Even after many challenging years, Ethereum (ETH) still manages to be one of the most popular cryptocurrencies in the market, being bested only by Bitcoin when it comes to the size of its market cap. The coin is traded on pretty much every exchange, even though its primary purpose is to serve as a development platform.
As many are probably already aware of, Ethereum was launched back in 2015 by Vitalik Buterin. It was designed as an open software platform built on blockchain technology. Since then, it became known as the most popular platform for creating new tokens, smart contracts, and decentralized applications (dApps).
However, as mentioned, the popularity of its native coin, Ether, should also not be overlooked, as it is a necessary component that fuels the platform and its products. Because of this, ETH can be bought or sold on a large number of crypto exchanges. Apart from being used to fuel the network, it also works as a payment method for transaction fees within its network, similarly to Bitcoin.
In addition, miners also receive ETH as rewards for processing transactions. A large number of use cases within its own ecosystem have made ETH useful and popular, and the coin currently holds the second rank on the list of largest cryptocurrencies by market cap, with its current price being $150.56 according to TradingView.
However, just like when it comes to Bitcoin, Ethereum's price is subjected to sharp rises and drops, which encourages traders to be on a constant lookout for the best trading opportunities. Since no one can be present at all time, and most people need to work and sleep, some of these opportunities can be quite easy to miss. This is why trading bots were developed.
Ethereum Trading Bots
In simple terms, trading bots are pieces of software that allow traders to set up certain trading parameters within which the bots would operate. They can keep an eye on the market, follow patterns, as well as other indicators regarding the coins' prices. When certain pre-determined conditions are met, bots can execute trades automatically, without the need for human intervention.
Many are using them today as a convenient way to keep an eye on the market and not miss good trading opportunities. Traders can then go about their daily routines without having to worry about volatility and missing out on a good trade.
Of course, a lot depends on the trader's choice when it comes to trading bots themselves, as they all offer different additional features and options. They come at different prices too, with some of them being free, while others can be quite expensive. While most bots are designed to trade Bitcoin, there are also a few which can be used for trading Ether.
Which Trading Bots are the Best for Ethereum Trading?
CryptoTrader is not exactly a trading bot, but more of an entire trading platform. However, it provides a number of useful features that allow users to create their own personalized strategies. As a result, it can be set in a way that allows it to function similarly to a trading bot. It is used by Bitcoin traders, as well as altcoin traders so that Ethereum can be traded just as easily. Additionally, the platform uses cloud technology, and no other software is required.
While the name indicates that this is a bot that only deals in Bitcoin, it can actually serve for Ethereum trading as well. It offers a number of interesting and useful features, such as constant monitoring of exchange rates, and the ability to analyze charts. This can be very useful for noticing patterns, predicting the price movements, and reacting instantly when the price reaches the desired heights or lows.
As a result, BTC Robot can generate more than a decent profit. It also comes with a 60-day guarantee and even a trial period which allows traders to check whether or not they are satisfied with the service.
This is a bot that uses software with a core trading algorithm which has the ability to include traders' suggestions over time. It works with a number of exchanges, with new ones constantly being added. Furthermore, users can choose to subscribe to the service, as the subscription offers some flexible licenses.
Different licenses correspond to different levels of trading experience, which also come at different prices. The bot will do all the work, which leaves the trader free to go about their business without having to worry about the market.
PHPTrader is another trading bot which started with Bitcoin in mind. However, over time, it expanded, and it now includes Ethereum as well. It is also a convenient option as it is compatible with pretty much any Raspberry Pi model. Its interface is simple to use and understand, but it also offers all the necessary trading features.
To use this trading bot, users need to have a Coinbase account, since this is the only exchange that the bot supports. While this may change in the future, Coinbase is the only option at the moment. It is also worthy to note that the bot cannot predict the price trends or perform analysis, as it is not really designed to handle large investments. As a result, it is probably not the best option for experienced traders, but it is a pretty good way for novices to enter the bot-based crypto trading business.