Cryptocurrency trading isn’t an easy but a very time-consuming task. Fortunately, any repetitive action can be automated. Trading bots are used by many cryptocurrency traders to execute trades faster and more efficiently. This is a comprehensive review of automated trading, in which we’ll consider the best crypto trading bots. Let’s get started!
How Do Crypto Trading Bots Work: Key Things to Know
Trading bots are programs that connect to an exchange (usually via an API protocol) and execute trades on behalf of users. How do crypto trading bots work? They work using a variety of trading indicators and strategies. Since trading is all about math and fast complex calculations of probabilities, bots should trade better than humans.
Bots make trading decisions by monitoring changes in market prices and acting according to a set of predefined and programmed rules. Typically, a cryptocurrency trading bot monitors and analyzes technical indicators and signals such as volume, orders, price, and time. Advanced trading bots crypto can be customized to execute your own trading strategy, so they are perfect in case you know what you’re doing.
How to Effectively Use Crypto Trading Bots?
How to effectively use crypto trading bots? What are their main goals? Well, repetitive tasks take a lot of time and effort. A cryptocurrency trading bot will allow you to virtually ‘copy and paste’ certain tasks to make transactions with ease. Periodic rebalances are one of the best ways bots can help you complete repetitive tasks. If you want to conduct rebalance hourly, you need to rebalance your portfolio every hour. So you have two options:
- Set an alarm every hour to rebalance your portfolio and lose your mind in the process.
- Create a trading bot and program it to rebalance your portfolio every hour until the end of time.
Timing and a high degree of accuracy during trading are crucial. Every trade you make can have a huge impact on your earning potential. Thus, bots can be easily programmed to monitor the market and execute a trade at the right time. This fact makes crypto trading bots profitable.
Top Crypto Trading Bots: Top 3 Best Bots
If you want to find out the top crypto trading bots right away, here’s our pick of the best crypto bots on the market. Let’s get started!
Cryptohopper is a leading crypto trading bot that offers some unique and interesting features including cloud trading as well as extensive social trading capabilities. Stop losses and trailing stops are especially welcome here as they help you a lot in risk management. This is perhaps one of the top crypto trading bots on the market, which is best reflected in its large customer base (over 150K users) and large signal market.
Quadency is a new trading platform offering a comprehensive cryptocurrency experience. Its main feature is trading bots, seven of which can currently be activated with the click of a button. The platform additionally offers portfolio management, a unified interface with advanced trading tools for manual trading, and a news section for in-depth research into the fundamentals of the asset you want to invest in.
Bitsgap is a new startup from Estonia that has built a powerful cryptocurrency trading terminal. So Bitgsap is a platform that supports trading, portfolio tracking, arbitrage, trading signals, crypto bots, and a full range of cryptocurrency services. Bitsgap especially stands out when it comes to arbitrage and it’s by far the best crypto arbitrage bot.
What are the best crypto trading bots? Feel free to share your favorite bots in the comments!