In this article we will talk about the very concept of automated trading, its application in the field of cryptocurrencies, as well as talk about the best automated trading platforms for crypto enthusiasts.
Technology has evolved so much in the 21st century.at a fast pace, which has not happened since the industrial revolution, and we saw significant changes in the way people trade on exchanges and how they view the currency as a whole. This can be seen even in the example of cryptocurrencies: in 2010 they were not yet distributed and trading volumes were completely insignificant. Since then, they have undergone explosive growth in popularity, and every day more and more people are involved in the cryptocurrency trade.
Due to the growth of interest, individuals andCompanies began to develop methods that would simplify the cryptocurrency trading process for beginners and those who are unable to constantly monitor markets throughout the day. This has led to the emergence of a number of automated trading platforms that can greatly facilitate the trading process. For example, in the latest advertising campaign, eToro emphasized that users can copy the trades of successful traders and thus optimize the trading process. This is an example of automated trading.
In this article we will talk about the very concept of automated trading, its application in the field of cryptocurrencies, and also talk about the best automated trading platforms for crypto enthusiasts.
What is automated trading?
Automated (they are also algorithmic)trading systems allow traders to set rules for opening and closing positions. After installing the system, the computer will be able to automatically perform trading operations in accordance with these rules instead of the user.
It is noteworthy that on the American stock exchangeabout 75% of transactions are carried out precisely by automated trading platforms. As mentioned earlier, automated trading platforms can be a very effective solution for users who do not have time to constantly analyze the market, but, in addition, they can be extremely useful for leveling emotional reactions, because the computer will place orders to buy or sell only when specified advance conditions.
These automated trading platforms mayvary in complexity. They can be based on incredibly simple metrics, such as the intersection of moving averages, or on a large set of different indicators, which requires the programmer to know how to implement trading systems and understand how they are used.
What are cryptocurrency trading bots?
As I mentioned, automated tradingThe platforms have been around for more than a year, but right now they are gaining considerable popularity in the cryptocurrency community. One of the main reasons is the well-known volatility and high-risk cryptocurrency markets. For example, a trader’s assets can be expensive in the evening, but when he wakes up in the morning, he will find that they have become significantly cheaper. Cryptocurrency trading bots work around the clock and allow traders to constantly keep their assets under control. In addition, a specialized bot is able to make transactions much faster and more efficiently than the trader himself.
A significant increase in the popularity of cryptocurrencies has ledto a rapid increase in the number of such bots on the market. Some of them are free and open source, others are purchased for a fixed amount or by subscription.
How do trading bots work?
Cryptocurrency trading bots are a formcomputer programs connected to financial exchanges, usually through an API. Then, based on the information collected, these bots will generate buy and sell orders for the user based on predefined rules for interpreting incoming information.
Typically, these bots track criteria such as market size, current orders, prices, and time. However, they can be further customized to perform more complex functions.
Traditional trading bots usually cost a lotexpensive and not always easy enough to use for the average trader without special training. For example, one of the Bloomberg terminals will cost $ 24,000 a year. However, the cryptocurrency market, as a rule, seeks to take into account the main financial trends, and cryptocurrency exchanges provide their users with direct access to their markets and the order book, which makes the process of using trading bots much easier and more cost-effective.
Automated trading bots 2019:
Cryptohopper is one of the most famous andpopular bots for trading cryptocurrencies today. This bot helps users with any level of experience and preparation to simplify the cryptocurrency trading process, and also helps to increase profits and minimize losses.
Cryptohopper was originally founded by twobrothers, one of whom was a trader and the other a web developer. The company’s domain name was registered in 2017, and the company itself is called CryptoHopper BV and is based in Amsterdam. On the website it is indicated that the company sees the task of its bot in eliminating errors caused by the human factor from the trading process. Premium tariff plans also include market-making and inter-exchange arbitrage.
One of the main features of CryptohopperThis bot has an incredibly friendly interface for beginners compared to other similar programs on the market. The company even created the Hopper Academy, in fact, a video library of materials teaching the platform. There are also special groups in Discord and Telegram in which beginners can ask questions to more experienced users. The entire user interface has been designed for ease of navigation, so this bot does not require newcomers to programming knowledge, which makes it a great option for beginners.
Cryptohopper works with many popular cryptocurrency exchanges such as Binance, Bitfinex, Coinbase Pro, Cryptopia, Huobi, Kraken, Kucoin and Poloniex.
Payment for using the bot is by subscription. You can choose a 7-day free trial to learn how to use the platform before purchasing a full-featured subscription.
3Commas is a more advanced platform created byspecifically for cryptocurrency trading. Platform users gain access to the 3Commas cryptocurrency trading bot. The service is used by over 33,000 people, and the daily trading volume, as a rule, exceeds $ 10 million.
One of the best features of the 3Commas trading platformlies in the fact that traders can automatically copy the trades of successful traders, which allows beginners and time-limited users to successfully trade on cryptocurrency exchanges. In addition, 3Commas bots can work around the clock. At the same time, users can set stop loss and take profit orders, as well as choose between various options of bots: “short bot”, “simple bot”, “composite bot” or “composite short bot”. These bots are used for various trading strategies, including short and long positions.
The platform has a 24-hour support service,which can be contacted through the help page on the site or through groups on Twitter, Telegram and Facebook. The user interface of the platform is quite intuitive and understandable for beginners, allowing them to get down to business without delay.
3Commas supports integration with many cryptocurrency exchanges, including Bittrex, Bitfinex, Binance, Bitstamp, Kucoin, Poloniex, HitBTC, CEX.io, Coinbase Pro, OKex, Huobi, Yobit and GDAX.
A free trial is provided tothe user could verify the capabilities of the platform before purchasing a subscription. A paid subscription has several options with different levels of functionality. You can use the tariff comparison table.
Zignaly - a relative newcomer to the marketcryptocurrency trading bots. In fact, this platform is still in beta testing. Despite this, many are already optimistic about the future of the project. The company was founded in 2018 in Madrid by David Coronado and Bartolome Bordallo. The trading platform operates on the basis of a cloud system that connects to various cryptocurrency exchanges via the API, which allows you to automatically place orders on exchanges.
Some of the features available on Zignalyinclude an unlimited number of cryptocurrency trading pairs, moving stop-loss orders and receiving buy and sell signals from high-quality third-party suppliers.
At the moment, the platform works only with Binance, however, judging by the information on the site, in the future Zignaly plans to add integration with Bittrex, BitMEX, Kucoin and Poloniex.
Due to the fact that Zignaly is still onstages of beta testing, the cost of using the platform is set at $ 15.99 per month, and this price will be saved for all users who have purchased a subscription until the full product is released. It is likely that for many this will be a good reason to invest in this project right now in order to manage to take advantage of such an advantageous offer.
Gunbot can be called a veteran in the worldcryptocurrency trading bots. The project was founded by Gunther De Niro in December 2016. Through the APIs, the bot connects to many cryptocurrency exchanges, including Cryptopia, Kraken, Bittrex, Binance, Poloniex, Bitfinex, Bittrex, CEX, Coinbase Pro, Huobi and Kucoin.
Gunbot is incredibly versatile, mostlydue to the fact that he initially supports a large number of different trading strategies, which gives traders the opportunity to encourage him to act in the market more aggressively or more carefully.
Gunbot provides 4 types of paid subscription with different functionality (see photo).
Haasbot is managed and owned by HaasOnline Software, which was founded by Stefan de Haas in January 2014, so this brand is rightfully considered one of the most experienced developers of cryptocurrency trading bots. The company offers fully programmable bots written in C #.
Haasbot allows you to automate trading inany pairs of altcoins without limiting the number of trading pairs. The platform is available on both Windows and Linux, and is ready to make deals instead of the user around the clock. As for the bot itself, more than 50 technical indicators are available in it, which become the basis for the adoption of certain trading decisions by the bot. Users can also protect some of the transactions with Haasbot insurance services.
Haasbot works with over twenty of the largest and most popular cryptocurrency exchanges, including Binance, Bitfinex, BitMEX, Coinbase Pro, Gemini, Huobi, Kraken, Kucoin and Poloniex.
Haasbot has three pricing plans andThree options for the duration of the subscription for each of them: 3, 6 or 12 months. Payments are only accepted in bitcoins, and the price range varies from 0.04 BTC for a three-month package for beginners to 0.32 BTC for a one-year extended license. As for the differences between the two tariff plans, the Beginner package (Initial) provides access to 10 bots, the ability to insure 11 deals and 20 indicators, while the Advanced package has no restrictions on these points and provides the right to priority technical support.
Cryptotrader - one of the most mysterious projectson this list. Very little information is available about the inspiration of the project, as well as about how and when it was created. It is known that the project is managed by a company called Algocraft Ltd, and its programming language Cloud Coffee uses the programming language CoffeeScript. On the platform, you can trade Bitcoin and altcoins around the clock without the need to install additional software.
The project provides its users with a set ofpre-loaded trading strategies, which allows you to quickly customize trading templates. In addition, the platform has a trading platform where experienced traders and beginners can buy and sell ready-made strategies. Users can also test their trading strategies in real time or on retrospective data to understand how the bot works in practice in certain conditions.
Cryptotrader works with 13 of the most famous exchanges, including Binance, Bitfinex, Bitstamp, Bittrex, CEX.io, Coinbase, Huobi, Kraken, Poloniex and Quione.
As for prices, Cryptotrader provides five options for a paid subscription with different costs and a set of available functions.
*Denial of responsibility: Each of the above companies waspersonally selected by the author based on their popularity, reputation and traffic. The order of listing is random and does not reflect my preferences. The author uses his own bot and performs trading operations at his own risk. Always remember that you alone are responsible for your trading operations, including automated ones. The author does not provide investment advice or professional advice.