If you have experience trading in traditional financial markets, you may know that most of the industry is currently dominated by automated bots. These bots are typically created and managed by top-tier financial institutions, relying on advanced algorithms that are challenging for the average person to comprehend. It was only a matter of time before automated bots made their way to the growing Bitcoin trading scene. Currently, there are several bots available in the market, each with its unique pros and cons claiming for to be one of the best crypto trading bots.
The use of an automated bot for cryptocurrency trading has two main benefits.
- Experienced traders can use these bots to implement their own Bitcoin trading strategies without needing to spend hours in front of their device. Additionally, the bot can automatically duplicate the trader’s viewpoints across multiple exchanges at all times.
- Newbie traders can benefit from using automated bots, which can be acquired from third-party firms. These bots come with pre-built trading strategies that can be automated, making it easier for beginners to invest with confidence.
Our review includes everything you need to know, such as what a Bitcoin trading bot is, how they work, who they’re suitable for, pricing considerations, and more. We also assess some of the best Bitcoin trading bots available in the market and determine whether they match with your investment goals for the long-term.
Best Crypto Trading Bots: Staff Picks
Based on our research, we have identified two crypto trading bot platforms that stand out from the rest. Immediate Vortex & Trade Eurax 100.
Immediate Vortex
Immediate Vortex is a trading platform that enables traders to identify profitable trading opportunities by providing real-time market data, charts, and detailed reports. This helps traders make wise trading decisions based on accurate data on coin trading volume. The platform focuses on manual trading for now, with no plans for automated trading yet. Additionally, Immediate Vortex offers high-quality lessons and tools to help traders learn about trading different assets. The platform remains up-to-date, and traders can stay informed on what’s new in the crypto world.
In terms of the fundamentals, Immediate Vortex is supported by more than ten exchange platforms, and you have the option of trading up to 70 different pairs. As is the case with Trader Eurax 100, Immediate Vortex also comes with a minimum deposit requirement, hence, there isn’t a free plan on offer, and its cost is $250.
Immediate Vortex is supported by over ten exchange platforms and allows you to trade up to 75 different pairs. Similar to Trader Eurax 100, Immediate Vortex also requires a minimum deposit of $250. However, there is no free plan available.
This tool can help you make smart choices about buying and selling items in the market, even if you lack experience. It analyzes the market’s performance, identifies patterns, and advises you when to buy or sell. You can read our in-depth Immediate Vortex review here.
Trade Eurax 100
Trade Eurax 2.0™ is a platform that uses an advanced algorithm to anticipate market trends and patterns. This makes it easy for beginners to engage in cryptocurrency trading without requiring extensive knowledge or experience in the field.
One of the significant advantages of using the Trade Eurax™ for trading is its automation feature. The bot continually monitors the market and executes trades based on predefined parameters set by the user. With this automation feature, you don’t have to spend time manually monitoring or making trading decisions. Additionally, Trade Eurax 100™ has a high success rate due to its advanced technology and prediction mechanism.
Immediate Bitwave
Immediate Bitwave uses AI technology to analyze the market and find profitable trades around the clock. The platform supports various assets, such as stocks, ETFs, commodities, Certificates of Deposits (CDs), currency pairs, and cryptocurrencies. It also provides educational materials to help users learn more about trading.
To begin trading, users must register and make their first deposit. Once they’ve done that, they can start trading with the platform. Bitwave is an automated trading robot that lets users make quick trading decisions with just a click of a button. By allowing the platform to trade on autopilot mode, it will automatically place orders and use them to reduce risks.
Overall, Immediate Bitwave is a straightforward platform that uses technology to help users make profitable trades without getting bogged down in complex jargon. Check our Immediate Bitwave review here.
Bitcoineer24
The Bitcoineer trading platform claims to have a success rate of 90% through the use of advanced machine learning and AI tools for automating cryptocurrency trading. However, we were not able to verify this claim, and it is important to exercise caution and not solely rely on this number as a guarantee.
We decided to test the platform for one week, which we thought was enough time to evaluate its performance. The platform uses AI technology to predict asset performance, scan the market, and select accurate indicators to identify profitable trades.
Here’s how it works:
First, you choose which asset to invest in, whether it be the crypto market or traditional stocks. Then, you determine the parameters, which are predefined rules and algorithms execution for the robot’s trading activity, establishing boundaries to prevent losses.
The AI system analyses the predefined rules and algorithms and purchases undervalued assets, and the tool is made to scan the market for potential selling opportunities. When an asset is traded above its fair value, a sell order is executed.
However, it’s important to note that this method is not 100% accurate due to volatility and unexpected events that may occur. Therefore, we recommend investors to evaluate the market conditions and risks before getting started.
Trader AI
Trader AI is a tool for cryptocurrency traders that offers help with analyzing market trends. It’s easy to use and provides valuable insights to investors, allowing them to make trades at any time. The platform partners with trusted brokers to offer essential features and trading indicators while also prioritizing user security using advanced security tools and encryption.
Despite its name, Trader AI doesn’t offer any cryptocurrency trading bot features but does provide intuitive trading resources and charting tools that may be useful for manual trading. Beginners may find the minimum deposit of $250 to access all tools a bit high.
To use this platform, it’s important to conduct research beforehand, start with a minimum amount and be aware of the risks of crypto trading.
What is a Crypto Trading Bot?
A trading bot is software that trades cryptocurrencies automatically without the need for your intervention. This allows you to access multiple cryptocurrency markets 24/7. The bot buys, sells and trades cryptocurrencies independently.
When using crypto trading bots, it is important to understand that they do not possess the ability to think. Instead, these bots rely on specific instructions that have been programmed into their software. It’s important to keep in mind that this is true for all automated trading bots. Without human intervention, these bots cannot make decisions on their own.
Let’s examine an example that can help us understand how a trading bot works.
I’ll illustrate:
- Suppose you program your bot to buy Bitcoin if it moves by more than 5% in 24 hours, and you configure it to trade on Coinbase.
- A few days later, the price of Bitcoin jumped rapidly from $60,000 to $65,000, which represents an 8.33% increase.
- However, your trading bot would have only made the buy order when the price hits $63,000, as per the 5% increase threshold that you had set.
- It’s important to note that the bot follows the instructions you provide and only executes orders based on the pre-set parameters.
In the example above, it can be seen that the bot executed a buy order based on the pre-programmed specifics that were installed in advance by the user. It is evident that the bot did not perform any extraordinary tasks, as it only followed the instructions given to it. This highlights the fact that bots are unable to think for themselves and can only perform tasks based on the instructions they have been given beforehand.
It’s important to note that the example given above is quite basic. As you read further into the guide, you’ll find that Bitcoin trading bots can do much more than just execute pre-programmed buy orders. They have a whole range of capabilities that we’ll explore in greater detail.
Now, in the following section, we will outline some of the main benefits that a crypto trading bot can offer.
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What are the Advantages of Using a Crypto Trading bot?
We would like to share with you some of the trading strategies that an automated bot can execute. Before doing so, we believe it is important to highlight the benefits of using a Bitcoin trading bot. Take a look at the advantages listed below.
24/7 Access to the Markets
Bitcoin trading bots can help solve a major problem in cryptocurrency trading – time. Crypto markets operate 24/7, and traders can’t monitor them all the time. This can lead to trading fatigue, which may cause flawed decisions. Automated trading bots can help traders operate continuously and make more informed decisions.
Using an automated trading bot has several benefits, especially when it comes to time management. One of the most significant advantages of using bots is that they enable you to participate in the global Bitcoin trading market at any time of the day. Typically, you would be limited to trading within your timezone, which means that you could miss out on crucial market developments outside your primary trading session. However, with bots, you can extend your trading exposure beyond your usual trading hours.
Bitcoin trading bots can help solve a major problem in cryptocurrency trading – time. Crypto markets operate 24/7, and traders can’t monitor them all the time. This can lead to trading fatigue, which may cause flawed decisions. Automated trading bots can help traders operate continuously and make more informed decisions.
Using an automated trading bot has several benefits, especially when it comes to time management. One of the most significant advantages of using bots is that they enable you to participate in the global Bitcoin trading market at any time of the day. Typically, you would be limited to trading within your timezone, which means that you could miss out on crucial market developments outside your primary trading session. However, with bots, you can extend your trading exposure beyond your usual trading hours.
For example, let’s say that you are based in Australia and thus – operate on Austrealian Time Zones (UTC+8:00-UTC+10:00). Bitcoin broke through a key resistance level during the night, indicating that a bull market is imminent. As a result, the markets moved 15% in just 8 hours. Unfortunately, because this happened while you were sleeping, people in other time zones were able to take advantage of the major price movement while you missed it due to your timezone.
This is where an automated Bitcoin trading bot can be useful. Since bots operate as programmed, you can essentially access the markets 24/7. Unlike traditional stock markets, Bitcoin is traded globally around the clock. By programming your bot to operate continuously, you will never miss another important market development again!
Multiple Markets
The second important metric to consider when analyzing the advantages of a Bitcoin trading bot is the ability to access multiple markets. This means being able to trade on several third-party cryptocurrency exchanges simultaneously. Due to the complex nature of financial and cryptocurrency markets, we are typically limited to trading on a single platform at any given time.
Although it is possible to trade on multiple exchanges simultaneously, it is unlikely that you will be able to monitor the markets as effectively as you would when using a single trading platform. Trading on multiple exchanges is necessary because there is always a slight difference in the exact price of Bitcoin from one exchange to another.
It’s worth to bear in mind that the current price of Bitcoin can vary between different exchanges. For instance, while Coinbase may list the price of Bitcoin as $62,500, Bitstamp may have it at $62,420. Though the difference may seem negligible in this case, during periods of rapid price movement, the disparity between exchanges can be significant. This presents an opportunity for Bitcoin trading bots to make gains through arbitrage trades.
Arbitrage trading involves profiting from the price difference of a single asset across two or more platforms. The best part about it is that if done correctly, it is risk-free. However, it’s important to note that if a Bitcoin arbitrage opportunity arises, it won’t last for more than a few minutes. Once other traders notice the opportunity, the markets will quickly adjust and the exchange prices will be more aligned. That’s why it’s a good idea to preprogram your bot to spot arbitrage opportunities 24/7. This way, regardless of your timezone, your Bitcoin trading bot can make risk-free gains when exchange price disparities occur.
Advanced Strategies
Cryptocurrency trading platforms often limit the types of orders that are available, which can be frustrating for experienced traders. Automated bots are a solution to this problem, allowing advanced trading strategies to be implemented easily. Our guide will explore various bots and strategies, including technical indicators and triggers that can execute market orders across multiple exchanges 24/7. Third-party platforms offer the best crypto trading bots that can be programmed to fit your needs, allowing you to trade without being present at your computer.
Suited for all Experience Levels
Bitcoin trading bots have advantages that suit traders of all experience levels. Advanced traders can enjoy from the ability to use complex trading strategies around the clock. The bot can handle thousands of potential triggers and perform numerous calculations per second, which goes beyond human capacity.
Automated crypto trading bots are great for beginners. If you’re new to trading, you can buy a pre-programmed strategy and start using the bot without any experience. You can customize the strategy to meet your specific needs, such as the amount of money the bot trades per order or the exchange platform(s) it operates on.
Emotion-Free
When it comes to trading on hard-earned money, emotions can be a major obstacle for investors, regardless of the asset being traded. Emotions can lead to irrational decisions, especially in response to adverse trading results. For example, if your Bitcoin position suddenly takes a turn for the worse and declines by 7% within just 4 hours, it may be tempting to make high-risk decisions. Therefore, it’s worth noting that trading can help you control your emotions and avoid making impulsive decisions.
If you believe that a bear market is emerging, it would be best to close your position. While you may lose some money, you’ll probably be minimizing your losses by doing so. This is an example of a sound trade. However, some traders find it difficult to handle significant losses, and their emotions can cause them to act irrationally.
If a trader experiences a loss, they may choose to wait and keep their Bitcoin positions open, hoping that the markets will eventually recover in their favour. It’s important to avoid making decisions based on emotions when trading.
Bitcoin has been experiencing a crash recently, which has caused some emotional traders to lose more money than they would have if they had exited their positions earlier. However, this is a mistake that a Bitcoin trading bot would not make. It is important to remember that trading bots are not capable of thinking. They simply follow the actions that are programmed within their software algorithms.
This means that they do not experience emotions or irrational thinking, eliminating the risk of making poor decisions based on those factors. As a result, using a Bitcoin trading bot can be a smart way to reduce the risks associated with trading.
In the previous section of our guide, we discussed the numerous advantages of using Bitcoin trading bots. Now, let’s move on to the next section, where we will explore the essential trading strategies that an automated bot can perform on your behalf.
Bitcoin Trading Bots: Strategies
When choosing a crypyto bot, it’s important to know that the strategies available may vary. Some providers offer certain strategies, while others may not. In this guide, we’ll explore some of the most common strategies bots can use.
Market and Limit Orders
Cryptocurrency trading bots can execute buy or sell orders once Bitcoin reaches a specific price point. This is known as market and limit orders, which is available on most third-party cryptocurrency exchanges. Trading bots offer automation of this process based on certain criteria, which saves time for the user.
For example, if the price of Bitcoin goes up 4% in a 4-hour period, the bot can be programmed to purchase it. Furthermore, the bot can place other orders, like exiting the trade when the price increases by 2% or decreases by 1%. Previously, this would have been a manual process.
Bears and Bulls
Bitcoin trading bots are useful not just when the markets are on the rise but also during a market downturn. If programmed correctly, a bot can execute sensible trades when a significant market movement occurs in a bull or bear market. Remember that the bot will only trade based on the underlying software that it is programmed to follow.
Trailing Stop Loss
When you’re trading Bitcoin, using a trading bot can be helpful. One feature to look for is called a trailing stop loss. This feature can protect your gains and help you make the most of your profits. What it does is allow you to keep a portion of your order open to capture further gains, while also securing a set percentage of your profits when the market moves in your favour.
For example, If your automated bot purchases Bitcoin at a predetermined price, and the market then experiences a 5% increase, it would be wise to wait and observe how the market evolves before taking any action. However, keeping a manual tab on the market can be a time-consuming task.
To make the most out of your trades, you can direct your bot to leave half of your gains open. This will enable you to create two additional orders. You can instruct the bot to exit the trade if Bitcoin’s value drops by 1.5%, or repeat the initial order by selling half of your gains if Bitcoin’s value increases by another 5%. You can repeat this process until the -1.5% exit point is reached.
Dollar-Cost Averaging
The investment strategy known as Dollar-Cost Averaging has been used for years in the traditional stock market. It involves making small, frequent purchases of a specific asset. This strategy is particularly helpful in the crypto trading world when prices are dropping. Buying Bitcoin when its price is low can give you the chance to buy it at a lower price.
Although it’s possible to do this manually, using a crypot trading bot can be much more effective. The Bitcoin market can be fast-paced, and you might miss out on opportunities if you trade on your own. With a bot, you can let it do the work for you. By allowing it to engage in Dollar-Cost Averaging autonomously, you can achieve your desired results without any effort on your part.
Arbitrage
When using a cryptocurrency bot to find opportunities for arbitrage trading, it’s important to note that there are some third-party bots which can be programmed to detect these opportunities. The number of exchanges supported by the bot is the most significant factor in determining the success of your trading. More supported exchanges offer a greater chance of profiting from differences in pricing across multiple platforms.
Consolidation Scraping
Bitcoin has become less volatile than it used to be, which means that the cryptocurrency often experiences periods of consolidation. During this time, the price of Bitcoin remains within a narrow range for several days or weeks. For instance, if Bitcoin trades between $60,000 and $63,000 over a two-week period, it is considered a consolidation period.
When trading, consolidation periods actually provide a number of opportunities to make gains. These opportunities can be further amplified by utilizing a cryptocurrency trading bot. Usually, you would need to spend a significant amount of time monitoring the market to make small gains during a consolidation period. Market movements are usually small, so you would have to constantly open and close trades as you go along.
As previously mentioned in our guide, trading Bitcoin manually for long periods of time can lead to exhaustion and irrational decision-making. Furthermore, manual trading restricts the amount of time you can spend trading. However, with a crypto trading bot, you can establish specific parameters for when the bot should enter or exit a trade. This allows the bot to generate small profits within these parameters 24 hours a day, seven days a week. By implementing this automated strategy, you can limit your risk and enjoy consistent gains.
It is important to remember that you can use more than one trading strategy at a time. For example, if your bot is programmed to earn profits during a period of consolidation, it can still carry out other commands that you have set. When Bitcoin breaks out of the programmed consolidation area, the bot can then execute additional orders, for example, a trailing stop loss.
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How Does a Bitcoin Trading Bot Work?
If you are curious about the actual mechanism of a crypto trading bot, we have provided a general outline of the process that the bot will follow while executing your orders. However, it is important to note that the exact process may differ depending on the provider you choose.
Step 1: Choose a Bitcoin trading bot
Your first decision will be, well, obviously, to choose a crypto trading bot. You should ask yourself these questions before choosing an automated bot:
- How many different exchanges can I trade with the bot?
- How much does the crypto bot cost?
- What coins can the robot trade?
- What trading strategies does the bot come with?
- Is there a maximum limit on orders, volumes, coins, or strategies that I should be aware of?
Step 2: Decide which assets you want to trade
Before you start programming your bot, it’s important to decide on the pairs you want to trade. While BTC/USD is the most traded pair in the cryptocurrency market, there are thousands of other pairs available. For instance, you can choose to trade Ethereum against the US Dollar (ETH/USD) or another fiat currency such as the Euro (ETH/EUR).
You can also decide to trade multiple pairs using your bot. However, note that some robots may limit the number of pairs you can trade at any given time. Some brokers offer different subscription packages with varying numbers of tradable pairs. The more expensive plans often come with a higher number of pairs you can trade.
Step 3: Build a Robot vs Use Existing Robot
Once you have selected the pairs you wish to trade, you need to decide whether to create your own custom bot or buy a pre-programmed algorithm that is already functioning in the market. Your decision will depend on your expertise and experience in crypto trading.
If you lack the necessary skills and knowledge to create a trading bot from scratch, it may be a better option to use an already existing robot. One of the primary advantages of choosing this approach is that most marketplaces allow you to see the bot’s past trading outcomes.
Step 4: Test the System
After connecting your trading bot to a cryptocurrency exchange, it’s essential to activate it before it goes live. Brokers can assist you with that action. However, before investing hefty sums of money, it’s necessary to go through a testing phase.
Therefore, it is recommended to choose a crypto trading bot provider that offers this testing feature. If you don’t, you will be putting your bot into action without knowing whether it will be successful or not. Once you are satisfied with the results, you can invest more, even in more than one exchange.
Wrapping Up
I hope that now you have a better understanding of the pros and cons of using an automated cryptocurrency trading bot and how it can aid you in your crypto trading strategies.
Additionally, I would like to clarify that the bots mentioned earlier are just suggestions. There are numerous other sites accessible, and the most advanced users can even design their bots if they are familiar with coding. The bots listed here are simply the ones we found reliable and have user-friendly interfaces, making them ideal for beginners. Trade safely and make a profit!
Important Note:
Risk management waiver: Remember, cryptocurrencies are unregulated, and trading with unregulated brokers will not qualify for investor protection. Make sure to arm yourself with adequate knowledge and the right trading strategies before diving into the world of digital currencies.