There are two parts hidden in this question: a general part and a bot-oriented part. How much do you need to start any crypto bot? There is a minimum amount that can be traded on each exchange, and it depends on the cryptocurrency exchange and the pair, an 11-dollar equivalent is usually enough for any pair. But as far as renting goes, the cost of a crypto trading bot depends on the features and functionality it offers. Most trading bots are expensive.
This is because they offer many advanced functions like portfolio management, market tracking, and order execution. These features ensure that traders experience the full benefits of using bots.
At most, a crypto trading bot will cost $20-$40 monthly per each function they have. In practice, however, you’ll most likely need to pay $6–12 a month per bot function to rent one. This fee will vary depending on the developer’s experience level and how many functions the bot has. Such is the cost of some of the best and most popular bots. These include Cryptohopper, Trality, and 3Commas.
Are Crypto Trading Bots Expensive?
The answer is yes, most financial institution in charge of bot designs has put in resources to be able to coin in software in charge of navigating the market for you, Developers base the price of a crypto trading bot on the amount of work involved in creating it.
Although, most platforms like Pionex offers free trials within the range of 7–14 days before giving in the option of premium service. A cloud-based trading bot like CoinRule and CryptoHopper provides a free trial, after which users can be charged from $19 — $450/month depending on the plan and range of services selected. These trading bots make more sense for investors with high trading volumes and who want to enjoy these services from anywhere in the world.
Are there any free crypto trading bots?
There are no “completely free” bots, but when choosing a crypto trading bot, investors need to weigh the pros and cons of “free” crypto bots in comparison to those that charge either monthly or annual subscription fees. There are platforms in the market with both free and premium services.
The likes of Pionex and EtoroX do not charge users for viewing but have trading commissions starting from as low as 0.05% for every trade executed via their platforms. As graceful as it sounds, it is also important for those whose trading volumes exceed thousands on a regular basis, most times, the trading fee due over a month could be far more than the subscription fee charged by other competitors.
You can make a lot of money trading by using crypto trading bots. However, there are risks associated with them.
A lot of people have made a good amount of money by trading with crypto trading bots and that’s for sure. But it is advisable to always be careful before venturing into trading with any type of cryptocurrency bot.
This is because one has to do their research diligently before trading with any crypto trading bot for their safety, and there are also risks associated with trading crypto trading bots. This is the hard truth most crypto bot traders won’t tell you, as for every advantage there is always a disadvantage to it.
Do not be carried out by the many news or social media posts you see on these social platforms, there are always good and life-changing opportunities in the cryptocurrency and trading space as well. So do well to take your time by carrying out your research before jumping on any rash decision, before you would discover you might start losing funds from an irrational decision you took. We shall be looking at the risks involved in trading with crypto trading bots, so as to keep you abreast.
The Risks associated with crypto trading bots
There has been misinformation in regard to the risks involved with trading crypto bots and this has led so many persons to lose money trading with this automated system. Remember to always do your own research as well.
Crypto Trading Bot Hacks:
In a fact, you can as well get hacked when trading with a cryptocurrency trading bot. This has been the major problem plaguing the cryptocurrency space from its inception there have been stories and reports of hacks. This can be a result of a lack of a proper security system in place by the developers of a given cryptocurrency trading bot, you can get the API key stolen and compromised by these bad actors. For you to be on the safe side you have to make sure that the cryptocurrency trading bot you use in trading the market has a very highly secured system in place.
Now you see where carrying out due diligence is highly recommended. Sometimes hacks can also be an error in bot settings by its devs, it can also result in losses rather than profits when trading.
High level of Trading Fees
Over the years there have been complaints about the high levels of trading fees with crypto trading bots, this shows that these types of crypto trading bots do not care about their customers, but their profits. In such situations, it is highly advised to take your funds off such an automated trading system and stop any form of trading operation with them. In regards to this section of the article, crypto trading bots with high trading fees should be considered a red flag to crypto bot traders and shouldn’t be thought about twice. The best way to spot crypto trading bots with a high trading fee is by doing your due diligence or trading with a low capital of about $50 — $100 depending on your risk appetite, then do a comparison with respect to the trading fees and other trading bots trading fees as well. Then you will have your answers, Note that this is not financial advice.
Inability to follow market trends
This can be caused by bad software or Inadequate coding patterns, the sad truth about this is that you might not even be aware that your placed trades are not been executed as instructed with the hope of having to trust the crypto trading bot you are trading with. As much as you want to take a break from the market and focus on other activities, it has been recommended by top trading organizations to always check and review your placed trades at least every 15 minutes after the placement of your trade so as to be on the safe side and make a readjustment when your trades are not going according to your analysis or market prediction as the market is subject to change. Not even an automated trading system can stop that.
Crypto trading bots are ideal for people who cannot spend the whole day watching market activities. Ensure that you build, and make solid research in other to choose the best crypto trading bot to work for you.
Although this may serve as a guide, the information on this content does not constitute financial advice, investment advice, or trading advice, and should not be considered as such. We do not advise that any particular cryptocurrency should be bought or sold. Always conduct your own due diligence and consult a licensed financial adviser for investment advice.
In recent times there have been positive talks in regards to a Defi trading automated system, so I thought as much to share. Note that this is not financial advice and always carry out your research.
Robofi is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.
VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.