Crypto trading bots are computer related programs that acts on behalf of a trader, in making buy and sell orders to exchanges. These trading bots work on pre-selected instructions and order. Crypto trading bots enable trading based on data and trends—not on emotional impulse.
What is a Crypto Trading Bots?
Crypto trading bots are computerized software that helps one to purchase and sell cryptocurrencies at the right time. This software seeks to reduce losses, risk and boast revenue. It manages all crypto currency exchange account in one place.
How Does a Crypto Trading Bots Work?
In the trading world, making profit usually depends on how fast you are in buying and selling digital assets. As a result, any little delay in trade – closing can result to losses and this is why people use crypto trading bots.
These trading bots have the following key components which it works with. These are :
- Market Data Analysis
The bot saves raw market data from different sources and interpret it, it decides whether to buy or sell a particular cryptocurrency. Many bots allow the users to determine which type of data goes into the signal generator to get refined result.
- Market Risk Prediction
The bot uses available market data to determine the potential risk in the market. Based on information gathered, the bot can then decide how much to invest or trade.
- Buying and Selling The Assets
The bot uses APIs to buy or sell the cryptocurrency. It determines when to buy large tokens in bulk and when not to. Also, it executes immediate purchase or sales when the time is right.
What are The Best Free Crypto Trading Bot?
Some of the best crypto trading bots available for use are :
- Bots folio
Read also: 5ROI Exchange Review – Is 5ROI Exchange Safe
Are Crypto Trading Bots Profitable?
Trading bots are basically softwares, there is no certain guarantee of profitability. There are adverse risk involved with trading bots and it is only suitable for traders who have spent considerable period of time in crypto trading.
What are The Best Five Crypto Trading Bots You can Use in 2021?
Trading bots effectively help to handle trades for investors, following the laid down instructions set and also help to reduce constant loss. Some of the best available trading bots are:
Pionex is the exchange with the in-built crypto trading robot. It’s one of the best free trading bot platforms for cryptocurrency. It recently came out with its Spot-Futures crypto arbitrage bot and hence provides an alternative to traditional crypto arbitrage bots. Moreover, the trading bot on Pionex is easy to use.
Bitsgap is best known for its unique automated trading bot. Thousands of crypto traders with different experience and skill sets are using Bitsgap on a daily basis to maximize returns by automating their trading. It’s algorithm is designed to maximize profit from buying low and selling high each time the price swings.
Cryptohopper is a paid crypto trading bot for bitcoin and other cryptocurrencies. CryptoHopper helps to provide a marketplace where you can vouch for any thrid-party service such as crypto signals, trading strategies, apps, and templates.
The best part of Quadency is the backtesting feature, which allows you to backtest your strategies based on data and numbers instead of shooting them in the dark which is also the most important feature for a crypto bot. Furthermore, the platform provides a range of features and comes out as one of the best Bittrex bots.
Mudrex makes investing in crypto bots as simple as investing in a mutual fund.
The best part about the platform is that all information regarding the performance of a cryptocurrency bot is public and easy for users to understand.
Crypto trading bots are highly effective in making trade easy and also in reducing losses and boasting revenue, but one should always be mindful of the particular bot he/she may decide to use, given that they are numerous type available. You need to make enquiries before deciding on the particular one to use.