Over the past few years, there has been an increasing interest in Bitcoin trading bots. Because everyone wants to make money with cryptocurrency without much effort, trading bots are usually a pretty safe choice.
TOP 9 BITCOIN TRADING BOTS
With over a dozen different trading bots on the market today, it can be difficult to determine which solution works best. The following 8 options – in no particular – are definitely worth checking out. Each software has their own unique advantages and drawbacks depending on what you are looking for exactly.
As is always the case when dealing with trading bots, there is never a guarantee of making a profit. Even so, it would appear most users of the 3Commas bot are more than happy with how this solution performs, even during the bear market. This bot will not only take users’ target gain into account, but it will also attempt to complete every trade at the most profitable position. This will allow users to make more profit during a bull run, and offer them a better chance of netting a profit during a bear market.
Other features worth checking out include multi-currency support, a cloud-based interface, and the supported exchanges. This list includes Binance and Bittrex, although support for BitFinex, KuCoin, and others will be added in the near future. While this is not a free trading bot, the $24 starter plan won’t deter too many people under any circumstance. For more advanced and experienced traders, other plans are available as well, all of which come with their own price tag.
Most users getting their feet wet in the world of Bitcoin trading bots will want to at the very least explore the free option. Gekko seems like a good fit, as the bot can be used free of charge, which is also what makes it so popular among traders. This particular bot also has a few built-in trading strategies to get users acquainted quickly. Additional strategies can also be downloaded online and loaded without hassle. On the exchange front, Gekko supports Bitfinex, BitStamp, Poloniex, and a few others. For all of its selling points however, Gekko’s setup process is still rather awkward and clunky. Following a proper guide is well-advised in this regard.
Decentralization is the buzz word in cryptocurrency these days. As such, there has to be at least one – albeit self-professed – decentralized trading bot. Known as Autonio, it runs on top of the Ethereum blockchain and is compatible with the vast majority of cryptocurrency exchanges available today. Trading strategies and algorithms are built-in, but users can also customize the preferences accordingly. Customized trading strategies can also be sold on the built-in marketplace, which may be an option worth exploring for more advanced users.
There are a few financial drawbacks to Autonio. It requires the use of its ERC-20 token for buying services, which is currently only listed on Bittrex. Additionally, the bot is rather expensive, with a $50 monthly fee. While it is still a powerful solution, new users may find it difficult to justify the steep costs. On the upside, if you run the bot on a 24/7 basis and assuming you use good strategies, earning the monthly fee back should not be too much of a problem.
Although ProfitTrailer might not sound too familiar, it is a Bitcoin trading bot which is seemingly capable of achieving huge profits. Under the hood, this solution offers automatic trading, market-monitoring features, and offers potential trades based on how individual markets are shifting. For the “lazier” crypto trader, those features will undoubtedly come in handy. Perhaps its most telling feature is the dollar cost averaging, which helps improve upon traders’ profit potential accordingly. It also supports most of the major exchanges available today. On the price side of things, this bot costs between $499 and $1,149 for lifetime packages or $45-$60 for monthly packages.
In the world of Bitcoin trading bots, finding a user-friendly option is unfortunately not that easy. Leonardo Bot – now known as Margin.de – checks the right boxes in this regard. It also packs quite the punch in terms of features and options. Two built-in strategies are provided, but customization is an option. Due to its recent price change to a one-time fee between $89 and $1,999, the bot has also become more appealing to traders.
Ever since discussions pertaining to trading bots surfaced, Haasbot has been able to make a name for itself. It is one of the oldest solutions available today. With its cloud-based infrastructure and support for all popular exchanges, it is a versatile solution. Unlike other offerings, the built-in trading strategy can be quite lucrative, which can make novice and veteran users a lot of good money. However, for those unfamiliar with market conditions, this may not be the best option. Price-wise, Haasbot costs 0.127 BTC for a full year, which is still somewhat expensive for most people.
Similar to Gecko, Zenbot is a free Bitcoin trading bot, but one that offers slightly advanced features. It also has its own pre-configured strategy, but it is advised users customize this sooner or later to maximize their profit potential. With most popular exchanges supported, and no price tag, Zenbot is a project slowly gaining more popularity among cryptocurrency traders. The added benefit of high-frequency trading should not be overlooked either.
Whereas most Bitcoin trading bots come with one or two pre-configured trading strategies, Gunbot is a very different creature altogether. It has no less than 32 different strategies, which makes the process of trading Bitcoin for profit a lot more straightforward. It also supports most top trading platforms, including Binance. With its one-time fee of 0.04 BTC up to 0.25 BTC, it is still a relatively cheap solution for those who plan to use Gunbot for the long-term. One of the major selling points of Gunbot is how its customer support is often praised, which is crucial in this industry.
If you are new to the Bitcoin trading bot scene and are looking for a bot with an awesome UI, look no further. Cap.club has one of the simplest and most intuitive dashboards out of all the trading bots. When you create an account, you will be greeted with a tutorial to help you set up exchange keys and an explanation on how to use the various trading tools. Currently, Cap.club only supports two exchanges: Binance and Bittrex, but that may change in the future. Some of the more useful features of the trading bot include the ability to create simple limit and market orders, smart selling based on a market growth strategy, support for E-mail signals, and trailing Buys / Sells. Moreover, the initial account is free unless you want to upgrade to the pro version which only costs $30 a month and allows you to run more than 3 bots simultaneously and get notifications to Telegram.
BITCOIN TRADING BOT COMMON QUESTIONS
To those new to bitcoin and cryptocurrency, trading bots might be a new concept. If you aren’t familiar with trading bots don’t fret, the below questions should help you understand exactly what trading bots are, how they work, how to use them and whether they are safe to use in the first place.
WHAT ARE BITCOIN TRADING BOTS?
If you haven’t used a bitcoin or other cryptocurrency trading bot before you might be confused as to what it is exactly. In short, a trading bot is a third party software that connects to your account on a cryptocurrency exchange. Most of the time, the connection is made via an API which all the top cryptocurrency exchanges have. Once the trading bot connects to your exchange account, you can then allow it to make trades for you. You can define a threshold amount that you will let the bot trade for you and various other strategies and options.
ARE BITCOIN TRADING BOTS SAFE?
The first question that might pop into your mind when looking into trading bots is the fact if they are safe to use. The short answer is – yes, trading bots are safe. However, it’s important to understand that it how safe a trading bot is really depends on which trading bot you are using. If you find a trading bot on some sketchy forum with absolutely no reputation and an anonymous developer, chances are when you connect it to your exchange account the balance will be drained.
If you decide to use a reputable trading bot that has plenty of reviews and not an anonymous development team, your exchange balance will most likely be safe because there will be someone to hold accountable in the event of a catastrophic failure. What’s more, is a lot of exchanges have different API verification for trading and withdrawals. Meaning, while it would still be possible for a bot to make terrible trades and lose your balance, the bot cannot actually withdraw funds from the exchange.
SHOULD I USE A BITCOIN TRADING BOT?
As a cryptocurrency enthusiast, it’s a good idea to at least try using a trading bot so that you are familiar with the concept of what they do and how they work. On the off chance that you really like the idea of trading based on predefined strategies without having to look at the charts all day long, trading bots is an option worth exploring. However, if you don’t trust technical indicators and prefer to trade based on news or events, then trading bots might not be the greatest fit for you.
TOP BITCOIN TRADING BOT STRATEGIES
A trading bot is a tool, it won’t magically make the best trades possible with no input from the user. There are various strategies you can employ when using the trading bot depending on your level of experience and other preferences.
This is a strategy for those new to using a trading bot that will get you familiarized with automatic trading. Half trading has to do with phases, the first phase is called “sell trading” – this is when you decide what coins to buy and only let the bot sell the coins for you at high prices. The second phase is called “buy trading” – where you only let the bot buy coins for you at cheap prices. Using half trading minimizes the complexity of your trading algorithm and allows you to get familiarized with how trading bots operate.
One of the most popular trading bot strategies and one you can see in play on almost any exchange is market making. This is an automated strategy that simply provides liquidity to both sides of the order book. This means if there is a large gap between the buy and sell orders, the both will create small order to either undersell or overbuy the order closest to the gap. This is a relatively low risk trading strategy that performs best when the market is trading sideways within a small range.
This is another extremely popular trading strategy that is common not only with the use of trading bots but with manual trading as well. Arbitraging takes advantage of price differences of the same coin among different exchanges. For example, if $XYZ is trading at $1 on one exchange and $1.10 on another exchange you can buy the coin on one exchange and sell it on another for a quick profit. Arbitraging with trading bots automates the process but it does have some drawbacks. If the market is volatile, you may end up with a loss if the coin you are trying to arbitrage drops in value. Moreover, if the coin is appreciating in value you will miss out on potential gains if you sell it prematurely.
This is a more advanced trading strategy that focuses on trading based on technical indicators. Some trading bots allow you to import various trading strategies that rely on Moving Averages, Bollinger Bands, Fib Retracements and other technical indicators. You are able to provide a set of conditions based on various indicators and if the market meets those conditions the bot will perform a certain action. This trading strategy is meant for advanced traders who already have experience with traditional stock and crypto trading.
LibertyX Surpasses 1,000 Bitcoin ATMs Across the US
LibertyX, the company that launched the first U.S. bitcoin ATM, will expand into 90 retail locations in Arizona and Nevada, according to a statement made Wednesday.
With this move LibertyX now operates more than 1,000 so-called bitcoin ATMs across the country. The latest additions are set up in AMPM, ARCO and Chevron gas stations, as well as select Family Dollar stores.
A partnership with Desert ATM, a non-bank ATM service provider, will enable street-level access bitcoin through user’s debit cards. Chris Yim, CEO of LibertyX, said the convenience and simplicity of bitcoin ATMs removes some of the hurdles to onboarding consumers to cryptocurrencies.
Related: Bitcoin Bounce Capped by $10K Price Resistance
This is not the first milestone the company has passed. In 2014, the company launched the first crypto ATM in America in Boston’s South Station. In 2016, it hired the first bitcoin cashier. In 2019, it became the first to enable debit card transactions on traditional, non-bank ATMs, without a hardware upgrade.
“It was a natural evolution of what we started almost 5 years ago,” said Yim, speaking about the most recent advancement. “Our goal is to make bitcoin available on every block in America.”
While LibertyX offered in-person cashier services in the southwest before, this move is the first time the company is integrating with Genmega machines in Arizona and Nevada.
Genmega operates “approximately half” of the non-bank retail ATMs that would be compatible with the crypto-transaction enabling software upgrade LibertyX designed. “There are over 100,000 non-bank ATMs in the US and we hope consumers can buy LibertyX bitcoin from all of them,” Yim said.
Related: Sexual Misconduct Allegations Emerge Against Bitcoin Coder Peter Todd
Transaction limits are set at $3,000 worth of bitcoin per day, for customers that pass the KYC requirements.
In the past, Desert ATM had attempted to operate their own crypto machines, but found LibertyX had the experience to roll out the feature effectively, according to the company announcement.
“We’re thrilled with the demand and enthusiasm we’ve seen from ATM operators who have been dying for a scalable, compliant, and capital-efficient bitcoin solution,” said Yim, in a statement. “There are not many crypto companies still around from 2014 and we are proud not only to have survived, but thrived over the years. We have grown from that 1 ATM in Boston’s South Station in 2014 to thousands of retail locations nationwide today.
In June, bitcoin ATM competitor DigitalMint expanded to 20 locations in Arizona and Nevada.
Bitcoin ATM photo via CoinDesk archives
Short of Target: Bitcoin’s $1K Rally Still Leaves Bear Bias Intact
- Bitcoin’s short-term outlook will remain bearish as long as prices remain below $11,080 resistance. A break above that level would invalidate bearish lower-highs setup.
- The bulls may have a tough time forcing a break above $11,080 amid news of BitMEX exchange facing a regulatory probe and talks of harsher crypto regulation.
- Prices could drop below $10,000 in the next 24 hours with daily chart indicators continuing to report bearish bias.
- A weekly close (Sunday, UTC) above $12,000 is needed to revive the bullish view.
Bitcoin (BTC) has rallied sharply in the last 24 hours, but the outlook remains bearish with prices holding below key resistance around $11,080.
The premier cryptocurrency jumped from $9,200 to $10,400 in just 40 minutes during the U.S. session yesterday, contradicting the case for a drop below $9,097 put forward by multiple rejections at $10,000 in the Asian trading hours.
Price rose further to $10,800 at 23:45 UTC, but closed at $10,648, leaving the crucial resistances of $10,759 (monthly opening price) and $10,850 (daily chart resistance) intact, as tweeted by popular analyst Josh Rager.
Rager wants to see BTC climb $10,850 before calling bullish revival. While that argument has merit, a much stronger confirmation of the bullish breakout would be a high volume move above $11,080.
That would invalidate the bearish lower highs pattern created during the sell-off from $13,200 to $9,049, as seen in the chart below.
Bearish lower highs
As of writing, BTC is changing hands at $10,330 on Bitstamp, having clocked highs above $10,770 at 08:00 UTC.
The cryptocurrency has come under pressure in the last hour or so amid news that the U.S. Commodity Futures Trading Commission (CFTC) is probing BitMEX, which offers trading of cryptocurrencies with up to 100-times leverage and products such as futures and swaps, over whether it allowed Americans to use its platform.
The latest CFTC probe could heighten regulation fears that have gripped markets over the last few days, making it difficult for BTC bulls to force a break above $11,070.
Technical charts are also calling a break below $10,000.
4-hour and daily charts
BTC is feeling the pull of gravity, having faced multiple rejections at the 50-candle MA on the 4-hour chart (above left) in the last 18 hours.
With bitcoin’s fall back to $10,300, the bearish crossover of the 50- and 200-candle MAs has gained credence.
Further, the relative strength index (RSI) on the daily chart continues to report bearish conditions with a below-50 print.
The Chaikin money flow index, which takes into account both prices and trading volumes, fell to 0.07 yesterday from 0.08, even though prices rose above $10,000. That divergence (marked by arrow) indicates the buying pressure weakened with the price rise and puts a question mark on the sustainability of the gains seen in the last 24 hours.
The 5- and 10-candle MAs have produced a bearish crossover and prices faced rejection at the descending 5-candle MA earlier today.
Further, the moving average convergence divergence (MACD) has turned bearish for the first time since December 2018, as discussed earlier this week.
All-in-all, BTC risks falling below $10,000 in the next 24 hours. On the downside, strong support is located at $9,097 (May 30 high). A violation there would expose the 100-day MA lined up near $8,100.
On the higher side, a high-volume break above $11,080 would invalidate the bearish setup.
That said, a weekly close (Sunday, UTC) above $12,000 is needed to confirm bull revival due to the fact that BTC has failed to close above that psychological level for three weeks in a row – a sign of buyer exhaustion noted earlier this week.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View
What the CFTC investigating BitMEX could mean for bitcoin and crypto market
The Commodities and Futures Trading Commission (CFTC) has started an investigation into BitMEX, the largest margin trading platform in the crypto market, according to a Bloomberg report.
BitMEX, along with other major margin trading platforms, have not allowed U.S. customers to trade derivatives on the platform to avoid scrutiny from U.S. regulators.
The unexpected move of the CFTC comes after the remarks of U.S. Treasury Secretary Steve Mnuchin and his warning against increased efforts to tighten policies around the crypto sector.
Going after the biggest fish in the pond
Last month, BitMEX achieved $16 billion in daily volume across its derivatives products including the widely utilized bitcoin contract when the price of bitcoin peaked at $14,000.
Primarily due to the popularity of its bitcoin contracts, BitMEX has secured its dominance over the crypto market throughout the past several years.
However, the CFTC is said to be exploring whether BitMEX has facilitated trades for U.S. customers over the years and whether U.S. customers have been able to bypass restrictions set by the exchange by using virtual private networks or VPN.
A BitMEX spokeswoman told Bloomberg that the company cannot comment on investigations by government agencies. The spokeswoman said:
“HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report.”
Why is CFTC going after the biggest bitcoin margin trading platform?
Earlier this week, during an official White House briefing, Treasury Secretary Steve Mnuchin stated that with the establishment of the Financial Stability Oversight Council’s Working Group on Digital Assets, various financial agencies including the Securities and Exchange Commission (SEC), CFTC, and FinCEN will vamp up efforts to tighten their oversight on the market.
Secretary Mnuchin said at the time:
“The United States has been at the forefront of regulating entities that provide cryptocurrency. We will not allow digital asset service providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities. Treasury has been very clear to Facebook, to bitcoin users and other providers of digital financial services that they must implement the same anti-money laundering and countering financing of terrorism, known AMLCFT safeguards as traditional financial institutions.”
Secretary Mnuchin added that crypto money transmitters will be subject to the same standards and regulations as every other U.S. bank, indicating that FinCEN is likely to enforce existing regulations on crypto-related entities at full capacity.
The CFTC’s investigation into BitMEX, the decision of Binance to replace crypto-to-crypto trading in the U.S. with a fully regulated exchange called Binance US, and the geopolitical ban on certain cryptocurrencies by Poloniex and Bittrex indicate that companies are increasingly expecting stricter oversight in the near term.
In the short term, the BitMEX investigation could pose a negative effect on the crypto market especially due to the timing, which comes immediately after the release of the remarks of Treasury Secretary Mnuchin.