The Most Useful Crypto Trading Bots In 2021
A trading bot is an automated program, which interacts directly with financial exchanges (often using API). It analyses market actions, such as price fluctuations and volume changes. Based on this information, the algorithm decides whether to perform a trade or not.
The first generation of algorithmic bots were fully independent programs that users could run on their own computers. These days most crypto currency brokers offer cloud-based trading bots operated via Telegram, email, or web browser – some even have mobile apps for Android & iPhone smartphones. You should definitely read Bitcoin Loophole review & app sign up to learn more.
What are the benefits of using trading bots?
There are many reasons why people use trading bots. For example, some users want to invest in Bitcoin or other digital currencies without actually buying them; instead, they trade CFD (Contract for Difference) derivative products such as Bitmex, which offer crypto currency futures with up to 100x leverage.
High-speed traders prefer investing in arbitrage opportunities between different exchanges, leading to increased efficiency by more than 50%. Other types of investors rely on technical signals & forecasts found on Telegram channels and various websites.
Which crypto trading bot is best suited for my needs?
Since hundreds of Crypto Trading Bots are currently available, it might be hard to choose one suitable for your personal strategy.
The crypto trading bot market is still pretty new. However, the primary reason why it’s so popular among traders and investors alike, regardless of their experience level, age, or gender, is because these bots make the whole process much more accessible than before.
While there are many automated software-based trading platforms already available on the market today (in fact, too many), they all come with different features that might not be suitable for everyone at this point.
So let’s explore some of those characteristics now to determine which one would best fit your needs as a trader/investor starting into cryptocurrency markets:
- Bot works 24/24;
- Bot has high liquidity;
- Low spreads;
- High leverage;
- Automated risk management feature included;
- Bot has high quality of order execution;
- Bot works with multiple exchanges (one account);
- Two-factor authentication included;
- User interface is user-friendly.
The features can vary depending on your needs. The most important two factors that need to be considered are: what you want from a bot and how much time you have available for research and setting up automated trades.
Must-Haves In A Crypto Trading Bot In 2021
The most useful crypto trading bot in 2021 will have these qualities:
- Fast response time
Your trading bot should be fast and responsive during the day.
A slow bot can lose you a lot of money over time; make sure to keep it up-to-date and test its responsiveness before using it for actual trades!
- Runs on different operating systems
You also want your bots software to run on many different operating systems, not only Linux or MacOS but Windows too – this will give your bots more flexibility when you use them.
- SSL encryption for all communication with exchanges
Keep an eye out for communication problems between your computer/internet connection and the crypto exchanges API.
It’s usually best if all communication with the exchange is encrypted by SSL (Secure Sockets Layer) certificate so that outsiders cannot access any sensitive data about what they’re doing inside their private network.
- Last but not least: security!
Your bots should be secure enough to handle various types of attacks from hackers and safe against viruses and malware.
Make sure your trading software is up-to-date with the latest security patches! All in all, it must be secured against outside attacks and have a good track record of keeping data private.
The above list contains some of the most important features you should be looking for when choosing your crypto trading bot platform, but it certainly doesn’t cover everything you need to know about them.
Remember that different bots come with a unique set of characteristics, and not all bots will meet every single one of your needs right away. However, if you keep this information in mind while searching through the numerous options available on today’s market, we are sure you will make an educated decision in 2021!