Bitcoin is easily the most well-known cryptocurrency in the world. It got popular due to its massive explosion in value. And that popularity has only made it more valuable.
This has led many people to have a vested interest in trading it. But where do you begin? How does Bitcoin work? And how do you even trade it?
One of the best ways to trade Bitcoin is by using a trading bot. This was not always the case, however. There was a time when trading bots were almost considered criminal in the securities trading world.
But that line of thinking comes from a different time. In that time, trading bots were complex and expensive. Only the super-rich could afford them, and they existed to make those rich people richer.
That was also during a time before Bitcoin, when the bots were basically committing stock fraud constantly. Yes, it makes sense people would have a bad opinion of bots when they are crime machines.
But using a bot to trade Bitcoin is different. Bitcoin is almost impossible to defraud. More specifically, you can only commit fraud using Bitcoin if you are not actually using Bitcoin. To understand why this is the case, and how a Bitcoin bot works, you need to understand how Bitcoin works in the first place.
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How Does Bitcoin Work?
So, you are at the bank. You hand a £100 bill to the bank. The bank puts it into their vault, and you go about your day. Your bank account is £100 richer, so when you go buy gas, you can spend that £100 at the gas station. But how does the gas station know that you really put £100 in your account?
They don’t know. But they trust the bank. So, let’s say the bank says that you have £100 in your account. But you don’t. They just say you do. You buy gas, and the gas station accepts it because they trust the bank. Now, £100 that does not exist is circulating through the economy.
Instead of this, Bitcoin uses a “blockchain” technology. A blockchain is a network where every computer with the program on it is linked. Using this program, Bitcoins are transferred and traded. All Bitcoins exist on the blockchain. This also means that they can all be tracked on the blockchain.
Rather than one bank saying a £100 in Bitcoin exists, thousands and thousands of computers are saying that £100 in Bitcoin exists. If there is a disagreement on whether it exists, all those computers can work together to use the blockchain as a ledger.
How do Bots Trade Bitcoin?
Because all Bitcoin trading exists on the blockchain, Bitcoin trading bots use blockchain technology to make money. This means trading Bitcoin for real currency, as well as trading other cryptocurrencies. By buying currencies low and selling them when they appreciate in value, a Bitcoin trading bot makes money. The amount it makes is always proportional to the amount initially invested into it however.
In short, you cannot expect a Bitcoin trading bot to make a ton of money. You can, however, reasonably expect it to make money. Therefore, we have listed the top five Bitcoin trading bots for 2023.
1. Coinsmart – Best Overall Bitcoin Trading Bot
The issue is that Bitcoin is reliant on the blockchain for both value and security. The blockchain, however, moves far slower than normal banking due to being so much more complex.
Most people are going to be getting into Bitcoin bot trading because they want to make money that they can then go on top spend. Coinsmart helps them do that despite Bitcoin’s issues with speed.
The simplest way of stating it is that Coinsmart is a Bitcoin trading bot that allows you to get your money instantly. But the simplest things usually have a lot going on to make them simple. Basically, if you choose to transfer your money instantly, Coinsmart will “loan” you that money.
That way, they can give you the money immediately, and you can spend it immediately. Then, they will pay themselves back using your money. Technically, they charge you a service fee for this. But it means that you can profit off of Bitcoin fast, and then turn around and spend that money just as fast.
This also contributes to them being one of the fastest ways of trading Bitcoin. It helps that they have an interface that is easy to use, and lots of tools for customising your bot if you want. On top of all of that, the bot itself is free. Coinsmart gets its money through transaction fees.
Coinsmart’s biggest problem is the one you will see the most: Those transaction fees. These fees are small, but they can add up over time. This makes the bot unappealing to people who are looking to maximise every moment of their Bitcoin trading bot’s functionality.
It also lacks some of the methods of fine-tuning the bot. These are highly esoteric things that only experts will worry about, like customisable VWAP tracking. But to an expert, these are the differences between making a lot of money and making a lot more money.
2. Crypto Hopper – Best Trading Bot for Beginners
Crypto trading is complicated. This is not news to anyone. Many people get Bitcoin trading bots expressly because they recognise the value in the crypto market, but do not want to learn its ins and outs.
The trouble with that is the fact that you need to know a bit about the market to work a bot.
Crypto Hopper is one of the best Bitcoin trading bots because it addresses this exact fact. It does this through two methods. The first is by being easy to set up. This can be a huge problem for many Bitcoin trading bots, since they are designed for people who know a lot about computers (the main audience of cryptocurrency in general). The setup is only the first step in making a bot easy to use, however.
The next thing that Crypto Hopper provides is guidance on the bot’s “parameters”. The parameters of your Bitcoin trading bot will determine a lot about the way it trades. In turn, it means that the amount of money you make from your Bitcoin trading bot comes down to setting the right parameters.
These parameters include when to buy Bitcoin, when to sell it, and when to adapt to new situations. For instance, you can set your bot up to always buy it for a low price but sell it for a high price.
However, what if the price decreases sharply in a short time? You can set the parameters of your bot to account for that by making it wait to buy until the drop in its price has slowed. The same is true for price increases as well. Lots of value is lost by selling too early in a price spike.
Crypto Hopper helps you set these parameters to maximise your bot’s value.
Crypto Hopper is a stable bot that appeals to both new users due to its tutorials, as well as experienced users due to its scalability. But if you were to point to one issue it has, then it would probably be its pricing. Its best plan is its most expensive, and some of its best tools are locked behind this price.
Whether or not to upgrade your plan is all a matter of math. When your Bitcoin trading bot first starts out, it is going to be trading essentially pennies. But as it has more capital, it will be able to sell it for more, and then buy for more. As long as you are earning more than the price of admission, it is worth it.
Of course, not everyone wants to concern themselves with a monthly fee to begin with. This is why so many bots are DIY or bought for a one-time cost. This means that it is best for people who have a good amount of money to spend on an initial investment of both currency and the monthly fee.
3. Coin Rule – Best Mobile App Trading Bot
Trading can happen on any device, as long as it is somehow connected to the blockchain. That includes a phone.
Coin Rule is a Bitcoin trading bot that can be downloaded onto your phone. This makes it a highly accessible trading bot, since it does not require any advanced setup. Just download it from the app store. Account setup can be a little much for a mobile user, but it holds your hand through it.
The name of the game for Coin Rule is simplicity. Which is quite the challenge, because trading Bitcoin is anything but simple. Coin Rule is able to do this by having lots of guides on how the bot works, as well as how to set it up. Its interface is also incredibly smooth, meaning you can trade in minutes of getting it.
That does not mean it lacks for options, however. While the automated trading function has good base values, it still gives you a lot to tinker with. This makes it a rare case of an app that is friendly to both beginners and advanced users for this reason, as its auto trading options can get really deep.
If you have ever wanted to use your phone as a source of Bitcoin, then Coin Rule is great for you whether you are new to the field or a veteran.
It is not without its problems, however. The biggest of these problems is also the most obvious one: It is on a phone. There is a reason why automated trading has generally avoided phones, and it comes down to power demands. Phones only have so much power to dedicate to all of the apps they run.
Usually, this is not a problem. Phones have ways of organising the power demands of apps to keep them from taxing a phone too much. But with a Bitcoin trading app, particularly an automated one, the app needs to receive constant power. And not only that, it can use as much as it can get.
The more power the app gets, the more efficiently the bot can run. Therefore, it can drain your phone fast. Don’t worry—by design, it will not do anything harmful. You have to essentially mod the program to make it a problem. But even in its default state, it drains tons of battery and heats up your phone.
In short, the demands of a constant trading bot are inherently damaging to the infrastructure of a phone. Just keep this in mind before, during, and after setting up the app.
4. TradeSanta – Best Non-Native Bitcoin Trading Bot
Trading bots have been around for a long time. Longer than Bitcoin, as you could probably guess. This means that there are a few trading bots that have adapted to the new kid on the block.
Companies that make stock trading bots have developed both new bots, and additions to their old bot programs.
TradeSanta is one such bot. It is not just a Bitcoin trading bot, but a foreign currency and stock trading bot as well. It has been around for a while, so it has had time to make a good interface that allows you to easily switch between the different types of securities and manage your bots.
The best part about bots like these is the fact that they can be easily reconfigured to trade in other securities. But the real question is: Does this make them better Bitcoin trading bots? Actually, yes.
The thing is, many trading platforms have also advanced with the introduction of cryptocurrency. This means that there are trading platforms that not only host multiple types of trading but also allow for trading between these different types of trading. So, you can trade stocks for Bitcoin.
This means that TradeSanta is great for someone who already has a stock portfolio and would like their bot to trade that as well, either alongside or separately from their Bitcoin trades. The big advantage of this is that the stock and Bitcoin markets can sometimes be in opposition to each other.
This means that as one goes up, the other will go down. Only a trading bot like TradeSanta can take full advantage of this.
Like any trading bot that can do a lot, TradeSanta’s biggest problem is how feature-heavy it is. Its interface does a lot to fight this, but TradeSanta’s trading bots can get exponentially more complicated than other trading bots. This is for the obvious reason: They trade more than just Bitcoin.
The real issue is that for most people, this is a needless complication. You are really only going to enjoy using TradeSanta if you are planning on trading in other securities alongside your Bitcoin holdings.
And of course, just because you start trading in other securities, that does not mean you will get more value. And since trading between securities is so high maintenance, many users can feel like TradeSanta is a bot that almost requires you to operate it too frequently.
5. Pionex – Best Trading Bot for Multiple Currencies
Bitcoin is the most valuable cryptocurrency by far, but there are hundreds of other cryptocurrencies out on the crypto market as well. Part of making money in the crypto market is making use of them as well as Bitcoin, with Bitcoin serving as your main currency.
Pionex excels at this type of trading. This is because Pionex is not one bot. It is sixteen bots. Each of these bots can be programmed with different (or similar) parameters and then used to trade different cryptocurrencies. They can also be set up to communicate with each other and trade with each other.
The options that Pionex’s different bots offer are wild when you think about them. Each bot can be treated as its own separate entity, meaning that you have sixteen bots all working at peak efficiency.
Since each bot is working to its maximum effectiveness, you can make sixteen times the money as you would if you were just using one Bitcoin trading bot. However, it gets more advanced than that.
You can have your bots trade in different cryptocurrencies while still being linked to one another. This means that if one of them hits the crypto jackpot by coming into a currency that shoots up in value, the other bots can identify this trend and buy into the same currency.
Based on all this customisability, you might think that using Pionex’s bots is complicated. The thing is that it can be. Any bot with a lot of room for optimisation is going to be harder to use than a simple bot.
In the case of Pionex, its difficulty comes from figuring out what currencies to trade and what parameters to set around them. You can simply have it trade Bitcoin all day and all night, and you would still make a profit. You can also tell each of the 16 bots to trade different currencies.
Or you can even go a step further and tell each of those bots to trade different currencies with different rules for how to trade them. This requires knowledge of all 16 different currencies, as well as knowledge of how the crypto markets they exist in tend to function. That’s a lot of knowledge.
This is on top of the fact that in order for all 16 of those bots to work at peak efficiency, you need an incredibly powerful computer. Most people who get into crypto have good computers, so that might be a given. Plus, it is not a requirement. It is just another layer that might hold you back from using Pionex.
The big question you have to answer when you are looking for a Bitcoin trading bot is this: How do you wish to trade?
That question is important because it is actually multiple questions. You do not just have to think about how you trade your Bitcoin, but what you trade your Bitcoin for.
You could easily start with Bitcoin and fall down the rabbit hole of cryptocurrency. There is a lot of value to be sought in the world of crypto. But you can also trade for stocks, or foreign currency. And naturally, you can trade exclusively for spending money, as most people do.
How you trade also determines whether you are using a phone or a computer. A desktop app or a website. A trading platform or trading straight on the blockchain. There are a lot of questions to ask.
You do not have to answer all of them. But it literally pays more to think more. So, choose carefully, trade responsibly, and good luck with your trades.