HodlBot Review: Automated Crypto Trading & Investing Bot For Binance?
What Is HodlBot?
HodlBot is a cryptocurrency trading bot that helps traders automatically diversify and rebalance their cryptocurrency portfolios.
Unlike most crypto trading bots that focus on technical trading and signals, HodlBot specializes in indexing and rebalancing.
What is indexing?
Indexing is a passive, low-cost investing style that has become much more popular in recent years. By indexing, you diversify your portfolio to mirror what is in the market. This is typically done by weighting your portfolio according to the market capitalization of the top coins.
Indices aim to capture the average return of the market. Surprisingly, an index is really hard to beat. Research shows that 95% of active traders actually fail to beat indices in the long-run.
While cryptocurrency index ETFs are a long way away, you can use HodlBot to index the market with one of their pre-made indices: HODL10, HODL20, HODL30.
If you’re not satisfied with one of the pre-made indices, you can create your own.
When creating your own index you can:
- Choose the # of coins in the index by selecting a start rank, and end rank by market cap. e.g. ranks 20-50 by market cap
- Set min/max percentage caps for the coins in your index.
- Customize the weighting strategy – even, market cap, square root market cap
- Blacklist coins you don’t like. It’s replaced by the coin with the next highest market cap.
You can also create your own static portfolio based on fixed percentage weightings.
Once you’ve created a portfolio or an index, you can backtest the strategy to see how it would have fared in the past.
You can create and save as many portfolio as you want, but you can only activate one at a time.
When the market changes, your portfolio will start drifting away from its target allocations. In order to get you back to those target allocations, HodlBot will automatically execute the trades required on every rebalancing date. The default rebalancing date is 28 days, but you can customize it to whatever you want.
If you need to get out of the market in a hurry, HodlBot also has “cash out” feature. You can use it to convert up to 100% your portfolio in any coin. Convert your portfolio into stablecoin like USDC if you need to get out of the market in a hurry.
How Does HodlBot Work ?
HodlBot plugs into your Binance account, and uses the API to execute trades in order to match assets in your account with what’s in your target portfolio.For security purposes, HodlBot does not require API withdrawal access, meaning it cannot withdraw funds from your account.
If you already have Binance account, the set-up is quick and only takes about 2 minutes.
What Do You Need To Use HodlBot?
All you need is a Binance account to get started. Due to minimum trade sizes, a starting portfolio of $200 is recommended. It doesn’t matter what coins.
How much Does HodlBot Cost?
Hodlbot is free for all users under $500. For users above $500, HodlBot offers a 2 week free trial. Once the trial expires, the subscription costs $10/month.
The HodlBot Verdict
Most crypto trading bots are quite pricey, and require a lot of manual oversight and maintenance. But not HodlBot.
HodlBot is a great set-it and forget-it solution for cryptocurrency investors who don’t have the time to actively manage their portfolios.
If you’re a long-term, passive investor who wants broad cryptocurrency market exposure, but don’t want to deal with the hassle of manual trading, then HodlBot is the tool for you.
If you’re looking for a tool to help manage your portfolio and automate your rebalances, HodlBot is also a great solution.
The platform has great UI, and it is very beginner-friendly. On top of that the founding team is very transparent and responsive.
HodlBot is built to be an active, technical trading bot. If you’re looking to trade based on technical indicators and signals, there are significantly better bots to do that with. You can check out this guide for a list of the top cryptocurrency trading bots.