In this guide, we will be exploring the concept of automated trading and its applications in the cryptocurrency sphere, as well as the best-automated trading platforms for cryptocurrency enthusiasts.
What is Automated Trading?
Automated trading systems also go by a number of different names within the world of trading, including, mechanical trading systems, algorithmic trading systems, and system trading. What automated trading systems allow traders to do is create a playbook with relation to the entry and exit of trades for the user. As soon as the system has been established, a computer would be able to automatically run trading activities for the user.
These automated trading platforms can vary in complexity, they can either be based on incredibly simple metrics such as crossover or, it can be composed of a large number of different metrics that would require the knowledge of a programmer to implement the trading system and to understand how to use it.
What are Cryptocurrency Trading Bots?
The large increase in the popularity of cryptocurrencies has allowed for the rapid increase in the number of cryptocurrency trading bots that are available on the market. Some of these bots are free and open-source, whilst others are purchased by users from specialized firms in exchange for fees.
How Do They Work?
The cryptocurrency trading bots will make decisions for the user based on information such as price movements within the market, generating a reaction based upon a pre-defined set of criteria. Generally speaking, these bots will look at items such as market volume, current orders, prices and the time, although they can be further configured to be more complex.
Automated Trading Bots of 2019:
Cryptohopper is one of the most well-known and popular cryptocurrency trading bots on the market at this moment in time. The bot helps users to simplify the process of trading cryptocurrencies and also assist users of all ability levels to increase their profit margins and minimize their losses.
According to the company itself, Cryptohopper was originally founded by two brothers, once possessing skill as a trader and another as a web-developer. The domain name for the company was registered in 2017 and the company behind the bot itself is named CryptoHopper BV and is based in Amsterdam in the Netherlands. On their website, it shows that the company is seeking to take errors created by human emotion out of the trading process. There are also rumours that they will add market-making and exchange arbitrage in the future.
3Commas is an in-depth, platform that is specifically built to trade cryptocurrencies. Users of the platform are given access to the 3Commas cryptocurrency trading bot. The service currently has a total of over 33,000 users and the total trade volume that is handled each day regularly exceeds $10 Million.
Some of the good features that come from 3Commas’ trading platform are that traders can actually automatically copy the trades of successful traders so that newer users or users that do not have much time in their day can trade successfully. Furthermore, their cryptocurrency trading bots can work around the clock, with users being able to set stop loss and take profit targets, as well as giving users the option to use either a “short bot”, “simple bot”, “composite bot” or, a “composite short bot”. These bots can help with a variety of trading strategies, including shorting and longing.
Also, the platform has a 24/7 dedicated support team that can be contacted through the platform’s help center, their Twitter, Telegram and Facebook groups are also avenues where the support team can be contacted. The user interface for the platform is fairly intuitive and makes it easy for newer traders to hit the ground running when using their services.
3Commas supports integration with a number of cryptocurrency exchanges, including Bittrex, Bitfinex, Binance, Bitstamp, Kucoin, Poloniex, HitBTC, CEX.io, Coinbase Pro, OKex, Huobi, Yobit, and GDAX.
Zignaly is a relative newcomer on the scene of cryptocurrency trading bots, in fact, it is still currently in its beta stage. Despite this, there is a lot of cause for people to feel positive about the future of the project. The company itself was founded in 2018, in Madrid by David Coronado and Bartolome Bordallo. The system works by using a cloud-system that connects to a variety of cryptocurrency exchanges through the use of APIs, allowing trading orders to be made automatically.
Some of the features included in Zignaly include the ability to trade unlimited cryptocurrency pairs, the ability to create trailing stop losses and the provision of buy-and-sell signals from high-quality third-party providers.
As it stands, Zignaly has only managed to achieve integration with Binance, however, it can be seen on their website that more options are currently in the works, including Bittrex, BitMEX, Kucoin, and Poloniex.
As it stands, due to the fact that Zignaly is still in its beta, the pricing for the trading platform is currently kept at $9 per month, with the promise that the earliest purchasers will have their prices frozen when the full product is released. Because of this, it would most likely be worth the money for a trader hop onto the project early so that they can take advantage of this offer.
Gunbot is something of a veteran in the world of cryptocurrency trading bots, with the project initially being founded by Gunther De Niro in December 2016. The bot uses APIs to link to a variety of cryptocurrency exchanges, including Cryptopia, Kraken, Bittrex, Binance, Poloniex, Bitfinex, Bittrex, CEX, Coinbase Pro, Huobi, and Kucoin.
Gunbot is an incredibly versatile cryptocurrency bot, mainly because it already comes pre-set with the capability to perform a large number of different trading strategies, this gives the trader the ability to encourage the bot to act either more aggressively, or more cautiously.
Gunbot has six different tiers of payment, which will give the user access to five different levels of functionality, which can be found below.
Haasbot is operated and owned by the company Haas Online Software, which was founded by Stephan de Hass in January 2014, making the brand one of the most experienced when considering cryptocurrency trading bots. The company offers bots that are fully programmable, written in the C# programming language.
The Haasbot has the capability to automate the trading of any altcoin pairs, with no restrictions on a maximum limit for altcoin pairs. The platform is available on both Windows and Linux and will continue to make trades for the user on a 24/7 basis. With regards to the bot itself, it makes use of over 50 technical indicators that become the basis for any trading decisions made by the bot. Users are also able to protect some of their trades by making use of Haasbot’s insurance services.
Haasbot is currently compatible with over twenty of the largest and most popular cryptocurrency exchanges. This also includes exchanges such as Binance, Bitfinex, BitMEX, Coinbase Pro, Gemini, Huobi, Kraken, Kucoin, and Poloniex.
Cryptotrader is one of the more enigmatic projects on this list, with very little information being provided about the masterminds behind the project and simply the nature of the project’s birth itself. From what we do know, the project is run by a company called Algocraft Ltd and its cloud-based automated trading platform uses the CoffeeScript programming language. Bitcoin and altcoins can be traded on the platform, without the need for special software, 24 hours per day.
The project itself will provide its users with a set of pre-loaded trading strategies so that a trading pattern many be established quickly. Furthermore, experienced traders and newer traders alike can make use of the platform’s strategy marketplace, which is a place where traders can buy and sell pre-generated strategies. Users are able to either live-test or backtest their trading strategies, allowing them to see how a bot would have performed in a past market, under certain conditions.
As it stands, Cryptotrader’s platform currently has the support to integrate with 13 of the most prominent exchanges in the market, including Binance, Bitfinex, Bitstamp, Bittrex, CEX.io, Coinbase, Huobi, Kraken, Poloniex, and Quione.
With regards to pricing for the Cryptotrader platform, there are five levels of paid subscriptions, each more expensive than the next, each unlocking new and improved features at each level.
*Disclaimer: Each one of the companies listed above was selected by me personally based on their popularity, reputation and traffic. The order of appearance is random and doesn’t reflect my opinion. I use my own automated bot and trade at my own risk. Always remember to trade at your own risk and with responsibility. I’m not providing any investment recommendations nor professional advices.
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