Bitcoin’s price witnessed a major drop of 14% after breaching supports in over 5 days. However, the major breach in support occurred on August 13, when the price breached $11,229. The price has since collapsed by 8% and is currently at $10,459, further indicating a bearish trend in upcoming days.
Shorter Time Frame
Bitcoin has had a great run-up since July (refer chart). The price in this timeframe rose by 30% in 8 days, following which the price consolidated into a symmetrical triangle. The breakout from this pattern caused the price to trickle down at every major support, leading to the current price. However, looking at this price action from a slightly higher time frame of 4 hours, it shows formation of 2 patterns.
Why the Drop?
Looking at the CME chart of Bitcoin, it can be easily inferred that the price was merely filling the gap formed on August 3 and 4, between $10,665 and $11,070.
Descending Channel & Symmetrical Triangle
The Descending Channel has held for over 45 days and the price is on a downtrend and almost at center of the regression channel. Chances of price proceeding lower than $9,700 are less than likely. However, the price might easily hit $9,700 and bounce back. With this line of reasoning, likelihood of the descending channel holding up is bleak.
Adjusting the support lines, the pattern evolves into a pennant/symmetrical triangle.
This pattern would make a lot more sense as the current price action would respect the support lines as seen in the above chart. The price will continue to descend and breach support at $10,390 and reach $10,000. This would be a point of inflection for Bitcoin, a point where breakout will occur.
Direction of Breakout
Breakout direction is in limbo and could go either way, so looking at other factors would also provide a clearer picture.
- Prior Trend: As mentioned before, price has constantly been on an uptrend; however, bullish momentum seems to have hit a ceiling and is currently consolidating. This would make it a bullish pennant, indicating breakout to the upside.
- MACD: MACD indicator shows an imminent bearish crossover.
- RSI: RSI indicator has breached an important support line which has held for more than six months.
Looking at these indicators, it is clear that there is a vivid bearish bias for Bitcoin in a short to medium timeframe.
Weekly Time Frame
The weekly time frame for Bitcoin shows bleak prospect as the newly formed weekly candle has been bleeding red, at press time. There are, however, four additional days for completion of this candle, which will further confirm this bias.
A Shot in the Dark
Chart of Bitcoin has analysts flummoxed as the pennant that could break out either way. Considering bullish momentum exhaustion, price of Bitcoin, in the weekly time frame, could proceed lower – as low as $8,500.
Yes, as low as $8,500.
Last Weekly Golden Cross Led Bitcoin to Rally 75% Rapidly; Will the Same Happen Now?
If you’ve been on Crypto Twitter at all over the past few months, you’ve likely noticed the phrase “Bitcoin golden cross” tossed around incessantly. The reason, the leading cryptocurrency’s weekly chart is on the verge of printing what is known as a “golden cross,” when a short-term moving average crosses over a long-term one to imply bulls have control.
Some analysts have suggested that this chart formation could lead to immediate gains for the Bitcoin market, though this may not be a certainty.
Last Bitcoin Weekly Golden Cross Led to 75% Gains
In a few hours’ time, Bitcoin’s weekly chart is expected to print a golden cross of the 50-week and 100-week simple moving averages, with the former crossing above the latter. As an analyst recently pointed out, the last time this was seen, BTC surged by 75% in the four to five weeks that followed the cross.
But will this happen again?
While there will be a golden cross that is reminiscent of the one seen in 2015, there is a key difference in the backdrop now compared to back then: long-time cryptocurrency trader Sakura noted that in 2015, the market structure was decisively bullish and upward-trending in the months leading up to the 50-100 golden cross; now, Bitcoin’s chart structure is largely negative, with the cryptocurrency remaining in a downtrend that began in June, marked by lower highs and lower lows.
This difference seems to imply that Bitcoin is unlikely to see a 75% gain, which would bring the cryptocurrency to $13,000 from current prices, in the coming weeks.
But make no mistake, the cryptocurrency ball is starting to enter into the court of bulls once again, according to a number of top analysts.
Ball In the Court of Bulls
Earlier this week, Mike McGlone, a Bloomberg Intelligence analyst, released his latest cryptocurrency market outlook. In the report, McGlone revealed that he’s starting to flip bullish on Bitcoin, going as far as to say that it is only a matter of time before the asset breaches resistance at $10,000.
Per previous reports from this outlet, the analyst noted that he thinks gold will rally, and thus so will Bitcoin. Indeed, the macro picture is starting to favor alternative assets: a potential recession, restart of the trade war due to Hong Kong and Xinjiang regulations, and other underlying issues in the traditional system.
McGlone added that with the impending block reward reduction and developments in the adoption of cryptocurrencies, he would expect the asset to soon surmount $10,000.
There’s also sentiment from Adaptive Capital partner Willy Woo, a prominent analyst who recently wrote that on-chain metrics are implying that investors are bullish once again. With this in mind, he asserted that the “bottom is most likely in,” meaning that any move lower than the $6,500 plunge “will be just a wick in the macro view.” He added that the unnamed indicator also implies that cryptocurrency investors will start to front-run the impending “halving,” the block reward reduction that will be taking place in May 2020.
Best Bitcoin and Cryptocurrency Exchanges 2020
- What’s the Best Place to Buy Bitcoins Online?
Bitcoins are the “hot potatoes” of this decade and it’s the wagon everyone wants go get on. However, there are a lot of basic questions that still remain unanswered. Which are the best places to buy Bitcoins is definitely one of them.
There are a lot of Bitcoin buying/selling/exchange platforms existing on the web. But the problem is that a negligible fraction of them are actually trustworthy. Also, other factors like “fee” ‘security” “anonymity” join in too when you’re looking for the ultimate, best place to buy Bitcoins so even a lower percentile of that fraction is worth buying Bitcoins from.
Exchanges – huge list of guides and reviews
We have checked out and reviewed more than 20 exchanges, from the top ones to the almost unknown small and regional bitcoins. This list will be continually updated so make sure to revisit it every once in a while.
Depending of your location in the world, there are cheaper options available per country and I want to tell you I look to the safest way to get my Bitcoin, security related, and also with the least Fees possible before we go into buying. Otherwise I would still use the original system in place what the banks use to send money.
Bitcoin has a status of elite underground, based on the anonymity, and the direct delivery. The transaction goes directly from person A to Person B without the need to need of intermediate people, institutions, etc.
You should never use PayPal directly to sell/purchase Bitcoins unless it is a person you know that you can trust. But even then, play safe. I recommend you to always use an intermediate because the risk exists that you will get backcharged, losing your money or your bitcoins.
Limits are raised to $200 in four days and $500 in seven days as you prove to be a reliable customer.
Other places where you can buy Bitcoins are:
However, you should be aware that purchasing bitcoins instantly with a debit or credit card will usually result in higher fees. The reason for that is because there are higher transaction and processing fees and a higher risk of fraud. Read a full guide on how and where to buy bitcoins with credit card.
What are best Coinbase alternatives?
Buying Large Amounts of Bitcoin
I recommend following these simple steps to purchase larger amounts of bitcoins:
- You should find a Bitcoin exchange (Coinbaseor Cex.io)
- You should purchase bitcoins by exchanging your local currency, like the Euro or U.S. Dollar, for bitcoin
- You should transfer the bitcoins to your wallet
- And finally, you should get a Bitcoin debit card for easy spending
Learning how to use Bitcoin will require you to get familiar with how things function and it is just like any learning any other technology.
I would like to stress that it is very important that you learn how to transfer bitcoins to a cold storage Bitcoin wallet.
Also, you should know that the Bitcoin price can vary throughout the world. That’s why I highly recommend you to do your research to make sure you are getting a fair deal.
How to Buy Bitcoin
Cex.io, Cryptopay and Coinbase are good places to start when purchasing bitcoins. However, there is no excuse for controlling your own private keys so I highly recommend you do not keep any bitcoins in their service.
I strongly recommend you to compare the exchange rate on your local exchange to a Bitcoin price index once you find a Bitcoin exchange in your country.
There are 4 types of Bitcoin exchange
- CFD (contract for difference) – This method is based on mirroring the movement of an asset. The trader can create profit or losses based on the position he takes on the real asset, however the trader doesn’t own the asset. This is an easy way to trade bitcoin without any fees and allows to leverage the position of the trader.
- Broker – A platform that allows to buy/sell bitcon from the broker for a commission or a fee.
- Trading platform – A platform allows traders manage market positions, buy or sell assets to other traders on the platform.
- OTC (Over the counter) – A peer-to-peer platform that allows to buy/sell bitcoin from an individual. Unlike a Trading platform that allows every trader to be exposed to the trades of other traders, OTC may not be that transparent.
What Makes a Bitcoin Exchange Best?
It’s only logical for me to explain what exactly makes one exchange better than the other before I can ask you to comprehend the best place to purchase Bitcoins.
Just because an exchange is offering no-signup required kind of features, or low buying fee doesn’t mean that it’ll necessarily be the best.
I wouldn’t directly point out which platform is the “best” because I’m not the most knowledgeable person on the planet on Bitcoins. They all have their own pros and cons.
Instead, I’ll walk you through what you should be looking for when you’re trying to land on the best place to purchase Bitcoins. After that you can compare all the available platforms based on your personal preferences.
When finding the best bitcoin exchange for trading bitcoins a number of factors must be considered. They will vary person-to-person depending on the factors below.
The first factor I personally consider before reaching a final verdict about any Bitcoin exchange is the fee it charges for the transactions because each Bitcoin exchange charges different fees for its services.
Most Bitcoin brokers sell bitcoins directly to buyers. They charge a flat rate of 1% per transaction, while exchanges with orderbooks are geared towards high volume trading, and often have fees of 0.25-0.50% per trade.
Also, it’s not advisable to keep Bitcoins permanently on any exchange for long so I also consider the fee I’ll have to pay in order to transfer the bits to my own personal wallet.
I highly recommend you to compare what’s the global price-index for Bitcoins. You can do it easily by simply Goggling “1BTC=$” (Or your currency!) and then compare what price the platform you’re on is offering. There’s considerable price difference between most of them so it’s best to compare 5+ platforms before zeroing in on any single one of them.
Once you find the lowest-priced platform you should wait because your hunt isn’t over yet. As I said, just the “price” isn’t what makes any platform the best place to purchase Bitcoins. That’s why we’ll dig in to the other aspects.
I highly recommend you to check how close is the exchange rate to the global average price found on an index. It is easier to get the best Bitcoin exchange rate if you compare a local Bitcoin exchange’s prices to a Bitcoin price index.
What mode of payment the platforms support is one of the primary factors when it comes to purchasing Bitcoins online. Different payment methods also incur varying fees so you’ll need to find a Bitcoin exchange that accepts your preferred payment method. Do they allow purchasing Bitcoins with Debit Card / Credit Card or/and purchasing Bitcoins with PayPal?
This also affects the fee structure. That’s why there might occur a fee difference based on which payment method you’re going with. Generally PayPal is the cheapest. Credit cards have a slightly higher fee and they are often charged a fee of 3-10%. The same goes for cash transactions. On the other hand most deposits with bank transfers are free.
Each Bitcoin exchange has different buying limits. This often varies depending on level of identity verification and if it’s not adequate and doesn’t suit your buying packets, it’s no use to you.
At Coinbase, for example, regular users may only buy up to $1,000 worth of bitcoins per day and fully verified users can purchase up to $50,000 per day. It is important to note that most exchanges offer a FAQ page online. The different levels of verification are explained there.
Buying bitcoins fast can be challenging, particularly when you want to buy them in larger amounts. When trying to choose the best place to purchase Bitcoins you should also consider how long it takes for the Bitcoins to arrive in your exchange wallet.
The speed might be influenced by your country, mode of payment and certain other factors. That’s why you should make sure to dig deep enough and get a clear picture of exactly how long the coins would take before arriving in your wallet.
In order to prevent money –laundering and fraud transactions most Bitcoin exchanges require some kind of verification these days. Local currency, like the U.S. dollar or Euro, must be exchanged for Bitcoins in order to purchase Bitcoins. In this process trust users must trust the Bitcoin exchange to secure money and not run away with funds and I highly recommend using a regulated Bitcoin exchange.
Most exchanges offer information about their regulatory compliance on their websites (for example Cex.io too requires identity verification via a national Identity card. It might also require a picture of the credit/debit card which you use for your transactions.)
If an exchange doesn’t offer information about who’s behind the site or information about regulation, I would recommend finding a different exchange.
Bitcoins have the ability to be “anonymous” and this is the primary reason why Bitcoins are on the edge of overtaking traditional currency so I do not need to re-elaborate how important role “privacy” plays during Bitcoin transactions.
Exchanges that accept credit cards or bank transfers are required by law to collect information about users’ identities and you can check what kind of data or verification your Bitcoin buying platforms requires off you.
Some platforms simply require a real-life photo of yours while most require some kind of identity verification. The most private way to purchase bitcoins is purchasing them by cash, it be through a P2P exchange like LocalBitcoins or at a Bitcoin ATM.
Getting a Bitcoin Wallet
History is filled with Bitcoin exchanges running away with users’ funds and that’s why I would strongly recommend moving your bitcoins off the exchange once you purchase and store your coins in a wallet you own.
There are different types of Bitcoin wallets. Each of them is offering unique features and benefits and the wallet that’s right for you will depend on your specific needs and on how you intend to use Bitcoin.
Wallets like the Ledger Nano and TREZOR make it easy to protect bitcoins and that’s why they are great for secure storage. Also, for those with greater technical knowledge Paper wallets are another good option.
I would recommend hot wallets if you’ll be making Bitcoin transactions frequently. They work across many devices so they are a better option.
Top 40+ Best Options to Buy Bitcoins Online Around the World
People often ask me if it possible to buy bitcoins with PayPal. With most of the exchanges, it is not possible to buy bitcoins with PayPal directly because PayPal bans its merchants from accepting PayPal payments for bitcoins. Buying bitcoin with PayPal is possible though – read this article to see where and how.Trade while you sleep with two of the cryptocurrency bots on the market – Cryptohopper or 3Commas.
If you want to purchase bitcoins online in the United States I would recommend Coinbase and Kraken. Coinbase is one of the world’s largest Bitcoin exchanges and you purchase bitcoin with a connected bank account at Coinbase. Most recently you can use Robinhood app as well.
Coinbase is the world’s most popular bitcoin wallet and users in the United States, Canada, most of Europe (European users can buy bitcoins with 3D secure credit or debit cards), and Singapore can purchase bitcoins with a connected bank account or SEPA transfer.
Indacoin is a global platform. It enables the fastest bitcoin purchases in more than 200 countries with a credit or debit card and no registration.
You will receive a call from Indacoin with a 4-digit code if it’s the first time you use the card. After that you will enter the code on your order page and you will have to enter a 3-digit code. This code can be found on your online card statement next to the charge amount.
For the first transaction you will have the limit of $50, for the second transaction you will have $100 available after four days of the initial purchase, $500 after eight days of the first purchase and the total limit for the first month will be $5,000. After that you will have no limits at all.
After your card is verified, cryptocurrency will be sent automatically within ten minutes after the payment.
CoinMama is also a global platform and it is a bitcoin broker that enables buying bitcoins with credit or debit cards. Fees are around 10% with limits of about $5,000 per day and $20,000 per month and bitcoins are received within a couple of minutes after verification.
Kraken is one of the world’s largest Bitcoin exchanges and residents of Europe and the UK can deposit and buy bitcoins with same day SEPA transfer.
BitQuick is an escrow service. It facilitates the purchasing and selling of bitcoins via cash deposit.
LocalBitcoins is one of the most trusted platforms to buy Bitcoins from. It is an escrow service that helps match Bitcoin buyers and sellers and it offers the most diverse payment methods. It includes almost every payment method known to man, including Cash, NEFT, PayPal, Paytm, Western Union and what not. And the best thing is that it requires zero verification!
Wall of Coins is an escrow service that facilitates the purchasing and selling of bitcoins and the most popular payment method is cash deposit.
BitPanda is an Austrian bitcoin broker. It enables buying bitcoins with credit or debit cards and fees are very low, around 3-4%, but not displayed separately.
Remitano is an escrow service that allows you to purchase Bitcoin safely. You can purchase Bitcoin using Bank transfer and cash deposit.
Buy Bitcoins in Canada
You can purchase bitcoins on CoinGate using credit or debit card, mobile balance, bank transfer or SMS and you can sell them on CoinGate and receive payouts to your bank, PayPal or MoneyPolo account.
SpectroCoin is an all-in-one solution for Bitcoin. It offers an exchange, debit card and ability to buy bitcoins with credit cards.
Buy Bitcoins in the United Kingdom
At Bittylicious UK residents can purchase bitcoins online with UK instant bank transfer in a little under an hour.
Buy Bitcoins in South America
Buy Bitcoins in Asia
Buy Bitcoins in Mexico
Buy Bitcoins in Australia
Buy Bitcoins in Germany
Buy Bitcoins in Brazil
Buy Bitcoins in France
You can purchase bitcoins in the UK and Europe with a 3D secure credit or debit card and if 3D secure prepaid credit and debit cards are also accepted.
Cashila is a payment processor. It enables users to transfer, hold and receive funds using bitcoin or Euros.
SpectroCoin is an all-in-one solution for Bitcoin. It offers an exchange, debit card and ability to purchase bitcoins with credit cards.
Buy Bitcoins in Africa
Frequently Asked Questions (FAQ)
Why buy bitcoins instantly with credit cards or debit cards?
Buying bitcoins fast with a credit card or debit card can be the fastest way for new users to get bitcoins and this can be as simple as online shopping which many of you are probably familiar with.
What are my risks when purchasing bitcoins with credit card?
You should know that there are disreputable companies selling bitcoins in order to collect credit card and personal information. They can use this information to potentially engage in scams or identity theft. That’s why I always work with companies that have a solid reputation and regulatory compliance.
It is also important to be sure you are familiar with your credit card company and how they handle buys of bitcoins because it is possible the charges are classified as cash advances. In these cases different fees or policies may apply.
Are there any disadvantages?
Size is the only disadvantage. It can be difficult and costly to use credit cards when purchasing bitcoins fast and in large amounts because of the higher risk of fraud for merchants and the increased processing and transaction fees.
Is it risky to provide identification documents to buy bitcoins?
Of course that purchasing bitcoins from regulatory compliant bitcoin exchanges can be risky. The service provider could be hacked and have it stolen, like all information provided online so you have to trust they will handle your documents with privacy and security.
Why was it difficult purchasing bitcoins with a credit card only once?
Bitcoin transactions are irreversible and merchants usually have to wait up to two months to receive cash after a credit card payment. Also, credit card payments are reversible, so selling bitcoins for credit card payments is very risky because of fraud.
Luckily, there are some companies that have discovered new and successful fraud prevention techniques.
It may be helpful to set up an account bitcoin provider, like Purse. This provider supports using a payment gift cards to buy bitcoins. When other options are not available these payment cards are a great resource for exchanging bitcoins.
Is it possible to buy bitcoins on multiple exchanges if the limits are too low?
Of course, because some limits are very low like $50 per day. That’s why I always buy from multiple places to accumulate a larger amount.
After I buy bitcoins, should I store them on the exchange?
No, because the safest thing would be to store your own bitcoins in your own bitcoin wallet.
Many people have lost hundreds of millions of dollars because of Bitcoin exchanges being hacked so after purchasing bitcoins you should instantly move them to a safe and secure wallet you control.
Note: It can be risky to buy bitcoins immediately because the companies provided are only listed as a convenience and not an endorsement. I recommend you to use them at your own risk and if you have any problems please report in the comments.
So which Bitcoin exchange is the best?
There isn’t any one “Best” exchange as such, to be honest, because it all depends on how much currency you wish to trade, where you are, how flexible you’re on the privacy and verification procedure and so on.
I’d just say all the platforms on this list are worth it. You can simply choose one or the other and make couple trades with them and you’ll figure out for yourselves the platform which is in most sync with your requirements after some time and then you can stick to it.
So, here is a recap of the best places to buy Bitcoins from for you:
- Kraken: Use SEPA transfer in Europe to buy bitcoins
- SpectroCoin: Use credit card or SEPA transfer in Europe to buy bitcoins
- LocalBitcoins: Use cash to buy bitcoin anywhere with available sellers
- Coinbase: buy bitcoins in the United States, Europe, Canada, or Singapore.
Best Bitcoin Trading Bots in 2020 – Automated Cryptocurrency Trading Guide (Dec 2019 Update)
Cryptocurrency trading isn’t easy. However, there are many people who have honed the art of trading bitcoins and altcoins on a daily basis. Trading bots are used by many cryptocurrency traders to execute trades faster and more efficiently, and sometimes even in their sleep.
What are Trading Bots?
Trading bots are software programs that connect to an exchange (usually via API protocol) and make trades on behalf of the users. They work using a variety of trading indicators and strategies. Since trading is all about mathematics and fast complex probability calculations, bots should be better at trading than humans.
The bots make trading decisions by following the market’s price changes and reacting according to a set of predefined and pre-programmed rules. Typically, a crypto trading bot will follow and analyze technical indicators and signals such as volume, orders, price, and time. Most of the more advanced bots can be customized to execute your own trading strategy so they are great if you know what you are doing.
Traditional markets also have algorithms and bots that are, however, not accessible to regular mortals as they are super complex and cost a fortune.
That is not the case in cryptocurrency markets as you will see and read below.
Top Trading Bots
This article is very long and if you need a quick solution and recommendation, these two trading bots have proven to be on top of the game when it comes to automated trading.
|Price From||$19 Month||$129 lifetime|
Below is a tabular overview of all notable bots on the market, most of them are described in more detail in the second part of the article.
|Cryptohopper||$19 to $99 per month||9|
|CryptoTrader||$16.50 to $199 per month||9|
|Margin.de||$129 to $2999 one time fee||17|
|Trade Santa||Free to $100/month||4|
|Gunbot||$260 to $1,961 one-time||10|
|Haasbot||$475 to $1,360 per year||7|
|Autonio||$50 per month||2|
|Kryll||Free to 20,000 KRL (~$1,400)||4|
|Zignaly||Free (Beta Version)||1|
|HodlBot||Free to $10/month||2|
|3Commas||$30 to $100 per month||12|
|BTCRobot||$19.99 to $39.99 per month or $399 one-time||2|
Types of Trading Bot Strategies
In the early days of cryptocurrency trading one of the primary strategies that traders used to make profits was arbitrage – i.e. buying assets in one market and then selling them in another for a higher price, thus earning profit on the difference. As cryptocurrency exchanges were decentralized, there were often large differentials between prices offered on various exchanges, meaning that profits could be made through arbitrage.
On CoinMarketCap there are currently 208 crypto exchanges listed, where exchanges with no fees are excluded. When no fees are being charged at the exchange, it is possible for a trader (or bot) to trade back and forth with themselves and generate a lot of “fake” volume without penalty. It’s impossible to determine how much of the volume is fake so they excluded it entirely from the calculations.
Due to the large number of exchanges and high volatily of cryptocurrencies, traders can take advantage in the form of arbitrage.
An arbitrage is the possibility of a risk-free profit after transaction costs. For example, an arbitrage is present when there is the opportunity to instantaneously buy something for a low price and sell it for a higher price. People who engage in arbitrage are called arbitrageurs, such as a bank or brokerage firm. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.
With so many exchanges available, there could be the same asset but with different price on different exchange. For instance, the price of an asset A on exchange 1 is 10$, while on exchange 2 it is 15$.
Although the spread between crypto markets are getting smaller by day, they do still exist and trading bots can assist traders in making the most of these differentials.
Trading bots can also enable users to use the market making strategy. Market making is an activity whereby a trader simultaneously provides liquidity to both buyers and sellers in a financial market. Liquidity is the degree to which an asset can be quickly bought or sold without notably affecting the stability of its price. Market makers “make a market” by quoting prices to both buy and sell an asset. In this way, the market maker (or liquidity provider) acts as both a buyer and seller of last resort where there would not naturally be another buyer or seller, thereby providing liquidity.
As prices oscillate and vary, the trading bot will automatically and continuously place limit orders in order to profit from the spread.
This strategy does not work good in low liquidity environments and is a highly competitive.
Do Trading Bots Work?
The main purpose of trading bots is to automate things which are either too complex, time consuming, or difficult for users to carry out manually.
Good trading bots can save a trader time and money by collecting data faster, placing orders faster and calculating next moves faster.
Majority of trading bots use an indicator from technical analysis called an exponential moving average (EMA) as a principle strategy for analyzing the market. Bots can be programmed to make an action once EMA surges or drops certain thresholds.
By setting up the bots, users can set their thresholds to fit with their risk profile. However, one of the main downsides of EMA and similar indicators is that they are so called lagging indicators – based on past history, which, as all traders will know, is not indicative of future performance, especially in the cryptocurrency industry where volatility is rife.
Therefore the answer to the question of whether trading bots work is – “depends”. They do work, but not necessarily for everybody.
Trading with automated crypto trading bots is a technique that uses pre-programmed software that analyzes market actions, such as volume, orders, price, and time, and they are rather common in the bitcoin world, because very few traders have time to stare at the charts all day. Bots or program trading is used within many global stock exchanges.
Most people trade bitcoin as a way to generate passive income while working their regular day jobs, and bitcoin trading bots are said to establish more efficient trading. There are controversial automatic Bitcoin trading bots like Cryptosoft, and there are crypto trading bots that can be downloaded online, and there are also trading bot services like you have to pay for, offered by various trading engine and programming companies.
Trading bots like Bitcoin Era are software programs that connect to an exchange (usually via API protocol) and make trades on behalf of the users. They work using a variety of trading indicators and strategies. Since trading is all about mathematics and fast complex probability calculations, bots should be better at trading than humans.
Bitcoin trading bots can be utilized on many well-known cryptocurrency exchanges today. There are crypto bots that are free of charge and can be downloaded online, and there are also trading bot services you have to pay for, offered by various trading engine and programming companies.
According to InsideBitcoins, there are also the robots that have been claimed to be endorsed by celebrities like Bitcoin Trader. Remember though, not every robot is what it claims to be. Beware of Scams.
With so many people relying on crypto trading bots, the question becomes which one should be avoided and which one can be trusted. Below is a list of best cryptocurrency trading bots.
Best crypto trading bots
We have made our list of top trading bots based on the following criteria:
- Trading strategy.
What strategies of technical analysis can the bot execute? How customizable are those strategies?
- User Interface.
Friendly user interface is another important factor. The bot has to have simple and intuitive processes that are easy to learn and implement.
- Ease of use
If you are a beginner, the crypto bot needs to have premade setups that are easy to choose and launch. For the more advanced users, ability to customize the crypto bot to the settings and preferences user has was of highest importance.
What is the latency in transferring data from exchanges? Sometimes it is important to have the order be executed immediately and a slow bot can cost you a lot of money.
Of course, price always plays a role. You want to earn money, after all, and not break a bank for a piece of code.
Authentication methods, 2 Factor authentication, API key encryption mechanism. Privacy policies related to users trading data.
Does the bot have a good reputation among the wider crypto community? Check online forums for reviews from other users to see if the crypto bot is legit and if they’d recommend using it.
While most reputable crypto bots will work with most reputable exchanges, make sure any program you choose will allow you to trade on the exchange(s) you want to use.
Cryptohopper is a crypto trading bot that offers some unique and interesting features, including cloud trading, some social trading options and a large variety of coins/exchanges to trade on/with. Stop losses and trailing stops are especially welcome elements here, as they help you tremendously with risk management. As with any trading bot, you’ll find conflicting reports regarding its effectiveness, functionality and safety.
Created by two brothers from the Netherlands, one a day trader, and the other a web developer, this trading bot can brag about having a perfect blend of experience and knowledge – both in the worlds of trading/technology – behind it from the start. The two merged their ideas, skills, and experiences and created Cryptohopper.
It currently offers integration with the following crypto exchanges:
Work is apparently being done to integrate the cryptocurrency trading bot with other well known crypto platforms like HitBTC, Cobinhood, Cex.io, Bitstamp and bitFlyer APIs.
Cryptohopper is different than most of the market competitors in the sense that it’s web-based; it’s stored on the company’s servers, operates on a cloud-like infrastructure and can be accessed through any web browser. While the advantages of this include fast and simple access to the crypto bot, without needing any additional hardware to set it up and keep online.Visit Cryptohopper Now
Margin is a trade bot that has 17 supported exchanges, 2 new crypto trading bots, and great features like a profit/loss indicator, market scanner, social integrations & more. Plus, they still offer the free demo to try everything out first!
Margin currently comes bundled with two trading strategy bots:
• Ping Pong Strategy
• Margin Maker Strategy
Just as the name suggest, the ping pong strategy allows you set a buy and sell price and the bot will do the rest. The mArgin maker strategy is a bit more advanced and can buy and sell based on price action adjusting with the course direction of the market.
They obviously have a good designer on their team as their GUI is by far the best looking out of all bots and has lots of customization options.
Prices are paid for lifetime licenses and range from $129 for starter package over $259 for standard to whopping $2999 (but these are aimed at enterprise clients).
One drawback is that it is not a cloud-based software, rather a downloadable program that you run from your local machine.
3Commas is one of the most well-known trading bots in the market. The name referencing the billion-dollar club is a Russian made software solution.
3Commas is a crypto trading terminal which features bot trading and portfolio management. It features a SmartTrade terminal which allows users to execute orders and trades, set bot-trading and stop-loss/profit positions.
Their plans range in pricing from $22 to $75 per month.
Binance, CEX.io, Coinbase Pro, Bittrex, BitMEX, Poloniex, YoBit.net, KuCoin, Bitfinex, OKEX, HitBTC, Huobi Global, Bitstamp, Cryptopia.Visit 3Commas Now
Haasbot algorithmic trading software was created In January 2014 by Haasonline. This crypto trading bot is very popular among crypto enthusiasts and trades bitcoin and over 500 altcoins on many major crypto exchanges, including fully automated trades on platforms such as Kraken, BTCC, GDAX, Poloniex, Bitfinex, Gemini, Huobi and many more.
On paper, this cryptocurrency trading bot does all of the trading legwork on behalf of the user. However, some input is required. Haasbot bot is highly customizable and enables a variety of technical indicators, and is also capable of recognizing candlestick patterns. One has to be knowledgeable to use this trading bot and make a profit from doing so, considering it costs between 0.12 BTC and 0.32 BTC per three-month period to use this tool. There is, however, an extensive knowledge base for the traders willing to learn, provided by the creators on their site.
Gunbot is an older crypto trading bot but still one of the more advanced ones that provides a wide range of settings and strategies which are ideal for both beginners and professionals. It is used to take over (most) of the workload of traders on the cryptocurrency markets.
The cryptocurrency trading bot gives users the opportunity to customize their trading to a level which no other trading bot can provide. Almost all the strategies and technical indicators that manual traders use on a daily basis can be found in this bot and used to trade automatically. The interface is user friendly so that everyone can easily get a hang of it. It is suited for more experienced crypto traders as well as beginners; some strategies are highly configurable while others are easier to use.
The program comes with tons of trading strategies that are highly configurable and includes different types of insurances to optimize your crypto trading which are explained on the website.
Another positive feature about this crypto bot is that it’s a one-time payment, that means: no need to renew every month (pay once and get all the future updates for free)!
Don’t want the trading bot anymore? Don’t worry, Gunbot includes something that no other trading platform offers: Gunthy coin. Gunthy coin is a feature that no other trading platform offers, a cryptocurrency token that is offered to the users when buying the the bot. The amount of tokens sent to the buyer are derived from the type of license that they acquire. Why is this important? Imagine that trading is nothing for you and that you want to sell your crypto bot, that’s possible with the Gunthy token!
Gunbot is used by thousands of crypto traders daily which creates a close and helpful community. Its community is highly active on social media platforms to discuss different trading strategies and help each other out. The trading platform provides different packages which can be upgraded if needed. There are 4 different licenses available, ranging from 0.04 BTC to 0.3 BTC.Visit Gunbot Now
CryptoTrader is less known cryptocurrency trading bot that is gaining popularity. This cloud-based automated cryptocurrency trading bot claims to allow users to build algorithmic trading programs in minutes. Not having to install unknown software is a big plus. However, it remains to be seen if this platform is legitimate. One intriguing feature is that the company also offers a “Strategy Marketplace” where users can buy and sell trading strategies.
Click here to read full CryptoTrader review!
All major crypto-currency exchanges, such as Coinbase, BTCe, Bitstamp, and more, are supported for both backtesting and live trading. Using their backtesting tool, you can see how your trading strategy would work over different market condition. Their goal is to provide traders with cloud-based automated trading solutions powered by cutting-edge technology, and the company states that its automated trading bots in are unique compared to the current crypto trading bots on the market today.Visit CryptoTrader Now
RevenueBot is a cloud-based cryptocurrency trading bot designed for making money while trading in top exchanges. An automatic martingale-based trading system is carried out around the clock. There is no subscription fee, the service only takes a percentage of the profit received from trading.
Supported exchanges are Binance, DSX, Exmo, Livecoin, Okex, HitBTC, and other major cryptocurrency trading platforms. RevenueBot is an attractive service for passive earnings which doesn’t take a lot of your time.
RevenueBot is most suitable for careful trading and eliminating big risks, and with the right settings brings in a steady income of 0.2 to 0.7% of the deposit per day. It does not take much time to monitor its work either.
Bot trading is safe, as the users’ funds are kept in their accounts on exchanges. RevenueBot does not take, does not keep, and does not have access to fund withdrawal.
RevenueBot fee is calculated using the earned profit and is equal to 20%. This is beneficial for customers with small deposit. The maximum commission is only 50 USD (per month) in BTC equivalent, which is also beneficial for customers with a large deposit. The fee is deducted from the internal RevenueBot account. And you can replenish the account balance for any amount you choose.
The bitcoin bot has a lot of settings, each is described in detail in the FAQ (https://revenuebot.io/faq.html), and technical support is always ready to help you and find the right trading strategy for you.
Official site— https://revenuebot.io/
The project has got a number of features that distinguishes it from others:
1. This is a cloud-based service that does not require any programs to be installed.
2. The project also presents information on the team and its other projects
3. Open source code and link to the github – anyone can check the code and algorithms of the automated trading bots.
4. Additional modules for cryptocurrency traders (arbitrage, social and telegram assistant)
5. Affiliate program up to 50% 6. 3 types of automatic trading bots (aggressive, balanced and conservative)
There are three additional modules:
1. A social analyzer that searches and sends information to the user about upcoming airdrop, hardfork, re-branding, and so on. The user can customize the keyword dictionary on his own. It is based on the research conducted by the team, which confirms the influence of news on the crypto rates.
2. The second tool is an arbitration bot, which not only checks the arbitrage windows, but also checks whether the deposit and withdraw of currencies are available at the moment. It is an important point because the majority of trading bots do not verify it.
Another important detail is the ability to set the desired volume of arbitration. This means the arbitrage bot will not only take the first best orders from the order book, but will analyze their depth and calculate what kind of profits will be received on a specific volume. This is a very useful and rare feature.
3. Telegram assistant. For convenience, the project team has developed a telegram assistant that allows you to fully manage all the bots. According to price, it is relatively low and accounts for 0.25% of all trades. On the site you can learn about the history of bids and general statistics on bots.
Gekko is a Bitcoin trading bot and backtesting platform that supports 18 different Bitcoin exchanges (including Bitfinex, Bitstamp and Poloniex). Gekko is free and 100% open source that can be found on the GitHub platform.
This automated trading bot even comes with some basic trading strategies, so using it seems rather straightforward.
Gekko comes with a webinterface that was written from scratch. It allows you monitor your local data, strategies. It can also run backtests and visualize the results. Using plugins, which are available for IRC, telegram, email and a lot of other platforms, Gekko is able to update you wherever you are! Gekko runs flawlessly on all major operating systems (Windows, macOS, and Linux).
You can also run it in the cloud or on your raspberry PI without any issues! It will not exploit arbitrage opportunities, nor is it a high-frequency trading bot by any means. With a good list of supported cryptocurrency exchanges, Gekko is definitely a bitcoin trading bot that is worth checking out.
BTC Robotis one of the very first automated crypto bots to ever be created. The trading robot offers multiple plans for different types of software and membership, and the cheapest robot plan is $149 for the silver software. It gives traders a downloadable version for various Windows operating systems. On the other hand, Mac users have to pay a touch more. It seems to do the job and is quite easy to set up. However, user’s mileage may heavily vary when using this tool. Some people seem to be making modest profits.
On the other hand, others seem to struggle to get it to work properly. The company notes that its algorithmic trading does not predict markets perfectly. This means that there will always be losing and winning trades. It is important to note that there is a 60-day refund policy. This feature makes it a no-brainer to try out regardless.
Zenbot is another open-source trade bot for bitcoin traders. It is important to note that this trading bot has not seen any major updates over the past few months. However, it is available to download and modify the code if needed. This marks the third iteration of Zenbot, which is still a lightweight and artificially intelligent bitcoin trading bot, and it is also one of the very few solutions capable of high-frequency automated crypto trading and supporting multiple assets at the same time.
This bot supports following crypto markets – Gemini, Quadriga, Bittrex, Kraken, Poloniex, and GDAX. Work on further exchange support is ongoing. According to the GitHub page, Zenbot 3.5.15 makes a 1.531 ROI in just three months. This is quite surprising.
Should you use a crypto trading bot?
Cryptocurrencies are a nascent and atypical asset class and for this reason it is hard to make a regular return off of them in the same way that cash or a stock create value. Many of the best stocks pay out dividends which is in addition to price appreciation main wealth creation mechanism from them. There isn’t really an analogue for this in the crypto market, unless crypto owners lease out their cryptos to derive an income from their holdings.
Or you can hoard staking coins and participate in the network maintenance as a block producer or at least, delegate voter.
Trading bots represent the other option for passive income earning in crypto industry – even though, as we emphasized earlier, they are not completely hands off and to require monitoring and manual interventions.
Trading Bots For Passive Income
If you want to put your crypto coins to work for you, trading bots could make sense to use.
The ‘bot’ is superior to a human because it is emotionless and it is awake and looking for income opportunities 24/7. Of course, there is no such thing as free money.
Any risk that can generate a return has the potential to lose money. It is a good idea to make sure that any automated investment platform you choose to trust with your cryptos can prove that it works with a verifiable transaction history.
Are crypto bots legal?
Bot trading is absolutely legal in cryptocurrency markets but also in the stock market (although not all brokers allow the use of such software).Do crypto bots really work?
Yes, they really do work. However, you do need a certain level of knowledge to set them up and it is not, as often marketed, a hands off money making machine. You need to monitor their performance, especially in times of high volatility – sometimes even to turn them off to prevent profit losses.Are there really free bitcoin bots?
Yes, there really are free crypto bots that work – Gekko and Zenbot are two most known free bitcoin bots. They are completely free and safe to use and people do make money by using them.What are best Binance bots?
Best Binance bots are:
HaasbotWhat are best Coinbase bots?
Best Coinbase Pro bots are:
HaasbotWhat are best Kucoin bots
Best Kucoin bots are:
HaasbotWhat are best Bittrex bots?
Best Bittrex bots are:
The software can be difficult for inexperienced crypto traders to understand, which means that bot trading may not be for everyone. Furthermore, traders have to trust in the reliability and efficiency of companies that offer algorithmic cryptocurrency trading. There are many different businesses online offering crypto bot services. But be careful, because some of them may not be legitimate. However, if used correctly, reputable and functioning trading bots may increase trade profits.