If you want to run a BitFlyer bot using external providers, it is possible thanks to multiple API gateways supported by the CEX. The Lightning gateway is for CFD contracts and the real-time API can be used to connect any third-party platform. If you don’t want to use external automation services, it is possible to use some limited options native to the platform. A very simple crypto trading bot is capable of recurring trades and other actions.
Why should you use a BitFlyer trading bot?
This CEX company has been around for a decade. It offers a wide range of services including crypto CFDs, spot market, and more. With over 180 billion in annual volumes and $5 billion of client assets in custody, this is the biggest Japanese exchange that has a massive cohort of international users attracted by low fees, diverse financial instruments, and flexible APIs.
Here are some other reasons to pick this particular CEX platform over hundreds of its competitors:
- If you are willing to believe the CEO, no one successfully hacked the company for 7+ years making it a very good track record compared to a lot of other CEXes. Despite talking about an excellent level of security, the exchange was fined by the New York Department of Financial Services. It is said that strict cybersecurity guidelines were too much for the development team that never implemented some crucial safety protocols.
- The low entry barrier invites novices who do not have a fat pocket. You can jump into mainstream coins like Bitcoin, Ethereum, and Litecoin with just one buck. Some elitists may say that it is not a big advantage but if you have never engaged with coins, it is a good idea to start small and try to improve instead of investing a huge sum of money right away.
- Flexible APIs allow users to connect directly to the digital infrastructure of the platform and significantly increase the speed of operations. It is extremely useful when it comes to automation. Many contemporary retail traders use a DCA trading bot to quickly grow their portfolios and reduce the average acquisition price. You can set up any BitFlyer crypto bot by using one of three API gateways offered by the CEX.
These advantages make this exchange stand out and justify the desire of serious investors to work with it. Among other Asian CEXes, this one has the strongest international presence and continues to fight against national regulators that often demand to deanonymize clients.
BitFlyer automated trading strategies
It is important to choose optimal strategies to achieve the best results when working with CEXes that do not have the same level of recognition as others. While this particular platform is an established brand in Japan and Asia as a whole, it is not even close to the size of bigger competitors like Coinbase or Binance.
Some strategies are bound to work better than others due to the specifics of the platform. For instance, low fees allow for the use of HFT approaches like statistical arbitrage, GRID trading, and more. Using small-scale systems to achieve higher returns through increased volumes instead of careful positioning can be a viable method.
Let’s discuss some interesting systems that can be successfully deployed on this platform with the help of third-party automation providers:
- Statistical arbitrage is a great choice for investors interested in building balanced multi-asset portfolios. Thanks to contemporary advancements in technology, retail traders have access to unique instruments that have never been imagined before. For example, you can run an AI trading bot on the WunderTrading platform to create a massive arbitrage setup capable of operating a large portfolio with diverse financial instruments.
- GRID trading is another good approach to create a dynamic market position by simply opening trades using the DCA approach and creating exit points for each of them. This method has been successfully utilized by a large number of users on different types of platforms. It means that it works well regardless of which technology you employ to set it up.
- Market making is another good idea for an investor who wants to take advantage of low fees and sizeable spreads by providing liquidity and making trades happen quicker while simultaneously collecting consistent profits. Market making is a type of high-frequency trading setup and requires users to test their systems vigorously before applying them to the real market environment.
These methods can be incredibly effective on this particular CEX thanks to zero fees for newcomers, large trading volumes, and functional API gateways that allow for a fast connection between users and the exchange.
What is the best bot for BitFlyer?
Since you can connect any third-party instrument to this CEX platform, you can choose from hundreds of different companies offering automation solutions. This sector of the crypto industry is highly developed and features a multitude of interesting vendors with massive product lineups covering all potential needs of investors. Below are some of the best providers in the industry that you should check out.
- Gunbot is an interesting choice for investors interested in building unique strategies that involve both custodial and non-custodial platforms. This product is designed to operate in the DeFi ecosystem but can be easily adapted to work as a standard CEX-oriented robot. If you are planning to build a diversified portfolio with positions in different sections of the crypto market, choosing Gunbot is a great idea. Note that it takes some time to learn it.
- 3Commas offers a more hands-off approach to investing with its strong focus on social elements and creating a community of people who discuss strategies and copy each other when someone hits gold. The platform has a variety of social instruments that can be utilized by newcomers if they don’t have a rich experience in cryptocurrencies. On top of the social component, 3Commas has standard tools like preset solutions, custom bot building, and more.
- CryptoHopper is a well-recognized brand in the sector as it offers a flexible service to retail traders interested in building advanced automation systems. It is also an innovative company that offers a couple of unique products like AI-enhanced GRID bots. Some users may be disappointed with the lack of advanced social elements but the vast majority will be more than impressed with the catalog of products on this platform.
- WunderTrading is another great choice for those who want to create a diverse portfolio with all sorts of automated systems. This platform offers presets like GRID and DCA bots on top of AI-assisted robots, a massive copy trading marketplace, and an excellent portfolio tracker. WunderTrading works as a universal answer to any requirements from investors.
Note that many of the companies mentioned above do not support BitFlyer natively and must be connected manually which may take some back-and-forth with customer care departments. On the other hand, you will be able to start engaging with the market right away after successfully connecting your exchange account.
All of these platforms allow you to create a good automated strategy suitable for deployment on this popular Japanese exchange. If you work with a third-party automation provider, you can also effortlessly switch between different CEXes and continue operations by simply swapping accounts without any disturbances.
The main takeaway
If you are looking for a good place to trade Bitcoin, Litecoin, and Ethereum while enjoying low fees and instant execution, this exchange is a great destination. Here, you can set up a GRID trading bot or any other efficient automated trading system and quickly achieve good results with the right technical analysis strategy. WunderTrading is one of the best vendors on the list and you can inquire in the support system about connecting a BitFlyer account even without an active profile.