Bitcoin

How to Buy Ethereum, Best Exchange Ratings

Ethereum (Ether) launched mid-2015 but quickly surpassed the market cap of all other cryptocurrencies–except for Bitcoin. At the start of 2017, the price of 1 ETH was less than $10. Since this time, the price at one point reached higher than 40 times its 2017 starting price.

This incredible growth in price, combined with a wider understanding of the Ethereum’s potential, has many new investors looking to buy Ethereum.

How to Buy Ethereum

The easiest way to purchase Ethereum is through an online cryptocurrency exchange. There have been many new businesses that offer services to facilitate the exchange of cryptocurrencies, as they have seen a rise in popularity.

With so much choice our goal to help you choose the right exchange . This guide will explain the differences among exchanges and link to reviews and user guides for each one.

The Best Ethereum Exchanges

Rank	Site	Review	Buy Options	Available Cryptocurrencies	Fees	Trust	Rating	Visit Site
1	Coinbase	Coinbase Review	Bank Transfer, Credit Card	BTC, ETH, LTC	Higher	A+	4.6	Visit Coinbase
2	Gemini	Gemini Review	Bank Transfer	BTC, ETH	Very Low	A+	4.4	Visit Gemini
3	BlockFi	BlockFi Review	Bank Transfer	BTC, ETH, + more	Low	A+	4.6	Visit BlockFi
4	Bittrex	Bittrex Review	Cryptocurrency	250+ Trading Pairs	Very Low	A	4.2	Visit Bittrex
5	Celsius	Celsius Review	Cryptocurrency	BTC, ETH, and more	Very Low	A	4.5	Visit Celsius
6	Kraken	Kraken Review	Bank Transfer	BTC, ETH, LTC, DASH, XRP, 10+ More	Very Low	A	4	Visit Kraken
7	Coinbase Pro	Coinbase Pro Review	Bank Transfer	BTC, ETH, LTC	Very Low	A+	4	Visit GDAX
8	Robinhood	Robinhood Review	Bank Transfer	BTC, ETH, LTC	Low	A	4.6	Visit Robinhood
9	Voyager	Voyager Review	Bank Transfer	BTC, ETH, LTC	Low	A	4.5	Visit Voyager

Although all these exchanges facilitate buying and selling of cryptocurrencies, they work in different ways. We have outlined three types of cryptocurrency exchanges to make it easier for you:

Group A: Fiat to Crypto Onramps

This first group of exchanges lets users trade fiat currencies (USD and EUR, GBP, etc.).

This first group of exchanges allows users to trade fiat currencies (USD, EUR, GBP etc.) and cryptocurrencies on an unregulated market. These sites work in the same way as traditional forex and stock markets, allowing users limit, market, stop, stop and margin trades.

These sites offer limited deposit and withdrawal options for fiat currencies. They most often offer bank wires and bank transfer.

Although these sites can be confusing for new users, they usually have the lowest fees of any group.

Exchanges include Gemini and Kraken, GDAX & CEX.IO. (CEX.IO also has group B offerings).

Group B: Ease of Use

The second group of exchanges operates more like an “online cryptocurrency retail store”. They facilitate the purchase and selling of cryptocurrency directly with their users, rather than having them trade on a market. This creates a more beginner-friendly process than group A exchanges.

These exchanges allow users to make purchase with debit or credit cards , as well as bank wires/transfers.

Although these sites are often regarded as the easiest way for beginners to purchase and sell Ethereum, they also charge higher fees that Group A exchanges.

Exchanges within Group B include Coinbase and CEX.IO as well as Coinmama.

Group C: Best for Trading

This last group of exchanges works similarly to Group A, but offers cryptocurrency trading. This means on these exchanges you can only trade cryptocurrencies for other cryptocurrencies. This group doesn’t offer the possibility to trade cryptocurrencies for fiat currency.

Exchanges within Group C include Bittrex (we don’t recommend Poloniex).

3 Beginner Friendly Methods for Buying Ethereum

Many startups have sprung up to assist customers in buying and selling cryptocurrencies. There are many places you can buy Ether, and these are the top three most trusted and recommended for beginners.

1) Coinbase

Coinbase are our top recommendations for beginners who want to buy Ether. Coinbase has functions that can be used as a training wheel for newcomers.

With its initial launch in 2012, Coinbase aimed to create an easier way to buy and sell Bitcoin. Coinbase facilitates cryptocurrency exchanges directly to its users, unlike traditional cryptocurrency exchanges. There are many advantages to Coinbase’s site over other exchanges.

Your guaranteed price and fees are clearly stated at the time of your order. This eliminates the need to deal with complex market interfaces.
You can lock in prices for your first order faster on Coinbase than on most exchanges. Coinbase locks your price immediately you place an order. After your deposit clears, you will be credited with the cryptocurrency purchased.
You can use credit and debit cards for instant Coinbase purchases, although your limits will be substantially lower than if using a bank transfer.

Sensing an increase in demand for Ether, Coinbase added Ethereum support in 2016. The Ethereum service now comes with the same benefits and benefits as the original Bitcoin service.

Buy Ethereum on Coinbase

While we recommend storing cryptocurrency in a wallet that you have full control over, Coinbase does offer one of the most secure online wallets. Your Coinbase wallet can be used to store, send and receive Ethereum.

Coinbase is a trusted name in cryptocurrency. The company is based out of San Francisco, California and has received numerous investments from big-name venture capitalists, and is notably valued at $1.6 billion. The company is a U.S.-based exchange for digital assets. It adheres to all applicable laws and regulations. Coinbase has helped over 11 million users in 32 countries exchange more than $20 billion in digital currency.

You can sign up for Coinbase or learn more in our complete Coinbase Review and User Guide.

2) Gemini

Tyler and Cameron Winklevoss founded Gemini in 2015. The New York State Department of Financial Services regulates the company. They have a strong reputation despite being less established than other competitors.

Gemini is a traditional cryptocurrency exchange. Users can trade on the website with other users in their market. It functions as a Forex or traditional stock exchange.

Gemini Ether Exchange

Gemini customers can trade Bitcoin, Ethereum and USD. Unfortunately, withdrawals and deposits can only be made via bank transfer or bank wire. The site allows you to trade while your deposits are still being processed. This allows users to lock in purchase prices much faster than traditional exchanges. Gemini still offers the very affordable that are associated with “Group-A exchanges”.

While we think Gemini is a bit less user-friendly than Coinbase, the team behind it has done an amazing job creating an interface that’s simple to use.

You can learn more by reading our Gemini review or you can sign up to Gemini here.

Based in London, CEX.IO is another trusted method to buy cryptocurrency.

The company was initially started in 2013 as both a Bitcoin exchange and cloud mining service provider. In 2016, the company added Ethereum to its platform and ended its cloud mining service. Recently, they added Zcash and Dash to their platform.

CEX.IO allows you to exchange your currency and also offers easy buy/sell options. This site allows you to deposit and withdraw with bank transfers and credit cards. The site also offers higher credit limits to verified members than Coinbase.

Buy Ethereum on CEX.IO

The downside to CEX.IO, compared to Coinbase, is its potential higher fees. CEX.IO can still be a viable option for those who want to make large purchases using credit cards ,, or users in other locations that are not supported by Coinbase.

You can learn more in our CEX.IO review or sign up there now.

More Exchanges

For the majority of people reading this, one or more of the three listed exchanges are the best options for purchasing Ethereum.

Coinbase – Most widely trusted and easiest to use exchange.
Gemini – Very low fees, while still being relatively beginner-friendly.
CEX.IO – Very high credit card purchasing limits compared to alternatives.

We understand that everyone has different needs so we have included more options.

Bittrex

Bittrex offers trading of cryptocurrencies for other currencies only, as previously stated. Bittrex does not offer the ability to deposit fiat currencies. Bittrex is not recommended for anyone who is buying cryptocurrency for the first time.

Bittrex Ethereum & Bitcoin trading pair

Bittrex is a leading exchange for serious traders. The site offers over 250+ trading pairs, denominated in Bitcoin, Ethereum, and Tether markets. Bittrex allows you to trade Bitcoin for Ethereum or other lesser-known altcoins if you already have Bitcoin. It is a popular choice for cryptocurrency traders and speculators.

Bittrex is located in the United States and was founded in 2014. They provide excellent customer service and have very low fees.

Coinmama

Coinmama offers another option for people who want to purchase large amounts of Ethereum with their credit cards. Users can purchase Bitcoin and Ethereum on the Slovakian exchange.

Unlike Coinbase and CEX.IO, Coinmama does not offer a wallet service, meaning you will have to provide an Ethereum address from a separate wallet where your Ether can be sent. We view it as less user-friendly than the other competitors.

Buy Ether on Coinmama

Coinmama charges high fees, similar to CEX.IO which has high credit card purchase limits. You can compare credit card fees between exchanges in the credit card section below.

GDAX

GDAX are both owned by the same company as Coinbase. GDAX, an exchange for serious traders, is a more advanced offering than Coinbase.

The site allows users place limit, stop, and market orders for the following trading pairs

BTC/USD. BTC/EUR. BTC/GBP. ETH/USD. ETH/EUR. ETH/BTC. .

You can fund your account via bank wires and wire transfers, or via your Coinbase account. To learn more about the differences between GDAX and Coinbase, read our GDAX vs Coinbase comparison.

Kraken

Kraken, another exchange option, allows you to trade fiat currencies in order to buy Ethereum and other cryptocurrencies. They allow users to deposit fiat currencies via bank wires and bank transfers, just like Coinbase and Gemini. This site offers more altcoins than its competitors. We recommend that you choose between Poloniex and Kraken as they are the best options.

kraken buy & sell orders

Although Kraken doesn’t offer as many cryptocurrencies as Bittrex to trade, they offer the following cryptocurrencies for trade:

Ethereum, Bitcoin, Litecoin, Ripple, Monero, Zcash, Dash, Ethereum Classic, Gnosis, Iconomi, Melon, EOS, Augur, Tether, Dogecoin, Stellar, Bitcoin Cash

Established in 2011, the company has built a solid reputation in the cryptocurrency community over the years. However, they seem to have more complaints regarding slow customer service than their competitors. Their poor user interface is another common complaint.

Buy Ethereum with a Credit Card

Many cryptocurrency novices hope to use a credit-card to make their first purchase. Unfortunately, not all exchanges accept credit cards. Credit cards are open to fraud, chargebacks and high fees for those that accept them.

There are a few cryptocurrency exchanges that accept credit cards. Click on each review to learn more about the site.

*CEX.IO fees are estimates for “Buy/Sell FOK orders.” When trading is done on their exchange, fees are generally lower.

Ethereum Buyer’s Guide FAQ

Unfortunately, we do not have enough time to answer every individual question readers have when it comes time to make their first Ether purchase. We have listed many of the most frequently asked questions by Ethereum newcomers.

What’s the difference between Ethereum and Ether?

Ether refers to the currency of Ethereum. Although technically, the currency is not known as Ethereum. However, it is used interchangeably to refer both to the network and the currency. To avoid confusion and keep our readers informed, we also use “Ethereum” interchangeably.

For a deeper understanding, we recommend our Beginners Guide to Ethereum .

Do I have to Buy an Entire Ether?

No! Ether is divisible to 18 decimal places. You can purchase Ether from any exchange. 000000000000000001 Ether (worth a fraction of a US cent), most will allow you to deposit as little as $10.

How Does CoinCentral Rate Exchanges?

We aim to answer all the questions that cryptocurrency traders have when rating and reviewing exchanges. We therefore focus on the following:

Beginner Friendliness
Customer Support
Community Sentiment
Fees
Deposit and Withdrawal Methods
Available Cryptocurrencies

It is important for our readers to understand that the final rating number is a combination all six of these factors. Bittrex is not the best exchange, but it may be more highly rated than GDAX. Bittrex’s rating has been boosted by the availability of cryptocurrencies to trade. However, they are lower than GDAX for deposit and withdrawal options because they don’t offer fiat payment options. To get the best out of our reviews, it is important that you actually read them in order to make informed decisions.

We have a few reviewers who write our reviews. Although our reviewers try to be objective and provide facts, it is impossible to guarantee that all reviews are factual.

How Should I Store My Ether?

It is not recommended to store large amounts on any cryptocurrency exchanges long-term. Two main reasons are why this is so.

Whenever a cryptocurrency wallet or exchange account is hosted online, it creates an opportunity for hackers to breach the account. Use a secure password and enable 2-Factor authentication (2FA) to protect your account. Not recommended: SMS text 2FA is not recommended. Apps like Google Authenticator or Authy are considered to be safer.
Most online exchanges are controlled by central authorities (businesses). Because you don’t have access to your wallet keys, these businesses control your cryptocurrency wallets. It is recommended that you store your cryptocurrency in a wallet you have complete control of.

You can learn more in our Ethereum Wallet Guide.

Should I Buy / Is it too Late to Invest in Ethereum?

Whether you should invest in Ethereum, is ultimately up to you. You should research the market and only invest what you can afford to lose.

With that said, Ethereum’s potential would far exceed current prices if it ever achieves its full potential. The development of cryptocurrency as a whole is still in its early stages.

Where Can I Buy Other Cryptocurrencies?

While all the exchanges mentioned above can be used for buying various cryptocurrencies, we have created guides to help you find the right coins:

Bitcoin

Arbitrum DAO okays proposal to boost ARB performance and treasury security

Arbitrum DAO approves a proposal targeting ARB utility and enhancing treasury security. The proposal introduces ARB token staking and retaking using stARB tokens. Measures aim to address ARB token underperformance and strengthen the DAO structure. The Arbitrum DAO has taken a significant step to strengthen its ecosystem by approving a proposal focused on boosting the…

Arbitrum DAO approves a proposal targeting ARB utility and enhancing treasury security.
The proposal introduces ARB token staking and retaking using stARB tokens.
Measures aim to address ARB token underperformance and strengthen the DAO structure.

The Arbitrum DAO has taken a significant step to strengthen its ecosystem by approving a proposal focused on boosting the utility of the ARB token and enhancing governance security.

Garnering an overwhelming 91% approval from over 25,000 participants, the proposal introduces ARB staking and a new liquidity-staking token, stARB, as part of a strategic initiative to address token underperformance and secure the DAO’s growing treasury.

Introduction of a new ARB staking and restaking mechanism

The core of the newly approved proposal is designed to unlock the utility of the Arbitrum (ARB) token by enabling a staking mechanism.

This initiative allows ARB tokenholders to stake and delegate their tokens in exchange for stARB, a liquidity-staking token introduced through the Tally protocol.

The stARB token offers automatic compounding of future rewards, restaking options, and compatibility with various decentralized finance (DeFi) applications, thereby integrating more deeply into the DeFi ecosystem.

While the proposal stops short of immediately distributing fees to token holders, it sets the stage for future benefits. By staking ARB tokens and actively participating in delegation, holders will eventually be eligible to receive surplus sequencer fees.

This mechanism is expected to incentivize greater voter participation within the DAO, addressing the current issue of low engagement among ARB token holders.

A key concern highlighted in the proposal is the underperformance of the ARB token in terms of value accrual. Currently, less than 1% of ARB tokens are actively utilized within the on-chain ecosystem, and voter participation has seen a decline since the DAO’s inception.

The proposal also emphasizes the need to protect the Arbitrum treasury, which has become an increasingly attractive target for potential governance attacks.

By implementing the staking mechanism and encouraging active delegation, the DAO aims to create a more secure governance structure.

This proactive approach is crucial for safeguarding the treasury and ensuring the integrity of the governance process, marking a significant milestone in the ongoing development of the Arbitrum ecosystem.

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Bitcoin

Bitcoin Dogs to list on 3 major exchanges: Will 0DOG price explode?

Bitcoin Dogs (0DOG) will list on Gate.io, MEXC and Unisat on Aug. 21. What does listing on the 3 crypto exchanges mean for 0DOG? Bitcoin Dogs (0D0G) will be making its market debut with a bang as three major exchanges announce trading support. Investors who have waited since the Bitcoin Dogs’ successful presale are excited…

Bitcoin Dogs (0DOG) will list on Gate.io, MEXC and Unisat on Aug. 21.
What does listing on the 3 crypto exchanges mean for 0DOG?

Bitcoin Dogs (0D0G) will be making its market debut with a bang as three major exchanges announce trading support.

Investors who have waited since the Bitcoin Dogs’ successful presale are excited as listings and token claims get a clearer timeline. But what does this milestone mean for 0DOG price?

Gate, MEXC to list Bitcoin Dogs

After making history as the world’s first BRC-20 token ICO on the Bitcoin network, 0DOG is poised to land on Gate.io, MEXC and Unisat. The cryptocurrency exchanges will list the play-to-earn and non-fungible token platform’s native token on Aug. 21, 2024.

🚨HUGE ANNOUNCEMENT, DAWGZ!🚨

Bitcoin Dogs is set to hit not one, but THREE EXCHANGES in just 6 days! 🐶🚀

$0DOG will officially list on @gate_io, @MEXC_Official, AND @unisat_wallet on the 21st August, 11AM UTC!

✅ Tier 1 exchange

✅ Billions in daily volume

✅… pic.twitter.com/paUiZ5ngT6

— BitcoinDogsClub (@BitcoinDogsClub) August 15, 2024

This is a major milestone for the project, which secured more than $13.4 million in its presale.

In the next five days, 0DOG will be available across Gate.io, MEXC and UniSat – platforms that together have a combined trading volume of over $2.5 billion in daily trading volume. Gate.io and MEXC are top tier crypto exchanges with over $1 billion each in 24-hour volume.

Bitcoin Dogs game via Telegram mini-app

News that Bitcoin Dogs will go live on exchanges in coming days has interest in the project back to levels seen during the ICO. This also comes as the team behind the BRC-20 project hit key roadmap landmarks, including developments on the P2E ecosystem, 10K Ordinals NFTs and staking.

In the upcoming game, aspects such as PvP battles, exclusive access and mobile/Telegram app support has Bitcoin Dogs poised to hit the market as recent hits such as Kombat Hamster and Notcoin.

Recently, Telegram introduced mini apps and the in-app browser features, opening up decentralized applications to millions of users. The instant messaging platform is currently a top destination for crypto tap-to-earn and play-to-earn games, which is an ecosystem that Bitcoin Dogs also targets with its Telegram integration.

Bitcoin Dogs price forecast

Also helping Bitcoin Dogs price could be the overall developments within the Bitcoin layer-2 ecosystem. Multiple projects have interest in the decentralized finance (DeFi), gaming and metaverse market on the flagship blockchain network.

The gaming part will benefit from Bitcoin Dogs rollout of its game on Telegram.

Over 950 million monthly active users will have a chance to play the Bitcoin Dogs game via a Telegram mini-app, bringing the future of gaming to users. 0DOG will power this ecosystem and viral traction could be massive for the token’s value.

Analysts at Pantera Capital noted earlier in the year that the L2 market on Bitcoin could be a $500 billion market – a prediction that means Bitcoin Dogs’ first mover advantage puts it ahead of potential rivals.

The listing on Gate.io, MEXC and Unisat is a first major milestone that also adds to the positive catalysts for 0DOG. Savvy traders are likely to use the upcoming listing and the potential buy opportunity to add to their positions.

If interested in learning more about Bitcoin Dogs, visit the official website.

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Bitcoin

Bitcoin Trading Bots: Machines Taking the Lead

Bitcoin trading bots have been getting attention from crypto traders. Claims of automated trade signals, 24/7 trading opportunities, and virtually 100 percent uptime are enough to turn any serious crypto trader’s head. There are dozens of competitors in the bitcoin trading bots space, each vying for your business.

However, make sure you’re not so bedazzled by their high-tech algorithms that you fail to realistically assess whether or not you’re actually a suitable candidate to trade them.

What is a Bitcoin Trading Bot

Simply stated, these bots are computer programs that generate Bitcoin buy and sell signals. Also known as trading algorithms, these programs connect via API to your trading exchange account. The big idea is to automate your crypto trading to the maximum degree possible, eliminate subjective trading decisions and exploit trading ops that occur when you’re not able to monitor the markets.

Typically, the bot software runs in the following environments:

The cloud
A web-based application
A VPS (Virtual Personal Server)

Bots R Us

As of writing, there are dozens of comprable bitcoin trading bots, and you’ll need to examine the potential advantages and disadvantages of their respective offerings. Here are a few tips to help ferret out the best possible set of bots for you:

Make sure the bot runs on the cloud, not on your computer. If you have an internet or electrical outage, computer crash or another mishap that renders your Mac or PC useless, you’ll be very happy to know your bot will keep performing without interruption.
Verify that your trading bot provider (TBP) offers an extensive array of technical indicators from which to build your trading strategy.
Further, make certain that your TBP also offers a good strategy back testing utility. Never trade a bitcoin (crypto) bot strategy until you’ve extensively back tested and forward tested it.
Your TBP should also offer a simulated trading feature. This is a must-have, especially if you are new to the world of trading system development. You can verify the strengths and weakness of your new bot strategy on real-time crypto data but without the risk of losing any money.

bitcoin trading bots Gimmer strategies — Gimmer offers a wide range of crypto trading bots. You’ll need to buy and hold a specific amount of their GMR tokens to be permissioned for each one. Image: Gimmer.net website, January 8, 2019

Scalability, Client Support, and User Groups

Your TBP should also excel in these critical areas, too –

Your bitcoin bot firm needs to offer API connectivity to as many reputable crypto exchanges as possible. This is especially true if you’re going to be trading arbitrage strategies that exploit coin mispricing across various exchanges.
Ascertain that reliable, useful client support is available. If you bot has a three AM identity crisis and forgets what to do -and when – you (and your trading account equity) could be in big trouble. Being able to ring up a friendly, knowledgeable support agent at such times is invaluable.
If your TBP offers a dedicated users group, you can greatly shorten your trading system learning curve. Even better, if they offer a trading bot marketplace, you may be able to buy or lease a winning bot strategy, rather than having to build one yourself.

Other Critical Bot Whatnot

Measure the cost-effectiveness of your trading bot. Make sure that the bot can typically make more in profits than the inevitable costs of commissions, slippage, bot subscription fees, and capital gains taxes will eat up. If you can’t program a consistently winning bot, there’s no reason to use one.

A Look at One Bitcoin Bot Firm

Gimmer.net is a TBP that offers its own VPS to clients. However, it comes at a price:

“With the VPS you will not have to worry about losing connection to the internet, power outages in your home or if your computer crashes. Simply subscribe to the VPS service and all necessary data is sent to a cloud computer that is unique and private.”

bitcoin trading bots Gimmer upgrade timeline — Gimmer apparently has a number of upgrades planned for 2020 and beyond. The ‘spread’ and ‘triangular arbitrage’ bots are now live. Image: Gimmer.net website, January 8, 2019

Gimmer’s VPS will set you back $25 in purchases of its GMR token per month. Additionally, to use any of Gimmer’s trading bots, you’ll need to buy and hold between 200 and 500 of the same tokens. The bots are programmed to handle many niche trading styles, such as:

Non-leveraged trading (garden-variety, directional strategies).
Margin trading, with high leverage multiples available.
Lending (you can make loans in various cryptos)
Scalper (coded to grab quick gains with small losses)
Portfolio-based strategies (may lessen drawdowns, assists with diversification)
Arbitrage (exploiting inter-exchange price differentials)
Triangular arbitrage (similar to arbitrage, but uses three or more coins)
Spreads (go long one coin even as you short another (a popular mean-reversion strategy).

Additionally, all Gimmer clients receive a free trading bot:

“A standard automated crypto trading bot is offered for free. This includes the use of one indicator, one safety and one pair, without leverage.”

Like most other TBPs, Gimmer offers API connectivity to many major exchanges, including Binance, Bitfinex, BitMEX, Bittrex, Cobinhood, Hubii, Kraken, KuKoin, Poloniex, and XTRADE.IO.

Is a Bitcoin Trading Bot Right for You?

Maybe. Maybe not. It all depends on your trading style, account equity size, trading experience, and personal goals. If you have a sound trading system development education, you’ll probably be able to easily build or find a trading bot that will suit you. If you know how to deal with software issues quickly or have instant access to those who can help you diagnose and repair bot-related issues, then you may also be a good trading bot candidate.

However, if you naively believe that making money in Bitcoin or any other crypto is a simple, effortless process that simply requires the push of a button, then you may be sorely disappointed. Successful trading is hard work. If any novice trader could buy a retail bitcoin bot, trade it with $100,000 and make $50,000 per annum, year after year, the crypto markets would progressively render such a strategy ineffective.

Say 5,000 Bitcoin traders use the same winning bot this year. It makes 40 or 50 percent gains. As word of its success spreads, next year maybe 50,000 traders will start using it. Over time, professional and institutional traders will be able to trade against the bot with great effectiveness, thus neutralizing it. Too many traders will be chasing its trade signals on one side of the market, and that’s when the pros come in for the retail trader kill.

This is one reason why you never market a trading system that you personally want to continue making money with. Think about that the next time some trading system developer attempts to con you out of $5,000 for a trading system.

Bitcoin Bot Plusses and Minuses

Advantages

Your trading bot can act on trade signals faster than you can.
Exploit opportunities 24/7. Some big market moves begin in the evening session and then gain even more traction as the herd piles in the next morning.
Lack of system building training isn’t a problem. You can buy or lease potentially effective Bitcoin bots from other developers.
Artificial Intelligence (AI) will become very prominent in the bitcoin bot world within a few years. It’s conceivable that future bots will be able to auto-optimize your trading signals in real-time. AI may also help you select an ideal mix of bot trading strategies for your portfolio.
As more crypto traders trade shorter-term, bot-based strategies, crypto market volatility may actually decrease. This may occur due to a massive increase in coin market caps and liquidity.

Disadvantages

Short-term trading has high commission and slippage costs.
Lack of crypto market liquidity at certain hours of the day. A big new event in the wee hours might trigger a needless losing trade.
Risk of flash crashes. Ironically, these are usually caused by institutional trading bots.
Outages on an exchange, technical problems with the bot, communication or computer issues.
The cost of the bot subscription itself.
The need to continually monitor your bot’s performance and reliability.
You must know how to effectively re-optimize your trading bot.
If your bot provider isn’t 100 percent cloud-based, you’ll have ongoing VPS costs.

Hard Work, Education, Self-Discipline, and Overrides

System trading education, money management skills, sound trader psychology, and an extensive TA education is a must for profitable automated crypto trading results. You can’t simply build a quickie system with canned indicators, hit the ‘run’ button and expect to generate a living from your bitcoin trading bot. However, you might become a consistently profitable bitcoin bot trader if you work hard at developing the above-mentioned trading disciplines.

A final word of wisdom to consider when running a fully-automated Bitcoin trading bot, make of this what you will:

Never take your eyes off off your trading screen. Ever. Do not place 100 percent confidence in your trading bot, computer software or hardware. Crypto market conditions can change rapidly, potentially creating scenarios that your bot was never designed to deal with. You must continually supervise your bot or risk waking up to an unpleasant, money-losing surprise one morning.

Never underestimate your inherently superior reasoning abilities to that of a machine or algorithm. Be ready, able and willing to step in and override your bot any time it encounters hyper-volatile crypto market conditions.

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