Bitcoin Trading Bots: Machines Taking the Lead
bitcoin trading bot
Bitcoin trading bots have been getting attention from crypto traders. Claims of automated trade signals, 24/7 trading opportunities, and virtually 100 percent uptime are enough to turn any serious crypto traders head. There are dozens of competitors in the bitcoin trading bots space, each vying for your business.
However, make sure youre not so bedazzled by their high-tech algorithms that you fail to realistically assess whether or not youre actually a suitable candidate to trade them.
What is a Bitcoin Trading Bot
Simply stated, these bots are computer programs that generate Bitcoin buy and sell signals. Also known as trading algorithms, these programs connect via API to your trading exchange account. The big idea is to automate your crypto trading to the maximum degree possible, eliminate subjective trading decisions and exploit trading ops that occur when youre not able to monitor the markets.
Typically, the bot software runs in the following environments:
Bots R Us
Cryptotrader.org, BTC Robot.com, Gekko.wizb.it, 3Commas.io, Cryptohopper.com, Gimmer.net, Gunbots.com, and at least a dozen other firms market their bots online. Youll need to examine the potential advantages and disadvantages of their respective offerings. Here are a few tips to help ferret out the best possible set of bots for you:
- Make sure the bot runs on the cloud, not on your computer. If you have an internet or electrical outage, computer crash or another mishap that renders your Mac or PC useless, youll be very happy to know your bot will keep performing without interruption.
- Verify that your trading bot provider (TBP) offers an extensive array of technical indicators from which to build your trading strategy.
- Further, make certain that your TBP also offers a good strategy back testing utility. Never trade a bitcoin (crypto) bot strategy until youve extensively back tested and forward tested it.
- Your TBP should also offer a simulated trading feature. This is a must-have, especially if you are new to the world of trading system development. You can verify the strengths and weakness of your new bot strategy on real-time crypto data but without the risk of losing any money.
Gimmer offers a wide range of crypto trading bots. Youll need to buy and hold a specific amount of their GMR tokens to be permissioned for each one. Image: Gimmer.net website, January 8, 2019Scalability, Client Support, and User Groups
Your TBP should also excel in these critical areas, too –
- Your bitcoin bot firm needs to offer API connectivity to as many reputable crypto exchanges as possible. This is especially true if youre going to be trading arbitrage strategies that exploit coin mispricing across various exchanges.
- Ascertain that reliable, useful client support is available. If you bot has a three AM identity crisis and forgets what to do -and when – you (and your trading account equity) could be in big trouble. Being able to ring up a friendly, knowledgeable support agent at such times is invaluable. ...