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.
Inner Mongolia to Shutter ‘Illegal’ Bitcoin Miners by October as China Cracks Down on Industry
China’s Inner Mongolia autonomous region is carrying out an inspection to eliminate “illegal” bitcoin mining operations by October, a government spokesman told CoinDesk, confirming a local report.
The official document detailing the inspection plan was leaked to Chinese media which published photos of the decree from the Inner Mongolian regional authority.
“The inspection is directed by the central government, rather than a standalone plan initiated by the local government,” according to an industry executive involved in the planning process.
“The move reflects the nationwide phase-out plan on the bitcoin mining,” the source added. The government’s plan is to drive out the digital currency mining industry from China by 2021..
According to the 10-page document, data centers that provide facilities for bitcoin miners and unregistered bitcoin mining businesses will be closed.
The local authorities leading the raids will target any bitcoin mining operation that tries to get preferential electricity prices and tax breaks by pretending to be a sanctioned user, such as a big data company or cloud computing host.
Existing bitcoin mining businesses that pass the inspection will be categorized as “limited companies” that should pay the official electricity rate and not negotiate with power stations directly. They will still be expected to shut down their mining operating by 2021.
The region-wide inspection is being rolled out in two phases.
The municipalities are carrying out the inspections from Sept. 3 to Sept. 25 and then.reporting their findings to the regional government, which will form a team to investigate the findings from each jurisdiction from Oct. 10 to Oct. 20..
Inner Mongolia, in northern China, is among the most suitable areas to operate bitcoin mining businesses thanks to its cheap electricity supply, low land prices, cold weather and a small population.
Such conditions help miners by reducing their biggest cost – electricity – cooling equipment more quickly and avoiding densely populated areas that would be bothered by noisy operating machines. Bitmain, one of the largest bitcoin mining companies, has had operations in the region.
China started to crackdown on bitcoin mining operations before the formal announcement in April by the National Development and Reform Commission, the primary government agency for economic planning.
The NDRC’s position indicated that the mining industry should be phased out of China as it does not fit in the future economic development plan of the country. Trading and possessing cryptocurrencies is illegal in China as part of broader currency controls, but crypto use is prevalent on the black market.n-miners-by-october-as-china-phases-out-indust
JP MORGAN IN METALS RACKETEERING SOUP; BITCOIN STILL A FRAUD?
WHO IS THE FRAUD NOW?
JP Morgan Chase boss Jamie Dimon once called bitcoin a fraud. Two years ago he said ‘If you’re stupid enough to buy it, you’ll pay the price for it one day.’ Now it turns out that his bank has been the fraudulent one as the DOJ flexes its muscles against JP Morgan’s trading desk.
According to the Financial Times, three metal traders for the Wall Street bank have been charged for market manipulation in what the prosecutors described as a
“Massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”
JP Morgan’s head of precious metals trading, Michael Nowak, was charged on Monday along with two colleagues, Gregg Smith, and Christopher Jordan. The federal racketeering charges handed out are normally used to take down organized crime syndicates.
Effectively JP Morgan can be considered a crime syndicate following this scandal and RT anchor Max Keiser tends to agree.
“Yep. We called every dirty, Silver manipulation of @jpmorgan
#FinancialTerrorist, human tapeworm Jamie Dimon made $1 bn on this.”
The indictment alleges that between May 2008 and August 2016, the defendants engaged in widespread spoofing, market manipulation and fraud for gold, silver, platinum and palladium futures contracts while working on the precious metals desk at the bank.
JP Morgan along with HSBC dominates global flows of gold and silver trading. The charges added that the traders placed orders that they intended to cancel before execution in order to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market.
SHORT THE BANKERS, LONG BITCOIN
It has been a long time coming but it is likely the case will increase scrutiny over the world’s precious metals markets and the dominance of large banks such as JP Morgan. Prosecutors indicated that more senior executives and other banks were under investigation.
In the past decade alone global banks have been fined more than the entire market capitalization for all crypto assets for a range of nefarious activities. Just last week banks in the UK were hit with billions of dollars in fines for an insurance scam that defrauded millions of citizens.
For once we can say with confidence, yes, bitcoin solves this.
Should Jamie Dimon take back his ‘bitcoin is fraud’ statement? Let us know what you think.
BITCOIN AND BLOCKCHAIN BOOSTING LAW INTENDED TO CREATE JOBS
BLOCKCHAIN TO GET THE JOBS ACT RIGHT
The Jumpstart Our Business Startups Act, colloquially known as the JOBS Act, is a law intended to create jobs in the United States. The concept behind it is to encourage funding of small businesses by easing various securities regulations.
President Barack Obama signed JOBS into law in April 2012. Before the enactment this law, authorities allowed companies to raise money only from accredited investors holding a net worth of at least $1 million.
Then, under the JOBS Act, new rules and proposed amendments were designed to assist smaller companies with capital formation, providing investors with additional protections.
Thus, on October 30, 2015, the U.S. Stock Exchange Commission (SEC) adopted the rules to allow companies to offer and sell securities through crowdfunding. Specifically, Title III of the JOBS Act provided a federal exemption under the securities laws so that investor can use crowdfunding to trade securities.
However, according to Forbes, the law failed to materialize the number of jobs expected, forcing former vice-chairman of NASDAQ David Weild IV, one of the main supporters of the law, to call “for a JOBS Act 2.0 that would be built using blockchain, a shared distributed ledger.”
Now the law it seems is starting to fulfill its promise. For example, on August 19, 2019, INX Ltd. filed with the SEC the initial public offering (IPO) petition to raise $130 million by selling security tokens. The minimum investment amount to participate in the IPO is $1,000. Moreover, Forbes reports,
“Weild, who sits on the board of INX, says he now has 14 blockchain and cryptocurrency clients waiting in the rafters to bring the best of blockchain to the best of traditional exchanges, and perhaps, finally get the JOBS Act right.”
BITCOIN ADDS JOBS TO THE DIGITAL ECONOMY
Bitcoin is also streaming jobs into the economy directly. Job sites such as Monster.com, Simplyhired.com, and Indeed.com continuously post a variety of jobs related to BTC.
Additionally, sites specialized in freelance job opportunities often post jobs that pay in BTC. Cointastical published a long list of freelancing platforms that offer payments in Bitcoin.
So, thanks to Bitcoin’s technology and the Internet of Things (IoT), the digital economy continues to provide us with more jobs and opportunities.