The crypto market is a huge domain with millions of traders across the globe dealing with thousands of digital assets. From tokens for less than a penny to $20K BTCs, there are all sorts of instruments to work with regardless of how much money you can dedicate to forming your initial portfolio.
The influx of active investors made discussions around the topic of crypto automation a little bit more heated. Various methods of automation have been employed by institutional traders ever since computers were invented. However, such power was out of reach for many individual investors. Today, the situation in the market is very different.
What is automated crypto investing?
Using bots to generate profit is not a novel idea. 40 years ago, many economists argued that computers will dominate the financial world and it happened sooner than they expected. In the early 90s, many brokers used advanced algorithms to outmanoeuvre their opponents making billions in the process. Today, the same happens on all levels of our domain including even the smallest crypto assets.
Bots are programs that interpret signals received from indicators and send orders to the exchange. These scripts are simple and can be created by anyone with at least a little technical know-how. Companies like WunderTrading offer script-writing services and host various financial instruments on their website to help users automate their investment efforts.
How much does automation cost?
The price of automation is formed by three separate things:
- The price of using indicators on TradingView (from $15 to $50 per month);
- The price of using the bot (again, from $15 to $100 per month);
- The size of fees on the exchange of your choice (percentage-based).
Depending on the rate of return of your strategy and fees, you will need anywhere from $1000 to $2000 to make money consistently and cover initial expenses. A larger sum will yield better results but the risks go up considerably. You should invest more only if you’re certain you have a good strategy and can afford to test various investment tactics.
Choosing the best crypto robots
Since the market is so huge, many companies offer their services making the selection process quite challenging for even experienced veterans. Dozens of features, different interfaces, convoluted pricing, and many other factors prevent us from making an informed choice. However, some companies are undeniably better than others.
Here are some companies that deserve your attention:
- CoinRule is a very basic yet powerful website offering script-writing tools for a fair price. While its interface may look a little bit too fancy for the scarcity of functions that can expand one’s arsenal of financial tools, the simplicity makes it easy for newcomers to learn more about scripting.
- TradeSanta has some unique features such as extra orders (effectively, multiplying orders during favorable circumstances on the market) and various types of preset bots. It is a nice web-based product with a little bit overcrowded interface.
- WunderTrading offers a wider variety of bots and the price is surprisingly low compared to the competition. The flexibility of their pricing and richness of the feature list makes it an excellent choice for both novices and experts.
Choosing the best company is never easy. In this still-developing industry, good companies are often overshadowed by overpromising/underdelivering ones that make the whole domain feel diluted and overcrowded. In reality, there is a handful of great services and others just try to ride the hype train instead of innovating.
One thing is certain: you must choose based on the quality of the user interface. Understanding the information and navigating effortlessly will help you avoid mistakes during both script-writing and choosing the right time to activate bots. Caution is required when risking money to make more money. Caution is rewarded in the long run.
Should you use automation?
Investing, in general, is a risky endeavour. Uncertainty still exists when it comes to deciding whether automation is good or bad. Crypto signals and automated trading simplify and streamline decision-making allowing novices to faster adapt to the volatile nature of the crypto market. However, relying only on bots made by someone else is a precarious enterprise.
It is hard to deny that crypto automation software has merits yet some people should learn more before using such tools that have not been fully tested.