Trading robot and cryptocurrency: how to buy and make money

Contents

1. Where to Get or Buy a Cryptocurrency Trading Robot?
2. A Reminder for Those Ready to Buy a Cryptocurrency Trading Robot

As a rule, crypto bot methods imitate traditional stock market methods, but there are also strategies developed for specific cryptocurrency pairs. There are two types of robots:

• trading − operate within a single exchange and earn income from standard "buy cheaper, sell higher" speculation;
• arbitrage − earn on price differences between different trading platforms, which for cryptocurrencies can reach 15-40% of the average market price.

Where to Get or Buy a Cryptocurrency Trading Robot?

As with any trading software, besides buying a ready-made one, you can create a bot yourself or find a free one online. You can download only basic scripts and adapt them to your needs. So, the options are,

Write It Yourself

Besides the fact that this process requires technical knowledge, you need to take into account that a robot is usually written for specific crypto platforms; the main thing is the availability of a trading API, which must be provided by the exchange. It can also be written without an exchange API, but this will take longer and be less reliable. Arbitrage bots, accordingly, are configured for several exchanges.

Order or Buy a Cryptocurrency Bot

Today, this is a popular product offered both by software companies (HaasOnline, BTC Robot) and private developers. Among the most popular are BTC Robot, Cryptotrader, HaasOnline, PHP Trader, 3Commas, and the RevenueBot cloud service. Private developers usually write several bots at once and sell the finished product (sometimes with the source code), usually for a fixed price. Exchanges themselves offer adapted versions, and instead of buying a cryptocurrency bot, you can pay for a subscription, for example, to a separate package, or get a premium robot with dozens of strategies and unlimited use. If you have your own strategy, you can order custom development based on your ideas, although this will be more expensive.

Download a Free One Online

Many versions are offered for specific exchanges (Bittrex, BitFinex, Binance, Kraken, Poloniex, GDAX,YOBIT), but no one can guarantee their reliability. As with everything free, they need to be checked carefully, especially those that do not provide access to the program code. As a last resort, we recommend taking basic scripts and modifying them yourself.

Use a Crypto Bot in a Telegram Channel

It works like a regular currency exchange; the search for a buyer/seller takes place through the Telegram platform, commissions are low, but the reliability of prices and transaction guarantees are minimal.

Bots for Collecting Cryptocurrency Through Faucets

Online services that distribute cryptocurrency "pennies" for free. No truly profitable crypto robots that earn from faucets have been written yet, and development in this area is inactive.

A Reminder for Those Ready to Buy a Cryptocurrency Trading Robot

Besides poorly predictable volatility and the fact that cryptocurrency analysis is too complex to automate, crypto bots have several pitfalls in store for you:

• even a bot with a large number of parameters trades consistently only in standard situations;
• bots are poor at switching between crypto assets during trading;
• high exchange commissions eat up the profits of an inefficient bot;
• renting even a simple bot costs no less than 10$, while the cost of arbitrage bots can reach 500$ per month, and with small investments, the bot will not pay for itself anytime soon;
• fraudulent bots are constantly "multiplying"; for example, they transfer profits (or part of them) to a third party, leak information about the owner, etc.;
• most crypto exchanges allow automated trading, but it is better to clarify this − during periods of heavy speculation, an excessively active flow of requests is usually blocked.

In any case, entrusting a robot with large capital is too dangerous, while buying a cryptocurrency bot to use it with minimum lots is unprofitable. If you want stability and control, write a crypto bot yourself; if you come up with a successful version, you can sell it too.

Profits to everyone!