A Complete Review Of Auto Trading Bots And Their Features
Cryptocurrency trading becomes more popular and demanded by the day. Such an increased interest in Bitcoin trading has led to the rapid development of Bitcoin trading bots. While most of them are free to use and licensed, there are unreliable sources too, and if you’re willing to make at least something out of your trading investment instead of losing all, it’s vital to be able to tell a fraud from a reliable source.
Today, let’s discuss what automated Bitcoin trading software should represent, how it works, and whether you should consider using one. Also, the bots mentioned in the review have undergone serious testing, so it can be honestly said that they belong to a reliable trading bot category so far.
What is Bitcoin trading bot?
If you look back at trading history, investors of all times have had to do all the research and calculation on their own to succeed with a fruitful trade outcome. Starting with the 1980s, the process was automated. Even though there hasn’t been any Bitcoin trading in sight, stock market investors used the technology to their advantage.
An average automated Bitcoin trading bot is designed to monitor possible market changes and predict the most suitable time to either buy or sell cryptocurrency. What’s more, modern bots carry out trading operations without a trader involved. Though many platforms still offer manual trading options, it depends upon the investor’s trading experience as to whether to use the possibility or not. In the majority of cases, automated trading bots predict the results more precisely based on the superiority of AI and the elimination of ‘human error’ possibility.
How does a Bitcoin trade bot work in general?
Various trading platforms claim to use different algorithms designed to bring in a better profit. However, some standard features for all automated BTC trading software remain unchanged. Bots never sleep, they’re a lot faster than the average person, besides, they’re non-sentimental and unemotional.
The primary function a trading bot carries is gathering precise trade-related information, weighing the odds of wins or losses, and then executing the operation. However, it’s crucial to understand that behind every bot, there should be an investor to set the key parameters, such as stop losses, daily amounts, maximum profit, etc.
Advantages and disadvantages of relying on auto trading bots
No matter how functional and reliable a bot may seem, there’s a list of advantages and disadvantages to be aware of. If you’re looking for a serious investment platform with significant profit in sight, all the risks related to trading should be calculated and eliminated if possible.
Advantages of BTC trading software
- Trading rules. Every auto trading bot is created to follow specific rules or algorithms. When a system reads the same signals it has been designed to recognize, it triggers the trade. The preset rules can be manually changed according to users’ preferences too.
- Absence of emotion. People are usually led by emotion which, at times, ends up in incorrect calculations and thus the loss. With an automated system built to follow the set rules precisely, things like that are out of the question. When the system spots the necessary pattern, it reacts and executes the trade while a person may be too reluctant to act by weighing all the pros and cons.
- Enhanced speed. It’s not a secret that the cryptocurrency trading market changes at the speed of light. It’s quite challenging for a person to monitor and react timely to all changes while a robot does that instantly. When a needed pattern is spotted, the system responds instantly, while a real person may still be in search of that same pattern.
- Multiple trading operations. It’s close to impossible for one person to be able to handle numerous trades, and there’s nothing wrong with that. At the same time, any Bitcoin trading robot can deal with the task effortlessly. In fact, an automated robot can carry out multiple operations in as little time as milliseconds. Impressive, isn’t it? Besides, a robot can operate by assigning different strategies to various trades so that the risk of losing is decreased while the possibility of winning increases.
- Free to use. Most trading bots are completely free to use. Usually, the only requirement is to deposit a set amount to a personal account. After that, you’re free to use the system to your advantage. Although, some trading platforms require a monthly fee to be paid.
Disadvantages of BTC trading software
- Mechanical errors. No matter how well-designed the machine is, it’s possible to fail too. All due to the unstable Internet connection. When you start a trade, it may not go straight to the server but remain on the computer. So, if the connection is lost, the order is usually lost too.
- Monitoring. Many users think that when trading bots are in use, they’re allowed to leave the computer at any time and do anything they need to. However, the reality isn’t that simple. If you’re interested in trading profitability, constant trade monitoring is required. At times, the connection issues, power loss, system crash, or even program bugs can affect the trade negatively. The robot itself isn’t yet designed to deal with matters like that. Only a real trader can spot the problem and possibly solve it.
The best features a trustworthy Bitcoin trading system should include
The variety of trading platforms is great and the better you can distinguish between trustworthy and unreliable sources, the better. Should you be interested in the features that a reliable service usually includes, refer to the data below.
Demo trading mode
No matter how many reviews on a trading platform there are, nothing speaks better about its quality than personal experience. When it’s possible to test a system to figure out if it suits your needs, you can consider an actual investment. That’s why those platforms that don’t offer the user a free trial/demo trading option are to be better left out.
Social trading
When you don’t rely on automated trading strategies, yet it’s still too early to come up with your own, a strategy trading market is a good way out. It’s true that not all trading platforms offer the feature, but the best ones do. To put it simply, you can purchase a trading strategy that’s developed precisely for the tool and cover the expenses with possible profit it will bring in the future.
Indices
Many trading services support portfolio automation. However, for an investor, it’s essential to understand how the service creates the indices in use. Since the cryptocurrency market is utterly volatile, a detailed index is impossible to come up with. Nevertheless, reliable trading platforms provide a fair share of educational content on the sampled coins, as well as on the way the market caps are weighted in a given index.
Server-based or cloud-based trading platforms
All the recent BTC trading software is mostly cloud-based. Such an approach results in increased convenience of the service. At the same time, server-based platforms are still in use too. The only downside of the latter is that your computer has to be on all the time so that you don’t miss an excellent trading opportunity. On the bright side, server-based platforms are more customizable and offer better performance. So, here you’re given a choice to pick between reliability and convenience versus high customizability and improved performance.
Trading community
Inexperienced investors pay little attention to the trading communities that a trading bot may run. However, such a community may be a great source of cryptocurrency-related information, including profitable strategies, as well as the latest news. Unless you’re a 100% lonely wolf, you may need to browse through such communities to get a hang of what’s going on with a specific trading platform.
Educational content
When searching for an automatic Bitcoin trader, it’s vital to understand that most of them are powered by different algorithms and come with various perks and downsides. If you visit a platform you’re interested in trading with, it helps to search for all sorts of support materials, tutorials, and other educational content. Services that are transparent about the way they operate are usually those you can rely on. Also, the customer support team that answers your questions and inquiries times is of great importance too.
Top Bitcoin trading systems you can use for free
Some users think that free trading platforms are less reliable to start investing with them. However, this list of thoroughly-tested trading software may change your mind once and for all.
Bitcoin Circuit
Bitcoin Circuit is a free Bitcoin trading platform oriented at beginner investors. The trading efficiency rate, algorithm, strategy, as well as service usability make it comfier and safer for every user to get familiar with cryptocurrency trading. The registration process is seamless and fast. Besides, customer support available 24/7 makes it even easier to solve any arising issues so that you don’t waste any precious time in the process.
Bitcoin System
Bitcoin System is another trading vendor that allows users to make a profit from cryptocurrency trades for free. All it takes is a few-step registration, a minimal deposit, and you’re set for the investment. The platform is designed according to a particularly-created algorithm that makes it safe and profitable. Apart from that, the brokers the system uses can manage multiple operations without the investor’s participation. Demo trading mode allows every potential user to get the hang of the service and calculate the chances of possible wins.
Bitcoin Cycle
Those of you who are looking for a passive income should consider trading with Bitcoin Cycle. Multiple current investors claim that the robot is a trustworthy vendor equipped with an automated trading robot programmed to sell and purchase cryptocurrency at the best rate. What’s more, the automated bots, as well as the trading algorithm combine with the trading strategy, require the least interference from a possible investor. Busy traders choose Bitcoin Cycle.
Bitcoin Era
Making significant profits daily is a pleasant but uneasy task. Bitcoin Era has been created with the sole purpose of assisting those investors who know what they’re doing and are in need of a reliable automatic helper at hand. Bitcoin Era is registered, as well as a licensed vendor, which promises its investors a success rate of 97%. Aside from that, the platform is simple and easy to navigate, not to mention its impressive transparency policy.
Bitcoin Code
What makes Bitcoin Code different from the rest is its supreme trading speed. Also, the accuracy level that the trading software presents isn’t less impressive. While the minimum deposit to start trading is $250, it’s possible to increase it as high as it’s comfortable for every user. The average profit that the platform promises is $1,500, while the highest is up to $5,000 daily. You can bring your trades closer to success by simply registering with the service in a matter of minutes.
Bitcoin UP
Bitcoin Up uses a simplified approach to registration and trading in general. However, that doesn’t affect its profitability, not in the least. Every new account is validated and confirmed in a few minutes so that you can log in and get to trading as soon as you learn the cryptocurrency market rules and strategies. It’s affordable to trade with Bitcoin UP, all it takes is the minimal primary deposit and you’re ready to roll. The rest is free of charge.
Primary auto trading bot strategies to distinguish between
You may simply rely on a trading bot strategy to increase the profits, but it’s always better to understand how each one works. These are the primary strategies that many trading platforms use:
Arbitrage
Arbitrage is the classy trading strategy that has been applied to the market from the very beginning. The main rule here is to find the cheapest asset and sell for more. A while ago, the gaps between different markets were pretty significant, and such a strategy proved to bring in significant incomes. These days the gap between exchanges is considerably smaller, but it’s profitable nonetheless. If you’re looking for a low-risk approach, arbitrage can be the one to use.
Market making
The strategy’s main idea is that a trading robot places limit orders to benefit from the trading spread. Defining spread, it’s safe to say that it includes the difference between the buy and sell prices. The difference becomes the main trading income source.
Market making strategy has proved to be working, but the competition around it is fierce. Thus, if you’re trading in a low liquidity environment, such an approach often turns out to be unprofitable.
Conclusion
Traders who wish to be on the go 24/7 and make daily profits choose automated Bitcoin trading software. The machine is a lot quicker at decision making, unemotional, and more precise than any human being possibly is. The surest way to make use of trading bots is to browse the market, research all the communities to come up with the very own trading strategy, and then combine the effort with a well-designed AI. Luckily, the list of free trading services is growing by the day. Pick the platform to lead you to the successful crypto trading journey!