Sunday, July 14, 2024

Are crypto trading bots legit?

While most popular crypto trading bots are offered for free, they do come with associated costs, such as trading commissions and withdrawal fees, that need to be evaluated before proceeding.

When choosing a crypto trading bot, investors need to weigh the pros and cons of “free” crypto trading bots compared to those that charge a flat monthly or annual subscription fee. Most popular crypto trading bots like Naga, Pionex, eToroX do not charge users for viewing but have trading commissions starting from as low as 0.05% for every trade executed via their platform.

This is especially pertinent for those whose daily trading volumes regularly exceed tens of thousands of dollars. The trading fees due over a month could be far more than the subscription fee charged by other competitors.

For example, cloud-based trading bots like CoinRule and CryptoHopper provide a free trial, after which users can be charged from as low as $19/month to as high as $450/month, depending on the plan and range of services selected. These trading bots make more sense for investors with high trading volumes and who want to enjoy these services from anywhere in the world.

That said, investors or traders looking to purchase or rent a crypto trading bot need to verify if their crypto exchange supports bots. For example, CoinBase does not allow trading bots to interact with its platform, providing that utility with its CoinBase Pro platform.

However, with Coinbase announcing that the CoinBase Pro platform will cease to exist by the end of 2022, all advanced trading features, including the use of trading bots, will be available to all its users by the start of 2023. Exchanges like Binance, on the other hand, support a range of crypto trading bots and are much more suited for those looking to indulge in the high-speed trading powered by these bots.

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