AI trading bots are cool. But even cooler is that they can get better at trading when you use them only for one specific trading style. This assures you that your trades are more likely to succeed and helps you hone and diversify your passive income strategy better.
In this article, we’ll be covering automated trading with three significant kinds of crypto trading styles— futures, spot, and bitcoin trading. Without further ado, let’s dive in.
What are Futures AI Trading Bots
Futures AI trading bots are special automated computer programs that use artificial intelligence algorithms to execute trades in futures markets. They buy and sell futures and derivatives contracts on your behalf to make profits.
Futures contracts in crypto are derivatives. They are financial assets that derive their value from an underlying asset. For instance, a bitcoin or BTC futures contract has its value based on the future price of that specific amount of bitcoin.
Furthermore, futures are agreements to buy or sell an asset at a predetermined price on a specified future date. So, futures trading bots trade cryptocurrencies at speculative prices and make a profit if the trade goes right.
This kind of trading is perhaps the riskiest as it involves leverage and could quickly go south as the market is highly volatile. Yet, done right, it can be very profitable. AI bots can predict crypto asset prices using advanced algorithms, fundamental and technical analysis, and sentiment analysis. This makes them an excellent option for passive futures trading.
What is Spot AI Crypto Trading
Spot trading is one of the most popular kinds of crypto trading. It involves buying or selling cryptocurrencies at prevailing market prices.
More often than not, the main goal of spot trading is to own cryptocurrencies. But sometimes, people buy them intending to profit from selling them when their prices go up. Or sell them to avoid making losses when their prices go down.
Spot trading bots automate this process, enabling you to make profits, however small, from these trading activities. They can sense the best times to buy and sell cryptocurrencies with their predictive AI technology and preprogrammed indicators.
Understanding Bitcoin AI Crypto Trading
Bitcoin trading is vast, as there are many ways to trade this pioneer cryptocurrency. It’s best to note that Bitcoin is relatively more stable than most other cryptocurrencies. So, while it does have significant price movements over time, they’re comparatively less volatile or impacted by major events such as the recent ETF approval.
That means that there are different ways to profit from it. But two of the most common trading styles employed in Bitcoin trading are swing and position trading, both of which AI trading bots can achieve.
Swing trading involves buying Bitcoin at a specific price you’ve inferred as the local bottom or support and holding until it reaches a particular price or resistance. This is a long-swing trading move.
A short-swing trading move involves the opposite. It’s selling your Bitcoin at a price you think is the highest in a certain period and waiting for the price to drop to a predicted price before buying again. This enables you to make a profit.
With swing trading, especially when you’re going long, you can increase your position as you become more confident that the value of Bitcoin will reach your prediction. This enables you to make more profits.
Of course, this entire process can be automated with Bitcoin trading bots.
Position trading is similar to swing trading. The significant difference is the timing. Position trading involves buying Bitcoin at a specific price and holding the coin for a very long time until it reaches an exact higher price.
You don’t really need AI trading bots to do position trading over long timeframes. However, if you’re trading Bitcoin futures or derivs, you definitely could use AI trading bots.
That said, let’s take a look at some of our top trading bot recommendations for these trading styles.
Best 3 AI Crypto Trading Bots for Spot, Bitcoin, and Futures Trading
In our opinion, these are the top 3 AI trading bots for the trading styles mentioned above.
- Crypticorn AI Trading Bots— Overall Best Trading Bot
- Cryptohopper— Best Optimized for a wide range of CEXes
- Kryll— Best User Interface
1. Crypticorn AI Trading Bots— Overall Best Trading Bot
Crypticorn offers some of the most advanced AI trading bots in the crypto space today. These bots are equipped with state-of-the-art machine learning technology and a wide range of pre-installed technical indicators such as MACD, RSI, Bollinger bands, and others. Combined with stellar sentiment analysis technology, these AI trading bots can make accurate predictions and execute trades with ease.
They are also compatible with a range of popular exchanges and cryptocurrencies. To access these bots, all you need to do is sign up for the $AIC token presale.
2. Cryptohopper— Best Optimized for a wide range of CEXes
Cryptohopper is one of the most popular AI trading bot providers. Their bots offer seamless trading and smooth integration with several CEXes. They support almost 20 crypto exchanges and provide a 3-day free trial with their bot. Also, depending on your preference, you can customize this bot for spot trading or futures trading.
3. Kryll— Best User Interface
Kryll is another trading bot provider that has gained popularity over the years. Its trading bot is offered both over the web and via its mobile app.
It allows for several trading styles, including futures and spot trading, and it also supports a wide range of cryptocurrencies, including Bitcoin. Its user-friendly interface is one of its astounding features, making it an excellent option for beginners.
Crypto trading using AI bots is a great way to automate your trading process. If you can tweak them to trade using only one strategy continually, they’ll become even more accurate over time, enabling you to make more profits.
In this article, we’ve covered the basics of using these automated bots for spot, futures, and Bitcoin trading. With the tips in this article, you can begin profitable automated trading.
The information provided in this article is not intended as financial advice. Make sure only to trade crypto assets you’re comfortable with losing, as crypto market conditions can be unpredictable sometimes. Always consider setting relatively safe stop loss levels before engaging a set-up. While you may make a lot of profits using its product, Crypticorn is not liable for any financial losses you incur when trading.
Are AI Trading Bots Legit?
Yes, AI trading bots are legit. They can execute trades and make profits using preprogrammed algorithms and trading strategies
What Are The Best AI Futures Trading Software?
Crypticorn, Kryll, and Cryptohopper are some of the best AI futures trading software today. They are easy to use and accurate and support many cryptocurrencies and trading platforms.
Does Bot Trading Work?
Yes, bot trading works. Their efficiency and accuracy, however, depend on several factors, primarily their underlying algorithm and the trading strategy they use.