For 10 years or more, stock traders have been using automated trading systems to increase their income, reduce stress, time spent and risks. In simple words – to increase the efficiency and emotionally unload, and in crit this is an important factor given the frenzied volatility of this tool. In this article, I will tell you how to use such bots, consult you how to figure out all the nuances, and together we will choose the robot that best suits your trading style.
There is a little secret that I want to share with you at the beginning of this topic, but most likely you will understand what’s what only by the end of the article. The most successful way to start trading cryptocurrency is to link two bots – an automatic and a signaler. This will greatly simplify your trading. It is important to remember that in such a bundle you cannot allocate more than 3-5% of your deposit to a transaction. This method is the most profitable, but rather risky. At the time of the trend line reversal, it is necessary to stop the bot and change the parameters in order to avoid losing assets. This method is suitable only for trend trading and will significantly increase your earnings. A good signaler gives an average of 250 signals per day, while the success rate of the signals exceeds 70%. If the automatic bot will work out at least 50% of such signals, this will already bring a huge profit of 5+% to the deposit per day.
This article will tell you, dear reader, about all kinds of pitfalls, fake-ups, little secrets in crypto trading, as well as enlighten and teach you how to use auto-bots, which are increasingly gaining popularity in our time. Experienced crypto whales have long retired in manual mode and act according to refined algorithms through various programs for a number of reasons.
To begin with, let’s look at how you can generally make money on cryptocurrencies on exchanges such as Binance, Huobi, Kraken, Bitfinex and others.
There are two types of trading:
Spot – where you buy and sell a coin using personal funds, suitable for traders with a large pot of $10,000. It can bring up to $2,500 per month with minimal risk if you trade on the Fibonacci grid.
Margin – where you and a small bank take a loan from the exchange and buy a futures contract for cryptocurrency in the short and medium term. You can buy $10,000 worth of currencies with only $1,000 on your balance. Leverage can be changed and lend any amount within the limit, to reduce risks, you can add $500 to $1000, which will increase your profit by almost 50%, in case of a successful transaction, of course. The advantage is that you can buy a contract either up or down. This gives you the opportunity to make more trades per day than on the spot. The exchange only takes a small commission, but this type of trading is the most risky and if you do not understand what risk management is, then there is nothing for you to do here, in 99% of cases you will be left with a zero balance. But this type of trading is great for scalping bots, which I will discuss below.
All cryptocurrency trading robots are divided into two types – automatic and semi-automatic, but one way or another they are interconnected. The automatic robot itself executes the trading algorithm according to the previously set parameters of the trader. While the robots are semi-automatic – the so-called signallers. They only inform and direct the owner to open and close deals. Market analysis is carried out using artificial intelligence and a large number of different indicators. The owner is also informed about where to exit the transaction by stop loss and where it is worth burying it in plus by take profit. Increasingly, it is by signals that people open the most successful deals. This is quite logical because crypto is the most volatile instrument, and technical analysis should be many times faster than a sharp price change. Alas, this is beyond the power of a person, but a computer can do it!
Pros and cons of trading robots
This world is not perfect and everything has a downside, even programs, so let’s look at the advantages and disadvantages of trading robots.
Their main advantages are:
+ Robots are emotionless, cold-blooded machines that are not affected by extreme situations in the market, you will never lose more than you originally planned and earn as much as you originally planned
+ You do not need to watch the charts all day long in anticipation of some miracle, it simply will not happen, and if it does, only the program will be able to react
+ Robots save time – no need to manually open / close deals, set take profits, stop losses, this will have to be done once at the time of setting up the bot.
+ The reaction speed of a trading robot to a signal is many times faster than a human
+ Your strategy / algorithm will always be executed as it was originally intended
+ Analysis and forecast are on average 60+% more successful than a person
Disadvantages of trading robots:
– Inability to conduct fundamental analysis (taking into account the impact of let’s say “special operation” in the market is more correct for people)
– Deviation from the standard situation in the market can lead a low-quality bot into a stupor and the algorithm will stop working correctly, which can lead to losses
– A large number of deception with signals, just huge and finding the right one will take a lot of time
– The market for free crypto-robots almost always “masks” malware / algorithms or incorrect signals that make a profit at first in order to steal more in the future! These are the so-called dumps, when let’s say the signaler gives you 5-6 successful signals, you start to think that everything will work on the 7th, enter a deal for a large amount and in seconds you see a red candle down that breaks through all kinds of support zones and turns your assets into empty shells. And in the black is the one who gave you the signal.
There are a lot of types of trading robots for cryptocurrencies and they all have different tasks, universal ones are very rare, most often they are divided into classes, let’s look at which:
This type of assistant is a favorite of many players in the market. The principle of operation is to make a huge number of margin transactions with little profit, but in the aggregate such a bot can generate good income for the client. As for risk management, it is much more dangerous than other classes of robots. Inexperienced traders are not recommended for use, although no one has canceled stop losses.
The most suitable option for beginners. Such bots will not work for you and execute any commands. Such robots only send you a notification signal from a potential deal. Such notification usually contains the following information: entry price, closing price, take profit and stop loss. A very handy thing to learn to trade. Basically, such bots are used for margin trading.
The most correct choice for an inexperienced trader. In this program, transactions are made according to average indicators, in most cases the code is written according to the Fibonacci grid. There is no stop loss here and usually the game is played in the medium term. This robot thinks through the steps for several actions ahead, opens or closes positions by itself.
These assistants work based on the analysis of the trend line indicator. The bot analyzes a large number of instruments for trend line reversals and enters positions on its own.
This assistant should be used in conjunction with the trend one, but not at the same time. He trades on the exchange within the horizontal price range, the calculation is made by various oscillators. During the period of trends is not effective.
Based on the name, we can understand that this bot collects a large amount of data. In crypto, the main source of information is Twitter.com
This model does not use all the familiar devices listed above. (Fundamental/Technical Analysis, Various indicators, order book densities, screeners, etc.) This bot suits the masters of their craft. In this program, a trader manually opens / closes positions and takes into account only fluctuations in quotes. Definitely not for beginners… It belongs to semi-automatic robots and is used mainly with leverage.
The main rule in the cryptocurrency market is to do your own research and in no case believe in the information that the “crypto magnates” actively advertise, it would be more correct to call them info gypsies. Such people can offer you free 100% successful signals in exchange for % of the proceeds – don’t be fooled, this is a scam! The following list contains a small number of robots and devices that I personally like, some of them are little known, while others are on everyone’s lips. I am by no means encouraging you to use these robots and signallers, but it will not be difficult for me to share my own experience with you.
Let’s start with signalers:
There are not a large number of them on the Internet, mostly signallers are located in the Telegram messenger. Usually, a team has two types of signals – paid and free. I will say that you should not run and buy yourself a paid subscription after the team has given several successful signals in a row, the model of such a business exists solely because of such paid subscriptions. It works like this – the team buys several paid signals from trusted traders. Puts in a group for his. The signals are working out, then a large flow of customers. A paid group is recruited to which almost no new signals come, and if they do, they are either uncertain or unprofitable. To find a conscientious telegram group, you should follow the groups for at least a month, and only then think about any subscriptions, but I never bought such ones. Ask why? Yes, because I used the most important rule – do your own research when trading cryptocurrencies or conduct your own research when trading cryptocurrencies.
So let’s start with the fact that I will try to reduce the number of scammers in instant messengers by telling you where they actually get good signals, i.e. semi-automatic boots:
1. Crowtrader is a little-known, but very effective robot that includes many trading strategies, and it’s up to you to choose which of these strategies to receive signals. It directly connects to the telegram and can conveniently receive signals in the form of messages. Of the minuses – it takes a lot of time to understand what’s what, but it’s worth it.
2. Zignally is a transparent signals marketplace with analytics and feedback, where experienced traders recruit a certain number of people into the team and send them signals as they develop. They work either for a percentage of profits or for a fixed monthly fee. Simple service, with a nice interface. Of the minuses – the number of places in the trader’s team is limited and often you will not get into the teams of top traders, it’s sad, but patience and work will grind everything.
From the automatic ones, I can single out two favorites:
1. Capico.app – very little known software, but very convenient, where you can configure the robot exactly as you want. And all this in a browser, connected directly to the exchange. You can run many bots at the same time with different strategies, plus test on demo accounts with a limit of up to $10,000, which is an important factor. It also has an integrated chart with tools from Tradingview. Of the minuses – there is no trading in futures.
2. Crypto Hopper is a convenient, rather well-known software with a simple interface and fair orders. There is an application in the appstore and playmarket. There are both paid and free robots, useful for the analytics of a particular digital asset. Of the minuses – too much information, for proper use it will take at least a month to figure it out.
As cryptocurrency trading becomes more and more popular way to make money in all parts of the world, new technologies continue to appear that make the process much more efficient and effective.
Cryptocurrency trading bots are an example of such technologies that have become increasingly popular in recent years as they allow traders to stay on top of industry trends and make the right trading decisions with much less effort.