What Makes a Good Crypto Trading Bot? Key Features to Look For

If you’ve been in the crypto market, you must’ve wished you were able to trade 24/7 without having to monitor the market constantly. The crypto market operates around the clock, meaning no human trader can find every potential opportunity to make a profit. 

So, today in this article, we’ll be looking into how you can find good crypto trading bots by looking at a few key features that will help you trade 24/7. Later, we’ll discuss what makes AlgosOne, a trade automation bot, stand out from its competitors, both in terms of its features and its risk-free returns. 

What Are Crypto Trading Bots?

In simple terms, a crypto trading bot is a software program that’s designed to trade on your behalf by following a set of pre-determined parameters. These parameters let the trading bot know when to place buy and sell orders, eliminating the need to monitor the market constantly. 

You can think of a trading bot as your personal trading assistant that can work on your behalf to maximize your profits. 

Factors that Make Crypto Trading Bots Unique

Apart from operating 24/7 on pre-determined rules, here are some of the factors that make crypto trading bots unique: 

1. Backtesting

You can backtest your strategy to understand its initial success. This later lets you know where the strategy lacks, and how you can improve for maximum returns. 

2. Diversity

Several types of trading bots are available in the market right now. Since trading bots are designed for specific trading strategies, you can always switch between them depending on which suits your trading goals. 

For instance, if the market is moving sideways, you can use a grid trading bot. If you want to invest a specific amount every month, you can use a dollar-cost averaging bot. 

3. Analyze the Market

Many bots can actively analyze market data by utilizing sophisticated algorithms. This allows them to identify profitable trading opportunities at a much higher pace than humans can. 

What Makes a Good Trading Bot?

Here are the things that make a good trading bot: 

1. User-friendly and intuitive design

A good trading bot must offer a user-friendly interface with a simple setup procedure. Without this, both beginners and some experienced traders will struggle to utilize the bot effectively. 

2. Security

With the rise in crypto-related scams, security is another critical factor that a good crypto trading bot must have. The bot developers need to conduct third-party security audits and consistently update the bot’s security protocols to avoid any mishaps. 

3. Risk Management

There’s no effective trading strategy without proper risk management. The crypto market is highly volatile, and without proper risk management in place, users may end up losing money instead of making profits. 

4. Clear Fee Structure

There should always be upfront clarity on the fee structure of the trading bot, including the percentage charged on profits or the cost of every trade. 

5. Reliable Customer Support

Access to reliable customer support is mandatory as it resolves issues quickly. 

6. Social Presence & Reputation

Since the crypto market is highly influenced by its community, the same principle applies to crypto trading bots. Any platform that lacks a strong social media and digital presence may be a red flag. 

Has Anyone Made a Successful Trading Bot?

Yes, there are some people and even firms who are making serious money with the help of crypto trading bots. While information about their trading bots isn’t made public, most of the successful bots perform high-frequency grid-trading. 

One thing to consider is that a successful trading bot isn’t made overnight. It’s done through backtesting for weeks, if not months, and is constantly updated depending on the market conditions. Only after rigorous testing does a trading bot become successful.

Why Do Some Trading Bots Fail?

There are several reasons why a trading bot may fail. These include: 

1.  Connectivity Issues

If a bot loses access to the internet connection, even for a brief moment, it can prevent the bot from executing a crucial trade that can lead to significant losses. 

2. Software Glitches

Even a small bug in its code is enough for a bot to behave erratically, making it unable to place correct orders or to stop trading altogether. 

3. Hardware Issues

Similarly, even if the hardware graphics cards that power trading bots face a slight glitch due to the disruption of the power supply or any other issue, the bot becomes unable to execute trades successfully. 

4. Lack of Monitoring

Bots do not operate as “set and forget,” rather, they require continuous monitoring and upgrading. Without proper continuous human oversight, the damage can be catastrophic. 

What Makes AlgosOne an Exception? 

When it comes to a trading bot, AlgosOne completely changes the game. Here’s why AlgosOne is an exception:

1. 100% Automated

AlgosOne is 100% automated, meaning users only need to deposit a minimum of $300, and the rest is done for them. From selecting a trading strategy to choosing a cryptocurrency to trade, everything is handled by the trading bot. Users simply choose their risk profile and continue with their day. 

2. Analysis of the Market 

To know in which cryptocurrency to invest, AlgosOne’s trading bot scans the market 24/7 and analyzes vast amounts of data from various sources, including news, social media, earnings calls, economic data (such as GDP growth, inflation, and consumer sentiment), whale movement, network activity, and geopolitical events.

3. High Trade Success Ratio & Automated Backtesting

AlgosOne boasts one of the highest trade success ratios in the industry, exceeding 80%. This ensures that the user’s capital is highly likely to succeed. Unlike choosing independent trading bots and continuously backtesting them, AlgosOne does it itself.  

4. Risk Management

AlgosOne guarantees your profits are secured. It utilizes built-in risk management tools to safeguard your investments and mitigate losses. Risk management includes automated stop-loss and take-profit orders. It also ensures that no more than 10% of a user’s capital is used on a single trade, thereby preventing the liquidation of the user’s capital. 

Moreover, AlgosOne also has a unique reserve fund of 110 million dollars that acts as insurance to protect user funds in the event of technical failure.

5. Customer Support

AlgosOne’s customer support is also highly reliable. It’s available in 6 different languages, allowing users to email customer support or chat directly with them. 

6. Social Media Presence & Customer Response

Lastly, AlgosOne is highly reputable. It has a strong social media presence across various platforms. It also holds a rating of 4.7 stars out of 5 on TrustPilot, which is amongst the highest in the industry.  

Conclusion

There are many factors to look into when selecting a trading bot. You should consider a range of factors such as security, risk management, past performance, customer support, and social media presence. However, even then, success isn’t guaranteed. With AlgosOne, you don’t have to worry about anything because everything else is handled for you, so you enjoy consistent profits. 

If you’re new to trading or someone experienced in the market looking to grow their trading account automatically, then sign up for AlgosOne today!