Can You Make Money With Crypto Bots?
There are all sorts of ways for people to make an income online. One of these involves something called crypto bots and the trading of cryptocurrencies. This article gives you an overview of how crypto trading bots work and whether you can profit from using them. Many people have been trying to make money from playing games at the best payout online casino Australia. A growing number are turning to crypto trading bots, however like playing casino games online, many people find they achieve more success if they have skills and knowledge – but there is still an element of chance involved.
What Is Crypto?
In case you’re unaware of what crypto is, it’s a digital currency not connected to any sort of bank or financial institution. The term ‘crypto’ is short for ‘cryptocurrency.’ The very first one of these was Bitcoin, which came online in early 2009.
Bitcoin became very popular thanks to its anonymity, high value, and fast transaction speeds. It paved the way for many other cryptocurrencies, including:
- Litecoin,
- Bitcoin сash,
- Ethereum,
- Dogecoin
Even though cryptocurrencies can be precious, they can also be volatile. Their value can experience sudden and quite dramatic changes. It’s not uncommon for a cryptocurrency to see its value increase or decrease massively with little to no warning.
To purchase cryptocurrencies, you need a unique crypto wallet storing your money online. Once you’ve got one of these, you must visit an exchange. This is where you can purchase cryptocurrency using proper currencies, such as the Australian dollar and trade cryptocurrencies with others.
What Are Crypto Trading Bots?
A bot is an automated software program that carries out basic tasks on the internet. Once someone programs a bot, it can perform its functions with hardly any human intervention. A crypto trading bot is a program designed to automate trading. Its purpose is to trade automatically for you, so you don’t have to do anything. Once the trading bot has been programmed, it can trade one or more cryptocurrencies on your behalf, even across multiple crypto trading platforms.
How Do Crypto Trading Bots Work?
The way bots work is by analyzing and drawing conclusions from large amounts of data. There are lots of different trading strategies for the crypto market. Experienced traders may decide to program a bot with custom trading strategies they’ve come up with themselves.
Those who have less experience can use preset trading strategies instead; these are designed to be as profitable as possible. They use historical and current data to make the optimal choices and trade your cryptocurrency in the most effective way possible.
A typical crypto trading bot uses sophisticated programming to function. Both artificial intelligence and machine learning are involved in the way a crypto bot operates.
- Artificial intelligence, or AI, refers to computer software that mimics the way in which humans acquire knowledge. It does this in order to carry out complex tasks and learn things from them.
- Machine learning is a subset of artificial intelligence that uses algorithms and data to imitate the way humans learn. It also involves computer programs learning from experience.
Bots rely on trading signals. These are triggers that indicate a particular commodity – in this case, a cryptocurrency – is worth buying or selling. Bots are programmed to be as profitable as possible and try to make as many successful trades as they can. By looking out for trading signals, they can take advantage of opportunities when they arise and hopefully make some money.
They also use technical indicators. These aren’t concerned with current events. Instead, they’re focused on past events. Technical indicators are complex mathematical patterns that are calculated from historical data and designed to predict future events. It’s thought that by looking at models of previous occurrences, people can more accurately guess when significant changes are going to happen to the crypto market.
Are Crypto Trading Bots Popular?
Manual trading can be an exhaustive and time-consuming process. It’s often the case that to get the best results, you have to invest a lot of time in analyzing market trends and the prices of cryptocurrencies. Many people who want to try their luck at crypto trading don’t necessarily have the time to spare. It’s been estimated that roughly 38% of people who trade cryptocurrencies use automated trading bots. This figure includes both advanced traders and those who are new to it all.
What’s more impressive is that cryptocurrency trading bots are responsible for trading 86% of all cryptocurrency. The remaining 14% is traded by people not relying on bots. Beginners shouldn’t be put off. The concept of cryptocurrencies and trading bots can be hard to get your head around.
However, trading crypto with bots doesn’t have to be a complicated activity. Most exchange platforms come with a rule builder that lets you program your trading bot in a user-friendly way.
Can Using a Crypto Trading Bot Make Money?
The big question is whether or not a crypto bot can make a profit using the most promising cryptocurrency. There are many crypto trading bots, some of which can earn you money. The likelihood of an automated trading bot succeeding depends, of course, on its programming.
Advanced users who know the ins and outs of crypto trading stand a good chance of programming a trading bot to be successful. Knowledge is key here. A bot relies on instructions and input from a human to a degree.
If you don’t know anything about crypto trading, the bot you program won’t be likely to produce good results. Even though a cryptocurrency trading bot can make a profit, this is never guaranteed. Even the best crypto trading bot that’s had the best programming can produce a loss once in a while.
How Much Money Can Someone Make From Crypto Trading Bots?
The amount of money you can earn from using trading bots varies greatly. It largely depends on how much knowledge and experience. Another key factor is how much time you have. Yes, bots do save you time, but you still need to carry out research on trends and keep up with crypto news and things like that.
Some of the most experienced and knowledgeable people can make hundreds of thousands of Australian dollars from using crypto trading bots. This is mainly down to the way they program the bots.
Traders who haven’t been doing it for as long can still make a decent enough amount of money. Even if it’s a hobby you devote a few hours to a week, you could make a sizable passive income from it.
What Are the Best Crypto Trading Bots?
When it comes to trading bot selection, there are lots of options to choose from. Below is a list of the trading algorithm bots to use when you want to trade cryptocurrencies.
Pionex
This is actually a cryptocurrency exchange that comes with its own built-in trading bots. Registering is free, and once you’re a member, you can use any of the 16 bots. The trading fee is reasonable compared with other bots, and while the platform is mostly about trading bots, it supports manual trading too. Pionex is a good choice for both beginners and more advanced traders.
Coinrule
What makes Coinrule a worthwhile choice is the wide range of trading strategies it comes with. There are over 150 of them currently available, and they service all sorts of purposes. However much experience you have and whatever your goal is, there should be a strategy that’s suitable for you.
EndoTech
Another option worth considering is EndoTech. It’s been around since 2012 and has earned a great reputation thanks to the way it works and the results it can produce. EndoTech isn’t a proper exchange, though it links with your exchange accounts to enable you to use its bots. You needn’t have any concerns – EndoTech connects to your account in a completely safe and transparent way. Plus, your money is as safe as can be since EndoTech can’t withdraw it.
Cryptohopper
Unlike other trading bots, CryptoHopper never experiences any downtime. This is because it keeps all of its services on cloud storage. No matter what, the bot will run 24/7. Even if there are necessary updates, these can be implemented without your trading being interrupted. Plus, if your own internet connection is disrupted, your CryptoHopper will be able to continue working. This bot is very quick and easy to set up, and once it’s up and running, you should find it a convenient way to carry out automated trading.
Shrimpy.io
If you decide to go for Shrimpy.io, you’ll benefit from useful features and options. There are three choices available: Starter, Professional or Enterprise, each of which is designed to cater for a different type of crypto trader. You can use a demo account to test strategies and see how they pan out. There’s even the option to do social trading. This is where you copy the decisions that a trader with more experience makes. It’s an effective way of enabling beginners to learn the basics and see how trading is done.
Learn 2 Trade
This bot is very highly rated because of its success rate. It takes just a few minutes to set up, and once it’s running, you should see some great results. Many advanced crypto traders prefer to use this one. Its perks include real-time messages through Telegram and access to leading analysis on crypto trading trends.
Before using a bot for crypto trading, you should know what you’re doing. Read up on cryptocurrency and crypto trading if you’re not too confident with trading crypto just yet. Also, when it comes to programming your own bot, remember that even the best traders don’t always experience success.
Though you can make a profit a lot of the time, you have to be prepared for losses every once in a while. One of the best things about bots is that they learn from mistakes. Hopefully, the more you use a particular bot, the more profitable it will become for you in the long run.
Summary
Many people who trade cryptocurrencies do so using automated trading bots. These advanced pieces of programming use algorithmic trading techniques to trade your crypto and hopefully make you some passive income.
Their success isn’t guaranteed: you can both make a loss and take profit when you use one. However, they are still worth using, especially if you’re new to crypto trading or you want to practice some strategies.
Try bot trading and see how algorithmic trading can help you. For those who are starting out, preset strategies are perhaps best. It’s worth gaining some experience with this before you come up with strategies of your own, whatever trading platform you’re on. If you’re already familiar with crypto trading, create your own strategy to program your bot with and see how it does.
