Back in 2017, trading bots for cryptocurrencies began to gain popularity dramatically. There are several reasons for the increased interest in these programs: a general increase in interest in trading as a form of making money on the Internet, the hype of cryptocurrencies in December 2017, a drop in mining profitability in 2018, as a result of which miners began to look for new ways to earn money. Working with a cryptocurrency bot is not an easy task. Some programs require fine tuning, knowledge of the basics of trading and are quite expensive, others can be installed for free. We will understand the principles of operation of these programs and highlight the shortcomings of popular cryptobots in 2018. Types of cryptocurrency bots Separation can be done in several ways. By degree of autonomy: Programs that make transactions without human intervention.

Programs that require the participation of a trader in the final transaction. In addition, trading bots may differ in the way they are managed: Telegram bot cryptocurrency. Program with its own interface. Then programs are distinguished by the method of earning: Cryptocurrency arbitrage bot. Such programs monitor the cost of cryptocurrencies on all exchanges and earn on the difference in prices. Example: on the Binance exchange, the selling rate of bitcoin against the dollar is $6700, on the EXMO exchange it is $6685. The bot's job is to buy BTC on EXMO and then sell it on Binance.

The advantage of the program over a manual transaction is the speed of transactions. If you do not complete the transaction on time, you can remain at a loss due to exchange commissions. Trading bots. This type performs a larger amount of work - it must analyze information about price fluctuations of a certain cryptocurrency pair or a set of pairs, follow a given trading strategy. It is such a bot that is a real assistant to the trader and gives the greatest profit. Let's try to figure out how the cryptocurrency trading bot works. Types of bots Trading bot logic The example below is a relatively simple strategy that uses only 3 input variables: the highest bid price (Buy), the highest ask price (Sale), and the daily volume of cryptocurrency transactions (Market).

In this case, only those pairs are selected where Sale is greater than Buy. Using the formula Rank = ((Sale - Buy) / Buy) * Market, the output variable Rank is displayed, which is present in each cryptocurrency pair. The higher the Rank, the higher the percentage income. Such a cryptocurrency bot works immediately after launch, as it does not require information about the trading history. To start, you need to configure the bot. All programs are different, but in most cases the following parameters can be configured: The number of traded pairs. The bot cannot take all pairs into circulation, selecting only the most profitable ones.

The minimum price of one lot in bitcoins. "Lot" in trading refers to the number of units of cryptocurrency. The minimum rate of cryptocurrency for trading. Minimum order size. It is put up according to the exchange on which the trades will be made. The time of holding a cryptocurrency that does not give a profit. This parameter is required as one of the tools for fixing the loss.

The minimum profit as a percentage, taking into account the commissions of the exchange. Usually set from 2-5%. If set to less than 1%, transactions will take place very often, but give a minimum profit. The trading algorithm contains the following items: First, the program checks for open orders. If they are present, all orders are closed. Then, the Buy and Sale parameters are requested for all cryptocurrencies, a list of cryptocurrencies is displayed in descending order of the Rank parameter. Account balance check.

Removal from the list of those cryptocurrencies whose minimum lot size is greater than the one specified in the settings. This condition must be met so that the account does not accumulate cryptocurrency that it cannot sell at a profit. After that, the program checks whether it will be possible to make a profit if you place an order at the Sale price. In parallel, a check is made of the time elapsed since the last purchase of the cryptocurrency. If the interval is greater than the configurable time parameter, a sell order is created. After placing sell orders, the program starts creating buy orders. The meaning of the bot's work with a similar algorithm is that it takes the difference between Sale and Buy of liquid pairs - this is its income.

This type of trading is similar to scalping. When the market is not growing, there are small price movements - they allow you to make a profit even in a falling market. Once again, it is worth noting that this algorithm performs a trading bot for cryptocurrency without indicators and technical analysis. The mechanism of how programs work with these tools is much more complicated and requires basic trading knowledge to set up a bot. Bot logic Popular cryptocurrency bots of 2018 It should be noted that free cryptocurrency bots are overwhelmingly the product of scammers. Good free programs exist, but their profitability is much lower than paid ones. Among the bots by subscription, we highlight the following: Cryptorg bot.

Price − $30 per month. Great program for beginners, but without a wide choice of settings - not suitable for professionals. Bot Swbot. Price − $25 per month. Lack of normal wiki and training - all information must be found in the telegram channel and chat. The disadvantages are explained by the small age of the project - only 8 months. Gbot bot.

The price is $30 per month for one exchange, $100 for all exchanges. The emphasis is on the console version, although a graphical interface has already been developed. There is no option to short. Bot ProfitTrailer. The price is €30 per month. The most expensive assistant on the entire list, during the setup of which you can break your head. Despite this, a huge number of customizable parameters is the main advantage of ProfitTrailer.

The program is perfect for professionals. In addition to the bots themselves, traders should also use tools like Tradedash, which show trades and allow you to work with 2 exchanges at the same time. Tradedash supports Bittrex and Binance. Trading bot is just an assistant As practice shows, a bot for trading on a cryptocurrency exchange often does not live up to the expectations of beginners who do not want to spend time on quality trading training. Without knowledge of the basics of technical analysis and the ability to trade hands, you should not buy paid bots. .