Cryptocurrency trading bots are hands-free programs that execute specific tasks based on user configurations to deliver the highest amount of profit to the user.
An investor interested in using a trading bot would connect the chosen bot to their exchange using an API — this is what gives the program access to act on the investors’ behalf while away from their screens. Furthermore, an investor can set parameters via their exchange, effectively limiting what the API can execute.
How it works: The bot will scan an exchange, seeking to execute the users’ configurations. When the bot-set parameters are triggered by the information it receives from the exchange, it will execute the trade automatically.
Let’s look at some pros:
- Hands-free active trading 24 hours per day, 7 days per week, 365 days per year.
- Emotion-free trades: The bot mitigates the fear of missing out (FOMO), panic selling and revenge trading with the users’ set parameters.
- Trading strategies can be backtested against historical market data to determine how profitable the strategy is.
Now the cons:
- High cost. Most legitimate crypto trading bots come with a hefty monthly payment.
- Unpredictable results based on user configurations.
- Time-consuming: While strategies implored may be profitable, it takes a good amount of time to manage the tools properly.
Here are the top-10 rated crypto bots for 2022 that a trader can use, via Software Testing Help. Monthly fees, except where noted, were added.
- Pionex: 0.05% trading fee applies to all trades
- CoinRule: From $30 to $450
- TradeSanta: From $10.50 to $70
- CryptoHopper: From $19 to $99
- Shrimpy.io: From $15 to $299
- Zignaly: Free
- HaasOnline: From 0.009 to 0.026 Bitcoin BTC/USD annually
- Bitsgap: From $19 to $110
- 3Commas: From $14.50 to $49.50
- Trality: From $10.84, to $65.12
Photo: Alex Knight on Unsplash
