Most investors manually trade Bitcoin (BTC) and spend hours analyzing the market. They study charts, fiddle with exchanges, and execute trades on their own. However, some investors have discovered an easier way to trade crypto: Bitcoin robot platforms.
A Bitcoin robot saves valuable time by trading the market in your place. It follows special computer algorithms to analyze the market and spot hidden trading opportunities. And don’t think that automated trading is a sham – it accounts for up to 73% of all trading activity on the U.S. stock market.
The truth is that many investors can’t afford to have their eyes glued to the screen in a 24/7 market. To save your precious time, I’m showing you the top 5 Bitcoin robot platforms for beginner traders.
What Is a Bitcoin Robot?
A Bitcoin robot is a trading software that automates your portfolio. A BTC robot follows unique computer algorithms to execute trades based on market data. For example, it can spot a death cross a bullish hammer candlestick pattern and buy Bitcoin. It will then sell your coins after a bearish pattern, such as the evening star.
The main idea behind Bitcoin robots is that they spot buy and sell signals – as a trader would. The only difference is that the robot is much more efficient at its job compared to its human counterpart. The bot can spot and execute trades within seconds.
How Does a Bitcoin Robot Work?
A Bitcoin robot performs its duties without your input. Once you have chosen a strategy, like scalping – which involves buying and selling an asset within a small range – the robot will automatically execute trades. The strategy can also involve techniques such as following an indicator, tracking news – mostly what Elon Musk tweets – or spotting patterns on the chart.
Bots can combine multiple factors when trading. They can follow the RSI indicator and buy BTC if it drops under 30% (oversold area), but they can also sell the asset if the price drops too fast. They can also dabble with high-frequency trading and execute hundreds of trades a day – as long as the bot deems them to be profitable opportunities.
Certain bots become better the more they trade. They either improve their strategy or start taking into account more market data. Good crypto bots also take advantage of multiple data sources. They analyze Bitcoin’s historical price data across multiple exchanges and sometimes even different trading pairs (BTC/USDT, BTC/USDC, BTC/DAI, etc.).
Advantages of Bitcoin Robots
Bitcoin robots are known for their speed, accuracy, and timing. They save huge amounts of time by analyzing the market and executing trades. Bots can open and close hundreds of positions while also knowing whether entering them is worth it in the first place. Not all traders want to stare at their computer screen for hours on end – bots don’t experience eye strain.
A bot that constantly scans the market will trade faster than a person. Bots are so fast that they will already enter a position by the time I notice a pattern unfolding or the price rapidly dropping. Speed is everything in a highly competitive market such as crypto, so every second counts.
Accuracy plays a big role in speed. I have failed so many trades simply by taking too much time to fill out the limit order. I input the market price, but the price had already moved before I clicked the buy button. BTC bots will fill and execute an order within a fraction of a second, at just the right price.
However, automated trading also comes with disadvantages. They’re not 100% passive because they still require input when setting up the bot. You might also need to manually stop or enter a trade if the bot fails to detect a signal. What can also happen is that the bot collects the wrong data due to server issues.
Another drawback is that you have to trust a platform to access your funds. Unless you create your own crypto trading bot, you will have to allow a 3rd-party trading platform to manage your crypto assets. Safety concerns are non-existent with reputable platforms, but there’s always the risk of falling victim to a scam.
Top 5 Bitcoin Robots in 2022
I’ve scoured the web to find some of the best bitcoin robot platforms on the market. After conducting meticulous research, I’ve found five great solutions that you can test out: Quantum AI, BitIQ, Bitcoin Era, X, and X. I recommend reading their reviews in the section below and picking the one that suits your needs.
BitIQ is a beginner-friendly platform for trading Bitcoin and other cryptocurrencies. The platform uses a sophisticated computer algorithm to help investors automatically trade cryptocurrencies and achieve higher profits.
The platform collects data from historical price charts and breaking news to power its advanced bitcoin trading platform. The team behind BitIQ, led by five ex-Wall Street traders and three computer scientists, claims to have amassed high popularity after incorporating tweet signals into their algorithm.
The BitIQ trading algorithm uses a machine learning model to optimize its strategy by incorporating new data. The team also claims to use other aspects of AI technology to improve its bot and conduct news trading or price trend analysis.
BitIQ comes in the form of a web application, but you can also download a mobile version of the app on your iOS or Android device. The app is free to use and charges no hidden fees. Moreover, the team offers a thorough manual that shows users how to use BitIQ.
3Commas is an automated trading software that allows you to trade Bitcoin and altcoins. You can trade on more than 18 crypto exchanges and securely connect to your accounts using API keys. Apart from automated trading, 3Commas features copy trading as well.
This Bitcoin robot features three popular strategies designed for bear, bull, and sideways markets. Users also have access to options trading, portfolio analytics, and portfolio rebalancing. It’s possible to place stop loss and take profit orders in advance, which the bot will activate as soon as the price reaches the target.
Investors who aren’t brave enough to perform automated trading with real money can paper trade on 3Commas and test strategies without risk. Paper trading allows you to experiment with different strategies and see their performance.
3Commas is available on both the web and as a mobile app – including iOS and Android. The software pricing starts at $14.5 for the starter plan. The other two plans cost $24.5 and $49.5 respectively. There is also a free version that new users can try out.
HaasOnline is a popular Bitcoin robot solution for those interested in coding their own bot. The app, available on Windows, MacOS, and Linux, allows you to create a crypto trading bot without prior coding knowledge. Their bot builder features a drag and drop interface where you can create complex scripts using prebuilt commands.
The automated trading platform features:
Custom order types
You can connect to HaasOnline with more than 20 exchanges. Moreover, the trade data and API keys are stored locally on your computer, and not on the cloud – making your trading experience even safer.
Like the previous platforms, HaasOnline also supports Altcoins. You can trade any of the cryptocurrencies listed on the integrated exchanges. The team claims to charge no secret fees on your trading activity nor take a percentage of your profits.
HaasOnline offers three account tiers and charges users in Bitcoin. The plans cost 0.009, 0.016, and 0.026 BTC respectively. At current market prices, the annual subscription costs $268, $477, and $775.
CryptoHopper is an automated trading software that lets you trade Bitcoin and Altcoins on more than 16 exchanges. The cloud-based platform features portfolio management, trailing stop losses, AI-based trading bots, and copy trading.
The platform also supports three of the most popular crypto bot strategies:
CryptoHopper also features a bot designer where you can combine strategies and create custom trading algorithms. You can sell the strategies to other CryptoHopper users or utilize them on the platform. The bot designer requires no coding experience and is entirely visual.
Users praise CryptoHopper for offering traders access to more detailed customization options when creating trading strategies. Some also consider the platform to be very stable and to process orders with minimum delay.
The platform’s subscription ranges from $16.58 to $83.25, depending on the plan. Users can also register a free account and dabble with a limited set of features to try out CryptoHopper.
Shrimpy is an automated portfolio management platform designed for beginner and advanced traders alike. The platform focuses its efforts on portfolio rebalancing, DCA, and similar trading bot strategies. You can also create custom indexes and copy portfolios from leading investment firms such as Coinbase Ventures or Binance Labs.
Shrimpy has integrated 20 crypto exchanges – all of which you can access through the main dashboard. The platform also supports 12 decentralized wallets for users interested in connecting their DeFi portfolios and swapping tokens through Shrimpy. You can seamlessly switch between both types of portfolios and execute rebalances or orders at any moment.
You can confirm the performance of your strategy before deploying it by backtesting your thesis. Shrimpy allows you to backtest trading strategies with historical price data ranging from 2018. And even if the strategy fails, the portfolio stop loss feature will prevent you from suffering too many losses at once – which is especially useful in black swan events.
Shrimpy’s subscription starts as low as $15 per month for users interested in the most basic features. However, plans starting from $63 and $299 offer advanced tools tailored toward those seeking in-depth control of their investments or even enterprise-level companies interested in portfolio management.
Are Bitcoin Robots Legit?
Bitcoin robots are legit. Computers only do what you tell them to do, so a trading algorithm won’t stray away from the path you’ve designed. You will trade safely and securely for as long as the bot remains stable and executes orders on time – while preferably keeping your API keys secure.
However, it’s worth noting that the trustworthiness of an automated trading platform depends on the team behind it. You should always stick with reputable platforms and check user reviews before deploying capital on a trading bot. I also recommend checking what users write about specific platforms on social media and trading groups.
Are BTC Robots Profitable?
BTC robots are profitable as long as their trading strategy works. Good trading strategies made with a lot of thought behind them will surely fetch far greater profits than a simple trading bot that hasn’t been backtested or improved. Consistency may vary depending on market conditions, but a good bot should provide minimal losses under all circumstances.
If you find that a trading bot isn’t profitable, simply backtest and optimize your strategy. As long as you put in a lot of effort, you’re bound to earn money passively. If you still fail to create a profitable strategy, I recommend using bots to copy more successful traders – a feature available on most Bitcoin robot platforms.
If you want to learn more about automated trading, I suggest reading the following articles:
Marko is a crypto enthusiast who has been involved in the blockchain industry since 2018. When not charting, tweeting on CT, or researching Solana NFTs, he likes to read about psychology, InfoSec, and geopolitics.