Trading Bots

Crypto trading is a swift industry where you will encounter noticeable losses when failing to buy and sell quickly. Therefore, to tackle this issue, people are utilizing crypto trading bots to streamline the trading process. If you are new to crypto investing, you might not be familiar with crypto trading bot. More specifically, how these bots can benefit your trade. So let’s start by understanding what cryptocurrency trading bots are.

Connected exchanges

Binance Binance Futures ByBit Kraken KuCoin Deribit OKX BitMex CoinbasePRO Huobi Bitfinex Bitget

Bot settings

Limit entries

Multiple entries

Multiple Take Profits

Trailing Stop

Stop Loss

Order size in % or fixed amount ($)

Swing Trading

DCA Trading

Any signal from any Source

TradingView Alerts

Automated move to breakeven

Crypto Trading Bots

Crypto trading bots help automate repetitive tasks when trading assets. Normally, when you are trading without any automated tools, you have to do the repetitive tasks yourself. That usually includes you sitting in front of your laptop and choosing different assets manually. The challenging part that requires your constant attention are the market statistics. You cannot make informed and effective decisions without proper trading data.

On the other hand, automated trading bots will easily analyse market conditions and statistics. These bots will gather market data, comprehend it, and evaluate the potential risks in the market. After the analysis, these bots will buy and sell certain cryptocurrency assets. For instance, you can purchase more Bitcoin by setting up bots that will activate when the prices reach a certain level.

You can save a lot of time when choosing auto trading bots for repetitive tasks. Including these bots in your crypto trading process is similar to hiring a well-experienced professional to help you trade. Be that stock trading bots or crypto trading bots, they are a cost-effective technique that many top crypto traders are utilizing. After enabling them, you just need to sit back and watch the profits increase.

Note, creating a trading bot crypto friendly solution is not as difficult as it may seem. Stock bot development can be even a more complicated software due to market saturation. Finding a good strategy is the most time consuming process.

Top Three Benefits of Crypto Trading Bots

1. Repetitive Tasks

Repetitive tasks are tedious and time-consuming. Enabling crypto trading bots in the system will help you conduct specific tasks with ease. Bots can support your periodic rebalances in a better way through relevant data. You may need to rebalance the portfolio every week or so, if you fail to conduct rebalances in time. To perform this task, you have two options:

  • You can set the alarm and rebalance manually.

  • Design a trading bot for rebalancing the portfolio.

More sophisticated bots will allow you to set various indicators, so the trading bot will do the monitoring for you and once a certain criterias are met, the bot will execute a trade automatically.

2. Timing

Timing your tasks and activities enables you to perform the trading process accurately. Your potential earning depends on every trade you make. For instance, if the price of the Bitcoin is decreasing, you can sell the BTC before it hits the lowest and save a bunch of money. To do that, you need to observe the price chart carefully and wait patiently. Still, you cannot make decisions that fast. However, crypto trading bots will allow you to monitor the market in real-time and execute the trade accurately.

3. Simplifying

Crypto trading bots simplify the complex process of trading. For instance, you can facilitate smart order routing. This routing process will enable you to:

  • Trade through different trading pairs.

  • Determine each trading pair carefully according to the asset quantity, timing, and trading price.

Understanding the above tasks is quite simple. However, executing them manually will make the trading process quite difficult. Smart order routing is just a single example. There are numerous complexities that Crypto Trading Bots can simplify. You can use trading bots to automate various complicated strategies easily that you might think are impossible to perform manually.

How to Choose Crypto Trading Bots

The first thing to consider is the functionality of the trading bot, its stability and latency that may occur. Clarify if any high liquidity exchange is available on the platform. Bitcoin liquidity is always a good start to evaluate the reliability of the exchange.

Another thing to consider is the experience of the developers. You need to compare the attributes of the reputable teams through reviews, testimonials and contact their customers.

If you look for someone to develop a bot for you, then consider the time they require to complete the bots and perform successful tests. Check the technical ability of the team members.

A reputable and experienced developing team will be transparent with you. Ask them about what algorithm they use for the development of their crypto trading bots. Find out the process they follow, and see what makes them different. Trading strategy, backtesting, implementation, etc, are just a few of the most popular processes that trading bots use. Asking technical questions will give you an idea about choosing the best developers for trading bots.

Future of crypto trading bots

With the increasing popularity of crypto trading bots around the world, global economies are changing. These robots are incredible for tasks like understanding data and market analytics. Furthermore, they provide important insights that help make suitable decisions in the future, increasing the growth of the crypto trader. Crypto trading bots allow you to automate the strategies and outperform others in the trading market. It is clear that the role of crypto trading bots will become even more important.

Other Trading Bots

Start 7-day trial on a PRO plan