It’s difficult to find the ideal buying or selling opportunity in a totally unpredictable market. But what if we informed you this could be automated?
Life would get so much simpler with cryptocurrency trading bots. These automated algorithms aid you in purchasing and selling crypto at the right time, while also keeping track of all of your crypto exchange wallets in order to increase profits and prevent losses.
In this article, we’ve covered different varieties of crypto trading bots, to help you make a better decision when choosing one for your own use. Let’s get started.
#1 Scalping Bots
Scalping bitcoin bot is a short-term method that allows traders to achieve incremental, recurring profits in a turbulent, erratic, and quick-moving market, by using an algorithm and predetermined criteria.
Pionex is an example of a free scalping bot that buys currencies when the price falls below a certain threshold and sells when the price rises above it.
#2 Arbitrage Bots
These software applications exploit market data to profitably trade cryptocurrencies and other financial assets. They do so by exploiting pricing differences across two or more markets, hence allowing you to earn additional money.
The best examples of arbitrage bots are Trality and Cryptohopper. These two analyze the market trends and make a trading decision for you. Take a look at the Trality and Cryptohopper trading bot comparison.
#3 High Frequency Trading Bots
HFT are computer applications that use high-frequency trading strategies to buy and sell cryptocurrencies.
They execute trades considerably faster than a person can—in just a few milliseconds, and are therefore able to profit from slight price changes.
#4 Grid Bots
Grid trading bots allow users to backtest their strategies using historical data and automate the grid trading approach, which entails buying cheap and selling high.
Such bots make decisions on when to buy and sell cryptocurrency using technical indicators —they don’t execute sell orders if the price falls below a predetermined threshold.
#5 Martingale
Martingale crypto bots trade cryptocurrencies using the Martingale technique of raising the quantity of each successive extra transaction by a coefficient ranging from 1.05 to 2, where the investor doubles their investment after each loss until they generate a profit.
It can trade any asset but is typically employed in gambling.
#6 Gap bot
Price gaps are areas on a price chart where the price has moved sharply up or down, with little or no trading in between. Gaps can occur at the open or close of a trading session, as well as during the session. They often indicate a change in market sentiment and can be used by traders to enter or exit trades.
Bots can be used to trade price gaps in a number of ways. One common strategy is to buy when the price gap up and sell when it gaps down. This can be done using a variety of technical indicators, such as moving averages, Bollinger Bands, or Fibonacci levels. Another approach is to wait for the price to fill the gap before entering a trade.
#7 Artificial Intelligence Trading Bot
These are automated AI-driven trading bots, meant to run particular tasks and assist traders in attaining greater levels of crypto performance, without requiring them to spend a significant amount of time researching various methods and parameters.
They offer a feature-rich interface and verified automated bots that work on over 18 stock exchanges.
#8 News Trading
This is a computer program that trades financial markets in response to news events, by scanning for news events that could affect the price of a financial instrument and then conducting trades based on that information.
It capitalizes on price fluctuations that occur, thus placing trades based on the information found, watching the market to see if the price moves in the expected direction, and closing the trade if the target price is met.
#9 Signal Copy
This type of bot enables successful traders to share their positions in any market without revealing the underlying principles of their trading systems.
Thus, it allows cryptographic asset holders not only to buy or sell signals, but also to automatically copy transactions completed by another skilled trader on a continuing basis.
#10 Binary Options Bot
A binary options bot is a computer program that trades on your behalf without your input, utilizing mathematical algorithms based on algorithmic patterns, current events, and successful trader techniques.
#11 Scam Bots
Some crypto trading bots are scams, and you should avoid using them since you will lose money. Are there any real crypto bots? Yes, but most are scams.
To tell whether you are using a scam bot, they usually develop websites with phony photographs, infelicitous statements, and quotations about Bitcoin to trick people into believing they should invest in them.
Bitcoin Champion and Crypto Code are two great examples of fraud bots you should be aware of. Learn more about fraud bots in this Bitcoin Champion review.
Final Thoughts
Now that you’ve learned the various types of crypto bots available, you should conduct research on the best one for your needs. Keep in mind that there are many scams that you don’t want to fall prey to. Always choose a crypto bot with good reviews from current users; and if it offers a free trial before you pay, test it first. Find out more crypto bot reviews at TradeCrypto.com
Interesting Related Article: “Cryptocurrency – Where Will It Be in the Next 5 Years?“