Best Crypto Trading Bots in Australia in 2023

How to Choose the Best Bitcoin Trading Bot in Australia

As long as the trading bot you choose helps you reach your goals, it doesn’t matter if it’s good, better, or the best. The next challenge is how to determine what type of bot best suits your requirements. 

Here’s a list of items to consider before making such a significant choice.

Success Rate

Using the win percentage, you can see what percentage of deals have resulted in a positive ROI in the past. If the Bitcoin robot advertises an 80%-win rate, then, theoretically, 800 out of 1,000 deals will be profitable, whereas 200 will generate a loss. However, these success percentages are frequently impossible to be confirmed, and as a result, you cannot rely on them as a trustworthy source of statistical information.

Fees

Trading fees are a standard feature with many crypto bots. Therefore, I suggest you get a feel for the range of prices and services offered and make an informed decision on the plans provided by the trading bots.

Moreover, if the trading bot you select does not mesh well with the trading approach you intend to take, and if you subscribe to an expensive plan to employ the bot, you run the risk of incurring losses rather than financial gains.

Minimum Deposit

As a first-time user of cryptocurrency trading bots, you should only risk small amounts of money. That way, you won’t have to worry about taking on a speculative gamble that’s not worth the stakes if something doesn’t go as planned.

Accordingly, the top crypto bots on the market are ones that require a small initial investment.

Security

Why risk losing a large sum of money on an unregulated platform? In fact, security is arguably the most crucial factor to think about when choosing your crypto services. Therefore, if you’re considering investing in a platform, learning as much as possible about its security features is important.

Checking the platform for an SSL certificate is an excellent way to address this issue. Your sensitive data, such as credit card or personally identifiable information, is safe on a domain protected by SSL. If the website has an SSL certificate, a padlock icon will appear to the left of the URL bar in your browser. Keep an eye out for that.

Deposit and Withdrawal Methods

Typically, you can deposit and withdraw funds from a cryptocurrency robot via various payment methods. Due to regulatory differences across nations, not all funding sources are accepted everywhere. Therefore, you should opt for a service that accepts payments in the currency and payment method of your preference.

Transparency

Undoubtedly, the crypto bot industry is rife with shady service platforms. And besides, guaranteeing revenues or a satisfactory result of 95% on a website is a child’s game, you’d agree. It’s not often that such grand assertions pan out in practice.

However, many crypto bots are trustworthy and open about how they make their money. For this reason, research is fundamental, as it’s the only method to identify reliable sources and avoid scams.

Exchanges

If you wish to trade on a specific exchange, you should verify that it is compatible with and supported by the bot you will use in your trading. 

Ease of Use

Some bots already have strategies built in, while others can be fully programmed so that you can use any strategy you want. Whether or not a bot is user-friendly will depend on your trading and programming skills. Therefore, it’s essential to have a firm grasp of the fundamentals before committing to a platform that can automatically execute your trading strategy.

Popular Crypto Trading Bot Strategies

Many different trading approaches can be automated with the help of a bot. Here are some typical methods used with crypto trading robots.

Market Making

The goal of the market-making technique is to capitalise on price differences between the ask/bid value of cryptocurrencies and crypto derivatives contracts through an ongoing buying and selling process. 

Market makers generate revenue by acting as a source of liquidity for other traders, issuing limit orders on both ends of the order book, and banking on the higher selling price variations, i.e. spread, resulting from this activity. 

The spread is designed to pay market makers for the risk inherent in these transactions, i.e. the chance that the price will move in a direction that is adverse to the market makers’ trading position.

Arbitrage

Arbitrage in the crypto market is a way to profit from the price discrepancies between various cryptocurrency exchanges. As an illustration, one could “flip” Bitcoin by purchasing it on one exchange at a low price and then selling it on another at a higher price.

Expert crypto arbitrage bots monitor price fluctuations and discrepancies across trading platforms, making automatic transactions when they detect a profit opportunity. 

Mean Reversion

The key idea behind the mean reversion method is that the value of a coin follows a discernible pattern. While it’s true that prices can move up or down temporarily, they always find their way back to a more stable average.

With this supposition in place, you can instruct a bot to make transactions based on the current value of a currency relative to its average value over time.

Trend Trading

In this method, a bot is programmed to spot upward or downward price movements in a select group of digital currencies and then trade accordingly. More specifically, the technique measures the direction of price movement to identify the trend starting point and capitalise on the consequent price hike. That is, you should invest when prices are rising and liquidate when they are dropping.

How we choose and rank the best crypto exchanges.

We test, review and rate exchanges by looking at their ease-of-use, trading features, customer support, and fees. Analyzing user reviews helps us assess the overall sentiment. However, we didn’t evaluate every exchange and your needs might dictate an exchange we haven’t reviewed yet.