Hi Platinum Crypto Followers,
What a week the markets have given us, from an experienced crypto trader, the words of the day should stay calm, step away from your blockfolio and take a pause before making any decisions.
There have been many reports of Google’s quantum computer, which was presented with results obtained in the first test that was carried out at the beginning of summer.
Also, the recent comments from Mark Zuckerberg receiving questions from congress over Libra. There has been a sway of negative press resulting in this week and as a result Bitcoin, the King and flagship of the market, suffered a spectacular fall of over 8% that has put it back into the long term downward channel, and that opens a scenario where the minimum price level is at the $5,000 level.
Currently, the crypto market is crowded with crypto trading bots ranging from free bots to costly subscription-based bots. The ultimate choice of which trading bot to choose is dependent on which type of a crypto trader you are. For example, professional crypto day traders will often opt for high-end software based crypto bots.
Before rushing into the trading game, individuals may consider some help from crypto trading bots. However, it is important to note that these bots vary. Therefore, you will have to consider factors such as quality, usability, as well as profitability. Many successful traders will create a balance between these three aspects.
Bots are not new in the financial markets. Remember, algorithmic trading software has been in existence for quite some time and is used by institutional traders, like hedge funds. Over time, trading bots have found their way into the crypto asset market and with good reason.
The guide below will help you to understand what crypto trading bots are, the different types of bots, as well as which bots stand out in the market. Making the right decision defines the thin line between success and failure in this field.
What are Crypto Trading Bots?
Crypto trading bots refer to a software program that serves the purpose of interacting directly with financial crypto exchanges and in turn sells or buys crypto on behalf of an individual. They interact with financial exchanges through API’s to help obtain and interpret the relevant information.
Crypto trading bots make their final decisions to buy or sell by monitoring market price fluctuations. They will then react to in accordance to a set of predefined and pre-programmed rules. The market actions a trading bot will look into include volume, orders, price, and time. Even better, these factors can be chosen to suit your likes and preferences.
A majority of trading bots use Exponential Moving Average (EMA) to analyse the market. EMAs are able to keep track of market prices over a given period. These bots are programmed to react to what the prices do and with the data gathered; these bots are able to estimate what the market has to offer.
Simply put, crypto trading bots provide traders with a source of passive income. Traders can focus on other concepts as they use these bots to establish more efficient trading. You no longer have to strictly follow on the market conditions and trends for traders who have little to no free time on their hands. Crypto trading bots will incorporate a wide range of indicators to recognize significant trends and eventually execute trades with the objective of profitability.
Are crypto Trading Bots Profitable
After understanding how cryptocurrency trading bots work in theory, it is correct to assume that they are indeed profitable. However, this ideology is dependent on several other factors. Depending on your approach, it will determine whether you run profits or losses.
Profitability is an essential component for every trader. Keep in mind that the only reason traders are adopting the use of trading bots is to profit from their market expertise. You should always undertake some research before settling for a specific bot or bot strategy.
Also, there is the aspect of which bot you are using alongside its usability. Many of the crypto trading bots are designed to profit a trader, traders need to understand that there is risk involved. Looking at the price fluctuations in this market, the risk is even higher with digital currency.
Trading bots are not designed equal. You need to identify an outstanding trading bot. Do not go for a poorly coded bot just because it is free. Bots with faulty software are more likely to lose money and run massive losses. Other factors that increase the risk of losing money when trading will include flash crashes or falling victim to a scam. Be cautious of brand-new companies with mysterious operators that require deposits or full permission API keys and are guaranteeing high returns as these tend to be scams (i.e. Bitconnect).
Looking at the provided risks raises the importance of identifying the best cryptocurrency trading bot the market has to offer. By addressing these factors, you stand to profit from cryptocurrency trading via trading bots.
All factors held constant, trading bots are profitable as they come with the added advantage of having autonomous interaction with the market. In addition, they eliminate the aspect of emotional trading. However, using the wrong trading strategy or incorporating crypto bot trading strategies from other traders translates to using poor market trading decisions.
Crypto Arbitrage Trading Bots
The cryptocurrency market provides different types of trading bot strategies. Keep in mind that the cryptocurrency market places a focus on the digital aspect of the financial markets. Therefore, it has had less time to integrate algorithmic trading. However, it is catching up fast and becoming popular against similar financial competitors. In an effort to catch up, this market is providing trading bot services and it allows traders to gain access to different trading strategies including arbitrage.
One of the main way’s cryptocurrency traders make profit in cryptocurrency trading since its early days has been arbitraging. Arbitrage refers to the buying of assets from one market and later selling the asset(s) in a different market at a higher price.
Looking at the market, cryptocurrency exchanges are decentralized, and you will notice that coin prices will differ across crypto exchanges. This way, you can make profits through arbitrage in no time. Earlier, during the introduction of cryptocurrency, the differentials were much greater. Currently, the differentials are smaller, but you can still make profits for traders who are keen to follow market conditions. Even better, you can use trading bots to help you to make the most of these differentials.
In a bear market, prices are falling and investors who are holding crypto may consider selling them before losing a majority of their investment. With such considerations, you will be able to tweak your bot to make the correct adjusted decisions so you do not lose your investment.
Another option where you can use arbitrage if you intend to involve futures contracts as part of your trading strategies. You will benefit from any differences that will exist between the contract and its underlying assets. Here you will consider futures contracts, which are traded on the different exchanges.
Best Crypto Trading Bots
Crypto trading bots in the market are increasing in number and fast. With this, it can be confusing especially for a beginner on which is best option to work with. After all, we are all looking to make the best returns with passive income sources. Identifying the best crypto trading bot is an important stage for any trader.
The crypto market recovered from the 2018 bear market and more crypto traders are adopting the use of automated trading bots. When looking to identify the best crypto trading bot in the market, you will be looking at factors such as reliability, security, profitability, transparency as well as ease of use.
In reference to reliability, you will want a bot that is reliable meaning that chances of it going offline or having a malfunction are minimal. This way, you will not miss an opportunity to make money anytime it arises.
Protect yourself from hacks with bots that are applauded for their security. Look at the reviews from cryptocurrency traders who have used different bots and ensure that you opt for one that has a high rating in terms of security.
The concept of transparency is the reason cryptocurrency rose in popularity thus eradicating foul play. Opt for a trading bot that comes from developers who have built a positive reputation in the field.
You will also be looking for a bot that will make you money from its expertise in the market. Profitability is crucial considering that many traders looking for a passive income are placing their focus on the returns they obtain.
Ease of use/ Usability
Lastly, your choice of trading bot should ease your trading process. A bot with an easy to use user interface should be top of your priority. If you cannot operate your bot with ease, it is best that you forgo its services. Even when the user interface is simplified, it should not compromise on important high-end trading features.
You must also check on the compatibility of your bot with a crypto trading platform of your choice.
Types of Crypto Trading Platforms
There are different types of crypto trading platforms in the market. The key difference is how they work to complete the trading process. Below, we will look into the two major types of crypto trading platforms.
Margin trading refers to a method of trading assets using finances from a third-party thus allowing traders to gain access to larger sums of capital. However, due to high volatility, traders need to be careful when using cryptocurrency margin trades. To better anticipate the market and reduce the risk involved with margin trading, traders need to be able to analyse charts and identify trends. Therefore, crypto traders need a better understanding of technical analysis and sharpen their experience.
Institutional crypto trading platforms
Institutional crypto trading platforms just as the name suggests requires traders to come together and trade as one block. This venture means that they will not be trading as different entities. Rather, they will implement institutional-grade tools. With this type of trading platform, market participants are looking to achieve reliable trade execution while at the same time addressing risk management and compliance.
Best Crypto Trading Platforms for Day Trading
Individuals looking to be a day crypto trader need to understand that this concept is not for everyone. First, there are different types of day trading methods. These methods include speculation and chart analysis.
Speculation refers to when a trader believes a price will go up or down due to a certain event. For example, you may choose to purchase a certain coin simply because there was some good news on the coin. Remember, speculation is not a guarantee but it arises from a personal or expertise opinion.
Chart analysis on the other hand is a popular method involving the study of price movement of a particular digital currency over a period. Crypto traders will then provide an estimate of how the prices will go based on historical price movements. Traders will use technical analysis as a means of examining and predicting price fluctuation.
Asking of which is the best day trading platform crypto in the market, different traders will recommend different platforms. This does not mean that you can outline one platform to suit everything. No, it means that you will need to outline your objectives and later match them to the provided options.
Some features that stand out and are worth mentioning include the cost and expense, user-friendly interface, as well as other additional trading features. These features may include fast speeds and compatibility with mobile devices so you can trade right about anywhere. Speed is of the essence considering that you will need to complete transactions fast before prices fluctuate before your very eyes.
Market volatility is a concern for cryptocurrency traders. However, you can use this aspect to your advantage when working with the best crypto trading platform where you can quickly buy and sell before prices change. You will also be looking for a highly responsive trading platform.
You can boost security by looking out for SSL certificate, which prevents leaking of personal information. In addition, secure platforms will have a two-step authentication process. Lastly, gather crypto trader reviews on security levels of different platforms.
A solution for all your Trading Platform and trading bot needs
HaasOnline Trade Server by HaasOnline Software includes all the tools necessary to start automating manual trade strategies on nearly two dozen integrated cryptocurrency exchanges. This means you can simulate Bittrex trading bots while backtesting Poloniex trading bots and arbitraging between two other exchanges at the same time.
There are several trade & custom bots you can configure using the legacy framework. These pre-built HaasBots allow you to quickly deploy reputable trading strategies like scalping, arbitraging, or even just use your favourite indicators to execute trades. Their next generation HaasBots use the newest version of their proprietary scripting language, HaasScript. Create crypto trading bots with the text-based editor or using the popular drag-and-drop visual editor. The HaasScript library includes over 600 commands from computational calculations to memory management.
Introduction about Haasonline
HaasOnline was started by two brothers Stephan and Quintus de Haas from the Netherlands and formalized into a global company in early 2014. Stephan released the first known Bitcoin trade bot, a rudimentary bot called the HaasBot, which would ultimately transform in to HaasOnline Trade Server.
After Bitcoin climbed to new highs in late 2017, HaasOnline was positioned for explosive customer acquisition and company growth due to the renewed interest in automated trading through a handful of crypto exchanges integrated into HaasOnline Trade Server. Shortly after HaasOnline released the wildly popular third version of their flagship product, HaasOnline Trade Server. This new version included a full suite of tools to assist hobbyist, enthusiasts, and professional crypto traders take full advantage of the benefits trade automation has to offer.
The company now has over a dozen employees spanning across four continents and has served tens of thousands of customers. Although HaasOnline does not track trade analytics it can be estimated that at one point over 2/3 of automated trade activity on a few of the early exchanges were generated from an HTS instance.
Continuing to innovate in the crypto fintech space, HaasOnline has recently released an updated version of their scripting language, HaasScript. With HaasScript users can leverage trade automation features that were previously only available with traditional market trading software. They’ve also been working on a new product focused on retail users with advanced features that trickle down from HaasOnline Trade Server, integrating external signalling providers, and a marketplace to share trade bots.
What’s missing in the market
- Reliable, fast, and stable trading software targeted towards power users
- Trade automation software like MetaTrader built exclusively for cryptocurrency
- Privacy-centric software built for users who want to keep trade strategies secure as well as other personal trade data
- Company who believes in cryptocurrency technology so much they base products, pay staff and expenses in Bitcoin
“With the introduction of the Visual Editor, which utilizes HaasScript, we have made it easy for users who don’t code to create scripts. We are happy with the feedback we have been receiving from the community.” said Quintus de Haas, HaasOnline’s chief technology officer. “Our development team has been working extremely hard to create and refine the world’s most advanced scripting language and tools for crypto automation.”
The market offers several trading bot solutions. The best crypto trading bot is dependent on your personal crypto trading strategies as well as preferences. When choosing a trading bot, answering some questions will help you to make the right decision. For example, are you looking to have absolute control over your bot? Do you want a trading bot that is fully automated? Do you want to copy another trader’s trade? The above guide will help you identify what works for you as a cryptocurrency trader when looking for the best crypto trading bot.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Live from the Platinum Crypto Trading Floor.
Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.