How do cryptocurrencies work?

Each bot is a set of indicators and parameters that automatically carry out a transaction on the stock exchange (or semi-automatically: with the confirmation of the operator), when the buy or sell signal is determined. Most of the time the bot is set to a certain market and time period, so that the results are more predictable.

This is not a magic that only makes good deals and brings 146%. The average yield of 1-2% per day, given the volatility and the strong impact of news on the stock market.

Bots come in different types:

trading bots-are traded on the basis of the indicators selected by the user. These bots are highly customizable, you can use a combination of indicators to create your trading signals.
arbitrage bots are used to profit from price differences between different exchanges.

Option 1: bought on one exchange, transferred to another and there is sold — it threatens a low income (or loss), as transactions are long and the difference may already be lost.

Option 2: one exchange has dollars, another cryptocurrency. On the exchange with a low rate we buy coins, on the exchange with a high rate we sell at the same time the same amount. Then the reverse operation is performed (also in plus or minus, but less than the profit from the previous transaction) — the difference from the rate in your pocket.

Example: exchange 1 — ETH it is worth $ 1,000, start with this amount. exchange 2-we have 1 ETH, and it costs 1200 dollars here. Buy exchange 1 for 1000 ETH, ETH exchange 2 to sell for 1200. We wait for a mirror situation and again make a deal — as a result, the balances will be as follows: exchange 1 — 1200$ exchange 2-1 ETH and 200$ (ideally, excluding commissions).

order bots are customizable bots that are executed when certain market conditions are unfolded. They can be combined together to automate trading strategies.
also some isolated "scripts".

How much can you get rich with bots?

If there was an easy way to get rich from bots and altcoins, wouldn't all the money in the world have already been earned?

First, many bots require investments: a one-time purchase of the program, a monthly subscription, the return of funds to the turnover at interest or actually written bot for the cost of your time.

Second, trading bots will rarely make stunningly successful trades. As practice shows, the trader can make a big profit on his own. But the bots are not bad as a background trade, as some money will still bring.

Depending on the time frame and what your bot trades, you can either get lucky and make a profit or lose money. This is a free market, not a Bank. When working with markets, there is a large number of unknown, any number of factors can trigger growth or decline. Most bots will be a better strategy for accumulating funds than the buy and hold method, and as long as there is reason to think that the chosen altcoin will grow, you are likely to make a profit.

Sometimes the bot is used to reduce losses, not just for profit.

If the bot does not meet expectations, you can always choose another cryptobot or suspend its operation and trade manually, and then re-enable the bot.

Why use a trading bot at all?

There are many reasons why you would use a bot.

You may be an inexperienced trader and looking for a way to get into trading, but then you need to analyze the behavior of the bot to also develop in trading;
maybe you want someone to manage your account on the stock exchange while you're away or sleeping: so the money will make money without you;
maybe you are not ready for stress, when you look at the monitors all day, the bot gives rational and predetermined behavior patterns, making trading emotionless;
it is possible to trade on several exchanges several pairs at once that not to make one person, in addition, the bot places orders and find signals faster,
the bot also allows you to hedge part of the portfolio.

Which trading bot is better?

It's like asking which car is better. You have to find the algorithm that suits your needs and is not a Scam. You check the bot for some time and agree with the results.

Bot can be obtained in three main ways:

write on your own based on API exchange,
download trading bot for cryptocurrency exchange (it's risky, threatening to steal funds),
buy or subscribe to bots from major developers or local experts.

A brief overview of some bots:

Haasbot

Price: 0.035 BTC every three months for the subscription to the newcomer. Gives the opportunity to conduct two bots of each type. Haasbot trading bots have been on the market for a long time, they are highly customizable and allow you to trade safely at the expense of various measures. Supports a large number of exchanges. The most proven option from the list.

BTC Robot

Bot from Russian developers. Price: $19.99 per month. Bot works on its own technology, different from the simple following indicators. At BTC Robot it is very emotional site which aggressively offers a profit of hundred percent. This is suggestive of fraud. Nevertheless, there are reviews of successful trading, but without profit in the promised amount. Also there is no trial version to run in the program.

Tradewave / Cryptotrader

Price: $14 per month per bot. Anyone can write a trading algorithm and try it for free against historical market data collected on the platform. You do not need to write code to create a bot. The bot itself is stored in the cloud. The platform has not been updated since March 2017.

Cryptotrader is similar in concept but there is a free version as well as a base for $8 per month. All written strategies and bots are placed on the main page, where you can collect followers and check your bot. As of January 2018, the registration on the platform is closed.

On this platform Blade Runner is popular with a lot of competent settings (it may seem difficult for a beginner). Price: 0.0035 BTC per month. There are also bots from the free segment, for example, Trading Places CE for rebalancing portfolio.

Note: we do not take responsibility for your choices and do not recommend you any bot. All these examples are placed in the article for educational purposes without sponsorship from any company.

Why does the bot not buy/sell on the bottom / peaks?

Trading bots on cryptocurrency exchanges have a period of time when they are waiting, and the peak or bottom does not happen predictably, the bot just cannot predict it with high accuracy. All bots look for special trading conditions and in most cases they will be executed just after the peak/bottom.

Of course, there are serious bots with a high degree of success and great developments at the core, but they are usually not available to the General public.

Why does one bot buy / sell and the other not?

Different bots are designed differently, with different algorithms and strategies, and personal settings make them choose a different path. Of course, they will react in their own way to the market situation.

Differences between test and real trading

When the bot trades, it will attempt to process the fixed price, but the market shifts some prices for that time. It's called slipping, or slipping. Some smart bots have come to minimize this effect. But still, consider yourself lucky if you get the exact asking price at which the bot wanted to trade.

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