There is plenty of profit to be made in the Bitcoin and cryptocurrency markets. On the other hand, some investors may find it challenging due to the volatile nature of the prices of cryptocurrencies. Usually, it would take significant knowledge of the financial markets and economics as well as keeping up with the latest developments in blockchain technology in order to predict future price movements.
However, this is where auto trading software applications come in. These automated trading tools utilize advanced algorithms to scan the markets in search of profitable trading opportunities. Once a lucrative trade setup is identified, the auto trading software application will execute the trade within your trading account, allowing you to make consistent profits without much effort. Despite the many benefits of auto trading software, each software system is different and provides varying advantages and disadvantages. Therefore, it is a good idea to research as much as possible before deciding on particular automated trading software to use for your trading activities. So, let us look at the different Bitcoin auto trading options.
Popular Bitcoin Trading Bots
Below are some of the best, automated trading software applications for the cryptocurrency markets.
One of the most popular automated trading bots for cryptocurrencies, Bitcoin Trader, provides investors with consistently accurate trading signals. The software’s advanced trading algorithm utilizes six of the most popular technical indicators while using seven different time frames.
With an intuitively designed interface, Bitcoin Trader is perfect for both beginner and expert traders. Also, you will not have to worry about any fees or charges at all, which means there are no registration fees and no commissions on trading profits. What you earn, is yours to keep. Additionally, the software’s trade signals are known to be highly accurate ensuring most trades you enter into will end profitably.
You can choose to use the automated mode or more experienced traders may prefer to use the manual mode. In the automated mode, the software does everything for you, including executing trades automatically. However, with manual mode, you will have to actually approve each trade signal before manually executing each trade
The following are some of the pros and cons of Bitcoin Trader:
John Mayers created the Bitcoin Profit automated trading software which quickly became popular due to the faster than usual ability of the software to carry out market analysis. Traders of all experience levels can benefit from using Bitcoin Profit, a top automated trading software to trade Bitcoin and other cryptocurrencies. The straightforward design makes the interface easy to use, even for those with little to no trading experience. Experienced traders will usually find that the software enhances their trading results and serves to effectively diversify away from their current trading strategies.
Another advantage of Bitcoin Profit is that there is no cost whatsoever to access this powerful software. This means no registration fees to sign up for a Bitcoin Profit account. Also, there are no fees or commissions charged by Bitcoin Profit. You will never find any hidden fees with Bitcoin Profit which means you get to keep all the money you have earned.
Below is a list detailing some of the pros and cons of the Bitcoin Profit application:
Many investors have found success with the Bitcoin Evolution platform. This automated trading software provides easy profits for those looking to achieve success in trading the Bitcoin and cryptocurrency markets. The software has implemented an advanced trading algorithm which analyzes the financial markets using historical price data in the context of current market conditions. When a potentially lucrative trading opportunity presents itself in the markets, the software will automatically execute the profitable trade within your trading account, with no human intervention. You will basically be earning profits while sleeping since the algorithm continues working 24 hours per day, seven days per week.
Bitcoin Evolution is completely free to use, which means it is accessible to just about anybody. You will not have to pay any registration fees and there are no commissions charged on the profits earned while trading the markets. You will never encounter any unexpected charges with Bitcoin Evolution.
The following are some pros and cons for the Bitcoin Evolution trading software application:
One of the best, automated trading software for cryptocurrency, Bitcoin Loophole, provides investors with a powerful trading platform designed to allow traders to achieve success in the crypto markets. The software was created by a group of professional traders, computer experts, economists and mathematicians. Their goal was to empower as many everyday people as possible to trade profitably.
The software automatically scans the cryptocurrency markets in search of profitable trade setups. When an opportunity has been identified the Bitcoin Loophole software will make the trade within your trading account without you having to do anything at all. The algorithm has an accuracy rate of 99.4%.
Access to the Bitcoin Loophole software is completely free. You will never have to worry about any registration fees or commissions being charged with Bitcoin Loophole. Also, there are no hidden charges you will have to worry about encountering unexpectedly.
Below are the pros and cons of choosing Bitcoin Loophole for automated trade signals:
Numerous traders have discovered the power of the algorithm behind the Crypto Engine trading software. Traders have found that the Crypto Engine software interface has been designed to be user-friendly. This means you do not need to have any prior experience or knowledge in trading financial markets in order to use the trading software to make consistent money in the cryptocurrency markets.
Crypto Engine does not charge anything whatsoever to access its powerful trading software. You will also never have to worry about any fees for registering for a new account. Also, there are no commissions charged and absolutely no hidden charges. You will have to make a minimum deposit of $250 in order to start trading. However, the money you deposit is your money that will be used to fund your positions in the markets.
As a Crypto Engine user, you will have the option of a variety of cryptocurrencies to trade. These choices are Bitcoin, Bitcoin Cash, Ripple and Ether.
The following details the pros and cons of using Crypto Engine to trade the cryptocurrency markets:
Two brothers created the CryptoHopper automated trading software. One brother was a successful day trader while the other brother was an expert web developer. They teamed up and combined their respective knowledge and experience with the aim of creating a way to trade the cryptocurrency markets through some type of automated method. This became the start of CryptoHopper.
Interestingly, the first CryptoHopper was a 3-D printed piece of hardware which the two brothers created for their own personal use. Soon, all of their friends and family heard about the great success of the CryptoHopper and started to borrow the system from the two brothers in order to make good money from the cryptocurrency markets. This prompted the two brothers to decide on continuing developing the product in order to make it accessible to the general public.
This resulted in the growing popularity of the CryptoHopper software which provides traders with automated software which allows traders to design customized trading strategies.
Below are the pros and cons of the CryptoHopper automated trading application:
A respected financial trading broker, Trading 212, provides access to a variety of cryptocurrency markets. One unique aspect of Trading 212 is its automated investing, which the firm refers to as “Autoinvest.” The feature is designed to help you maintain customized portfolio diversification through “Pies” which are selected groups of securities, including cryptocurrencies, of which the proportions of each security is customized to fit an investor’s portfolio diversification goals.
Users are able to automatically invest funds at regular intervals into their customized Pie. Investors can also opt to invest manually into customized pies. Traders have the ability to adjust the amount of funds invested, the frequency for investing and the end date for deposits. You will always have full control of your funds with Trading 212.
There is no cost to access the Trading 212 platform. Also, you will have access to a demo feature which allows you to test out the platform without risking capital.
The following details some of the pros and cons of Trading 212:
Accuracy is a priority for the developers of the BitQT automated trading software. This is why the developers worked so hard in making the software’s trading algorithm one of the most accurate available. The software will search the markets 24/7 to pinpoint profitable trading opportunities. When one of these opportunities presents itself in the market, the software will automatically execute the trade for you, making you consistent profits with minimal effort on your part. Just a few minutes per day is all that is required for you to set your preferred trading parameters. After that, the algorithm will do the rest for you. It does not get any easier than this.
The best thing of all is that it is completely free to access this powerful trading software. You will never have to worry about broker commissions or any fees. There are no charges for withdrawals and zero fees for deposits.
The following are some pros and cons of BitQT:
What Are Bitcoin Trading Bots?
Automated trading software for cryptocurrencies, otherwise known as crypto trading bots, are applications which implement advanced trading algorithms in order to predict future movements in the cryptocurrency markets with the aim to profit from price fluctuations. The algorithms will analyze large amounts of historical price data along with the current market conditions in order to identify profitable trade opportunities whenever they materialize in the markets. Once a lucrative trade setup is spotted, the software will automatically execute the trade within your trading account. The algorithms will generally implement numerous technical indicators in the market analysis process. Usually, these algorithms will continue working 24 hours per day, seven days per week. Therefore, you will be essentially earning profits while you are asleep or on vacation or going about your usual daily routine.
Many traders, depending on the specific trading bot, are reporting making massive profits from using automated trading software to trade the cryptocurrency markets. Some are even making thousands of dollars per day consistently. This is enough money to completely transform your finances and change your life. You really have nothing to lose since usually, these trading bots are completely free to access. Generally, this means no commissions charged on trading profits. Also, there are no registration fees and no charges for transactions. Therefore, all profits are yours to keep.
Also, automated trading bots allow you to avoid the pitfalls of emotional trading. Making trading decisions based on emotions, rather than logic, puts you in danger of being blinded by greed or fear. This can result in holding a trade for too long or closing a trade too quickly, resulting in unnecessary losses. Since the automated trading software does everything for you, human emotion becomes a non-factor.
The Benefits of Bitcoin Auto Trading
Choosing an automated trading system comes with many valuable advantages, which are listed below:
- Little effort required
- Avoid emotional trading
- Make money 24/7
- No experience required
- No trading knowledge needed
- Massive potential for profit
- Passive income
- Diversify from your other strategies
- Never miss a profitable trading opportunity
- Bitcoin and cryptocurrencies are the future
- No more endless hours in front of price charts
- Save for retirement
The risks of Bitcoin Auto Trading
There are some risks you should be aware of with Bitcoin auto trading which are detailed below:
- Inaccurate trade signals
- Some automated bots charge fees
- Volatility in the Bitcoin and cryptocurrency markets
- No dividends
- Less control
- Broker fees charged
- Fees charged by the bank
- Software latency
- Requires a couple of minutes of effort daily
Types of Trading Bot Strategies to Use
Automated trading has massive potential for profit through the use of advanced algorithms which make analyzing markets easy. Although most people know about trading bots which simply buy and sell securities based upon market price fluctuations, there are other types of trading bots which help you make money in the markets. Two of these types of bots are arbitrage and market making. You may want to learn about these types of trading bots before choosing which automated software to utilize to make money in the markets.
One type of trading bot available uses a strategy known as arbitrage. This strategy consists of purchasing and selling an asset with the aim to profit from the differences in pricing between the markets. Opportunities for arbitrage exist due to inefficient markets which enables traders to exploit differences in valuations of identical securities. Arbitrage can also be applied to financial instruments which are not identical, but similar.
Traders perform arbitrage by watching the prices of their targeted assets on different exchanges. Carefully monitoring these differentials on these exchanges can yield handsome profits if your timing is spot on. However, you would also have to be able to mechanically perform the arbitrage trades in time before the differentials in pricing disappear with market fluctuations.
It would be quite difficult, if not impossible, to perform an arbitrage strategy manually. However, with advancements in computer technology, every day, traders are able to utilize this lucrative trading strategy. An automated algorithm will be able to spot these arbitrage opportunities much quicker than any human trader. This allows you to capitalize on price differentials in different markets 24 hours per day, seven days per week.
Also, in case you were wondering, arbitrage is completely legal.
Another type of strategy which could be utilized in automated trading is acting as a market maker. This is an entity, which could be an individual or some type of financial firm, that will quote both sides of a trade of a specific security or securities on an exchange. This means the market maker will be making bids as well as offers, otherwise known as asks. The market maker’s goal in doing this is to profit from the differences between the bid and the offer prices. This difference is known as a spread.
Market makers play an important role in creating efficient markets. These entities will provide liquidity for exchanges in order to keep transactions flowing, even in times of volatility. The exchanges allow the various market makers to compete with each other to provide the most generous spreads, creating price efficiency in the exchange’s market.
In order to make a profit, market makers have two avenues to do so. First, market makers are compensated for their risk taken through the spread pricing. Second, market makers will also execute trades using their own accounts for profit. These are referred to as principal trades.
Main Types of Crypto Trading Bots
There are various types of trading bots for the cryptocurrency markets. Below are some of the main types of automated bots available.
Different cryptocurrency exchanges oftentimes will have differences in the prices quoted for the same cryptocurrency. These differences are undesirable in some ways because it makes for an inefficient market. However, for traders, this can become an opportunity on which to capitalize by using an arbitrage trading strategy.
The arbitrage strategy works by identifying when these differences in pricing between exchanges become larger than normal. However, in order to capitalize on the price differentials, you will have to be able to spot the differences emerging in real-time. This is why using an automated cryptocurrency bot can be valuable, since the arbitrage opportunity can be identified and executed quickly, at lightning speed.
Although it almost seems like cheating the system, arbitrage is completely legal. In fact, many experts encourage arbitrage because it helps to improve market efficiency. Think of it as helping the free market as well as helping yourself.
Cryptocurrency markets, like any other type of asset market, require certain amounts of liquidity in order to properly function in an efficient manner. Market makers are important contributors in providing this essential liquidity. Basically, what market makers do is play both sides of a trade. This means they quote a bid and ask price on a single asset.
Exchanges provide a platform for the market makers to compete with one another in offering the narrowest spreads to traders. Market makers aim to profit from the spread pricing between the bid and ask prices. Also, market makers can earn profits from making trades on their own accounts. This is referred to as principal trading.
Using a software application to automate the market making can be advantageous since the software will do all of the work for you. Also, market makers use bots for their principal trading activities.
One method of trading which automated cryptocurrency bots utilize is technical trading. This is probably the most common method used by automated trading software. Technical trading involves analyzing historical price data and then factoring in current market conditions in order to predict future market movements which can result in profitable trade setups.
Traders will do this by looking for particular chart patterns as they emerge in the markets. Also, traders will use technical indicators, which are trading tools which measure certain quantitative metrics related to price action on a cryptocurrency. Some commonly used technical indicators are Moving Average Convergence Divergence, simple moving averages, exponential moving averages, Fibonacci levels and Relative Strength Index.
Since you would have to perform technical analysis in real-time, it can be challenging and time-consuming. However, with an automated trading bot, this will not be the case. The advanced trading algorithm will do all of the market analysis for you and will execute profitable trades continuously. Since automated cryptocurrency trading bots scan markets 24/7, you will be sure to never miss out on any lucrative opportunities which arise in the cryptocurrency markets.
For many longer-term investors, it is important to maintain the proper diversification of assets as you continue to invest more capital into your portfolio. This is true for not only stocks but also for cryptocurrency portfolios as well. One way which cryptocurrency trading bots can help in achieving this is through portfolio automation.
This method of investing utilizes automated software with which you will be able to construct a basket of assets in your preferred proportions that provide the proper diversification. The proportion of each asset will depend upon your own financial goals and tolerance for risk. The trading software will then automatically invest funds by purchasing these assets in these specific proportions at regular intervals. You will likely be able to customize how often funds are invested, which could be weekly or monthly or whatever interval you choose. Some brokers offer this type of automated service when you register for an account with the brokerage.
Like other types of automated trading, this will help you maintain trading discipline by avoiding having investment decisions being made based on emotions, such as greed and fear. Many times, consistency is the key to achieving success through investing in the markets.
Do Crypto Trading Bots Work?
Automated software is a proven method of trading Bitcoin and other cryptocurrency markets. There are numerous testimonials from traders who have experienced tremendous success with automated cryptocurrency trading applications. However, you will have to do some research in order to find the best cryptocurrency trading bot that will work for your situation.
First, you should decide what type of bot you want to use. You can choose to trade based on market price fluctuations by simply buying and selling cryptocurrencies. Also, you can opt to be an arbitrage trader and capitalize on the price differentials between different exchanges. Additionally, you could go with a portfolio automation bot.
If you go with the first option, you should obviously make sure that a potential cryptocurrency trading software provides trade signals which are accurate. It would make no sense to use software which does not provide an adequate level of accuracy. How adequate you need the software to be will depend on how much leverage you use and how much capital you have in your trading account. If you have enough capital to weather a series of losses to eventually make up those losses and then some profit, it may give you more latitude in trade signal accuracy.
Also, you should take into consideration the costs associated with the trading software. Most automated trading bots do not have any costs for accessing the software. Therefore, if an automated trading bot does charge fees, you should make sure the other features make up for the cost. Another aspect which should be considered is how the software interface has been designed. It is best to have a software interface that is intuitive and easy to use. This can be especially important if you have little to no trading experience.
Why Start Using a Crypto Trading Bot?
There are many advantages to using automated trading software to make money in the cryptocurrency markets. One benefit is that the automated bot requires little effort on your part to make consistent profits. Usually, after setting your trading parameters and activating the automated feature, the software will do the rest of the work for you. This means scouring the markets for trade setups with a high probability of profit. Once a profitable opportunity is identified, the software will execute the trade on your behalf.
Essentially, you will be making money while you sleep. This will save you a lot of time in front of the computer screen which would normally be required if you were trading manually. Also, since the automated software will continue scanning markets 24/7, you will never miss an opportunity.
Additionally, using automated trading will allow you to avoid the dangers of emotional trading. Since the software does everything for you, human emotion is taken completely out of the equation, which avoids succumbing to fear and greed. Fear can cause you to exit a trade too early while greed can result in you holding onto a position for too long.
How to Choose the Right Crypto Bot?
Deciding which cryptocurrency trading bot is best for you is important for achieving success in the cryptocurrency markets. There are a variety of aspects which you should consider when making a decision. Some of these aspects include costs, accuracy, demo trading, intuitiveness and reputation.
Most cryptocurrency trading bots do not charge fees to access their software. However, there are some that do charge some fees and even some commissions. You should be aware of this and make sure to weigh this into your decision on whether or not to use a certain bot.
Trade Signal Accuracy
The trade signals an automated software provides should have an adequate level of accuracy. You do not want to be surprised by a series of back-to-back losing trades which ends up wiping out your account due to not being properly funded. Knowing the accuracy of the trading software will help you decide how much to risk on each trade in order for you to absorb the losses to later win back the funds and reap profits.
One way to test the accuracy of an automated trading bot is through using a demo trading feature. Most trading bots will provide you with the option of trading with a demo account, which allows you to test out the software using virtual funds. However, there are some trading bots which may not offer this option. Therefore, you should make sure to be aware of which ones do offer demo trading.
Design of the Software Interface
Another important aspect to consider is how the software interface has been designed. It is preferred to have a software interface which has been intuitively designed. This will ensure the software is user-friendly. Therefore, you will save time on having to learn all the ins and outs of a complicated and confusing software application. Also, this will be helpful for those who do not have a lot of experience and knowledge of trading. Even expert investors can appreciate a software interface that is easier to use.
You should also consider the reputation of an automated trading software within the industry and among other traders and investors. Make sure to view all of the reviews posted online about the software before making a decision. Be on the lookout for any reviews which suggest that the software may be some sort of scam. However, you should also be careful to make sure the reviewers seem like real people. Additionally, consider whether or not the software has received any type of industry recognition. It is common for many of the better trading bots to have received industry awards.
Finally, there may be extra features which could make a trading bot more attractive. These may include mobile compatibility or even the ability to also trade Forex or stocks along with cryptocurrencies. Any extra features should be factored into your decision making.
Final Thoughts on Bitcoin Auto trading
Using automated trading bots for Bitcoin and cryptocurrency markets has the potential to earn you massive profits. Automated software provides many advantages over trading manually. You will be able to avoid emotional trading and the risk of loss associated with it. Also, automated trading requires little effort since the software will analyze the markets, generate trading signals and make trades for you. Additionally, you will never have to worry about missing out on any opportunities for profit since the trading bot will continue working 24 hours per day, seven days per week.
Overall, automated trading is a great way to make consistent and passive income. Anybody who is aiming to make money in the cryptocurrency markets, should seriously consider an automated trading software system.
Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on CoinRevolution and across the web.