Since the introduction of cryptocurrency bots, everyone now wants to venture into cryptocurrency marketing. This is because they do not have to go through the hustle of studying and understanding how the cryptocurrency market works or even how to analyze graphs and obtain signals. A bit can do all these things within a few seconds, so why go through the hustle.
However, it is important to understand how these different cryptocurrency trading bots work, the different types of bots and how to customize and evaluate their source code. Below is an analysis of the different types of bots and the most profitable online trading platforms that are bots as well.
Types of cryptocurrency trading bots
These are computer programs or automated systems that work by evaluating and comparing the different prices of cryptocurrencies. They aim to take advantage of the price discrepancies in making trades. For instance, a bitcoin arbitrage bot might note that bitcoin is trading at a higher price on one site than another and thus ends up trading on the one with a better price. Pionex, Coinrule, and Trality are examples of arbitrage trading bots.
Grid bots are most appropriate for beginners as they are simple and easy to use. All that the trader is required to do is set grids for both upper and lower limits of particular cryptocurrencies. The purchase and sales are made within these intervals; the bot capitalizes on the price fluctuations and performs best when the market is volatile. Examples of grid bots include KuCoin, 3commas, Bitsgap, and Quandency.
This is one of the most complex bots used by advanced traders. Though it is complicated, it comprises all the features one might need to mitigate risks. The users have to be in a position to write their source code and customize the bot to their specifications. This means that the bot’s effectiveness and security depend on the person who writes the script code. There is a significant active support community that offers guidance and support to the new users. The programming language used is Java, and one has to pay for a license. Some of the exchanges used include; Binance, Txbit, Kraken, Bitstamp, Bybit, and Beaxy.
Common cryptocurrency trading bots
Crypto.com is one of the renowned trading bots supporting buying, holding, and selling different cryptocurrencies. The system is based on complex algorithms that analyze the available data on different cryptocurrencies, select the most profitable asset, and invest in it. The bot works 24/7 and thus can be used as a passive source of income. Some of its features include;
- Availability of discounts and competitive fees.
- Withdrawals are processed within 24 hours after the request.
- The minimum deposit is $250
- It offers a list of several cryptocurrencies for trading.
- The fees are relatively higher, and the discounts can sometimes be slightly confusing.
Pionex is an online cryptocurrency trading platform that comes with an inbuilt bot. After signing up, the trader can access over 12 trading bots for free, which maximizes the chance of making profits. The transaction costs are relatively low; it has a mobile app and is ideal for traders with limited time.
Immediate Edge is a simple and effective automated cryptocurrency trading platform that can serve as an ideal passive source of income. The complex algorithm analyzes the market, identifies the best cryptocurrencies to invest in, and makes the investment in place of the trader. The bot is already customized, and thus one does not have to struggle to understand the source code. The minimum deposit in Immediate Edge is $250; withdrawals are processed within 24 hours and support several cryptocurrencies.