Bitcoin Trading Bots are software programs that follow certain pre-programmed algorithms to analyze activity in the crypto currency markets and trade profitably accordingly. The bots can act on the basis of predefined rules or skillfully exploit the differences between the Bitcoin exchanges. Many traders use the bots to execute trades faster and more efficiently.

What are trading robots for crypto currencies?

Automated trading has become an everyday occurrence on the world’s major stock exchanges. In arbitrage trading in particular, computers can quickly take over the execution of various trades and thus generate high profits for the investor. This system of automatic technical analysis is also used by various programs. Meanwhile, even for trading in crypto currencies, there is a good selection of possibilities and opportunities with which trading can be completely put into the hands of computers.

Unfortunately, some trading robots for crypto currencies work frivolously and are very unreliable. Take a look at our trading robot test to separate the wheat from the chaff. We will give you an impression of what you can expect from the individual providers.

With a Trading Robot you have to register, but you don’t need a bank account or a deposit. The deposits are deposited directly with the provider and can be imported from there into the systems for automated trading. This makes it particularly easy and attractive for you to invest money on different platforms and to enter into trading with crypto currencies. Basically, it offers a comprehensive solution for trading that is otherwise only available to real professionals.

 

How do Trading Bots work?

The basis of Robot Trading is relatively easy to explain. When trading stocks, funds, currencies and commodities, there are various price fluctuations. The goal of a trader is to predict them and on this basis to make profits by trading correctly. Probably the most popular variant for estimating the later price development is technical analysis. In this analysis, the prices of the past are considered in order to be able to better assess the chart for the future.

For traders, technical analysis is the supreme discipline in financial trading. Every day trader, who wants to be successful in the long run, should not only know the basics of technical analysis, but should also be able to master it perfectly and thus realize his everyday trading life. However, this technical analysis can partly also be accomplished with automatic programs. These are merely calculations which can also be taken over by strategic trading programs. Accordingly, there are many possibilities today to trade stocks and currencies completely automatically.

With the trading robots for Bitcoin, Ethereum and other crypto currencies, this achievement of traders is finally coming into the area of trading crypto currencies. The basis of any trading bots is to calculate the previous price fluctuations and then predict how the price is likely to develop. Most Bitcoin trading robots can be used free of charge, but they bring in high profits for the customers of the system.

How much money can you earn with robots and what are the risks?

The Trading Bots advertise on a large scale with enormous chances of profit, which allegedly even amount to several thousand Euros per day, even if only a few hundred Euros have to be deposited. In our opinion, these advertising promises are not always correct, as you should rely on what you think and mean when using the Bitcoin Trader Bots. Simply turning on the automated trading software is not 100% reliable.

There are therefore very different opinions on how useful the Bitcoin Trading Bots actually are. However, it is certain that with the right system like the Bitcoin Code or the Bitcoin Method, profits and profits can actually be made. However, there are some risks that should be considered by the starters.

Not all vendors are 100% reputable and secure. In the trading robot industry for Bitcoin and Ethereum, there are some black sheep that you should never sign up for. They may steal your data or make it difficult for you to cash out your winnings. In addition, the companies behind the trading robots are usually not located in Germany, but in another country of the world and are therefore not legally comprehensible. Therefore, please check our website first before you create an account with a provider.

 

FAQ: Frequently Asked Questions

Is there an Ethereum Trading Bot?

Yes, many of the offered trading robots are not only usable for trading Bitcoin, but also other crypto currencies like Ethereum. Simply register with one of the providers and use the technical analyses and signals for different crypto currencies.

Are all trading robots serious?

Unfortunately, there are some black sheep within the industry. For this reason, you should first read through our Trading Robot experience to find out whether it is worth registering with a particular broker at all.

Why are trading robots often poorly rated?

On various websites, former customers write that they feel betrayed by certain providers. This is mostly due to the fact that they did not inform themselves sufficiently before registering with the broker and simply trusted the robot exclusively. They should have some basic knowledge of the market in order to be able to use trading signals effectively.

 

Advantages and disadvantages at a glance

Pro:

  • Bots automate the trade
  • they can act reactively or with foresight and combine both strategies
  • they react more quickly to changes
  • and make a variety of actions quickly executable

Con:

  • But bots don’t work without expertise.
  • they must be individually adapted to the trade objectives by the user
  • and between the bots there are big differences in the range of functions

 

How do these bots work?

Trading bots are software programs that communicate directly with the financial markets and place buy and sell orders on your behalf. They make these decisions by monitoring the price movements of the market and reacting according to a set of predefined rules. The first bots used price differences between exchanges and buy on „cheap“ exchanges, while they sell on other, more „expensive“ exchanges. Here the bots acted as market makers on less established exchanges.

The algorithm behind the bot

With a bot, individual traders can directly access the electronic order books of the exchange. This is a service that brokers and investment houses can generally only use in the classic markets. However, trading bots require at least a basic understanding of the market on the part of the users, must be adapted and adjusted by the user according to the prevailing market conditions and also according to his own risk profile. Today the situation is more complex. There are still opportunities to take advantage of price fluctuations between exchanges, but the use of technical analysis bots is recommended. However, trading is not necessarily based on technical analysis alone. It is difficult to program a computer to respond to fundamental market conditions, such as rumours of a new attitude by the Chinese government to Bitcoin or the closure of the latest Bitcoin-based black market.

Many bots use an exponential moving average (EMA) as a starting point. These averages track market prices over time, and the bots can be programmed to respond to actions such as exceeding certain thresholds. If you follow a conservative strategy, you choose to trade slowly, such as daily rather than hourly periods to respond to changes. Newer technologies such as DEMA (double exponential moving average) are faster. These have the ability to react faster than the EMA. Other methods exist, such as relative strength indicators and regression analysis. This type of analysis is ideal for unstable processes (in this case a price market). However, technical analysis is a discipline, and all these aspects are only indicators, not strategies.

Not for everyone

Is Bot Trading something for you? Possibly. The bots offer a variety of advantages, not least the ability to trade on your behalf 24/7, and the ability to leave all feelings out of the trade. On the other hand, if traders don’t have the skills to put together a trading strategy, bots could end up automating a series of bad market trading decisions. So for many who believe in Bitcoin’s long-term potential, the most basic trading strategy might be buy and hold. Whether you decide to automate your trades or not, the basic rule is not to trade more than you can afford to lose.

Trading in your sleep? But not without financial knowledge

Bot trading cannot be for everyone because the software is hard for inexperienced traders to understand. In addition, traders must rely on the efficiency and reliability of companies or free software that offer algorithmic crypto currency trading. There are many different businesses offering online bot services, and some of them may not be legitimate. There are also free bot programs for trading, but you should research carefully before trusting free software. Serious and functioning tradingbots can increase your trading profits if used correctly.