The crypto market never sleeps; so, trading can be a very stressful exercise unlike in the regular stock market where there are fixed hours of operation.
Those who have been investing in cryptocurrencies are used to waking up to shocks and surprises every morning. The market is so volatile that trading bots have now become popular for trading.
Why are trading bots important?
Using bots, traders can control their trading activities all the time, and the bots will keep working even when they sleep. Besides, using a bot helps trades to be executed quickly and efficiently than if the traders were to trade manually. No surprises then why you will find numerous trading bots, some for free and downloadable from open-source platforms, and some in exchange for a flat fee.
But, you cannot be sure which are trustworthy and reliable. Trading bots will work in response to the market. So, they gather data to carry out a trade depending on an analysis. But in cryptocurrency, you cannot get all the data from a trading platform and there are many inexplicable ups and downs that one cannot program into trading bots. You can read a detailed review about bitcoin revolution which is an automated bitcoin trading software application.
How to choose the best Bitcoin trading bots:
- Before choosing a trading bot you must be sure it is reliable. You will not want to risk losing out on big profits because the bot malfunctioned or went offline for a while. It is best to read user reviews about trading bots in third party sites before deciding on one.
- The bot you choose must be secure; in cryptocurrency you are always exposed to hacking threats and for using a bot, you must give it access to your money. This is risky particularly when you choose a relatively new trading bot. this is why you must do ample research before you buy a trading bot and preferably select one that is well known for its security features.
- You must also consider the factor of profitability before you invest your money and time into it.
- Cryptocurrencies became popular because the network of transactions was transparent and there is no scope for foul play. This is the same idea that you must have when you choose a bot; you should select one which has been created by developers known for their contributions to the community. When there is transparency there is greater trust, and you can reach out to people for troubleshooting.
- The bot you choose has to be user-friendly so that trading is hassle-free. When the interface is intuitive and easy-to-use, the bot is popular as it is easily controllable.
2 Top Crypto Trading Bots:
- Cryptohopper: This is one of the leading Bitcoin trading bots that runs in the cloud and does not need installation. It has an intuitive dashboard and you only need five minutes to set it up for starting trades. Experienced traders can include tools, indictors and triggers in the dashboard. Cryptohopper has no trading fees and offers a month-long free trial.
- 3Commas: This is another popular bot compatible with many cryptocurrency exchanges like Bitfinex, Bittrex, Binance, KuCoin, GDAX, etc. It works round-the-clock being an online service and you can monitor the dashboard from your laptops and desktops. You can use this bot to fix take-profit targets and stop-loss orders. You can also create a crypto portfolio, analyze and back-test it to choose the best-performing portfolio.