Cryptocurrencies are famous for being extremely volatile. Prices can change drastically in minutes. With trading being carried out 24/7 round the clock, it becomes extremely challenging for an investor to keep track of the market. In order to make a profit trading, you have to pick the right moment to enter and exit a trade. This is where tools like crypto trading bots step into the picture. They are used to make trades and execute transactions on behalf of the investor. This frees up the trader’s time so he or she can focus on other things.
Crypto trading bots are automated software used by cryptocurrency investors to maximize their profits. With other risk management tools, crypto trading bots monitor data and trends, allowing the investor to make calls on trades without the emotional factor affecting the trading strategy. Usually, the investor is the one who needs to follow the market trend and keep an eye on the statistics. Still, with the help of crypto trading bots, the whole process has become automated. The bot can analyze and interpret the market, thus calculating the potential risk the investor might face in buying and selling crypto assets.
Below are the top six bots in the market which are best at carrying out automated tasks for the investor.
Portfolio Insight
Pionex
Trality
Quandency
Cryptohopper
Coinrule
Portfolio Insight: For Trading Signals
Portfolio Insight offers a unique type of trading bot; one that texts you market signals so you can decide to execute a trade, or not. It was designed for those who have had bad experience with fully automated trading, or who don’t trust a computer with your funds. The trader still has full control over their funds and whether a trade is executed. This offers a level of market analyses that surpasses any fully automated bot as it combines the bot algorithm and the trader’s experience and pattern recognition skills.
The algorithm backing Portfolio Insight is called Olympus and it has been operational since 2018. Olympus’ creators decided to open up access to the public in 2021 when they created Portfolio Insight. They report an 80% accuracy rating and analyse all the major cryptocurrencies. They also support email trade signals to maximize deliver channels.
Pionex: For High-Volume Investors
Pionex is the world's first cryptocurrency exchange with 12 built-in trading bots. The investor can access the bots without extra charges. It allows an entirely automated investment strategy without the need to monitor the market constantly. It has a fully-fledged mobile application of its own and features low trading commissions.
Even though Pionex supports crypto-to-crypto conversions by manual trading, the primary service it offers is the 'Trading Bot.' This bot buys and sells orders without manual input when pre-determined market specifications/conditions are met.
Pionex charges a maker-taker fee, which means the investor will be charged when they execute transactions that "create" liquidity on the market and "take" liquidity off the market. The investor will be charged a maker fee if the trade isn't promptly matched by an outstanding order on the books and pay the taker fee once the trade order is instantly matched with an outstanding order.
Trality: For Beginners and Advanced Traders
Founded in 2019, Trality is for people who want to create their own creative and intricate algorithms, using the community-driven and educational infrastructure, promoting development as a trader.
For people unaware of the advanced coding algorithms, Trality developed a state-of-the-art tool called Rule Builder. The Rule Builder is a graphical interface that allows building a crypto bot's trading logic by dropping and dragging indicators and strategies.
Advanced users who are experts in Python coding can benefit from Trality's browser-based Code Editor. The Code Editor allows users to create advanced strategies quickly and efficiently.
The Rule Builder and Code Editor are powerful tools that allow users to perform back tests and validate their algorithms before deploying their crypto bot into the live market.
Quandency: For a Unified Experience
Quadency is another crypto bot that allows trading from all top-tier exchanges. Using its single, fast, and intuitive interface, Quadency features various order types catering to all traders. Investors can go live in minutes by choosing popular built-in strategies and customizing them according to their needs.
Furthermore, Quadency allows constant monitoring of assets in all exchanges and tracks offline wallets' performance. Advanced charting is also available for investors to go beyond the market cap rankings with built-in charts and market screener coupled with high-quality streaming data.
Cryptohopper: For Constant Connectivity
The cryptocurrency market is a highly competitive place where constant trading is taking place. With these continuous trades and investments being made, the market keeps fluctuating. Even a short lapse in concentration can result in missed profits. Cryptohopper steps into the picture where it hosts it’s services on cloud storage, thereby cutting off downtime and providing timely updates without interrupting the trading routine. Even with the network offline, Cryptohopper will continue working, providing optimal performance levels.
Coinrule: For Current Strategies
Crypto trading bot, Coinrule, has one of the widest ranges of built-in trading strategies, making it difficult to compete. With more than 150 trading templates, Coinrule allows the investor to customize their investment automatically when the pre-determined parameters are met. From long-term holding strategies, stop-loss settings, and accumulation, Coinrule constantly updates its system with new templates.
Conclusion
An investor can only process a certain quantity of data at a given moment. Even if all the data is processed, getting an insight into it cannot be easy. Crypto trading bots can efficiently process large amounts of data and come to reasonable conclusions. This way, the bot invests, trades, and makes the call on behalf of the investor, thereby acting as an extension of their mind.
Crypto bots are powerful and efficient. While trading in crypto, the investor does not have to worry about delays and human errors. If accurate data transmits to the bot with suitable algorithms, there is a very high chance of a healthy profit return on the investment made by a crypto bot. Furthermore, a crypto bot can work 24/7 compared to a human and lacks any sense of emotion, thus allowing a bot to make sound decisions. Experienced traders might be able to make rational decisions by overpowering their feelings, but this is not the case for everyone, especially beginners.
Nothing is perfect, and this goes for crypto bots too. With all the advantages in its favor, the current market has become increasingly volatile and unpredictable. Predicting the market has become extremely difficult. An effective strategy needs to be put in place to rack up profit. Because of this ever-shifting market, an algorithm needs to constantly adapt, or it will be left behind. A crypto bot cannot come up with a plan of its own and make decisions purely driven by instincts. Lastly, programming errors too can lead to a loss in the world of trading. Thus, it is crucial to make an extensive study and have a deep understanding of the insides of the digital currency market, because an excellent support plan in utilizing crypto bots can go a long way.
