Tag: Trading bots

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Crypto Daily Topic Cryptocurrencies

The Best  Crypto Trading Bots Going into 2021

The increased acceptance of Cryptocurrencies is a boon for the financial sector. It promises to improve the inefficiencies of the mainstream financial systems. Again, their adoption expands access to services. Furthermore, it creates a unique investment opportunity. 

The increased acceptance of Cryptocurrencies is a boon for the financial sector. It promises to improve the inefficiencies of the mainstream financial systems. Again, their adoption expands access to services. Furthermore, it creates a unique investment opportunity. 

The increased acceptance of Cryptocurrencies is a boon for the financial sector. It promises to improve the inefficiencies of the mainstream financial systems. Again, their adoption expands access to services. Furthermore, it creates a unique investment opportunity. 

Their proliferation, however, is a nightmare to any would-be investor. According to CoinMarketCap, the total number of cryptos stood at 6,955 as of September 2020. Coupled with the fact that the crypto market never sleeps, this makes investments in the space daunting. We need solutions to deal with these challenges better. Here’s where trading bots come in.

Crypto trading bots are software apps that automate trade in cryptos. They scour the market for the optimal buy and sell values aiming to earn the user a profit. The volatility characterizing the cryptos market makes them all the more important. In this article, we look at them, factors to consider when selecting one, and finally, the outstanding bots going into 2021.

The case for Crypto Trading Bots

Crypto bots are essential in organizing one’s trades. Currently, the market is experiencing increased usage. Several factors explain this shift, and here we present the key ones.

i) Bots Eliminate the Human Element in Transactions

Left unchecked, emotions cloud the trader’s judgment. High-risk investments like cryptos require objectivity. Bots make transaction decisions based on rational analysis and interpretation of the market. This way, they eliminate impulsive and speculative trading that could imperil one’s investments

ii) Theirs is A Round The Clock Operation

The cryptocurrency space never sleeps. Again it is volatile. A momentary lapse and one could miss out on opportunities. Alternatively, they could incur losses. Here’s where trading bots come in handy. Their actions are automated. As such, they capture every shift in the market as it happens. This way, they save the trader the need to stay awake to track the market physically. Once configured, they automate transactions even when the trade is unavailable.

iii) They are Better at Multitasking

The crypto market is a maze. There are millions of transactions taking place in any instance. Physically tracking these is demanding even to the seasoned trader. Not so for the bots. They simultaneously track changes across multiple cryptos and exchanges. Thus they’re better at picking the best trades than us humans.

iv) Bots Streamline Transactions

For one to trade profitably, speed is essential. The market could quickly gain as it could fall. Unlike us, Bots execute transactions in a flash. Thus they enable timely settlements. Their use could make the difference between profit and loss.

Which Factors do You Consider When Selecting a Trading Bot?

Bots flood the crypto market. Each of these claims to be the real deal. Separating the quality product from the rest could be challenging. The following pointers will help you ease that decision:

  • Reliability- quality bots guarantee round the clock function.
  • Security- a good bot is robust and able to withstand attacks.
  • User experience- it should be easy to understand and use.
  • Affordability- a good bot offers efficiency at a fair rate.
  • Profitability- Quality bots enable users to achieve consistent profits.

Which are The Best Crypto Trading Bots Going into 2021?

Each crypto trading bot is unique. Moreover, no single bot is perfect. Selecting one boils down to individual preferences and how they fit into one’s trading strategy. Here are our best five picks moving forward. It is a random list, not an indicator of some particular ranking.

1. CryptoHopper

It is easy to use a semi-automated bot seeking to simplify crypto trading. It fashions itself as a tool that makes crypto traders maximize profits while reducing losses. Its key features include:

Social Trading

Through telegram trading, experienced analysts ( signalers) share insight on rising coins with other traders. Users may subscribe directly to these signalers. Moreover, they may automatically respond with a buy or sell order when it comes in.

It’s Cloud-Based

The service is entirely cloud-based. Therefore one can trade 24/7. One can log in anytime from any device.

Enables Exchange and Market Arbitrage

The arbitrage tool enables the user to benefit from the price differences between exchanges or crypto pairs. On enabling the bot, it searches for arbitrage opportunities. Besides, you don’t need to withdraw your funds from one exchange for another.

Market-Making

Through the market making bot, one can easily make markets and trade on the spread.

Strategy Designer

The strategy designer helps a user to develop a strategy enabling them to get the best trading signals. One can harness many indicators and candle patterns, including RSI, EMA, Parabolic Sar, CCI, Hammer, Hanged Man, and many more. Your Hopper will scan the markets 24/7 searching for opportunities for you. 

  • Backtesting/Paper Trading
  • Mirror Trading
  • Trailing Stop Tool

2. 3Commas

Incepted in 2017, 3commas is a popular crypto trading platform offering bot development functions. Its easy usage makes it ideal for users of all levels of technical ability. Its key features include:

SmartTrade

This feature allows trading across several exchanges from a single window. Smart trade allows you the following functionalities:

  • Trailing order- enables you to adjust Take Profit and Stop Loss parameters automatically
  • Smart Cover- allows one to sell and buy back their coins
  • Short orders

Wide Exchange Integration

3commas supports up to 13 different exchanges. This makes it convenient to trade over multiple platforms.

Portfolio Management

Through this feature, one tracks their investment. The user may:

  • Create their coin portfolio(s)
  • View portfolios of other 3commas users
  • Adopt other users’ portfolios to their needs
  • Balance their coin ratios

TradingView Signals

The TradingView signal finder allows instant tracking of the market. The signal finder issues four order types, namely:

  • Buy
  • Strong buy
  • Sell
  • Strong sell

Backtest

Users can simulate trading before executing actual trades. This way, they get to test their trading strategies and get a feel of the platform’s features.

3. Shrimpy

Shrimpy describes itself as the social trading platform for cryptocurrencies. It takes pride in simplifying portfolio management. Among its key features are:

Portfolio Management

Shrimpy enables you to connect all of your crypto exchanges and automate transactions. It helps you build a portfolio strategy. Also, through it, one can monitor the market. Its management tools automate portfolio allocations and rebalancing.

Social Trading

The platform has bet big on its community. Users have a forum for exchanging ideas and strategies. Again they get to educate each other on matters crypto. As a result, they increase their mastery of the sector.

Copy Trading

Shrimpy allows one to follow other investors on the platform. This way, they can model their investments on the leaders’. Copying the strategies of successful traders helps improve one’s profitability.

Robust Security

The platform boasts of robust security features. Each uses FIPS 140-2 security modules to encrypt all the API keys. Additionally, the platform only reads data for trading purposes. Therefore it’s unable to withdraw one’s funds. It also supports two-factor authentication.

Social Leader Reward

Through the social trading platform, Shrimpy creates leaderboards. Users earn $4 for every new follower they gain every month.

Shrimpy Universal Exchange API

Shrimpy offers its users an industry-leading API that facilitates crypto transactions, the instantaneous collection of data, and the management of exchanges.

4. Gunbot

Gunbot is an advanced bot allowing easy transaction of cryptos. After the user identifies a trading strategy, the bot automates it. Its popularity draws from the following features:

Multi-Platform Support

The software is compatible with different platforms. It runs on Windows, macOS, Linux, and ARM devices.

Multi Exchange Support

Gunbot supports the most popular exchanges. Additionally, the platform continues to support new exchanges. Further, it supports lesser-known spot exchanges through the CCXT library.

Strategy Presets for Beginners

For the uninitiated, trading can prove arduous. Gunbot eases things for the newbies. Its strategy presets allow them to trade easily as they learn the ropes. 

Wide Variety Of Trading Options

Gunbot users can buy and sell in 14 different ways. You can use all these methods within a customized strategy. Also, one may employ a set of confirming indicators to specify the trading conditions they want to allow. Including a stop-limit reduces one’s risk exposure.

Dollar-Cost Averaging(DCA)

Gunbot uses the double up method to average down assets automatically. The morbid allows one to reach a lower average price per unit as prices decline. Thus it enables exit at the lowest profitable price. Through DCA, one can set up the following options:

  • Trigger for DCA orders
  • The minimum price difference between buy orders while in DCA
  • Frequency of placing DCA orders
  • The ratio of volume purchased via DCA orders to the amount of quote units already owned.

Reversal Trading

Gunbot can automatically accumulate quote currency when prices go down. It does so without investing more than the initial buy order. This way, it helps bring down the break-even point.

Telegram Integration

Through telegram, one gets to interact with their bot. This feature enables:

  • Profit tracking- get profit/loss statistics for every trading pair.
  • Modify settings- change settings on the go, such as enabling or disabling pairs.
  • Get notifications on trades.
  • Monitor trades.

Final Thoughts

The crypto space is disruptive. Our continuing acceptance of cryptos is reshaping the financial landscape. Thanks to them, there’s the possibility of increasing financial access. Additionally, we can look forward to enhanced efficiencies and the opening up of investment opportunities. 

 As crypto markets are volatile and complex to navigate, we require better analyzing and strategizing tools. Crypto trading bots make this possible. They take the chore out of transactions while seeking profit for the investor. 

 In a market bursting with them, one should exercise caution in their choice. This article outlines the key factors to consider when picking one over the other(s). It goes on to identify the best bots going into 2021. Though not exhaustive, this guide is a good starting point in your crypto bot choosing journey.

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Crypto Guides

Understanding Crypto Trading Bots & The Pros/Cons of Using Them

Introduction

Introduction

Introduction

Crypto trading bots are gaining popularity with rapid digitalization happening all across the globe. The automated trading programs built and designed for trading different cryptocurrencies are called trading bots. They have gained popularity because cryptocurrency trading has been expanding like never before.

Trading bots are very useful and can serve ample benefits because they are programmed to study and analyze complex data, including prices, market volume, trends, and trades. Also, a trading bot is employed 24*7, and the user will not have to worry about the holdings all the time. Crypto trading bots are generally used by users who do not have the physical time to analyze the market all the time. 

One should also remember that not all the cryptocurrency trading bots available in the markets are the same. There are only a few features that are found common in all of them. The crypto trading bots implement four aspects when they work i.e.

  • Backtesting
  • Strategy implementation
  • Execution
  • Job scheduler

Backtesting collects different market data, like slippage and fees, for analysis purposes. During strategy implementation, different strategies are implemented for generating returns. Execution allows users to test their ideas and strategies in real-time. Once the execution is done, then its time for the automation of the entire process and set-up a job scheduler.

Why can Crypto Trading Bots be the best decision? 

A Crypto trading bot brings a plethora of benefits to help a user. Apart from 24*7 monitoring of market data, these bots can analyze pre-defined criteria as well as complex metrics in a short period of time. A bot is responsible for conducting a lot of multi-tasking, but the best thing is that this multi-tasking is super-efficient. Another reason why crypto trading bots can be the best decision is the fact that they are immune to the emotional side of trading and human errors. Hence, a bot will never trade out of greed or disappointment. 

Why can Crypto Trading Bots be the worst decision? 

There are a lot of advantages that have been discussed until now, but sometimes, a crypto trading bot can become the worst decision of a user. To start with, they are extremely expensive. Hence, before choosing a crypto trading bot, it is necessary to conduct proper research and ensure that the bot they intend to use is reliable and profitable. There are a lot of developers who provide dodgy bots that cannot be trusted.

If a user is not experienced with trading in cryptocurrency, then it is not advisable to use a bot because it requires ace level skills to do configuration and monitoring. Also, if there is a failure to set stop-loss limits, then it can cause a lot of troubles for the inexperienced users. There are also some security concerns in the past associated with cryptocurrency trading bot. For example, Bitconnect has been labeled as one of the biggest cryptocurrency scams, and it was claimed that a trading bot was in use. 

Conclusion

Trading bots have different advantages as well as disadvantages. Going with a bot can either be your best decision or the worst decision. However, if a user has professional experience and expertise in configuration and monitoring, then he or she can use a trading bot to gain maximum benefits. Doing the proper research before selecting a bot is also important. 

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Crypto Guides

Introduction To ‘Cryptohopper’ – A Reliable Crypto Trading Expert Advisor

Introduction

Introduction

Introduction

Cryptocurrencies are intensively volatile. The volatility of the currency is a matter of concern, but in the case of trading with cryptocurrency, it’s quite advantageous. In the crypto trade, you can invest when the market value is declining, and you can retrieve your amount when prices are on hike.

However, it requires experience to become an expert in reading and analyzing this market’s up-down trends, so that you can invest at the perfect time to expect maximum returns. To predict this market flow for investors, trading bots are introduced with automated algorithms in the industry. Today in this article, we will be discussing one such trading bot- Cryptohopper.

Understanding Crypto Trading Bot

Crypto bots are cloud-based computer programs to host cryptocurrency trading. It provides idle tools to beginner and advanced traders. At the right time, it can automatically buy and sell cryptocurrencies. Users can simply connect the bot with their cryptocurrency exchange, and then it can smoothly trade on their behalf. For successful trading, it is necessary to rely upon complicated probability estimation for predicting the market trends, and a bot can calculate this much faster than a human brain. 

What is Cryptohopper?

The cryptocurrency industry is offering various services and tools to traders to elevate their success rate. Cryptohopper is one such tool that can simplify the crypto-trading ecosystem. It’s a trading bot that has been customized as per the requirements of users and can also provide market technical detail.

Earlier, a user would have to spend a lot of time in front of the computer screen to trace market flow all day, but now the fully automated bot can monitor the trade 24/7 on behalf of the users. To ensure high output, it can perform backtest for each iteration and can optimize decisions based on the current situation. 

Why do you need a bot like Cryptohopper?

In the cryptocurrency trading world, every second matters a lot. So, to make life easy and to earn more, traders can make use of a crypto trading bot like Cryptohopper to make every second count. Let’s have a look at how Cryptohopper can help in various domains of crypto-trading.

Objective trading 

The trade will be executed entirely based upon the data analysis. You don’t need to panic about the buying or selling process because the trade activities shall be evidenced without any involvement of stress or emotion.

Social trading 

Cryptohopper directly subscribes to market signalers who analyze the trade and suggest how to raise the value of your coin. As a result, you can get appropriate information for trade optimization.

Simultaneous trading 

It operates and manages all your coins simultaneously. It can keep track of all price details and sell your coin exactly at the target profit scale that you have set.

Intuitive tools 

This bot has the potential to keep the users at the top market position. It notifies with alert in advance about the trade opportunity to sell the declining coins and to repurchase the coins at a lower price.

Cloud-based platform 

It remains 24/7 online in the cloud. It means you don’t need to keep your device ‘on’ always to track your coins. You can log in to your bot account anytime, and you will get a notification about the latest market updates. 

Conclusion

The ability of Cryptohopper to provide users with high returns in cryptocurrency trading is something to look at. The traders won’t feel the need to rely on a computer screen as this bot can automatically trace the trends and take the necessary steps that have been fed. It can be easily used without any coding background and can also be connected to any global crypto exchange without incurring any trading fees.

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Crypto Daily Topic

How to Find and Profit from Arbitrage Opportunities in Crypto-Trading

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

Arbitrage_Forex Academy

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

For instance, say a particular international equity trades at $54 per share in one stock exchange. The same equity trades at $54.20 in another market. A smart investor will speedily bulk-buy the equities at the lower price and sell them at a higher price to realize a tidy profit. 

This trading concept can also be replicated in the cryptocurrency market, especially by day-traders who actively monitor the market trends. 

Cryptocurrency Arbitrage Trading 

Arbitrage trading in the digital currency market is somewhat more efficient than the stock market. This is because there exist numerous marketplaces/crypto exchanges, unlike security trading, which is limited to one major exchange in a given geographical area. Moreover, the crypto market is relatively young, which means that most exchanges work independently and do not share information. This has led to price disparities and profitable arbitrage opportunities. 

There are two major arbitrage trading strategies traders can use to make a profit. 

  • Simple Arbitrage 

Simple arbitrage is the most common strategy that is also used in forex trading and sports betting. In cryptocurrency, the strategy involves buying and selling the same digital asset on different exchanges and pocketing the price difference. 

Now, assume that in one of the exchanges, Bitcoin is priced at $6,000 while trading at $8,500 on the other exchange. To efficiently take advantage of this price difference, you need to open a trading account in both exchanges. Then, you will buy Bitcoin at $6,000, transfer the coins to the other exchange and sell them for $8,500. 

Unfortunately, this approach has two major flaws. First, you’ll have to incur transactional costs associated with transferring cryptos from one exchange to the other. Also, transfers between exchanges can take days. Given the volatility of digital currencies, your profits may diminish during this extended transfer period.

To morph up tangible profits, it is recommended to trade large volumes of crypto. This way, your returns are magnified to cover the transfer and delays. 

  • Triangular arbitrage 

Unlike simple arbitrage, triangular arbitrage is more complex as it involves leveraging the price differences among three different cryptocurrencies within one or multiple exchanges. The strategy can be termed as a cycle where you’ll be exchanging your initial crypto for a second and a third one before finally buying back your initial currency within a limited amount of time. So, the first trading action is required if you were to make any profits. 

Here’s how it is done. There are three different assets on one exchange: BTC, ETH, and LTC. Deposit funds in your trading account and buy BTC as your initial crypto. Next, exchange your BTC for the low-priced LTC. Proceed to sell the LTC for ETH and finally trade the ETH back to BTC. Due to the price differences, your initial BTC holdings will have increased to reasonable amounts, which you can sell for fiat currency.

Even without owning BTC as your initial crypto, you can still make a profit by starting with a low priced crypto. In this case, you already hold some USDT in your account and want to buy 1 Bitcoin, which is currently trading at 6527.06 USDT. Instead of buying Bitcoin directly, you can trade your USDT for another currency, say ETH. Now assume that you end up buying ETH for 302.15 USDT for 1 ETH.

Your last step will be to exchange the ETH for at a rate of 1 ETH = 0.04643 BTC, which means that 1 BTC is trading at 21.5378 ETH. At the end of your trade, you’ll have bought 1 BTC for an equivalent of  6507.64USDT ( 21.5378 * 302.15). As such, you’ll have saved about 19.41 USDT, which wouldn’t be the case if you were to buy BTC directly with your USDT. If you cash out the final holdings immediately, you will make 0.3% profit, without considering the withdrawal fees. 

What to Consider before using Arbitrage Trading strategy 

In theory, cryptocurrency arbitrage sounds pretty straightforward to execute successfully. However, as with all trading strategies,  arbitrage trading isn’t immune to risks. So, here are a couple of things to consider doing to mitigate some of the risks: 

  • Make use of Trading bots.

Although manual arbitrage trading is possible, it’s advisable to make use of trading bots to execute trades. This way, you can be sure that you won’t miss any opportunity, especially considering that cryptocurrencies are highly volatile, and prices may move against you if you are not fast enough to execute orders.

Besides, arbitrage trading requires constant monitoring of market movements, which can be tedious. A trading bot, on the other hand, can be configured to run for long hours and execute trades when an opportunity arises. 

  • Keep an Eye on the Fees

There are many costs associated with arbitrage trading that may eventually eat into your profits. Although some expenses such as transaction and withdrawal fees are unavoidable, it helps to review several exchanges and choose one whose costs are more affordable.

Also, be sure to factor in the taxes based on your jurisdiction. In countries where the law recognizes cryptocurrencies as assets, a trader will have to pay tax on every transaction. In this case, you should limit your transaction or rather use simple arbitrage instead of triangular arbitrage to minimize tax charges. 

  • Limit Your Exposure 

As mentioned earlier, arbitrage trading requires making large volumes of trades to realize reasonable profits, especially when the price difference between assets is narrowly spread. However, it’s prudent to only risk the amount you can afford to lose based on your risk tolerance.  

Conclusion

When done correctly, arbitrage trading is an ideal trading strategy for earning quick profits by leveraging the constant price swings of the cryptocurrency market. But remember to take into account the risks involved and ways to mitigate them to increase your returns.