Cryptohopper- In recent years, the industry and understanding of cryptocurrencies have experienced astonishing growth. The market niche that this new technology has presented, has created the opportunity for many normal people to amass a good quantity of cryptocurrencies in their wallets, leading to an exponential growth in their wealth.
Even though they are quite young, cryptocurrencies have proved to be very trustworthy for many different purposes. The crypto community relies heavily on this new way of payments and wealth storage, which makes them want to accumulate more and more cryptocurrencies. There are three ways to do it: buying with fiat money; mining/staking; trading cryptocurrencies. Very possibly, the latter is the cheapest and most profitable of all of them.
This has led to a steady rise in the number of automated trading bots. These platforms allow the user to trade cryptocurrencies like Bitcoin and Ethereum automatically. You can be sleeping, working or simply not in front of your computer’s screen, no matter what, your bot will keep trading crypto to increase the value of your portfolio. Let me present to you the industry leader, Cryptohopper
Cryptohopper
Cryptohopper is the sensational crypto trading platform that basically allows you to do everything related to trading. Only by connecting your exchange account to Cryptohopper through API keys, your funds will be displayed in your Cryptohopper and you will be ready to start your crypto trading adventure.
Does it sound appealing? Read on.
Are you experienced in trading? Then you are going to love the strategy designer. You can create strategies with more than 130 technical indicators and candlestick patterns that will run 24/7 in any market you want.
Rather newbie in trading? They have something for you. It turns out that Cryptohopper is a fantastic social trading platform as well. They have integrated a marketplace where users can copy experienced traders with just one click. This marketplace offers absolutely everything, signals, strategies, that can be bought from experienced traders; and templates, which basically are the settings of the bot, like stop loss, take profit, etc.
The marketplace can become very handy for every trader, independently of his level of knowledge. Subscribing to signals or purchasing a strategy from the marketplace will let you trade automatically as you were a professional trader. And in case you would prefer to create your own trading strategy and let it run 24/7, you could juggle both to increase your trading frequency.
Features
Cryptohopper is the most complete trading platform. It has many different features, so every user can find his/her best way to trade. These are some of the features that you should, no doubt, use in your trading strategy:
- Automatic trading
1. Create an account; 2. Copy-paste your API keys; 3. Design a strategy or follow an experienced trader; 4. Adjust your bot’s configurations. That’s all. You are 4 easy steps away from automating your trading. Select your favorite coins and let the bot scan the market while you just monitor it. - Strategy designer
The Strategy designer makes algorithmic trading easy for every person. Simply by selecting the indicators or candlestick patterns that you would like to trade, you can create a trading strategy that will trade tirelessly in the volatile crypto market.
1. Select the indicators and/or candlestick patterns; 2. Adjust its settings and select the candle size; 3. Quickly test the results that that strategy would have obtained during the last days. - Types of bots
Apart from the normal trading bot, recently, the Cryptohopper team has added two brand new type of bots that has been highly demanded by every single crypto trader: The Market Making and Exchange Arbitrage bot. Very interesting bots that we will review them more deeply down below. - Trailing stop loss
This feature is starting to get used by every crypto trader out there. The trailing stop loss will sell your positions for the maximum profit. This function will track upwards a position and will sell it once it starts to fall. As soon as a positive position has decreased by a specific percentage that you set, it will be sold immediately. Then, preventing it from going into red.
- Paper trading
Test, test and test is highly recommended. With paper trading will be worthy. - Backtesting
Paper trading is a fantastic way to test your strategies in a very short period of time. Select a strategy; configure parameters like take profit, stop loss and trailing stop loss; choose time frame and click on start. The result displayed will look like the following image:
Types of trading bots
As mentioned above, Cryptohopper has surprised everybody after the release of two new bots that have been highly requested by many crypto traders. Now, the platform counts with three different trading bots to let the user customise his strategy to the next level: The trading bot with indicators and candlestick patterns, the market maker bot and the exchange/market arbitrage bot.
Let’s dive a bit deeper into the recently released ones .
- Market Maker bot
Market making is a very common practice among high-frequency traders. It consists of trading the difference between the bid (buy price) and the ask (sell price), also known as the spread.
After setting up the market you would like to trade and in which exchange you would like to do so, your hopper will start trading the spread. Tirelessly 24/7. This new type of bot brings the user closer to advanced trading methods in an incredibly user-friendly way. - Exchange and Market Arbitrage bot
In the crypto market, arbitrage has proved to be an incredibly efficient trading strategy. It takes advantage of market inefficiencies to pocket price differences among cryptocurrencies. Price differences mainly caused by the high volatility of these markets.
Even though it might seem like one bot, it is two different bots: The market arbitrage bot and the exchange bot.
Let’s begin with the market arbitrage bot. It refers to the type of arbitrage carried out in one single exchange. But, you might wonder, how is it possible to spot price divergences within the same exchange? The answer is through a third coin, also called triangular arbitrage.
Example: the bot has found a triangular arbitrage opportunity between the coins BTC, ETH and LTC. Let’s say that your base coin is BTC. Then, the bot will sell BTC to buy ETH. Thereafter, it will sell the ETH to buy LTC. And finally, it will sell LTC to buy back BTC. This loop will end up increasing your BTC portfolio due to price divergences in the process.
Exchange arbitrage implies buying certain cryptocurrencies in exchanges where they are cheap, to thereafter sell them in another exchange for a higher price. This strategy has proved to be highly profitable in the crypto market for several years, and now it is possible to automate your exchange arbitrage strategy! Something that no one has been able to do before in an automated manner and for commercial use.
Just by having an account on, at least, two exchanges and funding them with the cryptos you would like do arbitrage with, the hopper will start trading market inefficiencies. No matter if you are in front of the charts or not, the hopper will keep trading.
Market inefficiencies sometimes are notable in the cryptocurrency market. Having this bot will, no doubt, capture them immediately and keep the gain in your wallet.
Wrapping up, Cryptohopper is a very complete trading platform where the user can automate a trading strategy and copy experience traders, as well as put in practice advanced trading strategies like arbitrage and market-making. And most importantly, so user-friendly that everyone can become a trader!
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