When it comes to automated crypto trading apps, there are a lot of them out there. So, how do you know which one is the best for you? In this blog post, we will explain and explore the different types of cryptocurrency platforms and exchanges, and help you decide which cryptocurrency trading bot is right for you. We will also provide examples of some of the most popular automated crypto trading platforms currently available.
What is a Cryptocurrency Platform?
A cryptocurrency trading platform is a software program or mobile application that allows you to trade cryptocurrencies. Some popular cryptocurrency trading platforms include Coinbase, eToro, Robinhood, Bittrex, Bitfinex, and Gemini although we will discuss these in more detail soon!
What is a Cryptocurrency Exchange?
Cryptocurrency exchanges are platforms that allow you to buy, sell, or trade cryptocurrencies. They typically charge a fee for each transaction. Some popular exchanges include Coinbase, Binance, and Kraken.
What is the Difference Between a Crypto Exchange and a Crypto Platform?
The difference between a cryptocurrency exchange and a cryptocurrency platform is pretty simple: A cryptocurrency exchange provides an interface where crypto traders can purchase, sell, and trade cryptocurrencies; whereas a cryptocurrency platform offers a variety of tools and services to manage portfolios. For example, Coinbase is both a cryptocurrency exchange as well as a cryptocurrency wallet.
How Does a Crypto Exchange Work?
When you want to purchase a coin on an exchange, you need to first deposit fiat currency into your account. Then, you can use your funds to make purchases. The process is similar when selling coins. You withdraw funds from your account, then send those funds to another wallet where they are used to pay for a sale.
Advantages of Using Automated Crypto Trading Apps
There are several advantages to using automated trading apps. First, you don’t have to be present for the execution of trades. This means you can focus more on other activities while your mobile app does all the work for you. Second, you can set up rules that will determine whether or not you should enter a trade based on market conditions. Third, you can quickly scale up your crypto portfolio by adding additional accounts. Finally, you can save money because you won’t have to pay a trading fee to transact with the exchange.
Best Crypto Trading Bot Platforms
Now that you know more about Automated trading bots, it’s time to examine some of the top ones currently available.
Pionex is a relatively new cryptocurrency exchange that was launched in 2019. Pionex has been growing rapidly since then, and now boasts over $30 million in daily trade volume. It is headquartered in Singapore, but supports users around the world. Pionex features a multi-currency wallet, 24/7 customer support, and a wide range of advanced order types.
eToro is one of the oldest cryptocurrency exchanges, having launched back in 2010. Like many other exchanges, eToro charges a small percentage of every transaction made through their site. However, they offer a free demo account so you can try out their service before making a full commitment. eToro also offers margin trading, which lets you borrow funds against your own assets.
CoinSmart is another relatively new cryptocurrency exchange. Although CoinSmart doesn’t have quite the same amount of liquidity as its competitors, it does feature low fees, fast transactions, and a user-friendly interface. In addition, CoinSmart offers margin trading, which allows you to leverage your investments.
Coinmama is a relatively new automated trading platform that focuses primarily on US customers. They charge no fees for deposits or withdrawals, and allow you to easily buy Bitcoin, Ethereum, and Litecoin. Coinmama also offers a mobile application that makes it easy to access your account anywhere.
Binance is one of the largest cryptocurrency exchanges in the world. Binance US started off as a cryptocurrency exchange called binance.org, but later rebranded itself as Binance.com. Today, Binance is still one of the most popular places to buy and sell cryptocurrencies. Binance offers both fiat and crypto currencies, and provides a secure wallet for storing your digital assets.
Bybit is a relatively new cryptocurrency broker that specializes in providing services to traders who prefer to remain anonymous. Bybit claims to provide the best rates and lowest trading fees among all brokers. They also boast a large number of altcoins listed on their platform. Bybit offers both an API (application programming interface) and web version of their platform, allowing them to cater to different levels of experience.
Kraken is one of the biggest cryptocurrency exchanges in the world, boasting a high level of security and reliability. Kraken is based out of San Francisco, California, and accepts payments from all countries. Kraken offers a variety of payment methods including credit cards, bank transfers, and SEPA transfers.
The Cash App recently began offering crypto trading services. The app is available for Android and iOS devices, and lets you purchase BTC, ETH, LTC, XRP, and USDT with your debit card. You can even use the app to send money to friends and family using their phone numbers.
Bisq is a decentralized exchange that runs entirely peer-to-peer. Bisq’s goal is to create a truly trustless environment where anyone can perform trades without needing to deposit any funds into an intermediary. This means that there are no third parties involved in order to make a trade happen. Instead, users post their orders directly onto the network, and if someone else wants to fill that order, then they simply contact the person posting the order and complete the trade.
Coinbase and Coinbase Pro are among some of the most well-known brokers when it comes to buying and selling cryptocurrencies like Bitcoin, Ethereum, and Ripple. Coinbase has over 20 million users worldwide and is generally considered the easiest place to buy bitcoin because of its simple signup process and intuitive design. Coinbase charges a 1% fee per transaction.
Gemini is another popular brokerage that deals exclusively in cryptocurrencies. It was founded by the Winklevoss twins and is headquartered in New York. Gemini offers many of the same features as Coinbase, such as instant purchases and free transactions. Gemini does not require ID verification and only requires that you verify your email address before opening an account.
CryptoPro is a broker that allows people to buy and sell bitcoins through their website or mobile apps. CryptoPro is similar to Coinbase Pro.
Blockfi is a relatively new brokerage that focuses on institutional investors. Blockfi’s main focus is to help institutions invest in various blockchain projects. Blockfi currently supports six coins: Bitcoin, Ethereum, Litecoin, EOS, Stellar Lumens, and Zcash.
Robinhood is a financial services company that makes investing in stocks easy. Robinhood doesn’t charge trading fees and instead takes a commission off the top of each trade. Robinhood is great for beginners looking to dip their toes into the stock market.
Crypto Trading Strategy
Even when using trade bots it’s important to maintain responsible portfolio management. You don’t have to be a professional trader to understand how manual trading works. Successful traders understand the disadvantages of trading bots as well as the advantages.
In closing, not all crypto-bot trading platforms are created equal. Some have better customer service than others, some offer more advanced tools, and some just plain work faster. We hope this list helps you find the best platform for your needs. If you still want to learn more about crypto trading, check out Do Crypto Trading Bots Really Work?