Bitcoin Trading Bots
One of the most used pieces of software regarding bitcoin trading are so-called bitcoin trading bots (short for robots). Using bots to trade on the financial markets is a long-established and legitimate activity – and in the crypto-currency markets, it’s easier than anywhere.
How do these bots work?
The idea of a bitcoin bot is that it automatically trades for you according to your strategy. It links directly to bitcoin exchanges via API’s that exchanges provide, and it makes buy and sell orders on your behalf. Bitcoin bot can automate bitcoin trades using different analysis indicators. It makes decisions by following the market’s price movements and responds according to a set of predefined rules. It is also time-saving – rather than having to navigate between exchanges and spending time copying and pasting wallet addresses, most of the process can be done within one desktop client which handles operations automatically.
A list of available bitcoin trading bots
- Haasbot – looks like the most professional trading bot on the market. It supports 10 biggest bitcoin exchanges. It is a sophisticated bitcoin trading bot suite designed primarily for bitcoin trading professionals, but amateur traders and hobbyists could find it useful too.
- Cryptotrader is an algorithmic trading platform for bitcoin and other crypto-currencies. They have automated trading bots in VPS cloud to help you in bitcoin currency trading. It also offers a trading bot marketplace, which allows people to develop their own bots using different trading strategies, and then rent or sell them to others.
Cryptotrader allows to backtest and fully automate your strategies by trading robots running on a cloud
- 1Broker – not a trading bot in a classic way, however, you can follow and copy successfull traders that you choose and the platform will trade automatically according to your preferences.
- Acacia Trading Bot – a cloud based trading bot, meaning that they run everything from their servers. At the moment, they support four bitcoin exchanges and plan to support all major exchanges and crypto markets. They have a smartphone app too.
- BTC Robot – they say: “is analyzing the prices in major bitcoin exchange marketplaces in real time, exploiting the gaps to take advantage of profit opportunities“. Please note that this service gets mixed reviews from users and we haven’t tested it yet.
- Opensource bots – you can install and set trading bots on your computer or server by yourself for free. Not an easy task though, but if you go for it, this guy has a good list of them.
Bitcoin trading bot strategy
Automated trading bots will do the job of selling and buying instead of you. They will do it while you sleep or while you are on vacation. But the real question is, when should they sell or buy bitcoins? So, you are still going to have to come up with your own set of trading rules, if you’re going to tell a bot how to make decisions. The trading strategy is simply a set of rules that traders use to determine their entries and exits from a position. The best thing about trading bots mentioned above is that they already have some built-in trading strategies that you can simply choose or copy.
Windows Bitcoin Trading Software
Automated trading platforms enable traders to mirror or copy the trades of others. A trader can copy signals or mirror complete strategies, thus enjoying the experience and knowledge of successful traders. The different automated trading platforms provided by Poloniex gives traders the confidence to engage in trading, as well as the option to trade when there is no available time, sufficient knowledge or experience.
- You may also find useful our general overview of bitcoin trading.
- Have a look at our bitcoin money making page for additional ideas.
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