At the latest since the price of Bitcoin skyrocketed in 2017, the best-known cryptocurrency has been the talk of the town. For some time, of course, word has spread among investors that you can get even faster profits with the so-called Bitcoin Robots. If you want to make more profit, you should learn how to trade bitcoin with a bot.
But is everything really rosy? Where there is money to be made, there are of course also scammers. Bitcoin or cryptobots therefore do not enjoy the best reputation in the media. But you can’t demonize them all by any means.
What do these crypto robots actually do and how do they work exactly? What are the risks and which bots stand out as the best? We will explore these questions in the following paragraphs.
What do bitcoin and crypto robots do?
In simple terms, cryptobots are robots, i.e. software programs that make fully automated trading decisions for the investor via an algorithm and are intended to provide the investor with the highest possible profits.
Based on technical price analyses, the robot independently makes purchases and sales with cryptocurrencies. This should enable higher profits than with manual day trading.
The bots thus take the trading off the investor’s hands. The advantages of this are obvious:
- A cryptobot works around the clock, 7 days a week,
- It is much faster than it would ever be possible for a human,
- Moreover, basic knowledge about the crypto market is enough to make profits with automated trading.
Many crypto bots work on the same principle. The reputable provider makes its money through the fees it charges. For example, depending on the provider, trading with a cryptobot may incur deposit and trading fees and sometimes account maintenance fees. As a trader, you should take these fees into account before choosing a provider.
Furthermore, it should be noted that Bitcoin robots are mainly suitable for day trading and hardly as a medium- or long-term investment.
How do bitcoin and crypto robots work?
In the world of trading, when we talk about a robot, we mean a program that independently makes purchases and sales for the trader.
Unlike trading robots, which offer trading in stocks, currencies and commodities in addition to cryptocurrencies, crypto robots specialize in trading cryptocurrencies, such as Bitcoin or Ethereum.
A Bitcoin robot is capable of detecting market trends early and drawing conclusions from previous trades, regardless of whether they were positive or negative. It is programmed to automatically identify signals that are relevant for trading, because it knows very well what the specifics of cryptocurrencies like Bitcoin, Ethereum or IOTA are.
Certainly, he is not always spot on with his assumptions, but experience has shown that better results can be achieved with a bot compared to manual trading. Thus, at least 70% of all trades should turn out positive.
In order to stay on the safe side as much as possible, traders should only invest as much money as they are willing to lose, especially at the beginning. In addition, it is recommended, especially for newcomers, to get to know a cryptobot and its functions via the free demo account.
What does it take to be able to trade via a Bitcoin Robot?
The structure and trading process of most Bitcoin Robots is similar and looks something like this:
Step 1: Registration
- In order to become active with a Bitcoin Robot, the trader needs an account, which can often be created for free with a few clicks.
- Usually, a few personal details such as name and address, phone number and email as well as a password are required. Professional providers often verify the phone number and email address.
Step 2: The deposit
- After signing up, you get to know the program and its functions via the hopefully available demo account or get started with the live version right away.
- Of course, this requires real money. The minimum deposit amount varies from provider to provider. However, 250 euros is customary in the industry.
Step 3: Trading
- Before giving the robot the green light, it is essential to set the parameters according to which the software should trade.
- After that, 20 minutes to 1 hour a day is enough to check whether the program works as desired and brings in profits. If the program does not do this, the parameters can be adjusted at any time.
- The trader’s activity is thus limited to monitoring the robot. With many providers, manual trading is also possible. However, this is only suitable for experienced traders.
Of course, some platforms have other peculiarities such as:
- the Stop Loss function, which protects the trader from larger losses, or also
- the Take Profit function, which secures potential profits.
The trader may have to “reactivate” the bot after a certain period of time, virtually as a confirmation that one still wants to trade according to the same parameters.
What are the dangers lurking with Bitcoin robots?
Not all websites can or want to provide a robot with a working algorithm:
Developers of fraudulent sites specifically target deposits from careless or inexperienced traders.
Then there are the less serious but still unfair practices with opaque fees. Transparency should therefore be paramount.
It is essential to get a picture of a platform before depositing money! However, the lack of regulations makes it difficult to determine the seriousness of a provider.
Unrealistic advertising does not show seriousness, certainly not professionalism, and yet you can find it even with serious providers. However, if the website does not even state the company’s registered office, alarm bells should ring.
The degree of popularity does not necessarily indicate seriousness. There are also lesser-known providers that provide a reliable bot. A customer service that also answers is certainly a good sign.
Platforms with dubious practices, on the other hand, which do not disclose a demo account and no transparency about fees or seat, and yet promise great profits, can be safely labeled as scammers.
What chances of success do Bitcoin robots offer?
On the one hand, algorithms offer the advantage of recognizing market trends via charts and reacting to them faster than a human. On the other hand, however, the robot misses external news that can influence the price trend.
Therefore, it would be disastrous to assume that only profits are generated. In general, however, a professionally programmed Bitcoin robot can be compared to a professional trader. Because the crypto market is very volatile, experience shows that higher profits can be made than on the currency market. Weekly profits of over 200% are possible.
Learning how to trade with Bitcoin robots also proves to be easy and is therefore particularly suitable for beginners who want to quickly achieve a sense of achievement with cryptocurrencies.
Which are the best crypto robots?
Here is a brief overview of the most reliable bots:
- Back in 2017, Bitcoin Era had a proven success rate of 90%. Nowadays, about 92% positive trades are the norm.With a minimum deposit of 250 USD, you’re in.
- Bitcoin Era allows you to trade Bitcoin, Ethereum, Ripple, Monero, ZCash as well as other cryptocurrencies.
- Surprisingly, however, there is no demo account.
- Bitcoin Profit is probably the most well-known provider on the crypto bot market. The chances of success with this robot are also very high at 90%.
- Bitcoin Profit offers a free demo account.
- This robot is more or less the counterpart to Bitcoin Era. There is no difference in its operation. Unlike Bitcoin Era, however, the weekly profit with “only” 500 euros is significantly lower with Bitcoin Revolution than with Bitcoin Era.
- Bitcoin Revolution offers a win rate of 87% and many setting options for the algorithm. The minimum deposit is 250 euros and can be conveniently made by credit card and bank transfer or with Bitcoins, VLoad and many other variants.
- Bitcoin Revolution is partnered with professional brokers you can rely on.
- The award-winning Crypto Code platform offers fast executions, a compelling algorithm and a high win rate. A minimum deposit of 250 euros is required to get started.
- Available are not only Bitcoins trading, but also Litecoin or Dash.
The platform is free of charge and also offers manual trading.
- At CryptoSoft, the win rate amounts to 86%. CryptoSoft is web-based, which means that no software needs to be downloaded.The minimum deposit is 250 euros and can be made by credit card or via instant bank transfer.
- With this bot, the trader gets good trading options and a convincing algorithm.
In principle, these crypto bots are recommendable. However, there were some minor problems with the algorithm as well as with deposits and withdrawals. Unfortunately, there are countless more fraudulent crypto robots. Therefore, before registering, you should always check exactly who you are dealing with.
What conclusions can be drawn?
There is money to be made from automated crypto trading, but only if the trader knows what separates the wheat from the chaff. The media’s doom and gloom is certainly out of place, but there is nothing wrong with taking a closer look at a provider before signing up and making the first deposit.