How Do You Pick The Right Trading Bot?
There are numerous bitcoin trading bots to choose from, but it is critical to do your research before making a decision. There are a few things to keep an eye out for to ensure you get the best bitcoin trading bot. Here are a few pointers on how to select a successful trading bot:
Free Trial
It is best to choose a trading bot that offers a free trial period. Before purchasing a trading bot, you can use a free trial to try it out and confirm its effectiveness. Cryptohopper has a free trial period.
Features for LiveTesting and BackTesting
Make sure the trading bot you choose has strategy features that allow you to backtest or livetest your expected trading strategies before you make your decision. This will allow you to compare their performance to previous and current market conditions. Backtesting is available in the Cryptohopper trading bot.
Features of Social Trading
This helps you to improve your trading strategies by joining a carefully chosen group of other traders for better trading strategy insights. 3Commas is a trading bot with social trading capabilities.
Select a Trading Bot that Works in the Cloud
This is the type of trading bot that has been tried and true, and it is the one you should choose. If you come across trading bots that are server-based, make sure to stay away from them. A cloud-based trading bot like Trade Santa is an example.
Tutorials & Customer Service
Make sure you use a trading bot network with a clear track record of customer service and tips on how to use their trading bots. Images, training courses, and blogs are all examples of tutorials. Coinrule has excellent customer service, as well as instructions on how to use it for trading.
Collection of Taxes
It can be difficult to keep track of your profits and losses for tax purposes once you begin automated bitcoin trading. It's best to choose trading bots that have tax integration tools to make calculating your profits and losses a breeze. You should also look for cryptocurrency tax applications that works with your trading bot network. TaxBit is an example of a tax calculator with an integrated API.
Zignaly, Coinrule, Shrimpy, Cryptohopper, Gunbot, cryptoTrader, and 3Commas are some of the best crypto trading bots you can use on exchanges like Binance, Coinbase, and Kraken.