It is not an easy task to profit from digital currency trading. A lot of investors commit themselves to increasing the returns of mainstream currencies every day. Many of them use trading bots or automated trading software to execute transactions more efficiently, profiting nonstop even during their sleep. Since these programs can execute transactions automatically like humans do, they are called arbitrage robots, which can automatically perform continuous arbitrage without rest.
Automated arbitrage robot is a technology that employs programming software to analyze market behavior, such as transaction volume, order, price, and time. They are rather common in the world of digital currency, because rarely do traders have time to stare at the charts all day, and rarely are there quotes that allow people sufficient time to arbitrage manually. Robots or transaction software are frequently used in global securities trading. Most people trade Bitcoin as a way to generate passive income, which requires little effort to earn and maintain, with their day job. Robots can make trading more effective and scientific. Bitcoin trading robots can be used on many digital currency exchanges today. Some robots are free and can be downloaded online. Trading robot services are also provided by various trading engines and Internet companies.
With so many people relying on trading robots, we have to ask which are unreliable and which can be trusted. The best six digital currency trading robots are listed below.
1. JPEX Digital Wallet Arbitrage
The JPEX Digital Wallet arbitrage system is very sophisticated. Behind it is an automated arbitrage system based on artificial intelligence invented by Dr Ito’s team at the University of Tokyo. The system carries out automatic matching according to the data while recording the data and monitoring fluctuations in real time and feeds the instructions to the exchange portal. Together with real-time monitoring of quantitative analysts it ensures the safety of user funds. At the same time, JPEX’s back-end AI system uses SAS and deep self-learning, which constitutes the overall JPEX IAIA system. The system has an initial annualized rate of 5%, after two years of practice, it can now achieve an annualized rate of over 40%. Unlike purely AI systems, the current JPEX IAIA 2.1 system is more of a smart operation in the form of traditional hedge funds.
Previously, the exchange of new and old data resulted in outdated trading strategy and caused mining bias. IAIA2.1 avoid losses by avoiding over-reliance on certain trading strategies. By solving this general quantitative arbitrage trading strategy problem, it has a stable return. With the passage of time, more and more exchange APIs will be connected, and returns will be more stable.
IAIA2.0 added a new quantitative system, which is jointly monitored by six senior investment analysts. The introduction of the quantitative system will help make JPEX Digital Wallet arbitrage system more accurate and profitable. In the IAIA2.1 system, the data adds 20-year historical data of 12 futures markets, and at the same time it can create profits for users 24/7.
The data for arbitrage basically comes from the market data of several mainstream exchanges such as Binance, Huobi, Bitfinex, Coinchick, OKEX and Upbit. Current arbitrage platforms include six currencies, namely ETH, BTC, USDT (stablecoins are not stable), EOS, TRX and BCH.
In terms of security performance, JPEX Digital Wallet adopts banking and risk control systems and separates hot and cold wallets to store user assets in cold storage. JPEX Digital Wallet does not actually access users’ private key. Encryption at the host application layer and verification of the correctness of the source of information. It is an effective physical tool for mainstream financial data security protection in Japan, and has a complete key management system. For the user’s private key, JPEX Digital Wallet physically seals sensitive information to make it unreadable, and stores it in the chip to achieve cold storage. The hardware chip is capable of self-destruction when disassembled, which is top-notch safety performance close to the military level.
JPEX Digital Wallet arbitrage is by far the most popular and promising arbitrage model in the market.
2. Gekko
Gekko is a Bitcoin trading robot and backtesting platform that supports 18 different kinds of Bitcoin transactions (including Bitfinex, Bitstamp and Poloniex). It is free, 100% open source and available on GitHub.
This automated trading robot has only some basic strategies, so it is fairly simple to use. Gekko comes with a web interface written from scratch that allows you to monitor local data and strategies. It can also perform backtests and visualize the results. User plug-ins are available for IRC, Telegram, Email and many other platforms. With perfect performance on all major operating systems (Windows, macOS and Linux), Gekko is a trading robot worth trying.
The BTC robot is one of the earliest Bitcoin automatic trading robots. Trading robots provide a variety of charging methods for different types of software and members. The cheapest robot is the US$149-Silver Software. It provides traders with downloadable versions for various Windows operating systems, while Mac users need to pay more. However, when using this tool, the user’s income may vary greatly. Some seem to make a meager profit because they have been obsolete. It seems difficult for others to make it work properly, and its algorithmic trading does not perfectly predict the market. This means that there will always be losses, so please be aware.
3. Zenbot
Zenbot is another open source trading robot for Bitcoin traders. It is worth noting that this trading bot has not seen any major updates in the past few months. However, if needed, you can download and modify the code. This marks the third iteration of Zenbot. It is still a lightweight and artificially intelligent Bitcoin trading robot. It is also one of the few solutions that can perform high-frequency trading and support multiple assets at the same time. Exchanges supported by this robot includes: Gemini，Quadriga，Bittrex，Kraken，Poloniex and GDAX。According to the GitHub page, Zenbot 3.5.15 achieved a return on investment of 1.531 in just three months, but their data is not entirely true.
4. AiCoinArb
AiCoinArb is a more attractive quantitative automatic arbitrage trading robot. This kind of quantification based on cloud arbitrage services allows users to construct high-frequency quantitative portfolio arbitrage strategies within a few minutes, and does not require installation, provision of fund deployment recommendations, and no complicated parameter settings for investors. AiCoinArb is currently one of the most professional arbitrage products in the market. Compared with the outdated software arbitrage, it finds quotes faster, mines deeper volume and price, has more stable risk control, and comes with higher returns. It supports all mainstream digital currency exchanges, such as Huobi, Okex, Gate, ZB, Binanc, Uphit, EXX, Fcoin, etc., and can simultaneously monitor over 100 currencies, over 1,000 trading pairs, and over 10,000 trading combinations, completing market monitoring, volume and price mining, risk identification, concurrent order placement in milliseconds. It is worth noting that the platform was created by a team of computer and finance professionals from well-known universities and the founder had been a senior financial executive. Free trial and arbitrage guidance are available but it was not verified in safety aspects.
5. Tradewave
Tradewave is not technically a robot in the traditional sense, but a new platform that allows users to code their own digital currency trading robots and let them trade in digital currency exchanges automatically. Tradewave uses Python to write trading robot code directly in the browser, and then the robot executes in the cloud to trade for you. This means you don’t need to worry about downtime or keeping your computer on and connected to the Internet at all times. Another great feature is that community members have shared quite a lot of trading strategies for other users to try out.
The digital currency exchanges currently supported by the Tradewave platform are BTC-E and Bitstamp. New exchanges such as Bitfinex, Atlas ATS and Kraken will be added soon. Note that Tradewave is not free. The starting price is $14 per month.
6. Gunbot
Gunbot is one of the advanced digital currency automatic trading robots on the market, providing setting options and strategies, and allowing you to customize your own strategies. The V9 version comes with’ reverse trading’, this unique setting can keep trading at any time, it supports major exchanges (Bittrex, Binance, Poloniex, GDAX, etc.) and new exchanges will be added every few weeks. The bad thing is that Gunbot offers different packages and needs to be constantly upgraded. The price ranges from 0,02 to 0,15 BTC, depending on the upgrade version you want. To use Gunbot, you must pay attention to the products you are trading. If there is a major market adjustment, you may be left with a bunch of pending orders.
Conclusions
For inexperienced traders, programs are difficult to understand, which means that robot trading may not be suitable for everyone so the JPEX Digital Wallet arbitrage is a good choice. In addition, traders must trust the reliability and efficiency of companies that provide algorithmic digital currency transactions. There are many different businesses on the Internet that provide robotic services. But be careful, because some of them may be illegal. If used properly, a reputable and well-functioning trading robot will increase your profits.