Computer programs that are designed to do a given activity without the need for human involvement are known as “bots.”
In the marketplace for cryptocurrencies, crypto trading bots are software programs that automate the process of trading cryptocurrencies on one or more platforms on the user’s behalf. They’re put to work automating trading tactics and boosting earnings through their employment.
Our guide is for individuals who have been wondering if crypto trading bots function and others who are looking for crypto trading bots. So, let us begin with our guide on the best crypto trading bots of 2022:
Crypto Trading: Beginner’s Guide
Selling and Purchasing cryptocurrencies for a profit is the goal of crypto trading. There is a foreign exchange (FX) for conventional currencies and a digital currency exchange (DCE) for cryptocurrency.
Trading in cryptocurrencies is open, unlike traditional stock exchanges, which close at the end of the day.
You must select a cryptocurrency exchange and a secure wallet for users to begin trading in crypto. To avoid losses in the highly volatile cryptocurrency market, newcomers are recommended to start trading in renowned coins like Bitcoin or ether.
There are around 1,500 cryptocurrencies in circulation. You may also buy bitcoin and begin your journey. You’ll have many wallets to choose from.
Crypto Trading Bots: What Exactly Are They?
Cryptocurrency bots come in a variety of shapes and sizes. The arbitrage bot is one of the most popular. Using arbitrage bots, traders may take advantage of price disparities among exchanges.
Bitcoin’s price fluctuates from exchange to exchange. Thus bots that can move quickly can outpace exchanges that take longer to update their values.
Other types of bots analyze trading strategies based on historical pricing data, which may provide investors with a competitive advantage. Others are programmed to make trades depending on particular indicators, such as the price or the level of activity in the market at a given time.
Investors get Free bot programs for bitcoin trading. In contrast, many bots charge fees, some of which would be extremely high. After finding the bots that will be most valuable to them, investors typically purchase the code from a developer. The software and hardware requirements for each bot vary.
Although the employment of bots in bitcoin trading is a very contentious issue, there is some evidence to suggest that doing so may be profitable. Investors need to know how to use a bot to get the most out of it.
Investors, for example, must have the proper digital currency exchange accounts set up. Those accounts must be stocked with cryptocurrencies. In many cases, they are still responsible for making decisions regarding their investments, such as whether to buy or sell.
An investor who is reluctant to put in the effort necessary to succeed will not benefit from using a cryptocurrency bot.
Features to Look for in a Crypto Trading Bot
What’s the point of using a crypto bot in the first place? Investing in stocks is the way to find out. Bots have several advantages over humans when it comes to trading. Here are some of the main advantages that you must know about:
Set Objectives
More than half of all investors have lost money because they made poor investment selections based on their emotions. By automating setting objectives, crypto bots can reduce the need for human involvement.
Automated bots will help you optimize revenues since they will automatically take action once the target is achieved.
Much More Faster than Humans
The bitcoin market fluctuates. In a couple of minutes, the value of a cryptocurrency might rise by 25% before plummeting the next. You might lose those profits if the process is done manually, which takes time.
When trading cryptocurrency, trading crypto bots is the most helpful. It’s impossible to miss out on gains once you start employing trading bots. Because of this, many Wall Street traders are turning to crypto bots for their day-to-day trading.
Backtesting
Bots allow you to do backtesting and utilize previous data to see if a pricing model or strategy is lucrative or not if you employ bots.
Even if you’ve been playing for years or are just starting, these simulators may help you improve. Using backtesting, Prediction can assist traders in seeing how their strategy stacks up against others and if it will help them make money.
Trade According to Determined Rules
When a cryptocurrency you invested in goes down, you could panic and sell it all at once. We humans can’t affect bots with our rash judgments.
Bots can aid you in the long run if you create rules for selling and purchasing in advance. Especially in highly volatile sectors like cryptocurrency trading, it’s a godsend.
The Top Crypto Trading Bots of 2022
1. Pionex
The 16 free trading bots provided by Pionex are enough to win it a position on this list. Pionex’s bots help you generate money by trading cryptocurrencies on your behalf with a 0.05 percent trading fee.
The Grid Trading Bot, for example, is one of the most popular bots on the platform. Instead, the arbitrage bot uses the futures market, powered by the Binance broker system, to provide you a reward every eight hours. The features of pionex are:
- For Taker and Maker, the Trading Fees are only 0.05%
- It has Sixteen In-Built Bots
- Helps to Buy at Low Price and Sell At High Price
- It enables you to Earn Low Risk 15 to 50% APR
2. CoinRule
Coinrule is a wonderful alternative for novice and experienced bitcoin traders because of its straightforward design. To create their trading rules, users don’t need to know any programming language.
On top of that, Coinrule is a web-based platform that works with several cryptos and some of the most popular exchanges in the industry, such as BitMex. Features of CoinRule are:
- Relative Strength Index, MACD, Bollinger Bands, and Many More Indicators
- One can get Support Via Telegram, Email, and Webinars.
- On the Pro Version, You’ll get Trading Templates.
3. CryptoHopper
Users of CryptoHopper, a cloud-based trading bot for cryptocurrencies, may conduct intelligent trades using external indications provided by the bot. Coinbase, Binance, OKEX, Kraken, Huobi, KuCoin, and many more exchanges may be connected and operated with it.
It allows you to use signals from both free and paid sources. The Amsterdam-based company employs over 30 trading indicators and more than 90 candle patterns. It’s open 24/7 and trades 75 other cryptocurrencies in addition to Bitcoin. Features of the CryptoHopper are:
- Bollinger Bands, RSI, Stoch, And Many More Indicators.
- Backtesting Tools, Templates, Trailing Stops, Technical Indicators, and Many More Tools
- No Desktop or Mobile Apps. It is Web BasedBased Bot.
4. Bitsgap
According to the inventors, an ‘all-in-one trade bot for crypto currencies,’ Bitsgap, is an altcoin trading robot. One of the advantages of using Bitsgap is that you can trade on more than 15 of the most famous crypto exchanges, including Kraken, Binance, and Coinbase, all from one platform.
You can use predefined trading strategies, or traders can design their algorithms. With the Bot, there is no need to download any software because it is cloud-based and designed to be safe and secure.
Over a hundred prominent indicators and chart types (including the quick TradingView chart) are included in the Trading Terminal, allowing you to place basic and complex orders such as stop-and-take-profit and shadow orders. Features of Bitsgap are:
- Web-Based Only
- Portfolio Tracking and Management
- It has Arbitrage Trading Across many of the Crypto Exchanges
- Backtesting
5. Shrimpy.io
Investors may use Shrimpy to trade across several exchanges and keep track of their investments all from one place. A total of 16 exchanges may be used to manage and trade your assets. You may use multiple indicators and methods to automate trading on the site.
To automatically copy the accounts you follow, you can activate the automation button. Whenever the profile of the individual you monitor changes, you will immediately adjust your portfolio by selling or purchasing.
Besides this, Shrimpy allows you to trade socially by tracking other people’s trades. There are several advantages for both novice traders and those who wish to make money by promoting social trading.
You may get a sense of other people’s digital currency portfolios by tracking their trades. Some of the best features of Shrimpy.io include:
- No Mobile Platform. It is only Web-Based.
- Backtesting Feature
- For the First 3 Months, you get a 50% commission
- To experience the bot, you get a Demo Account
6. TradeSanta
You don’t have to be on the TradeSanta cloud-based crypto trading program 24 hours a day to make money, even though it works around the clock. Our trading bot is compatible with many exchanges, including Huobi, Binance, and others, much like the other trading bots on this list.
Long-term and short-term strategies, different indications, and a responsive support team are all possible with this system. Buying cheap and selling high is the goal of long-term trading in digital assets.
The inverse is true when it comes to the shorting technique. You may utilize DCA or grid bots, or Smart Order to place orders with this program. The many Features of TradeSanta are:
- Supports Web, Android, and iOS
- Unlimited Number of Bots
- RSI, Bollinger Bands, and MACD Indicator
Crypto Trading Bots: How to File Taxes on Them?
The procedure of filing taxes for crypto arbitrage bot trading may be finished by simply importing transactions via exchanges into the crypto tax software.
This is all that is necessary to finish the process. In the best-case scenario, you are provided with information on the overall amount of deals that the bot will carry out. Trading bots that operate at a high frequency can make it feasible to close many deals over the span of a single day.
As a direct result of this, thousands of transactions might potentially take place. On the other hand, the bulk of the instruments that are part of the cryptocurrency tax plan is able to cope with the trade of this sort.
That’s it from our side on our guide on “The Best Crypto Trading Bots of 2022.” We hope you liked our article on crypto trading bots. If you want more informative articles. Stay Tuned!