If you’ve ever invested in Bitcoin or other cryptocurrencies, you’ve probably heard of Bitcoin bots. Bitcoin bots are gadgets that buy and sell bitcoins on behalf of traders and trade accordingly. Bitcoin bots are far more accurate than humans, making them more likely to trade profitably in both rising and falling crypto markets.
However, as more and more bots have appeared over the years, so have scam products that take advantage of uncontrolled industries to defraud individuals of their money.
Is it a scam or a legitimate bitcoin bot? If so, which ones are trustworthy and should be avoided at all costs? bit connectionon the other hand, reviews the most well-known genuine Bitcoin bots on the market.
What is automated crypto trading?
These programs that trade cryptocurrencies on your behalf are automated crypto trading platforms. To use a computerized crypto trading platform, first, open an online account with a trading robot and choose a trading strategy. Once you have selected an automated trading bot, the computer will buy and sell your cryptocurrency on your behalf according to the criteria set by the software.
Most automated crypto trading algorithms utilize APIs. The API trading bot acts as a middleman to trade on another exchange you are connected to. 3Commas is the trading API for Binance, Coinbase Pro, Bitmex and Kraken.
The most modern and safest method of automated crypto trading is to use a blockchain-based trading bot. Tokenized crypto transactions use blockchain-based smart contracts instead of websites or APIs. A smart contract is the code that conducts financial activities autonomously – this code is usually uploaded to the Ethereum network because it is the main cryptocurrency that supports smart contracts.
When should I use a crypto trading bot?
If you think a particular trading method is likely to outperform the market, you should use a crypto trading bot. Using a crypto trading bot does not guarantee that you will enter the market; the trading bot executes trades on your behalf according to an algorithm.
Another reason to use a cryptocurrency trading bot is to intelligently change your crypto assets. For example, a token set allows you to have a token that represents a trading strategy that uses trading indicators to trade Bitcoin and Ethereum.
Are Bitcoin bots legit or a scam?
While not all Bitcoin bots are legal, the concepts behind the bots are. A competent Bitcoin bot should consistently outperform the market and provide traders with decent returns. Most cryptocurrency traders in the market today pledge thousands of dollars to investors every day, with initial commitments of as little as $250. These results are possible for some people, but not always.
Where can I find the best bitcoin trading bots?
The most effective trading bots can be found on forums or websites. But if you don’t know what to do, how do you know where to go? However, there is a problem. The best bots may be found on forums. You have to understand how to get the most out of them, and the only way to do that is to ask the right questions. Another way to find the best bitcoin trading bot is to visit numerous websites. But how do you know which one is telling the truth and is just trying to trick you into signing up? Many traders do their best to help others, but it’s hard to tell the difference between being honest and being trolls.
cryptocurrency trading bot
There are currently two types of crypto trading bots on the market: crypto trading bot APIs and decentralized crypto trading platforms.
- Crypto Trading Bot API: The most prevalent type of crypto trading bot on the market today. In order to manage your investments, the crypto trading API connects to different cryptocurrency exchanges. This is an excellent option if you already have a cryptocurrency brokerage account with a reputable exchange like Coinbase Pro, Kraken or Binance.
- Decentralized Crypto Trading Platforms: The safest way to adopt automated crypto trading is through a decentralized crypto trading platform. Blockchain technology is used for automated transactions to automatically exchange cryptocurrencies. Your funds are held in a blockchain smart contract, and you own a portion of the funds in the smart contract, which are redeemed through cryptographic tokens provided by the trading platform.
Features of automated bitcoin bots
- Some of the functions of the BTC robot are as follows:
- Simple setup – After a few simple steps, the bot is ready to trade on its own.
- Low barriers to entry – users only need to invest $100, while $500 is recommended for good results.
- Efficient Trading – If multiple traders make the same trade, the bot has special stealth technology that can distinguish a single trader from overloading the market liquidity.
- No transaction fees – because there are no banks involved, regulatory costs are reduced and users profit 24/7, regardless of bank holidays or not.
- Safety and security – bots will not access your bank account, only broker accounts that only trade cryptocurrencies (Bitcoin). The bot cannot withdraw money.
- No Commissions – Unlike other trading bot services that charge 25-30% commissions, BTC bots are free and users keep all earnings.
Step-by-step process of Bitcoin bot trading
Most bots require visitors to sign up for a free account through a registration form on the homepage. In most cases, the operation is simple and fast. To register for Bitcoin Bot, you must provide your full name, email address and phone number. To continue, you may be asked to verify your email address via a link and verify your phone number via SMS.
Identity Verification (KYC Process)
During the verification phase, users must download a clear snapshot of their mutual identities with the government. Proof of residence, on the other hand, requires uploading a recent bank statement or bill from the aforementioned location. The entire process may take up to 24 hours to complete. Unlike most brokers that allow traders to deposit and trade before verification, almost all brokers require users to complete the process before going through verification.
put down the deposit
All well-regulated brokers require their clients to show proof of their identity and address before they can trade. Robot brokers are responsible for accepting deposits, processing trades, and executing orders from robots.
As a result, every deposit made by the bot is sent to the bot broker who operates the bot. Laws that allow bots to accept deposits are prohibited because they are not considered financial institutions. Doing background checks on brokerage partners when looking for a trading bot is just as important as understanding trading bots. Legitimate bots only work with brokers that meet specific requirements.
Trade on a demo account
A good trading bot will provide a demo account to allow clients to become more familiar with their web traders before considering live trading. A demo account is crucial because it allows you to practice trading without putting your funds at risk. Most demo platforms use historical data to simulate real-world market conditions. The demo account also comes with a guide to help clients better grasp the trading process and try out different risk management strategies.
The vast majority of Bitcoin bots offer real-time transactions at the push of a button. However, some of them contain extra features that give consumers more control over their gadgets. The vast majority of these obligations revolve around risk management.
According to Bitcoin trading bot experts, live trading should take place during Eastern Daylight Time. The sun is shining brightly on Wall Street this time of day. Researchers claim to have found a strong correlation between Wall Street and Bitcoin.
The benefits of automated crypto trading
Using automated crypto trading can provide significant benefits such as:
- Timing: Because crypto bots use software to trade, they can buy and sell your cryptocurrency faster than you can. If you trade based on trading indicators, use the bot to place more accurate market orders.
- Repetitive tasks: Most cryptocurrency bots on the market trade 24 hours a day, 7 days a week. If you trade cryptocurrencies based on market indicators, you can automate the process with a crypto trading bot.
- Consistency: Bots are more consistent than humans because they can run continuously and always execute orders based on specific metrics. Maintaining discipline when trading cryptocurrencies can be challenging; therefore, using a trading bot reduces the likelihood of “emotional trading.”
- Save time: Using a cryptocurrency trading bot can save you time as the program monitors the market and trades for you. Automated trading bots are ideal if you don’t want to constantly monitor bitcoin prices.
All in all, if you want to trade cryptocurrencies, stocks, forex and even marijuana stocks, trading bots are a smart choice. Because the technology behind them is algorithm-based, nine times out of ten they will make better decisions than humans. Automated trading bots have proven that you don’t need to be an expert to earn extra income.