Automated Cryptocurrency Copy Trading with AAAFX and ZuluTrade

Algorithm Trading in Cryptocurrency Market

Trading virtual tokens is similar to working with ordinary assets, so the offer to buy a bot for trading cryptocurrency is no longer surprising, but there are some peculiarities.

As a rule, the methods of cryptobots imitate traditional stock, but there are strategies developed for certain pairs of cryptocurrencies. There are two types of robots:

Trading

They operate within the framework of one exchange and receive income from standard speculations “buy cheaper, sell more expensive”;

Arbitrage

They earn on the price difference between different trading platforms, which for cryptocurrencies can reach 15-40% of the market average.

Where can you get a trading robot for Cryptocurrencies?

Like any trading software, except for the purchase of a ready-made one, a bot can be created personally or found on the network for free. You can download only basic scripts and adapt them to your needs. So the options,

1. Write a program yourself

In addition to the fact that this process requires technical knowledge, you need to take into account that usually a robot is written for specific crypto platforms, the main thing is the availability of a trading API, which the exchange must provide. It is possible to write without the exchange API, but it will take longer and is not as reliable. Arbitrage bots, accordingly, are configured for several exchanges.

2. Order or buy a cryptocurrency bot

Today it is a popular product offered by both software companies (HaasOnline, BTC Robot) and private developers. The most popular ones are BTC Robot, Cryptotrader, HaasOnline, PHP Trader, 3Commas, and the RevenueBot cloud service. Private traders usually write several bots at once and sell a finished product (sometimes with source code), usually for a fixed price. The exchanges themselves offer adapted options, and instead of buying a cryptocurrency bot, you can pay for a subscription, for example, for a separate package, or take a luxury robot with dozens of strategies in no limit. If you have a personal strategy, you can order an individual development for your ideas, although it will be more expensive.

3. Download free from the internet

Many versions are offered for certain exchanges (Bittrex, BitFinex, Binance, Kraken, Poloniex, GDAX, YOBIT), but no one will undertake to guarantee their reliability. Like everything free, you need to check carefully, especially those that do not give access to the program code. As a last resort, we recommend that you take the basic scripts and modify them yourself.

4. Use a Cryptobot in the Telegram channel

It works like regular currency exchange, the search for a buyer/seller goes through the Telegram platform, the commissions are low, but the reliability of prices and guarantees of the transaction is minimal.

5. Use AAAFX’s ZuluTrade Copy Trading System

You can’t call yourself a Copy Trading expert if you don’t know AAAFX’s Zulutrade platform. In this post I will talk about this topic, namely what AAAFX’s Zulutrade is and how it works but above all what are the opinions of traders on this social trading platform. The study is aimed at both beginner traders who want to discover the advantages of earning by copying the trading strategies of the best traders and professional investors who may have a brief knowledge of social trading. Even for the most experienced, therefore, this review can be an opportunity to discover the advantages of copy trading.

Go to AAAFX’s Official Website

What you should know before starting Robot Trading

In addition to poorly predictable volatility and the fact that cryptocurrency analytics are too complex to automate, cryptobots have prepared several pitfalls for you:

• A bot, even with a bunch of parameters, trades stably only in standard situations;
• Bots do not switch well between crypto assets in the trading process;
• High exchange commissions eat up the profit of an ineffective bot;
• Renting even a simple bot costs at least $ 10, and the cost of arbitrage can reach $ 500 per month, and with a small investment, the bot will not pay off soon;
• Fraudulent bots constantly “breed”, which, for example, transfer profit (or part of it) to a third party, leak information about the owner, etc .;
• Most crypto exchanges allow automatic trading, but it’s better to clarify this – during periods of strong speculation, an overly active stream of requests is usually blocked.

In any case, giving a robot a large capital is too dangerous, and buying a cryptocurrency bot in order to put it on minimum lots is unprofitable. If you want stability and control – write a cryptobot yourself; if it turns out to be a good option, it can also be sold.

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