, CryptoHero makes it simple to enter the crypto market even if you have no prior experience. Plus, instead of sitting at your computer for hours on end, you can take it with you in the form of a mobile app. If you frequently travel or commute, like to approach your cryptocurrency investments as a hobby, or want to keep all of your investments on one device, the app can help.
Wunderbit.io is the best platform for social trading.
Estonian-based bitcoin exchange Wunderbit is a cryptocurrency exchange that is licensed, accredited, and regulated. Clients can purchase and sell Bitcoin safely and securely at the best exchange rates through the organization.
Wunderbit supports social trading, so you can sign up as a trader or an investor. Investors might hire you to manage their investments if you register as a trader.
As an investor, you can choose to follow one or more traders and duplicate their trading techniques in exchange for a commission deducted solely on profitable trades. If you’ve never traded before, you might want to consider this alternative.
The fees and commissions charged by Wunderbit vary based on the type of transaction you conduct.
Botsfolio is the best option for non-techies.
Botsfolio is a sophisticated crypto trading bot that allows you to trade without coding or prior trading experience in three easy steps:
Make a decision on what you want to achieve with your money. To learn how to allocate money in various bitcoin trading techniques, answer a few questions.
Make a connection with your exchange. Botsfolio can be up and operating in minutes after you add an investment amount to your bitcoin trading exchange.
Keep up with the latest news. Your account is automatically traded by bots. Botsfolio’s intuitive visual dashboard allows you to keep track of your automated cryptocurrency trading operations.
TradeSanta is the best for saving time.
TradeSanta is a cloud-based trading bot that enables automated trading across many cryptocurrency exchanges. TradeSanta can save you time by executing deals on your behalf with its crypto trading bot.
When you construct the trading bot, you can select your favorite configuration. Then you may scale your trading by creating as many distinct trading bots as you wish.
Most of the major centralized cryptocurrency exchanges are supported by TradeSanta, and setting up an account is simple.
Quadency is the best option for a unified experience.
Quadency enables you to trade on all of the top tier exchanges from a single, fast, and simple interface with a range of order types for every trader. Choose from a variety of popular pre-built techniques, customize them, and go live in minutes.
It allows you to track your performance over time by monitoring all of your assets, including those from exchanges and even offline wallets. Quadency has an integrated market screener and charts, as well as high-quality streaming data, so you can go beyond market cap rankings.
With Quadency, you can get market insights from reputable industry insiders without having to sift through the cacophony of social media and ad-filled news sites.
Cryptocurrency Trading Bots: Reality Check!
Are there any risks associated with Crypto Trading Bots?
Yes, there are certain risks associated with cryptocurrency trading bots. Let’s check them out:
Cryptocurrency Trading Bots are not Human
They are AI algorithms, which involve lines of codes and machine learning. After all, it’s a computer program. As an investor, you must be aware of this fact. When you are going for the autopilot, you must know that you are allowing an AI machine learning tool to handle your crypto exchange account. Therefore, you should use an automated trading bot accordingly.
Cryptocurrency Robots is not a “Sell it and Forget It” type of Trading Instrument
Usually, it has been seen that investors tend to put crypto bots on autopilot and forget. They get passive. However, to get the best return, always remain on top of affairs. You must tweak bots as per the market condition, which usually changes multiple times in a day.
Online Hacking may take place just like any other Online Resource
Online hackers may hack into your account to siphon off your Bitcoin and other cryptocurrencies. So, always try to keep funds divided among various cryptocurrency exchanges to limit your exposure to hacking risks.
All Cryptocurrency Robots are not the Same
All crypto bots are not reliable. So, you must be prudent while choosing the right crypto trading platform. Always do proper research while choosing a crypto bot. It is advised to work only with reputed crypto bot providers and exchanges such as NapBots.
Is there any Risk associated with NapBots?
Though NapBots has a proven record of providing great returns to the investors, it doesn’t guarantee profit all the time. It can provide you astonishing returns with hourly strategies. As the crypto market is very volatile, you should expect to see losses from time to time too. If you’re not ready for that, you shouldn’t get into crypto trading in the first place.
If you are a novice in the cryptocurrency market, you can put your cryptocurrency trading on autopilot, get excellent ROI, and keep earning your passive income round the clock, even when you are sleeping. However, always keep in mind that NapBots is not a get-rich-quick scheme. Please check the Reviews on NapBots.
What’s so special about NapBots?
NapBots crypto trading software is special because it comes with:
- A unique trading algorithm that processes market data for you
- A unique crypto trading bot library so that you can create your own mix of trading strategies
- Autopilot mode that enables you to automate trading 24×7
- An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money
How to Get Started with NapBots and Make Money?
With NapBots, you can enjoy financial independence by trading cryptocurrencies on autopilot mode and earn money automatically. To make it work on your behalf, you have to do the following:
Step #1: Connect to one of the available trust exchanges.
Step #2: Select from the unique list of performing Bots of NapBots
Step #3: Choose a plan that suits your investment style
Once you have completed these three steps, NapBots is ready to trade crypto and earn money for you. Happy Trading!
Why Choose NapBots ?
- NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.
- The setup and installation process are easy. So, non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.
- The team of professionals behind NapBots has extensive experience in financial trading. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.
Pricing is simple and there are no setup fees. 1 WEEK FREE TRIAL !
Are You Ready To Start Automating Your Passive Income Now?
If you still need assistance, you can refer to the following step-by-step purchasing guides for the various payment methods:
- Everything you need to know to begin trading bitcoin
- Best crypto trading bots on the market
- Algorithmic trading : a complete guide for beginners
- Everything you need to know about crypto trading bot?
- How to sell Bitcoin (BTC) ?
- Cryptocurrency trading : What is it and how does it work ?