Cryptocurrency trading may not seem easy at first sight. It will not be news to say that all crypto trading platforms are based on algorithms. The algorithmic trading strategies can be a bit puzzling to analyze. Partially algorithms are the thing that makes it impossible to keep an eye on crypto tokens 24/7. Partially it is due to the ongoing interest of investors in Defi and the growth of Yield Farming Platforms that complects keeping up with various transactions and price shifts.
Whether you are an established trader or a newcomer in the crypto market, one thing that will surely make investing in crypto easier for you is crypto trading bots. Crypto trading bots help established traders capture all their multiple crypto exchange accounts in one place and execute dozens of orders at any time. While for the newcomers, it guarantees safe trading as they explore the field and get familiar with all the technicalities. So, without taking any more time in this article, you will find a list of useful best bitcoin trading bots and other trading bots.
What Are Automated Trading Bots?
Automated trading bots are software programs that automatically execute cryptocurrency exchange using an API when a set of market preconditions is met. Bots are able to combine complex market and trading strategies such as volume, dollar-cost averaging, volatility levels, current time, and price. They also consider the historical data of any given cryptocurrency users intend to trade.
Bot trading tends to be error-free; moreover, estimates show that 70-80% of overall trading volume comes from bots.
Should I Use a Bot to Trade Crypto?
Bot trading has several advantages; here are just a few of them.
Crypto trading bot trades on the owner’s behalf even while they are asleep, constantly on the track of market changes. The Crypto market is highly volatile; hence additional help is needed not to miss a good deal.
Find New Opportunities
Trading Bot is always aware of the price shifts; as soon as the set of preconditions is met, it will execute the transaction, saving users time. When a bot sense a profitable change and new trends in the crypto pool, it sends a notification to the user’s phone suggesting conducting a new transaction.
Makes Trading Emotionless
Emotions play a massive part in manual trading. As already mentioned, the market’s volatility imposes a significant portion of stress on even advanced crypto traders. The pressure can lead to hesitation in decision-making that can have costly results in crypto trading. Trading bot algorithms help users avoid any vital miscalculations.
Are There Any Legit Crypto Trading Bots?
It can be hard to understand the trading bot’s logic, and the question of whether crypto bots are legit and harmless to use is quite natural. The so-called “free crypto trading bot” is the only one that can be considered malicious and cause harm. Typically those kinds of bots are not supported by any automated trading platform and are not supervised by developers that will issue and erase the errors in the codes.
Still, the crypto bots that users tend to obtain from trusted blockchain development companies aim to help users make as many profits as possible.
Which Crypto Trading Bot Is Best?
Yet, it is one thing to know the advantages of using trading bots. The hard task is to find the one that is going to fulfill the needs of your trading strategy. In this trading bot selection, you will find the best cryptocurrency trading bots and choose the best match for you.
Spot futures arbitrage bot is a type of cryptocurrency trading bot suitable for retail investors. The automated crypto trading strategy implemented allows investors to spend less time and act quickly, executing buy and sell orders and earning on mini-second opportunities. We have placed this bot as the first one because it can sense slight price differences among multiple exchanges and make a small yet constant passive income from them. Small profits will always grow into bigger ones; that’s why professional traders also prefer this bot.
Sniper Bots differ significantly from arbitrage bots. Sniper Bots would be a go-to choice for advanced traders. The code advanced trading algorithms of this spot any token that appears on the crypto trading platform and provide the opportunity to be the first to buy and then sell it to new buyers in other cryptocurrency exchanges.
Sniper Bots are ideal for issuing IDO sell trading strategies. They can help you become an active trader on DEX exchanges.
Front Running Bot is an unusual trading bot. The technical indicators implemented in this specific automated trading bot allow it to sense when a transaction is going to take place in major exchanges and place a buy order. After the transaction takes place, they immediately sell it making a profit from the difference in the trading fees.
Yet, it holds a minor disadvantage that being sandwich attacks. Sandwich attacks cause higher slippage; hence obviously, the platform and other traders may suffer from that.
Unlike simple Sniper Bots, the DEX Listing Bot strategy aims to acquire the assets that have the potential of increasing in price. The algorithmic crypto trading strategies in it allow the bot to spot and act upon the increase of liquidity in the pool. When DEX Listing Bot spots the growth, it swaps and trades tokens.
Yet, the increase may not happen constantly, and from time to time, the bot may be useless and unpractical.
NFT Buy Bot is a mobile app filled with automated trading strategies allowing its owner to get a hold of high-staking NFTs as soon as they enter the crypto market. The bot functions based on the predefined conditions coded in the bot’s strategy. It examines the crypto market and selects and purchases the high-demand NFTs. NFTs are seeing a high rise in demand, so having in-store an NFT Buy Bot will increase your chances of acquiring a unique piece of digital art.
Can a Crypto Trading Bot Really Generate Money?
A short answer to the question as to are crypto trading bots profitable is yes. Yet, crypto trading is based on a lot of factors, and your own trading strategies may be in conflict with the situation in the market. Experienced traders who are used to the changeable nature of cryptocurrencies can freely use crypto bots to generate high income. Similarly, newcomers, they can help avoid making risk-involved decisions and build a promising trading portfolio.
Risks involved with crypto bots are the possible bags and errors that can be in the smart codes of the bot.
It is needless to say that bots are one the most helpful automated tools that leverage trading and spot the most profitable opportunities out there in the market for the owner. Whether you are an established trader or just started making your first investments in cryptocurrency, the right trading bot will be useful for you in any case. The first step of finding the best crypto trading bot for you is trusting your ideas to professionals who will turn them into secure codes and functioning projects.