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Do Crypto Trading Bots Work? – A Simple Overview

If you like the idea of trading Crypto but don’t have the time to devote to studying market trends and making regular trades yourself, then you may be interested in using an automated trading service – but do crypto trading bots work? 

Our short answer is; yes. Crypto trading bots work very well if you’re looking for efficient, powerful trades without the risk of human error, but as always, you must be able to choose a reputable and reliable trading platform for your automated trades to operate from. Read on for my recommendations on this and an overview of Crypto trading.

Tell Me More About Bots

Everyone seems to be talking about Crypto currency at the moment but is it one to drive funds into or steer well clear of? Whether you’re brand new trading, or are a seasoned online investment pro, one of the easier ways to trade is with the use of Crypto bots. These systematic algorithms automate Cryptocurrency trading on your behalf. 

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View my top three service picks! 

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Via Trade Wise, I aim to test and review trading platforms, and related services including Crypto trading bots. The outcome is that I am able to recommend the most profitable and useful tools for investors like you to use. This means that even beginners can start copy trading, and using tools like Crypto trading bots, safe in the knowledge that the resources you’re using have been put to the test and honestly reviewed. 


What Does It All Mean? 

The likelihood is, that if you’re looking for information on whether Crypto trading bots work, you will already have a working knowledge of Cryptocurrency and online trading but it never hurts to start with some quick definitions to ensure that we’re all on the same page. 

What Is Cryptocurrency? 

What Is Cryptocurrency?

Cryptocurrency is a digital asset that can be bought, sold, traded and used to make purchases via a trade exchange. As the asset has no intrinsic value itself, the price it trades for is determined by supply and demand. Bitcoin, Ethereum and Stellar are mainstream cryptocurrency that most people will have heard of and as Coin Market Cap estimates a total of 5290 cryptocurrencies are currently being exchanged, with a total market cap of about $349 billion, it’s fair to say it’s a popular investment. 

As Crypto is only worth what somebody will pay for it, it’s a currency that is unpredictable and hard to value accurately. Essentially though, it’s just another investment vehicle like USD, stocks and shares, which investors like you and me trade in the hope of making a profit. 


What Is A Crypto Trading Bot? 

So you have your Cryptocurrency, but how do you trade it? There are two main options, you can either learn how and when to make trades yourself, or you can use bots that will place systematic buy and sell orders based on a pre-defined trading strategy on your behalf. This is known as a Crypto trading bot.

A very simple example of a Crypto trading bot might be an automated action that is set to sell when your Cryptocurrency reaches a certain threshold. 


Do They Actually Work Though? 

Trading bots are designed to make a trader’s life easier! As long as you choose a reputable trading platform that sends reliable data and algorithms to enable the trades to happen automatically, then they absolutely work. You may even stand a better chance of making a profit than trading under your own steam as they tend to be more efficient and can work for you 24/7. 


Why Use A Bot? 

Do crypto bots work?

Due to the pre-defined rules that bots are set to follow, and lack of impulse trading, they can be seen as a lower risk way to trade and also are a great way to produce passive income from automated trades without you having to study a single chart or analyse any market data yourself!

  • Bots operate 24/7 all over the world meaning you can take advantage of trading opportunities and make profits, literally while you sleep 
  • Bots can react quicker to markets than a human can and remove the option for human error 
  • One bot known as the arbitrage bot can take advantage of price discrepancies across exchanges. 
  • Trades are made based on data, not emotion which means some people view them as a way to trade that carries less risk. 

The advantage that bots have is that the trades they make are based on data over the often emotional impulse that can shape the trades that we, as humans make. It’s all too easy to enter or exit the market on a knee jerk reaction to winning or losing, but this emotional impulse is removed when using bots. 

The bot’s efficiency is also a big win for time poor traders. Choose your investment strategy and let the bot go to work for you while you get on with life. This removes the usual requirement for traders to pay attention to market stats, trends and charts as Crypto trading bots can easily automate the analysis and interpretation of market statistics. They can gather market data, interpret it, calculate the potential market risk, and execute buying/selling cryptocurrency assets. 


Which Trading Platform Should I Use? 

If you like the sound of automated Crypto trades so far, the next logical question is which platform should you trade on? 

There are plenty of options available if you decide that crypto trading bots are for you but to save you some time, I’ve summarised two of my favourites below and you can view my full, in depth overview here in my ‘two best Bitcoin investments 2021 article.

  1. YieldNodes
  2. Passive Experts 

More About YieldNodes

This is a global investment platform that provides a stable and sustainable way of earning money through masternoding services with a promised 5-15% income to its investors. 

  • If your investments perform poorly with less than 5% for three successful months, your deposit will be returned. With income and returns in excess of 220% per annum achievable, in my opinion, this is one of the best bitcoin investments available right now. 
  • To invest in YieldNodes, you need a minimum of $500 and a maximum of $250,000. Keep in mind that this is a six -month contract, so invest only an amount you would not need soon.. 

In a nutshell, YieldNodes offers a new way of investing even without prior knowledge of Cryptocurrency. Investing in this sector can be daunting and require some technical capability, not to mention research. Getting started on Crypto investing is now straightforward since Yieldnodes has eliminated all these barriers. 

Read my full Yieldnodes review.

More About Passive Experts

Passive experts is a UK based firm that has taken the market by storm. They have a user-friendly website that can give new customers the best experience and in our view, this is a good platform for budget investors who have trouble accessing higher forums. The low-risk rating of this platform is also a bonus for many investors.

The idea is relatively straightforward, no mining or any sort of trading. Instead, people invest in what they call “Ad Packs”. Investors can earn passively through these packs every day. Each pack costs only $5 with a maximum daily cashback of 1%. If you find other platforms like Bitcoin or Cardano to be a technical jungle, passive experts will suit you! 

Read my full Passive Experts review 


Summary 

Crypto trading is one of the fastest growing investment markets in the world with plenty of trading bots available to make trading as easy, and efficient as possible. For an easy introduction try Passive Experts or Yieldnode for a user-friendly way to save time, benefit from automated efficiency and get trading with little or no prior knowledge. As with any kind of trading, you should always have a clear trading strategy and only invest what you can afford to lose. 

I am Jon Platts and via Trade Wise, I hope that by sharing my experience and reviews with investors like you that you can easily find trusted platforms where high returns can be achieved without making the same costly mistakes that I did when starting out!

I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.

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