Investing in cryptocurrencies is an extremely profitable venture. However, this is true only when the prices of cryptocurrencies are on the rise. It’s no fun when you have to spend your time looking at your investment falling in value. This is where cryptocurrency trading comes into play. Unlike investing in cryptocurrencies, where the prices need to increase for you to make profits, volatility alone can help you make some passive income by trading.
As cryptocurrencies are highly volatile, trading these digital assets is equally rewarding. Cryptocurrency trading is not suited for beginners, and you need to understand a thing or two before you start trading cryptocurrencies. However, there is another downside to cryptocurrency trading. Unlike the stock market that sleeps at night, cryptocurrency trading happens 24X7.
This means that you will miss many amazing trading opportunities that come your way. Cryptocurrency trading also means that you will need to spend a lot of time staring at your computer’s screen which is also very tiring. Lucky for us, due to technological advancements we can now automate even cryptocurrency trading by using trading bots. One such bot that you can use for free is the Gekko trading bot
What is the Gekko Trading Bot?
The Gekko trading bot is one of the very few cryptocurrency trading bots that are available for free. The entire code is written in node.js and is completely open-source. The code for the bot is available on GitHub, and you can fork it and make your own changes to the code and start using it as well.
The Gekko trading bot runs on your local system, and uses a browser webpage for you to customize the settings. In order to get started with automating your trading, all you need to do is provide the bot with the API keys for your trading account, after you have installed the bot and started running it.
The bot begins to analyze the market conditions, and places a trade only when it sees an opening to make some profit from the trade. The Gekko trading bot requires you to have some knowledge about technical analysis of the cryptocurrency markets. You need to customize the strategies based on technical analysis. The bot does come with a few built-in strategies. However, it is always advised to customize them to get the best result.
Features offered by the Gekko trading bot
Being free to use trading bot, Gekko comes loaded with many useful features.
The Gekko trading bot is a great tool to use when you are still learning about cryptocurrency trading. The bot helps you test how well your strategy would have performed in the past. It analyzes the profit that you would have made, if the strategy had been implemented in the past. This is a very useful feature, as it helps you design a very good trading strategy.
2- Paper Trader
The bot even provides users with the option to test their trading strategy against the live market data, by making use of fake money and placing phantom trades. This will again help you to understand and design more reliable trading strategies.
3- Trading bot
Once you have understood how to use the platform and designed a few good trading strategies, you can start using the actual trading bot and automate your trades. The bot only uses your strategy and communicates with the exchange. Neither your trading strategy, nor your portfolio details are shared with anyone.
The Gekko trading bot also allows the users to install many plugins such as a Telegram plugin to send notifications to the user, to further increase the overall functionality of the bot. The web interface also provides a graphical analysis of the performance of the bot so far.
Can you really make money by using the Gekko trading bot?
Trading bots can be a lifesaver when you are away from your PC and the market takes a hit. Not only will you be able to minimize your losses, but you might also be able to pick up some profits as well. That being said, in order to make some substantial profits, you will need to come up with a very good trading strategy. This takes a long time for you to get it right.
The Gekko trading bot cannot trade based on media reports either. The is a huge let down, as the media has a huge impact on the crypto trading market. This bot cannot be used for arbitrage trading or high-frequency trading either. However, with a great trading strategy, you will be able to make a few extra bucks from time to time.
Is Cryptohopper better than the Gekko trading bot?
Both Cryptohopper and the Gekko trading bots help you automate your cryptocurrency trading. Both provide users with similar features. However, if you are new to trading and have very little programming knowledge, then the Cryptohopper is a much better solution for you. This bot runs on the cloud and is available 24X7. You need not have to install and run any software on your local system either. Additionally, Cryptohopper provides a more user-friendly interface to use and also comes with many built-in trading strategies.
While Cryptohopper offers a user-friendly solution, it comes at a certain price. The Gekko bot, on the other hand, comes free of cost. You can run it on any PC platform. You can even host the bot on a cloud service and run it 24X7. The Gekko bot does require you to have some level of coding knowledge and for hosting it on a cloud, you would need to get help from someone who has done it before.
Weighing in all these factors, Cryptohopper does come out on top as a better trading bot. However, if you just want to experiment with a trading bot, then go for the Gekko trading bot.
The Gekko trading bot has been the best and the oldest open-source and free trading bot. As the entire bot is written in node.js, it can be run on all PC platforms. If you have a very good trading strategy then you can make a lot of profit by using this bot.
Geeko Trading Bot: Is it Worth a try?
Gekko trading bot is an amazing way to automate all your cryptocurrency trading. You can easily minimize your losses and even make a few extra bucks without having to sit in front of your computer. You can run the bot 24X7, by hosting it on a server without having to spend too much money. With a great community of traders and developers, Gekko is one of the best trading bots that you can use right now.