The Ultimate Guide to Crypto Trading Bots9-min read

An Overview of Crypto Trading Bots or Automated Crypto Traders

Financial markets are the unseen backbone of the modern economy with crypto being the disruptive answer to some of the worst excesses of the traditional banking establishment. The power of the internet has placed the vast majority of assets, and a full 100% of crypto, online and made them easily accessible by anyone with the knowledge and interest in financial freedom. This being said, a relatively new player is making its presence known within the field of retail investment and may have the power to change the face of finance forever. That player is Artificial Intelligence.

The CEO of Trality, Dr. Moritz Putzhammer, discovered the need for automation in crypto trading after losing money in manual trading. He relied on a friend to build automated scripts for him but realized that not everyone has access to such services. Trality’s Marketplace aims to provide profitable and tested trading bots for everyone, regardless of their coding experience. By automating trades, trading bots make the process accessible to anyone and allow users to earn money even in volatile markets.

In this digital toolkit, we will be your guide in clearing up all of your doubts regarding crypto trading bots. This will include how to trade with crypto bots, how they fundamentally work, Bitcoin Bots, the future of the market and everything in between. Prepare to learn about how you can be a part in this revolutionary wave in retail investing and benefit from possibly the best strategy for passive income so far.

Best Bots for Crypto Trading for June 2023

There are currently plenty of options available for all crypto enthusiasts. Each of these bots comes with diverse features and functionalities so that you can choose and find the best suitable trading bots that fit your needs. Having said that, here are the top three crypto trading bots in India to start your automated trading journey:

Be warned that there are many fake websites impersonating legitimate crypto bots. It is important to access these websites through the official links above. These links will send you to a portal which uses the brands’ official API but employs several levels of security for sign-up and payment processing so as to keep all sensitive data safe from any phishing attempts. This why in some instances, your antivirus software might be triggered when accessing some of these brands directly. By merely using search engines (Google, Bing etc) to reach these brands, the odds of inadvertently ending up on one of those fake websites are also quite high. The illegitimate sites are scams and have entire teams of professionals working 24/7 to ensure that they outrank even the authentic, official brands on search engines, employing exact-match and domain redirect tactics. 

How to Trade with Crypto Bots

No two crypto trading bots are the same. Fundamentally, crypto trading bots are customised and individually-curated according to the users’ specific trading preferences, regulations, risk capability and trade return expectations.

Traditionally, you may purchase access to crypto trading bots from fintech ventures specialising in automation or Machine Learning. Otherwise, if you find yourself having particularly deep pockets and money to spare, you can hire a developer who would build a crypto trading bot for you. Should you be interested in the latter option, you need to follow these steps to create your own crypto bot:

Step 1: Choose the programming language you are going to utilise
Step 2: List down the number of exchanges you desire your bot to function with
Step 3: Develop accounts on the significant listed exchanges
Step 4: Select the particular type of crypto trading bot you desire to make use of
Step 5: Regulate the architecture of the specific crypto trading bot (you are highly advised to consult professionals on this step)
Step 6: Coding
Step 7: Testing
Step 8: Deploy your bot.

That’s it! You now have your own crypto trading bot.

Regardless of how you get access to a crypto trading bot, the bot will work through the following four stages to calculate and execute orders.

Stage 1: Data is the lifeblood and main driver of Machine Learning algorithms. This is why data analysis is instrumentally important for the success of any crypto trading bot. Operating similarly to trained human market analysts, machine learning-powered software can effectively identify, analyse and gather piles of data in a faster, smarter and more objective way then its human counterparts.

Stage 2: Once the analysis of the data is efficiently finished, signal generation by a particular board essentially does the required work of the trader, properly identifying possible trades and making predictions in accordance with market data and technical analysis indicators.

Stage 3: Risk allocation is the particular step where the bot segregates the risk in accordance with the particular set of parameters and rules that are set by you as a trader. This basically includes how and to what limit capital is allocated when the trading is done.

Stage 4: Finally, execution is the stage where cryptocurrencies are actually purchased and sold in relation to the signals that are generated by the pre-configure trading system. In this significant stage, the signals will efficiently generate purchasing and selling orders which are adequately sent to the exchange through their API.

What Are Crypto Trading Bots and How Do They Work?

Crypto trading bots are, in essence, the bots that are used to automate trades in the cryptocurrency market. They are considered to be the programs that are most liable to yield significant results with respect to day-trading and even longer-term investing. Most crypto trading applications are optimised to provide straightforward functionality. You can authorise the bot to efficiently buy or sell an asset if/when it reaches a specific price or indicator. Your bot can then take care of executing and placing your preferred order, so you are not required to monitor the particular platform all the time to speculate when the specific price movements are effectively reached.

While the ecosystem does contain a significant amount of bad actors, a number of crypto trading bots have gained a well-earned reputation in providing investors with high returns at low risks. However, you should remember that the market is still young and very unstable compared to traditional financial investments. If you decide to take a complete hands-off approach when it comes to investing, your returns might not be comparable to someone who takes an active role in ensuring that their crypto trading bot is optimised to the specific market conditions they find themselves in.

Bitcoin Bots

The crypto trading bots that are particularly oriented towards maximizing profits from trading Bitcoin fall within the parameters of Bitcoin bot trading software. These have been specifically programmed for the distinct purpose of creating profit from Bitcoin trading, which is why this Machine Learning technology is applied to predict developments in the Bitcoin market in an accurate manner far surpassing the capabilities of even seasoned investors or entire investment firms. Most cryptocurrency trading applications focus on simple functionality. You can instruct the bot to effectively buy and sell an asset if and when it hits a particular price or indication point. You will not need to constantly check the specific platform to guess when the desired price movements will actually be accomplished because your bot will take care of executing your preferred order. As this market has not yet been regulated, we have a meticulous vetting system for all Bitcoin robots which we review.

The Future of Trading

With digitalisation becoming a more fundamental pillar of the global financial market with each passing day and crypto being especially digitally-native, the use of bots in online trading is only set to grow exponentially. This constant inflow of capital investment as well as having entire cohorts of the best software engineers finetuning services and products, the online trading market is expectedly to reach more than 12 billion dollars by the end of the year 2028 at a CAGR of 5.1% from the year 2021 to the year 2028. Hence, you can make a massive amount of profits by investing and even more so by choosing the right bot.

Market Disruptions

As an aftermath of these powerful algorithms reportedly conquering the Ethereum ecosystem, these bots are now wreaking havoc on younger blockchains. The bots are overrunning the networks of crypto like Solana as they hunt for profits. As the prices of crypto dipped in recent times, the liquidation bots worked down Solana, a favoured blockchain by many financial professionals, overloading it by sending 2 million and more transactions per second. As a result of this onslaught, Solana was down by 17 hours. Beyond just Solana, Avalanche, Polygon, and Binance Smart Chain are also seeing forays by these automations. All of this means that manual crypto trading is not a genuine option if you want to gain sustained profits from the crypto market.

Pros and Cons of Crypto Trading Bot Software

Free Crypto Trading Bots

There are a number of free crypto trading bots that are popular worldwide: Cryptohoffer, Pionex, Bitsgap, Trinity and many more serve as just a sample of this. This being said, these are nothing more than training simulation software since you need to make actual deposits in real crypto bots to make money or generate any kind of income.

Generating Disposable Income with Crypto Trading Bots

Crypto trading bots are profitable and can generate disposable income for as long as you can effectively and appropriately configure them. The best crypto trading bots will definitely generate profit but it is crucial to test them or have some particular sort of assurance first before purchasing. It is also essential for you to learn how they operate, i.e. their automation process. Experts say, any average trader trading through crypto bots can easily make around 2-3% in profits on a normal day but once again these numbers can always vary depending upon the market properties.

How to Choose the Best Crypto Trading Bot?

Before getting started with any particular cryptocurrency trading bot you need to figure out which platform suits your necessities in the best possible way. There are a large number of options in the contemporary market and it is always good to play around with a free trial before investing in a proper trading board. This will give you an adequate idea on whether the trading software is right for you or not. As mentioned earlier you can try out the free best trading bots which are those listed above. Your preference might also depend on the device suitability of the crypto trading bots. The ones which are usable both on PCs as well as mobile devices are usually more popular than the single-platform focused ones. This being said, never blindly follow advice from entities you don’t trust. Do your own research. Surf the internet as much as you can till you become certain that a particular bot will fit your requirements.

Best Crypto Trading Bots for Beginners

From the above-mentioned best bots for crypto trading in India for June 2023, here are our best crypto trading bots that are absolutely safe to pick for the beginners

● Crypto Code
Crypto Code provides a demo account for users to practise trading and learn about the platform’s usability. Once, you are comfortable, you may start live trading for real profits. A 24/7 customer care service is always available to ensure you are not left stuck or confused while using the platform.

● Bitcoin Prime
The demo trading function of Bitcoin Prime allows novice traders to practise trading before investing and engaging in real-world investments. The demo trading account functions similarly to the actual account; the only difference is that it employs virtual money. The demo trading account includes a credit of up to €1,500 to allow users to practise bidding, selling, and transacting cryptocurrency the same way that they do in real-time trading.

Are Crypto Bots Safe?

The trading bots are considered to be legal in the cryptocurrency market though only a few selected brokers permit them. You can avoid scams by doing your own research while not engaging in turn-key solutions. This being said, we advise that you look out for previous records of trade and gather review from any trusted sources who has knowledge or has had personal experience pertaining to crypto bots.

Are Crypto Bots Legal?

The market is still unregulated and this is why you need to properly ensure your own safety by always doing your research. It will help you to actively and accurately pick or choose the automated brokers recommended by a varied number of review sites.

Testing the Best Crypto Trading Bots

We have an extensive system of vetting in place. Our writers research reviews and assign an aggregate score based on the testimonials of users and publications who claim to have opened accounts with these bots, analysing their terms and conditions, compliance, user safety and privacy. This is the tried and tested method by which third party sites efficiently review every bot on the market.

Our editorial team’s rating system is determined by the following considerations, for all crypto trading bots reviewed on CoinBharat:

• Compliance with legislative requirements, which also includes verifying the managing company’s compliance within its local legal operative framework
• The security of their payment processing methods
• Deposit, as well as withdrawal requirements and conditions
• Accuracy of the market-predictive abilities of technology embedded onto the robot and how it is implemented (this is gathered from users or publications claiming to have tested on a longer period of at least six months)
• Reliability of their Customer Support team
• Trade speed rate and success rate
• Overall user-friendliness and accessibility of their dashboard and mobile app, should they have one
• Any risk-aversion mechanisms embedded onto the robot to prevent callous spending
• Notifications sent to users and overall transparency

Third party reviewers from across the world claim to carefully vet them on all the aforementioned from several accounts – both business and individual accounts – over a period of six months. When technological innovation is moving at lightning speed in an unregulated market flooded with a myriad of options to choose from, it is of indispensable importance for your own safety to always properly read the reviews and to do your own research before choosing a crypto trading bot to deposit with.

Investing Responsibly

You need to always invest the amount which you can afford to lose. Along with that, you need to understand the aspects of crypto market volatility and do your own research, as to monitor your bankroll and understand when it is the best time to withdraw. Start small, remain consistent, and with enough time put in, you will start earning exponentially.

Latest Updates

The availability of AI applications such as ChatGPT is ushering in a new era of improvements in blockchain-based smart contracts. The convergence of these two innovative technologies has the potential to transform industries and enhance contract development, automation, and efficiency. Blockchain’s decentralized ledger technology has gained attention for promoting transparency and trust among network participants, while AI has made significant strides in NLP, ML, and data analysis. When these two technologies come together, they can radically change smart contract execution and enhance blockchain network functionality.

AI can optimize data processing and storage on the blockchain, enabling faster transaction processing and a seamless user experience. Additionally, AI can detect network congestion patterns, empowering the blockchain to adapt dynamically and maintain peak performance.

Conclusion

Conclusively, we can sum up this entire read into three basic points.

• Bots can be utilised to take advantage of the cryptocurrency market that efficiently trades 24 * 7 across the globe.
• Bots react quicker and more proactively than human traders/investors.
• You as an investor can confront time constraints but the bots can effectively dedicate that time to get the best out of it.

Use this guide to increase your expertise and commit more responsibly to cryptocurrency trading bots to witness increased profitability.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Always exercise caution with new technology. Reviews are the subjective opinion of their writers and remain entirely speculative. There is no substitute in the form of opinions unintended as financial advice for your own due diligence on the matter when rendering your own investment decisions