During the early days of archaic technology, advanced automation and sentient robots were nothing but a work of fiction. However, recent developments have already pushed our civilization into the future. While we may not be living the life of the odd characters of Futurama, what technology has achieved over the past decade is impressive, nonetheless.
Automation and bots are now being integrated into systems, vastly improving processes across many industries. Not to be left out is the magical world of cryptocurrency, where bots are now used to trade digital assets over networks. With how other sectors are adopting bots these days, it’s not surprising the crypto industry is already on it. So, if you’ve been a regular trader, it’s time to keep yourself up to date with this feature.
What are crypto trading bots?
Crypto trading bots are run by programs that can execute trades for you in an online exchange that are based on parameters defined by either the programmer or user. For instance, a crypto trading bot can automatically place a buy order when the relative strength index (RSI) of a specific cryptocurrency is low (or a sell order when the RSI is high).
Since most cryptocurrency exchanges lets you use an application programming interface (API), you’ll be able to utilize this to pull data from the exchange and make specific changes to your account through a program, specifically automated programs called trading bots.
Using a trading bot through a cryptocurrency exchange’s API allows you to execute automated trades depending on your program. You can purchase or create this program to execute a specific trading strategy that you or someone else has defined. Essentially, this is what’s called bot trading.
Are crypto trading bots legal?
Not only are trading bots legal, but they are often a welcome feature. They’re also commonly used in the traditional stock market scene. However, the stock market happens to have a more intricate scheme that covers the legality of these trading bots. In fact, certain restrictions are in place involving who can use them and how.
But in the crypto market, such restrictions are non-existent, and a trader can easily use a trading bot of their choice mostly to help complement their due diligence, analysis, and investment decisions.
There are many available crypto trading bots you can choose from. As long as you go for a smart one that fits both your needs and your budget, you can improve your trading activities.
What are the advantages of using crypto trading bots?
Since the cryptocurrency market is volatile, the help of a crypto trading bot can help traders take advantage of automation. Here are some of the advantages of using one:
- No influence of emotions
Trading can evoke a lot of emotions that may hinder your success. For instance, bad news may trigger you to impulsively sell at a loss instead of holding onto it until the market recovers.
- Around the clock availability
Since the cryptocurrency market is open all day, every day, a bot can assist you in trading beyond your working hours. However, it’s worth noting that while these bots can help you profit, they can also cause you to lose money depending on your strategy.
- Time saver
Trading cryptocurrency can be repetitive with all the price checking and button pressing involved. With a bot, you can do all that you need with fewer actions. Just give your bot some instructions before you sleep and discover you’ve already made a few good trades when you wake up.
How much do crypto trading bots cost?
Here’s a look at 4 of the best crypto trading bots in the market, how much they cost, and a few of their most notable features (in no particular order):
|Trading Bot||Price||Notable Features|
|3Commas||$22 to $75 per month||Its SmartTrade terminal allows users to execute orders and trades, and set both bot-trading and stop-loss/profit positions.|
|Cryptohopper||$19 to $99 per month||With over 130 indicators and candlestick patterns, users can create a trading strategy using the bot’s trading strategy designer.|
|Shrimpy||Free to $8.99 per month||Focuses on portfolio strategies such as rebalancing, allowing you to automate in under five minutes. You can sign up, plug in exchange API keys, select assets, and enter a rebalance period, giving you a low maintenance way to simplify your crypto involvement.|
|ProfitTrailer||$89 to $1,999 lifetime license rate||A streamlined trading interface with a focus on providing a simple UX using gorgeous visuals to deliver an outstanding trading experience.|
The role of automation through smart bots is steadily growing in importance. Advancements are giving them more complex tasks that greatly benefit their human users. They have evolved to such a degree that they can now be tasked to handle cryptocurrency by trading it in the market without supervision.
With this kind of feature, intermediate crypto traders can now grow their existing portfolio. With the right strategy in place, they can program their trading bots to help them profit. The key is to make sure you choose the right crypto trading bot that fits your needs and budget. You’ll never have to worry much about your bots doing their thing.
For more information about cryptocurrency and trading this digital asset, go through our other informative articles in the Noah Coin blog.