If you are one of the Bitcoin users with no in-depth knowledge of how Bitcoin works, then you may think of using the bitcoin robots. Bitcoin robots can provide top-notch results. Besides, they keep on working even when your mind stops.
A lot of people have questions and doubts about bitcoin robots. How do bitcoin robots work? If you are one of these people, don’t worry, we are here to give you an idea of what it is and how it works.
Bitcoin bots are a set of software or auto-trading tools. They use sophisticated tech to allow users to bet on Bitcoin prices hands-free. In other words, an opt-out bitcoin robot is a computer program that directly trades Bitcoin on behalf of the user.
Table of contents
- What is a Bitcoin Robot?
- How do Bitcoin Robots Work?
- Pros and Cons of Bitcoin Trading Bots
- Best Bitcoin Robots for 2021
- Bitcoin Robot Scams
- How to Trade With a Bitcoin Robot
- Can You Get Rich From Bitcoin Robots?
- How to Identify Legit Bitcoin Robots
What is a Bitcoin Robot?
A bitcoin robot is a software program built on advanced algorithms. It makes Bitcoin trading more innovative and efficient. Bitcoin robots have high-level features that help people trade easily but only with the help of trading and investing. They can use the tactics which are automated thanks to coding.
Most bitcoin robots are made by crypto trading gurus who have probably made millions from trading bitcoin. These traders automate their trading strategies by coding them into a computer program. The aim is to have the computer conduct all trading on their behalf.
While most do not share their programs with the public, a few do attract massive deposits and charge fees on the profits made. The best bitcoin robots are usually in high demand, with some attracting billions of dollars in investment.
Bitcoin robot trading techniques involve short-selling, an approach that lets users speculate on falling prices. It means that users still generate earnings even when the markets are falling. Moreover, the best bots rely on artificial intelligence to allow the bot to adjust to changing market conditions.
Through a part of AI known as Natural Language Processing, bitcoin robots can read human language. This means that they can trade news with a supposed good accuracy level. But this is not to say that the bots are risk-free. A slight error can lead to huge losses. Hence traders should always take precautions.
Moreover, Bitcoin robots usually are 100% automated. In other words, users do not require any expertise to trade with them. Bitcoin robots reduce all the hassles involved in buying or selling Bitcoin manually. Further, they reduce the human emotions of fear and greed in trade. Warren Buffet, the world’s best investor once said, “fear and greed are the biggest barriers to successful trading.”
Furthermore, bitcoin robots are hands-free. Therefore, you don’t need to run or take any expert’s advice to earn more. Also, bitcoin robots have removed all the hustle of working and help you gain profit to the extent.
How do Bitcoin Robots Work?
Most of the Bitcoin trading bots have the following key elements in common:
Market Data Analysis
This module of the bot will save raw market data from various sources and interpret it. Also, it will decide whether to buy/sell specific crypto. Many bots let users customize which kinds of data go into the signal generator sector to get precise outcomes.
Market Risk Prediction
In this case, the bitcoin bot uses market data to calculate the potential risk in the market. Based on the data, the bot will select how much to invest or trade. It’s probably the most crucial aspect of a bitcoin trading bot.
Buying/Selling the Assets
This part of the bot uses APIs to trade crypto assets strategically. Sometimes, you might want to avoid buying bitcoin in bulk. On the other hand, some situations call for direct purchases. The Execution module takes care of the above features.
Pros and Cons of Bitcoin Trading Bots
It is essential to learn that a trading bot is not a silver bullet. The right bot used efficiently may increase your earnings. But there are also several drawbacks and risks to consider before choosing to install a bitcoin trading bot.
Advantages of Crypto Trading Bots
Following are some of the main features of bitcoin trading bots:
Trading Bitcoin using a bot is always more effective. You don’t have to worry about human mistakes or delays. As long as the bot gets the correct data and has decent algorithms, it can trade assets with a better profit chance. Also, these bots can operate 24/7.
A robot takes every single choice based on data. Unlike humans, it doesn’t have the desire for profit or fear of loss. Expert traders may overpower their emotions and make wise decisions. But that may not always be the case with amateurs. However, a trading bot always keeps feeling out of the equation.
There is a limit to the number of data a human trader can process at a time. Even if they process all the info, it is hard to reach insights based on that data. However, bitcoin bots can handle bulks of data and come to credible results.
Disadvantages of Crypto Trading Bots
You can’t activate a bot and forget about it. You will still need to monitor how it’s working and make changes as required. Also, a bot will not regard external factors that may affect the market, such as breaking news, world events, or driving poor trades without input from a human trader.
Requires Experience and Knowledge
Although bots may come pre-set with trading tactics, most work best when you set them. So the user will need to know how the market works — also, the technical aspects of trading with a bot.
Can Present a Security Risk
Bitcoin trading bots interact with exchanges through Application Programming Interfaces (APIs). It means two machines work together without human interference. The centralized nature of bots and exchanges can expose them to hackers. Therefore, you will need to keep your API key secret and switch off automated withdrawals. You should also verify the security history of any bot you are considering.
Best Bitcoin Robots for 2021
The bitcoin bots in our list are also among the best in the industry. This means that they are highly reliable.
Investing with any crypto trading robot involves risk. So, trade with only what you are ready to lose. Here we have gathered the best bitcoin robots for 2021.
|9. Shrimpy |
16. Bitcoin Champion
|17. Immediate Edge |
18. Bitcoin Optimizer
19. Bitcoin Lifestyle
20. Bitcoin Loophole
21. Bitcoin Profit
22. Bitcoin Storm
23. Bitcoin Evolution
A legit bitcoin robot should have a verified track record. It should also give excellent customer services, a seamless withdrawal process, and fully secure platforms.
Bitcoin Robot Scams
Before engaging with any bitcoin robot, make sure you verify that they are legit and reliable. Firstly, please verify the information on their website. Secondly, contact their customer service to make sure they are reachable by phone or any means.
Moreover, the scam bitcoin robots also sometimes partner with sham offshore brokers. These agents might have a bad online status or are not regulated. Avoid registering with a trading robot without enough proof that it is legit. We’ll discuss later on how to identify legit bitcoin robots.
How to Trade With a Bitcoin Robot
Bitcoin robots are normally 100% auto, and so require zero trading experience. All you need to get started is to register an account. Bitcoin trading bots are normally license-free. But few might require a monthly subscription fee. Those who do not charge a license fee make a profit by charging a small commission on their earnings.
Note that most robots are only possible in countries with a regulated broker. Here is a step-by-step guide to help you start with a bitcoin trading robot.
1.Register a Free Account
Open the robot homepage and click the registration button to open an account. You will get a form to submit your name, email, and phone number. Beyond this, legit bitcoin robots manage users’ data in strict confidentiality. Also, they are compliant with data security measures such as the General Data Protection Regulation (GDPR).
As mentioned earlier, bitcoin robots rely on regulated brokers to make trades and help transactions. All regulated brokers are obliged to verify the identity and residence of their users. This occurs to prevent money laundering.
The verification process typically involves the user uploading a clear photo of both sides of their government-issued document. Besides, proof of residence involves uploading a recent bank statement or utility bills with the address mentioned on top. The whole process takes up to 24 hours.
While most brokers enable traders to deposit and trade before verification, almost all want users to finish the process before making any withdrawal.
3.Deposit the Minimum Trading Capital
Most bitcoin trading robots ask for a minimum deposit of $250. Also, you can deposit through most debit and credit cards. Users can also do Wire Transfer, Western Union, and e-wallets such as Neteller and Skrill. Some bitcoin robots accept deposits via crypto-wallets.
However, not all crypto bots that charge deposit fees. Besides, they let users who opt-out of trading withdraw their capital at no cost.
4.Demo and Live Trading
Bitcoin trading bots give a practice account. This account should help you familiarize yourself before going live. Remember that in auto trading, a small mistake, whether in trading session timing or settings, can result in vital losses. Therefore, you must read the trading guide given by the trading bot and practice with its demo before going live.
However, the semi-auto ones allow users to decide which trading insights they want to implement in their accounts. Beginners should avoid changing risk settings. Most robots are usually set at the suggested 10% per trade risk level by default.
Can You Get Rich From Bitcoin Robots?
The best trading robots have an assumed return on investment of up to 400%. This means that it is likely to build significant assets through a bitcoin robot.
However, even the best bitcoin robots come with a level of risk. It is, therefore, cautious to only trade with a capital cost you can afford to lose.
It is reckless to invest a lot of money in a trading bot that trades on leverage of up to 1:5000. The best trading robots have risk minimization features such as the Negative Balance Protection but remain risky nevertheless.
How to Identify Legit Bitcoin Robots
As stated earlier, good trading robots are not hard to detect for the keen eye. Here is a checklist that you should watch when picking a trading bot.
- Reputation: Legit crypto robots are likely to have a good status on platforms such as TrustPilot.
- Regulation: These robots should only run in partnership with well-regulated brokers. The best regulators involve the FCA and ASIC.
- Transparency: Good robots should show all that a trader needs to know to make well-read choices.
- Customer service: Their customer services should be easily reachable. Also, ready to respond to all the related inquiries.
- Deposits and withdrawals: Legit robots should have a steady deposit and withdrawal process. They should enable users to withdraw whenever they need.
Here is the beginner’s guide to bitcoin robots in 2021. Although bots may come pre-set with trading tactics, most perform best when reconfigured to the user’s terms. With that said, the user will have to know how the market works and the technical aspects of trading with a bot.