Cryptocurrencies have gained significant traction in the past few years, and this is only set to increase as they continue to expand. While Bitcoin was the first (created in 2009), dozens upon dozens of other digital currencies have launched since, offering users a wealth of exciting options.
Even those who may have been skeptical about cryptocurrencies before have embraced it. And seeing as you’re reading this guide to choosing BTC trading bots, we can assume you’re looking to invest in a crypto yourself.
Trading in Bitcoin (BTC) or a competitor brings real potential for boosting your income, but you have to know how it all works before you can make the right decisions. If you don’t, you could struggle to analyze the market properly and sadly, lose out.
One of the simplest and most effective ways to increase your likelihood of success is to try BTC trading bots.
These are a cutting-edge form of software built to perform in-depth analysis of data and help you generate revenue from the cryptocurrency market. You can customize them based on your personal trading preferences, and they’ll trade automatically for you — even while you sleep.
If this seems daunting for newcomers, that’s because it is. But in this guide to BTC trading bots, we’ll help you find the best options available right now.
Our experts have put serious time into exploring the most important factors driving your decision, how the bots operate, and the advantages they offer.
The most important factors to consider when looking for BTC trading bots
Keep the following factors in mind:
Aim for a transparent team
The last thing you want to worry about when trying BTC trading bots for the first time is poor security. You’re trusting the software to manage your trading round the clock, and if you choose a bot from an unreliable team, you could be putting your finances at risk.
A good trading bot company will be fully transparent about its software, its service, and the way in which your personal data is handled. If you can’t find any information about a bot’s team online, proceed cautiously.
The best companies offer advice on trading strategies and how to use their BTC trading bots before you make your decision. A free trial may be available, too.
It’s always best to conduct thorough research before you commit to a bot. Reviews from other users are a valuable resource.
A reliable level of performance
Trust has always been a major factor of choosing a business for any service or product, but particularly so in the digital age, when so many transactions are conducted without human interaction.
Any company providing BTC trading bots should be trustworthy, and their software must deliver reliable performance. A simple slip in connectivity or function can cause you to miss out on important opportunities, which is totally unacceptable. The best teams perform extensive testing on their bots to ensure a high standard of service.
Satisfactory user experience
A good user experience is critical in any type of software, and BTC trading bots are no different. An intuitive interface and a user-friendly design both combine to make the process of automating your trading easier than ever. Customization and strategy implementation should both be straightforward.
Not just for the experts
BTC trading bots must be tailored to a wide range of users, not just those with years of experience in trading or bots. Good software will be as welcoming to beginners as it is to veterans, and is easy to set up even without extensive IT knowledge.
Sufficient security level
While Bitcoin takes security seriously and aims to keep users’ funds safe, hackers may still attempt to breach it. Make sure you look into the security set-up of any BTC trading bot you’re looking to try, for your own peace of mind.
Profitability is a core factor
Investing in a BTC trading bot is all about aiming for profitability. Otherwise, what’s the point? An effective bot is designed to help you achieve profits and enjoy success over time. Again, one way to measure a bot’s profitability is to check out reviews from other users, both positive and negative.
Look to be in business with companies that deliver high-quality software that help people build up consistent gains.
The search for free BTC trading bots
We all want something for nothing, but you may be hesitant to try a free BTC trading bot that claims to deliver profits. This doubt can lead you to spend huge sums on the most high-end bots on the market unnecessarily.
There are multiple free, open-source BTC trading bots available, including Gekko and Zenbot. They’re both popular and have solid reputations, though a little technical flair is required to put them into action. Online Bitcoin communities may be able to offer advice, though, so don’t be afraid to ask other users.
How BTC trading bots function
Bitcoin trading bots operate based on a list of rules and indicators. When these align, the bot will decide to place a buy or sell order at your exchange of choice. Once you have tweaked them to suit your personal preferences, they’ll save you a lot of time and effort, leaving you free to focus on other tasks without stressing over manually handling your Bitcoin trading.
Crypto trading bots continue to become popular as Bitcoin gains traction around the world, but this has led to a number of unethical developers creating software to con investors out of their funds. That’s why it’s so important to consider the factors explored above and do your research before diving into any one solution. You can reduce your risk significantly with a little due diligence.
What are the benefits of using BTC trading bots?
Here are a few pros of Bitcoin trading bots:
Manual trading can take time, but that’s not a luxury you can enjoy with Bitcoin’s volatility. BTC bots can make calculations far faster and with more accurate outcomes, eliminating the frustration you may feel when trying to make quick decisions.
But bots enable you to automate your trading and create orders whenever specific events take place. Price changes can be extremely quick, due to market fluctuations, and traders may be unable to react fast enough to take advantage of opportunities. Bots are never tired or distracted, and can trade on your behalf for long periods.
More efficient trading
Relying on Bitcoin trading bots eliminates the risk of human error, achieving a higher rate of accuracy across all trades. They’re always operating, so you can relax and catch up on your sleep without worrying about missing out. Your trading bots have you covered: they’ll monitor markets and conduct trades while you’re enjoying your downtime.
You can specify the the cryptocurrencies you want your bots to analyze, as well as the exchanges they should cover. Thanks to automation, trading Bitcoin (and other cryptos) is much more efficient overall.
No emotions to interfere with trading
Finally, BTC trading bots operate without emotions. There’s no sense of excitement and over-confidence that can arise from a good trade. And there’s no risk of becoming frustrated or making bad decisions when things aren’t quite going your way, either.
The bots make trades based on their rules, when certain criteria are met — that’s it.
What are the drawbacks of using BTC trading bots?
A few potential drawbacks of Bitcoin trading bots worth keeping in mind:
Manual input is essential from time to time
While it may seem as if trading bots are able to work independently forever, they still need to be monitored regularly. Technical failures are a slight but real risk: if your connection drops or your computer crashes, you could lose out on potentially profitable opportunities.
You need to check in on your bots to ensure they’re operating properly, and to tweak their settings as required.
A steep learning curve for beginners
Novices can make errors in judgement in the early stages of their trading careers. While mistakes present you with a chance to learn and grow, they also create a risk of suffering a loss.
Traders using bots never cause mistakes, and are unable to learn anything new: they only know how to customize their bots, rather than developing a deeper awareness of Bitcoin trading.
BTC trading bots can be quite costly, too, with some starting out at around $10 per month, though others carry far higher price tags.
Potential security dangers
Bitcoin trading bots can be placed under threat by cyber criminals looking to profit from others’ hard work. The best bots take security seriously and implement cutting-edge measures, but hackers may still try to breach them from time to time.
When considering trading bots, thorough research is key to discover which software offers the highest standard of security.
What are the best BTC trading bots to try?
There are various BTC trading bots available to try. The most advanced is Zignaly, a bot which is fairly recent, launched in 2018. Users are generally satisfied with its performance, and it can be integrated with TradingView. It’s entirely free and offers unlimited coin pairs.
When used with TradingView, Zignaly can conduct a variety of trading strategies on multiple exchanges, including Binance and KuCoin, though plans are in place for unlimited exchanges. Zignaly is designed to be transparent, too, with plenty of background on its team available for your peace of mind.
Other popular BTC trading bots include CryptoHopper, 3Commas, Gekko, Haasbot, Gunbot, Shrimpy, TradeSanta, and Kryll.io. Take the time to do a little research into each of these to discover their individual features and functions before committing to one. The more insight you can gain on a bot, the more reassured you’re likely to feel when you make your choice.
Now that you’ve read this complete guide to choosing the right BTC trading bots, you know which steps to follow to find the best software for your trading preferences. Follow the tips above to give yourself the best chance of transforming your Bitcoin trading for good.