If you’re in the world of cryptocurrency trading, you’ll likely have come across the idea of crypto trading bots. It’s not always easy to predict crypto price trends, and some traders use crypto trading bots to optimize trading strategies. Crypto trading bots can be profitable, but they are not a quick fix and can also easily make losses. While you take a break from your gambling session at BC Game, let’s run through the pros and cons of these bots and dive into the top trading bots of 2022.  

What Are Crypto Trading Bots? 

Crypto bots

Crypto trading bots are automated computer programs. They are designed to conduct detailed analyses of crypto trading data. The analyses are based on a pre-determined set of rules according to the user’s specifications. These bots can help to identify reliable trade signals and crypto trends. These bots can assist you with placing orders to buy and/or sell automatically. This can free up time to focus on other tasks that need attention. 

Since crypto trading bots work to establish rules, their ability to make key decisions is determined by market price fluctuations. These bots evaluate crypto market risks, which can help you to make informed decisions about buying or selling. Traders who are new to crypto trading robots usually subscribe to free bot programs to help them in their trading activities. However, the more established crypto trading bots typically charge user fees that vary according to the platform.

Investors usually identify the bots that will provide the best use and then download the code from a developer for that bot. Crypto trading bots have proven to be very helpful for traders, which has divided the crypto community as some feel they shouldn’t be allowed in crypto trading activities. 

All in all, a crypto trading bot is not a shortcut to untold riches, and traders must be prepared to devote time, effort, and resources to succeed. Even then, it is still a risk to bank on bots for trading success. 

Are Crypto Trading Bots Profitable?

Are Cryptocurrencies Profitable?

Many investors and traders find that crypto trading bots are useful as they help eliminate the emotional impact – fear, in particular – associated with risky trading decisions. This is because traders design and tailor the strategies while the bots execute them.

Bots enable users to conduct their activities around the clock – an ideal scenario when considering the human element. Investors may not be able to keep their eyes on market activity for every waking minute. Having24/7 automation can make trading less time-consuming and more efficient. 

Taking the above into account, crypto trading bots can be profitable, provided you configure them correctly with a tailored strategy. The leading crypto trading bots generally have a great track record for generating profits. 

However, having a solid understanding of how crypto trading bots work will go a long way in minimizing your risks. It will also put you in a far stronger position to rake in profits from your trading activities.

Pros Of Crypto Trading Bots

crypto bots

Lack Of Emotional Attachment

Crypto trading can take an emotional toll on investors – especially when the going gets tough. When you consider how volatile the crypto market is, the risks associated with crypto trading are enough to drive traders to pull their hair out. One of the benefits of using a crypto trading bot is that they lack emotional attachment. Automated software is configured to process your trading unhindered by emotional decisions, giving you the best chance to optimize your trading strategy.

A lack of emotions clarifies your trading and circumvents the confusion that comes with panic trading or behaving too confidently. Crypto trading bots avoid emotionally-charged decisions, which are often the cause of lapses in judgment and poor decision making. 

Efficient Crypto Trading 

While traders are human and may take some time deliberating their next move, crypto trading bots are created to trade more efficiently. These bots have incredible multi-tasking capabilities while giving traders plenty of opportunities and data analysis to make smart decisions at the most crucial of times. 

Crypto trading bots can evaluate multiple cryptocurrencies and conduct trades concurrently. This means they won’t miss out on lucrative trading opportunities because their focus is on another task – characteristics that not all traders have in their armory.

Simple Investment 

For those crypto traders who are just getting started, the market can appear to be very complicated. Many beginners face difficulties in understanding factors such as price analysis, complicated chart activity, and data analysis.

Crypto trading bots are intended to make life much easier for traders, especially newbies. They do this by converting the complicated process of crypto investment into a simple matter through sophisticated automation – a definite plus for traders of all types. 

Quicker Processing And Response Times 

Many traders will testify that taking too much time to execute a trade can have devastating consequences. This is because you may miss out on lucrative opportunities in a highly-volatile market. Crypto trading bots make instant orders and lessen the risk of missing out through indecision. 

24/7 Operations

We mentioned this above – traders are people and people need to rest. By using crypto trading bots, you have a constant market presence. Bots can help you keep on top of the market while getting some shut-eye. 

Cons Of Crypto Trading Bots

crypto bots

Limited Cryptocurrencies

The crypto market is flooded with hundreds of cryptocurrencies that allow for efficient and varied trading activities. One of the drawbacks to crypto trading bots is that they are usually limited to trading on just a handful. These bots are specialized software tools typically programmed to only handle selected cryptocurrencies while discarding others.

Unexpected Decisions 

Since crypto trading bots work automatically, 24/7, all year round, there is a possibility that they could make unexpected decisions on your behalf. These decisions could cause you to lose money if the cryptocurrency prices are not in your favor at that time.

Time-consuming Process 

Although crypto trading bots can automate tasks and save time, tailoring that bot to your specific needs can be quite time-consuming. In particular, understanding how to manage the tools effectively without potential errors popping up may take a while.

Some Supervision Is Necessary

Despite crypto trading bots being automated, you’ll need to monitor the activity of your bot. It isn’t advisable to leave your crypto trading bot unattended for long periods, as you must be aware of your trading activities. By understanding crypto trading, you can create effective rules for your bot to run optimally.

Security Weaknesses 

Crypto trading bots are designed to conduct trades through APIs. This enables them to work automatically without any manual intervention. While cybercriminals are not fond of highly secure blockchain technology, they can target crypto trading bots or crypto exchanges. This is because there are rare loopholes that can be exploited. Traders can be proactive by deactivating automatic withdrawals and not sharing API keys.

Things To Consider When Choosing A Crypto Trading Bot

Crypto bots

With so many crypto trading bots on the market, traders are certainly spoilt for choice when it comes to their very own digital trading assistant. With that being said, there are a few things to note when choosing a crypto trading bot. 

Security 

Stringent security is an absolute must for any type of software – crypto trading bots included. If you choose to go with a bot developed by an untested team with little or no online presence, that could spell disaster and put your funds at great risk. 

While determining the safety of a crypto trading bot is not a straightforward thing, traders should search online communities and reviews to make a smart choice for their crypto trading bot.

Reliability 

Reliability always gives traders peace of mind amidst a sea of uncertainty in the crypto market. Reliable bots operate 24/7 and execute critical functions to perfection when you need them the most. Unreliable bots that lose connectivity could cause you to lose out on lucrative trading opportunities. 

Once again, you should visit online communities and read reviews to gain user sentiment about the bot you are interested in. A common thread of satisfaction can be a good indicator of a reliable crypto trading bot.

Transparency 

Crypto trading bots that display transparency indicate that the risk of unethical behavior and activity is significantly reduced. With that being said, you should opt for crypto trading bots from reputable developers with an open and honest team to support you.

User-friendly Interface 

Traders should use a crypto trading bot with a simple interface that is easy to use. Intuitive designs and a streamlined layout will enhance your trading experience and eliminate confusion, especially if you are new to the game.

Best Free & Paid Crypto Trading Bots in 2022

Now that we understand a little more about crypto bots, let’s look at some of the best players on the market. 

Pionex 

Pionex is an exchange with a built-in crypto trading robot. At the time of writing, it has 16 free crypto trading bots. It is known for competitive trading fees and offers low risk to traders. The platform is straightforward to use and provides a high level of safety. Pionex holds MAS and MBS licenses from Singapore.

CoinRule

CoinRule is a very popular crypto trading bot for beginners with features like MACD, Bollinger Bands, Relative Strength Index, and fantastic mobile support to guide you on your trading journey. This is a paid crypto bot with prices that reflect your level of trading. 

The template library provides over 150 pre-set rules for users to configure their strategy, stopping loss, taking profit, and main technical indicators. The platform also features a demo trading system where users can try the market with virtual coins at absolutely no risk before committing their own funds to the cause.

CryptoHopper

CryptoHopper is another paid crypto trading bot that offers a 7-day free trial. This trail is a good opportunity to test the bot before committing. Off offer trading tools include bot backtesting, configurable and saveable templates, trailing stops, and customizable technical indicators. 

CryptoHopper bot also has a Marketplace where users can recommend third-party services such as crypto signals, trading strategies, apps, and templates. The platform also has a demo version available, and users have access to a strategy designer, paper trading mode, and market arbitrage tool.

TradeSanta

TradeSanta trading bot operates on eight major crypto exchanges and helps users trade simultaneously across them. Some features on offer include multiple indicators, Bollinger bands, MACD, RSI, and reliable mobile support.

This is a paid crypto trading bot with different subscription levels. Users can trade on both futures and spot markets and access risk management tools like stop-loss, trailing stop loss, and trailing takes a profit.

Final Thoughts

That wraps up our roundup of what you need to know about crypto bots and their profitability. We hope that our review s helps you in your quest to trade more efficiently and effectively. Make sure to do your research before selecting a crypto trading bot – look for good bot support and scour the community for reviews and advice.