Copy trading is popular among beginners. Its essence is to copy the strategies and actions of already experienced traders. However, this is not always successful, since it is difficult to select a candidate. Moreover, there is no guarantee that the trader will not make a mistake by losing his deposit. Cryptocurrency bots are more reliable in this regard. True, there are difficulties here too.
Types of cryptobots and their functions
A cryptobot is an automated program that performs a number of specific functions on the crypto market. This can be simple trading, arbitrage trading, market making, etc. Today, cryptocurrency bots can be divided into several categories:
Trading. They carry out automatic transactions for the purchase and sale of certain assets, thereby ensuring profit. They work using different algorithms, strategies, signals, indicators, etc.
Arbitration. The idea is to buy cheaper on one exchange and sell more expensive on another. At the same time, they can carry out dozens of transactions per minute or hour, while simultaneously analyzing the market.
Market makers. Such bots are capable of creating liquidity in the crypto market. They place orders to buy or sell an asset, indicating the difference in value. Thanks to this, they earn money and increase the liquidity of the crypto market.
Social trading robots. They analyze the actions of successful traders and copy them in the market. In fact, they are engaged in copy trading, automatically monitoring the activities of a certain specialist.
Signal bots. The point is to give signals for certain actions, for example, sales or acquisitions. They analyze the market, news and other sources of information. They can give both recommendations and be used for automatic trading.
Analytical. They analyze the market using various research methods. Able to track trends, as well as entry or exit points.
Margin bots. They work with borrowed capital and are able to manage risks. They can close positions quickly and promptly when certain conditions are met.
Trading robots for cryptocurrencies are convenient. However, they are not always safe. Therefore, you should choose them with caution. We will give some recommendations.
What to consider when choosing
First, think about what kind of trading you prefer: arbitrage, regular or margin. Please note that the latter may be too risky, since borrowed capital is actually a loan. The bot can drain it in a couple of minutes, and you won’t have time to look back.
When choosing, there are several important factors to consider:
Reputation. Check out testimonials and reviews from experienced traders. Study information from several independent sources: video reviews, reviews on social networks, etc. This will give a complete picture.
Terms of use of bots. It seems that the robot is good for everyone, but upon purchase it turns out that there is only one. This way you won’t be able to diversify your portfolio or reduce risks. Otherwise, you need to buy a separate bot for each crypto pair, which can be expensive.
Cryptobot functionality. Look at what platforms it works with and how functional it is: does it have flexible settings, safety elements such as take profits, stop losses, a grid of orders, etc. The more protection, the lower the chance of losing your deposit with the correct settings.
Additional functionality. It’s good if the site has everything you need so that you don’t have to move between services to view accounts, analyze the market and trade. Losing time can reduce the potential profit from a timely transaction.
How does a cryptobot work? There are programs that are installed on your device. Firstly, it is not entirely safe, since there may be some kind of virus under the program that will steal your data and assets. Secondly, if your Internet suddenly turns off or the power goes out, the bot will stop trading.
These are the key nuances that are worth paying attention to. We have made a selection of several excellent cryptocurrency bots.
Cryptobots worth attention
Searching for a cryptocurrency bot yourself can be long and tedious. It’s easier to look at the options from the list and evaluate them. If it doesn't work, go in search further.
We offer several good options:
Cryptorg. This is a service where there is automatic and manual trading. Works with 6 cryptocurrency exchanges at once. Here the user creates and configures bots himself. Therefore, knowledge is required. There are 4 tariffs for purchase, as well as a test mode for 14 days. Cost from $30 per month.
GRIN4. An ecosystem that includes a terminal with technical indicators, crypto wallets with a common interface, and an unlimited number of crypto bots. You need to create them yourself, but there are SMART templates with proven strategies for beginners. It is provided free of charge, but a commission of 25% of profits is charged. For the first three days after registration, $25 is given.
3commas. Works on several crypto exchanges. There is also trading analysis and tracking of successful traders. There are safety features like stop losses and take profits.
You can find other crypto bots. There are a huge number of them on the market with different prices and functions. Be careful and careful. You should not immediately use all the amounts for trading at first. Start small so as not to lose your deposit.
