Automation makes doing things easy, reduces errors, and is quite reliable. Cryptocurrency is among the areas where this technological trend is being applied. Many bots have been designed and are used in trading cryptocurrency assets and tokens. The bots evaluate the market, identify those assets that have very high chances of making profits, selects the best strategies and rules, and makes investment in place of the client. The use of bots has greatly mitigated the risks involved in cryptocurrency trading. However, it is important to understand that there are over a dozen bots in the market, and each is designed for a particular set of clients. Therefore, it is important to understand your goal so that you can go for the bot that best suits your needs. Some of the bots used in cryptocurrency trading include;
Arbitrage bots
Arbitrage trading in cryptocurrency is purchasing assets and selling them when they are profitable. The money is earned from the difference in the exchange value. Often the prices of cryptocurrency assets vary from one asset to another. These bots work by taking advantage of these discrepancies- they evaluate the market, select assets with significant exchange discrepancies, and make investments in place of customers. There are several arbitrage trading bots, such as
Cryptohopper
Cryptohopper is an arbitrage bot that easily manages different crypto exchange accounts. The bot makes these trades and manages them concurrently from a centralized location. Unlike other arbitrage bots, Cryptohopper can be used for technical analysis, making it one of the best cryptocurrency trading bots. It is designed on complex protocols, making trading using it secure and reliable. The trading bot allows backtesting, whereby one can make practical trades to see how they would behave before making the actual investments; this mitigates the high risks associated with cryptocurrency trading. However, there is limited technical support, which can be a huge problem for novice traders who often need guidance.
Bitsgap
Bitsgap, a trading platform, and an arbitrage bot are the best for trading multiple cryptocurrency assets. No downloads are required as it is a web-based system; the user does not have to go through downloading, installing, and configuring. However, unlike most platforms, this bot goes for about $29 and thus might not be the most suitable for traders working with limited capital. The supported exchanges include; Huobi, Binance, Livecoin, Kraken, and Poloniex.
Bitcoin Prime App
Bitcoin Prime App is famous for its inclusivity; the developers of this cryptocurrency trading software believed that everyone should have an equal chance to indulge in cryptocurrency trading. This means those that possess the required skills and those that do not. It does this through the arbitrage bot that can evaluate the market and identify the most profitable assets based on exchange differences, among other factors, and make investments in place of customers. The trading bot allows concurrent trades and has several assets; one can invest in different assets, which increases the chance of making more profits. The demo account allows manual traders to try out and see the impact of different assets on trades before making the actual deposits. This bot is available for free and thus can be used by any type of trader.
HaasOnline
HaasOnline was among the first arbitrage cryptocurrency trading bot. It is slightly complex as one has to configure it to meet individual needs. For this reason, this cryptocurrency trading bot is favorable for immediate and advanced traders. Through its bot automation feature, a trader can replicate any strategy and use it in current or future trades. The data and code are always kept private, and cryptocurrency traders can access real-time performance reports.
However, like any other cryptocurrency arbitrage trading bot, some downsides include; it is slightly complex and not the most suitable bot for beginners, the learning curves are quite steep, and it does not have a mobile app and only operates on limited browsers.
Some supported exchanges include; Kraken, Binance.Us, Poloniex, Coinbase, Bitfinex, Binance, Kraken Futures, Huobi, BitMex, BitStamp, Bybit, HitBtc, OKCoin, Ionomy, and Gemini, among others.
Pionex
This renowned cryptocurrency trading bot offers a free trial for new customers. The arbitrage bot aggregates liquidity from Binance and Huobi Global, among the largest cryptocurrency brokers. The bot does not offer any form of support for custom trading strategies. The bot allows the user to automatically or manually purchase cryptocurrency at the lowest prices and sell them at the highest prices. The minimum deposit is $250, and withdrawals are processed within 24 hours.
