With the resurgence in Bitcoin’s value and the growing popularity of non-fungible tokens (NFTs), the world of digital assets is garnering newfound interest all over the world. In addition to triggering talks about the role of cryptocurrency in the modern world, it has also given a boost to trading activities.
This phenomenon has also attracted many aspiring traders to the world of cryptocurrency, with several of them foraying into this segment for the very first time. As a result, this has also initiated a slew of fresh inquiries into automated trading.
Since automated trading allows people to buy and sell cryptocurrencies for profit while maintaining their day jobs or other responsibilities, the segment has gained significant traction over the past few years. But in order to delve into this form of trading, you need to buy specialized software in the form of cryptocurrency bots.
Whether you want to try automated trading for the first time or need updated information on the best bots available at the moment, the following details are exactly what you need. With this lowdown on crypto bots, you can easily select and buy a solution that is the perfect match for your requirements.
What to Keep in Mind Before You Buy a Trading Bot?
Before you move forward with buying a cryptocurrency bot, it is critical to determine your requirements and expectations from the whole process. For instance, deciding which crypto exchange to connect with your bot, which cryptocurrencies to trade with your program, and which features to use with your trading strategy are all part of this step.
By assessing these foundational requirements and making a list of your must-have features, you can ensure to filter through a plethora of services. This makes sure that you are only exploring the detailed features of trading bots that fulfill your basic needs to begin with. In addition to making it easier to buy a crypto bot, this also saves the overall time it takes for the selection process to get completed.
Other factors that you might need to determine before buying a crypto bot relate to your overall budget. This includes the amount that you want to spend on the license or subscription of your tool, as well as the funds that you are comfortable in setting aside for your trading activities.
This makes sure that you are choosing an option that you can afford to maintain and run on a consistent basis. As a result, you can steer clear of wasting your investment on something that you might be unable to use in the long run.
Besides these aspects, you should also make sure to read about different trading strategies, signals, and indicators that are popularly used within bots. This helps you select a bot that uses those functionalities within its buying and selling transactions. This also optimizes the selection process and lets you invest in an option that holds up to your expectations.
Choose Between Cloud Service or Installed Software
With the emergence of cloud computing, running web-based applications has become the norm for highly demanding programs. Those software solutions that once needed to be installed on your machine can now be run remotely without compromising their performance.
While cloud apps are accessible through modern web browsers, their web application interface uses computing resources from the respective cloud server. In turn, the system delivers a seamless experience that is accessible from almost anywhere.
That is why it is not a shock to see that many cryptocurrency trading bots are now available in the form of cloud service applications. This does not affect their overall operation or performance. If anything, the mechanism makes sure that their cloud hosting can run them 24/7, even when you aren’t available to manage them on your active computer screen.
The only catch with cloud service bots is that they are hosted on the provider’s server, which takes away your sense of control if you want to maintain all backend operations of your bot. However, reliable automated tools that are managed through a cloud service still do not share your data with third parties without your authorization.
But if you want to operate your crypto bot all by yourself, you can move forward with choosing installable software. This software relies on your local computing resources and needs you to keep running your computer system in order to operate constantly.
Its other functions for trading such as buying and selling cryptocurrencies through algorithms stay the same as a cloud-based bot. This means that the major difference between these solutions is how they operate and what type of computing resources they rely upon.
Besides this one major difference, both cloud-based and installable software bots also have another stark variation that comes in the form of their pricing model. While many installable software tools offer annual or lifetime licenses, most cloud service solutions come at a monthly or yearly subscription. This pricing structure does not hold true for each and every bot in either segment. But it is still very common to notice in either form of these trading solutions.
Use Trial Periods and Free Packages When Available
Many cryptocurrency bots allow you a glimpse into their offerings through descriptions, features, and screenshots. This information is available right on their official website and lets you compare these solutions side by side. But for a more hands-on experience and detailed comparison, you should move forward with trying their solutions in all their glory.
You can do so by opting for trial periods and free packages whenever they are offered with a cryptocurrency bot. In trial periods, you are able to use either the full slate of features or a majority of these functionalities for a short period of time. Whereas, in free packages, you are able to try out the user interface (UI) and select features mostly with simulated (paper trading) or limited trading activities.
These functionalities are available in many trading bots, and their accessibility depends upon a case-to-case basis. This means that while many services may allow you to play around with paper trading in their free version, others may let you trade in real-time but only for a week or two. In either case, you are able to get acquainted with the bot’s UI, its ease of use, as well its signals, indicators, and value-added features.
As mentioned above, you can get a rundown of these benefits by reading a summary on the bot’s website. But opting for a free trial or a free package lets you test the services in real-time and allows you to determine how comfortable you are in using the specific bot’s solutions and paying for them in the long run.
In many cases, using trial or free packages for just a few hours can make it clear to you whether you feel at home with the offered user experience (UX). While the long-term efficacy of a bot for your specific trading style can only be seen with consistent usage, going with a short trial or free package ensures that you select a trading bot that fulfills your surface-level requirements without any compromise. This saves you a lot of hassle in the long run and fulfills your basic needs from a tool right from the start.
Which Trading Bots Do I Recommend Buying?
There are many bots that are available on a subscription- and license-based payment model. Many of them are highly reliable and deliver on their offered functionality to a T.
During my experience with cryptocurrency, I have come to find three bot solutions that I can rely upon for day to day trading without any issues. These bots include:
All three of these bots come from reliable companies and work without any errors. Their algorithms, signals, and indicators all function as they should. They also come with a variety of trading strategies that let you mix and match different approaches as you get more comfortable or more assertive with your trading decisions. The UI of these bots is quite comfortable to operate, while their overall experience remains highly satisfactory.
One of the best things about these services is that they are quite user-friendly. No matter which option you end up choosing, you can receive an ideal level of support as a cryptocurrency beginner and an optimal extent of functionality as an experienced trader. This makes either of these trading tools a highly sought-after solution that is able to cater to the needs of all skill levels. As a result, you can rest assured that going with any of these tools may provide you with the peace of mind that you need during your crypto trading activities.
With that being said, it is important that you check the UI, features, and real-time functionality of each of these cryptocurrency trading bots by yourself. This makes sure that you can make an informed decision that goes in line with your personal preferences and expectations about these solutions.
To give you a quick idea of what to expect, here are the supported exchanges for each of these bots. With that being said, it is important to note that the support for each exchange and supported trades may vary on a case-to-case basis.
Bitsgap
Binance, OKEx, KuCoin, Kraken, FTX, Bitfinex, Huobi, Coinbase Pro, Bitrex, HitBTC, CEX.IO, Poloniex, Bitstamp, Coinbene, ZB.com, Gemini, Gate.io, Liquid, LBank.info, TheRock Trading, EXMO, Bit-Z, Bithumb, Bibox.
Cryptohopper
HitBTC, OKEx, Bitpanda Pro, Bitvavo, Binance, Binance.us, Coinbase Pro, Bittrex, Poloniex, Bitfinex, Huobi, KuCoin, Kraken.
3Commas
Binance, FTX, Bybit, BitMEX, Deribit, Bittrex, Binance DEX, Binance US, Bitfinex, Bitstamp, CEX.IO, Coinbase Pro, EXMO, Gate.io, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex, YoBit.
What Is the Price for Crypto Trading Bot
Crypto automated trading platforms are available in various price points, with their overall pricing structure ranging from lifetime licenses to month-by-month and annual subscriptions.
But it’s important to note that with the emergence of modern payment structures, it is getting considerably harder to find lifetime licenses for many services. Several solutions now go by monthly or yearly payments, with the latter bringing noticeable discounts to the table.
To give you an idea of the overall pricing of these bots, here is an overview of the three trading solutions that I recommend the most.
Bitsgap
Bitsgap offers a free account creation with a trading volume limit of $1,000/month. This package also comes with limited features.
Paid packages with more volume and features start from $19/month and go up to $110/month. You can start a 14-day free trial without any credit card. The trial is available for a maximum trading bot’s PRO package and lets you obtain a real-time experience of using the solutions to your comfort.
Cryptohopper
Cryptohopper comes with a free account creation mechanism, which lets you gain access to basic features such as the ability to trade 20 positions.
The paid packages start at $19/month and go up to $99/month. The starting package, labeled Explorer, also allows you to obtain a free 7-day trial. The higher the package, the more positions, and service features you can unlock for the service. If you go by annual billing, you can also avail of further discounts.
3Commas
3Commas allows you to create a free account that comes with limited features and mostly intends to be utilized as a trial.
The paid plans start from $29/month and go up to $99/month. Each of these paid packages comes with multiple accounts per exchange as well as various service features. The higher the package, the more services you can use. Yearly packages come at a discounted price point.
Conclusion
Ever since their larger debut on the global market, crypto bots have become one of the hottest trends in the digital asset space. But they are not a magical solution that could make you quick profits out of nothing.
Similar to other trading mechanisms, these bots are created as helpful tools for carrying out your order execution in an efficient manner. As a result, their success or profitability depends upon market conditions that change on a consistent basis.
That is why, it is important that when you use these tools, especially for the first time, you utilize their algorithms carefully and see how they integrate with your trading style and goals. It is also critical that you change your strategy according to market conditions, which allows you to benefit from market movements in real-time.
As long as you keep these points in mind and have a clear understanding of how to use automated bots to simply supplement and not drive your trading strategy, you can derive the required benefits out of their usage.