Crypto trading bots are a piece of software that allows traders to interact with crypto exchanges and trade more efficiently. They were developed to make the trading process easier and more effective, and over time became a necessity for professional traders.
There are many types of trading bots, and depending on the traders’ unique needs, they can be used to collect data, manage your trading portfolio, smart order routing, etc. The possibilities are endless, and over time trading bots have become even more valuable as traders learn the advantages of automated crypto trading.
Spending the entire day following the market price fluctuation while buying and selling coins is time-consuming and not at all efficient. However, for professional traders who want to effortlessly expand and diversify their portfolio, crypto trading bots might be the most suitable solution.
Overall, instead of doing the manual work themselves, crypto traders rely on these pre-made algorithms to take control and execute a certain trading strategy 24/7.
For professional traders who want to automate their crypto trading, using the right trading bot can be a real game-changer. However, there are two main distinctions between them, and its crucial to understand them before you decide on your next step.
Depending on how much time and money you want to spend on crypto trading bots, you can either choose customisable or preprogrammed trading bots.
What Are Customisable and Preprogrammed Bots?
Before explaining the main differences between the two alternatives, let’s go over what each of them means.
Customisable bots are a piece of software that you can create and/or modify by yourself. They are programmed in ways that are most suitable to the traders and their unique trading needs. The entire process can take a while, considering that the trader should possess the needed skills to create and/or use a customisable trading bot, but they do have their advantages over preprogrammed bots.
Preprogrammed bots, on the other hand, are already built by someone else, and cannot be changed. They often come at a specified price, although following the growth of this market, they are considerably affordable. Once they are designed to fulfil a certain task, these bots can be purchased without the possibility to be altered.
Preprogrammed and customisable bots are different in many aspects, although their end goals are the same. No matter which trading bot you use, the goal is to automate your crypto trading, and spend less time in doing all the hard manual work, and more time focusing on other more crucial aspects of trading.
Overall, they both have their pros and cons, and it’s a matter of preference which one you will choose. For traders who haven’t made their mind yet, let’s go over the four principal differentiation between customisable and preprogrammed bots, and how they affect your crypto trading.
1. Initial Investment
One of the main distinctions between customisable and preprogrammed bots is the price traders have to pay for obtaining one. They both require different investments, one more focused on time, while the other one on money.
If you want to invest your time and effort into creating and using a customisable trading bot, you will certainly save on money. If you want to purchase a bot and then modify it, that’s also possible and inexpensive.
However, for traders who want to take a shortcut to automated crypto trading, preprogrammed bots are an excellent idea. They come at a different price range depending on the function they enable, the provider, and what they are used for. These prices can vary from affordable to expensive trading bots, although with the right strategy, they can be compensated overtime.
In terms of functionality, customisable trading bots are in the lead thanks to their properties. Trading bots that are easy to modify allow traders to choose the signals they want their trading bot to read and which actions it will take in response. That leaves more space for exploring your options and testing your strategies while trading crypto assets.
Preprogrammed bots, on the other hand, cannot be modified, therefore serve for one initial purpose only. They are, however, the better alternative for traders that already have a specific thing in mind and are just looking for the easiest and more efficient ways to execute it.
3. Time Consumption
When it comes to time consumption, needless to say, preprogrammed bots will save you much more time. Having to deal with the creation and adjustment of customisable bots usually takes longer, unless the trader knows exactly what he/she is doing.
Finally, as their names suggest, these two types of trading bots differ in terms of flexibility as well. Customisable bots allow traders a more compliant execution of their trading strategies, due to their editable properties, while preprogrammed bots are not flexible and serve for direct trading.
Bottom line, these trading bots are different in many aspects, but their differences make them unique and fitted to individual trading needs.
Overall, crypto trading bots are used by traders to simplify their work, and it’s a matter of preference which one they’ll choose. With the right knowledge and skills, one can make their trading bots, but the process can take much time, effort, and testing.
For those who want to take the simpler alternative, crypto trading terminals such as Superorder have another feasible solution. They offer several types of crypto trading bots, all tested and optimised according to the market’s needs. Currently, Superorder supports Bitcoin trading bots on BitMEX crypto exchange, but other alternatives are in the process of making.
No matter which type you choose to execute your strategy, crypto trading bots represent an excellent addition to automated trading. Not only will they help you minimise the manual work and time spent on following the markets, but they will also enable you to make profits and increase your portfolio.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding and Startup Course. Learn from India's top investors and entrepreneurs. Click here to know more.