Trading

Cryptohopper

Cryptohopper Review

Many people are looking for lucrative sources of income. Undoubtedly, cryptocurrencies can be such. But what happens if the price moves sideways or even falls for a long time? Many then let the coins just rest or sell in panic. Both are not ideal. A Bitcoin Trading Bot can provide the solution. This so-called bot acts cryptocurrency (not just bitoin) completely automatically. That means you can turn to other things and let the trading bot work. The interesting thing is that even in a bear market, this bot can make a good return on falling prices. A well-known trading bot is that of Cryptohopper.

Cryptohopper: One of the best known Bitcoin trading bots in the test

Is Cryptohopper reliable?

➤ Crypto-invest.io has tested the bot. The bot is serious, there is nothing wrong with it.

➤ Cryptohopper is not a scam, all processes are very trustworthy

➤ Crypto-invest.io recommends the medium package, it is ideal for beginners in the price / performance ratio

You can test the bot here or read on and learn more about the trading bot

Trading Bot

There are many Bitcoin trading bots, so how do you choose one? There are some websites claiming that a particular Redite X is possible with the bot and the bot. Of course that is nonsense. A Bitcoin Trading Bot is not a goldmine that will give you some Redite X. Do not be blinded by such promises! Nevertheless, the Trading Bot can offer you a nice source of income. The return depends on many factors and can not be generalized. It is quite possible to make a lot of money with it and quite passively. The risk of losing money is much lower in the Trading Bot than just holding the coins, because as already mentioned, money can be made well in the bear market. But again, invest only money, which you are willing to lose. But now let’s take a closer look at Cryptohopper’s trading bot.

Why Cryptohopper?

Cryptohopper is probably one of the most famous trading bots on the market. The operation is very easy and the entry to profitable trading could not be easier. There you have the possibility to “copy” strategies of experts and that fully automated. That means even the adaptation of the strategy makes the bot by itself. Especially if you try this for the first time it is difficult to decide on a specific strategy, so it might be of great benefit to benefit from the experience of the professionals. In addition, Cryptohopper is cloud-based, so your computer does not have to be on 24/7, as is the case with non-cloud-based providers.

You can also join “signal groups” and react to trading signals. The Trading Bot is thus particularly well suited for beginners. If you want to learn how to trade yourself and get to know important trading indicators, you will find here the most important trading indicators.

In addition, Cryptohopper can now connect with almost all common Exchanges. For this, only the API key of the Exchanger with trading rights must be created and entered in Cryptohopper. This does not allow money to be sent to someone else. In addition, the bot may only trade and not withdraw money or the like. The connection to your stock market is very secure.

If you do not have an account on an exchange then you can check out Coinbase* and Binance*. It is with the largest & safest stock exchanges. All of crypto-invest.io have had very good experiences with these exchanges.

What’s the price?

You pay at Cryptohopper monthly. There are 3 different packages to choose from and a chance to test Cryptohopper for 7 days. The price range of the 3 packages is between $ 19 and $ 99 monthly. Here are the prices in detail:

The packages therefore differ in the maximum number:

  • open positions
  • selectable coins
  • adjustable trigger (which is something like a condition that a trade is executed, e.g., increase in price over a certain limit)
  • and finally time intervals in which to be traded

Which package is best for you, you have to decide for yourself. The medium package worth $ 49 a month is pretty good on the price / performance ratio (compared to the competition and the cheapest package). The medium package should therefore be completely sufficient for a normal. If that’s too expensive cryptohopper can even test for 7 days for free, or just buy the cheap version for $ 19. For professionals, the pro version is certainly worth $ 99, anyone who is not one of them, the medium version is enough.

crypto-invest.io tests cryptohoppers

Crypto-invest.io has tested the trading bot of Cryptohopper. The pro package was used for $ 99 for this test because you can trade the most coins here and build a lot of positions. At first we had set the strategy as the multiple technical analysis, as a sell signal we had set Stoch RSI, RSI and Bollinger as required. This procedure was so semi-good. Although we had a yield of 3.77% after 4 days, the indicators were partially in the way.

That’s why we changed the settings afterwards. We joined several “signal groups” and received very complex settings. At least on the first day of recruitment it was possible to make a return of 4.39%. Not bad at all! The further weekly average was then about 4% daily. In our experience 1-2% are really easy to reach, if you get a reasonable package and at least free signals to trade. Does not sound like much for you? But that’s not so much. It’s quite a bit, if you keep it that way throughout the year, you can soon retire!

Example what is possible with $ 1000 investment

Small calculation example at the end (taxation is omitted in this example for reasons of simplification). So you invest 1000$ and then makes it, for example. 1% daily. Then you would have it at the end due to the compound interest whopping 37.783,43$. That’s amazing! Not to mention what you could get out of it, you should create a higher return per day than 1%. But it is questionable whether it is possible to keep such a return constant over months or perhaps years.

What about the tax?

Are you worried about the tax if you decide to trade? There are now good ways to track the trades. Our tip is to use cointracking.info*, if you click on the link you will receive 10% on all account upgrades. Cointracking.info puts you together with a tax report, which you can use for the tax return.

At the end should be pointed out again, pay attention to your money! Invest only what you are willing to lose, because the risk of losing capital also remains with trading, even if you can minimize it.

Bitcoin Trading Indicators

The 5 most important indicators for trading

Here are presented the 5 most popular trading indicators. It is very succinct and just entered the indicators and above all explains when a buy and when a sell-signal is present.

Trading indicators

1. SMA (Simple-Moving-Average)


SMA is the simple moving average, as the English term implies. The SMA is relatively popular and easy to calculate. It is calculated by adding the average closing prices (closing prices are practically the last prices for a given period: hour, day, week etc.) of a certain time interval and then dividing by the time interval.

Here the interpretation is also quite simple:

  • Prices above the moving average = bullish (buy-signal)
  • Prices below the moving average = bearish (sell-signal)

2. EMA (Exponential-Moving-Average)

The EMA is a bit more complex than the SMA. The calculation is similar to the SMA. So the sum of the closing prices divided by the corresponding price bars, but here the younger courses are weighted more heavily than the older courses. This allows a faster response of the indicator to more up to date prices. In general, the interpretation of EMA is similar to SMA.

However, you can also represent the two in a chart and look at their course.

  • If the EMA crosses the SMA from top to bottom, it is more of a sell-signal because the EMA reacts more strongly to the more recent prices
  • a buy-signal may arise when the EMA crosses the SMA from bottom to top
 

3. MACD (Moving-Average-Convergence-Divergence)

MACD is probably one of the best-known indicators in a chart analysis. It is an indicator that represents the convergence of moving averages.

The blue line is the MACD line. This is determined by subtracting the exponential moving average of the last 26 days from the exponential moving average of the last 12 days. (By the way, these averages are also called EMA’s (“Exponential Moving Average”))

 

MACD = exp. MA (12) – exp. MA (26)

The red line is the 9th moving average. This line is also called the “signal line” because as soon as this line is touched by the MACD, it may suggest a buy or sell signal. If the EMA (9) is crossed from top to bottom by the MACD (thus the difference between EMA (12) and EMA (26)) this indicates a downtrend and is more of a bearish signal. This is exemplified in Figure 1. Marked in yellow, you can see intersections of the MACD with the 9th EMA. At the first marker, the blue line (MACD) intersects the red line (9th EMA) from top to bottom.  => downtrend => sell-signal

If the MACD crosses the 9th EMA from below, this indicates an uptrend, which consequently leads to a buy signal (2nd marker in the figure).

Additional

These intersections and the associated buy or sell signals are the quintessence of traders.

However, for the sake of completeness, the following points are mentioned:

  •  A positive MACD speaks for a bullish mood (the opposite is true for the negative MACD)
  •  If the positive MACD continues to rise, it speaks for an increasingly bullish market environment (the negative continues to fall -> stronger bearish market environment)
  •  If the positive MACD falls, it speaks for a flattening uptrend (the opposite is true for the negative MACD)
  •  So you can say that with increasing distance of the MACD’s from the signal line the trend intensifies. If the distance becomes smaller, the trend becomes weaker. (Convergence / Divergence)

4. RSI (Relative Strength Index)

What does the RSI tell us? Put simply, the RSI tells us how good the value of each coin is in relation to its price. (Yes, price and value may be different. Price is what you pay for, value is what you get.) For simplicity’s sake, here’s no concrete calculation of the RSI, because much more important is the interpretation of it.

The RSI value is between 0 and 100. There is a barrier so that a value between 0-30 is referred to as oversold, 30-70 says rather little and is considered more “normal”, and above 70 the value is called  as overbought.

  • sell-signal: when the RSI cuts the 70’s mark from top to bottom
  • buy-signal: when the RSI rises from the 30’s range from bottom to top
  • In addition: If the value of a cryptocurrency drops, while the RSI rises, it indicates a trend change

 

5. Bollinger Band

The exact calculations of this indicator will be omitted here. To put it simply, you can imagine this by plotting the SMA (20) in the chart and above that is the upper “Bollinger Band” and below the SMA (20) is another line, namely the lower “Bollinger Band”.

The quintessence for traders:

  • If the price touches the upper band: sell-signal
  • If the price touches the lower band: buy-signal
If you want to apply the knowledge and are looking for a good trading bot, then take a look at our Top 3 Trading Bot comparison.

 

Bitcoin Trading Bots

Top 3 Bitcoin Trading Bots

 

The 3 best trading bots in comparison

Trading bots automate bitcoin and altcoin trading and making it an interesting source of revenue. So it’s possible that the robot works for you and generates revenue.

At this point it is clearly refrained from saying that an xx% return is possible with a trading bot. Often one reads on Trading Bots comparison pages exact percentages how much return the bot supposedly generates. This is total nonsense. You just can not get a percentage, because it depends on many factors. How is the bot set? How does the market behave? Or simply how much specialist knowledge the person have, who operate the trading bot?

A trading bot can be very lucrative and the special thing about it is that it happens automatically. So, you can deal with other things, for example to build up more revenue streams.

The comparison

In this comparison there are the 3 top trading bots. All have their own characteristics. “Margin” stands out with very good performance and is the winner in this comparison. But also “crpytohopper” and the trading bot “gunbot” from CryptoBot do quite well.

What criteria was evaluated? 

In this comparison, the bots were rated according to the following criterias:

  1. User friendliness
  2. Setting diversity
  3. Price performance
  4. Which/How many exchanges are supported?
  5. Support

 

User friendliness 9.5/10

Margin scores the best in this category. The GUI is really great, anyone who is interested can get an idea of ​​it by downloading the demo version. In addition, the homepage of margin is worth mentioning. This is very professional and simple structured, so that you can orientate oneself easily. The information you need is very easy to find and on the homepage you can also find tutorials, if you need an explanation about the platform. Overall, margin gets here 9.5/10 points!

Setting diversity 8.5/10

The possibilities of the settings are enormous. However, it is in a balance so that one retains the overview, especially as a beginner. The variety of settings is completely sufficient, but there are bots with significantly more bells and whistles. There are all known indicators for analysis and 4 strategies to choose from. In addition, you can still add “tabs” at the edge, such as Reddit, for example, to follow discussions on Bitcoin. Another cool option is adding RSS feeds. So there are points in time on the chart provided with a kind of flag, which symbolizes  special events. So you can understand why the course suddenly falls or rises and how serious this is. Overall, margin gets here 8.5/10 points!

Price performance 10/10

In the Price performance category, margin is also the best. In particular, by the fact that the bot is currently still offered with a discount, this is for what he offers reasonably priced. $ 89 will cost a lifetime license for the starter version. This is perfectly adequate for beginners. Overall, margin gets here 10/10 points!

Supported exchanges 9.5/10

Margin supports up to 17 exchanges (Absolutely amazing!). Of the compared patforms, this is the platform with the most exchanges. (Huobipro, Bitstamp, Bitfinex, Bittrex, Poloniax, OKcoin, HitBTC, Binance, Kraken, Coinbase Pro, CEX, Ethfinex, Coinone, OKEx, CGEX, Bleutrade, DRAGONex coming soon). Indeed, there are all exchanges only from the “standard” package for $ 169. Before that, the access to only one exchange is possible (which is completely sufficient for beginners). Overall, margin gets here 9.5/10 points!

Support 9/10

It is very remarkable that you can see the whole team of margin on the homepage. So you see who is behind it. This provides high transparency and creates a higher sense of security. Moreover, there are additional tutorial videos on the homepage if you want to take a closer look at how the bot works. Margin also offers e-mail support and promises, according to the homepage, a first-class support with questions of ambiguity. Overall, margin gets here 9/10 points!

Overall, margin comes to an average score of 9.3/10!

User friendliness 9/10

Here is the homepage very clearly structured, so that you can find your way around well. Although Cryptohopper does not offer a demo version, but 7 days free use. The trading platform is very attractive and offers, for example, the possibility to also look at statistics about the trades carried out. Overall, Cryptohopper gets 9/10 points here!

Setting diversity 9/10

Cryptohopper offers a lot of settings. However, you can’t see directly the parameters and strategies, which are adjusted, in the chart as it is e.g. at margin. Then you can experiment in the field “Backtesting” for example the max. profit that you would have achieved in the past choosing this settings. Overall, Cryptohopper gets 9/10 points here!

Price performance 8/10

For what Cryptohopper offers the price is perfectly OK. Though, compared to margin, Cryptohopper performs poorly in this category. The starter version costs $ 19 per month here. If it’s all about the price, then Cryptohopper is worth it compared to margin only if you use it less than 5 months, because after 5 months the price (5×19 $ = $ 95) exceeds the lifetime license fee of margin from $ 89. Overall, Cryptohopper gets here 8/10 points!

Supported exchanges 9.5/10

Cryptohopper supports 9 exchanges (Huobi, Binance, Poloniax, Bittrex, Coinbase Pro, Kraken, Bitfinex, KuCoin, Cryptopia). It does not matter which package you choose, you have access to all exchanges. Overall, Cryptohopper gets 9.5/10 points here!

Support 9/10

Cryptohopper offers e-mail support and video tutorials. They also write regularly on their own blog, which also contains a lot of useful information. Overall, Cryptohopper gets 9/10 points here!

Overall, Cryptohopper comes up with an average score of 8.9 /10!

 

User friendliness 7.5/10

The Gunbot is comparatively less user friendly. Due to the fact that this bot is aimed mainly at professionals, it is less suitable especially for beginners, because the overview is quickly lost. Furthermore, it lacks a free trial version to try at before buying. Besides, the only payment method is Bitcoins. That means you should have exactly this cryptocurrency to be able to use this bot. The payment in bitcoins has its advantages and disadvantages. Since the crypto market is very volatile, the price is quite volatile. Overall, Gunbot only gets 7.5/10 points here!

Setting diversity 9/10

The variety of settings keeps within limits. Above all, it varies a lot and depends on the package you choose. For example, the Standard Edition contains only one bot for a stock exchange, and add-ons such as tradingview or backtesting are not included. Overall, Gunbot gets here 9/10 points!

Price performance 6/10

There is currently a 50% discount. So the Standard Edition costs 0.1 BTC (which corresponds to a value of ~ 420 $ (state of 02.12.2018)). That’s pretty much compared to the other bots. It is indeed a professional bot but then a bot in the package Standard Edition is not enough and it makes sense to choose the professional version for 0.2 BTC (depending on the conversion rate is it almost $ 1000). Overall, Gunbot gets here 6/10 points!

Supported exchanges 9/10

Gunbot supports up to 9 exchanges (Poloniex, Bittrex, Binance, Coinbase Pro, Cex.io, Kraken, Bitfinex, Kucoin, Huobi, Cryptopia). Only the most expensive variant allows the use of all exchanges. Overall, Gunbot gets here 9/10 points!

Support 9/10

On the homepage there is a Gunbot Wiki. There are many things explained in detail and it is clearly managed so you get information very well. In addition, there is also e-mail contact with questions. Overall, Gunbot gets here 9/10 points!

Overall, Gunbot comes to an average score of 8.1/10!

Conclusion

In summary, all 3 trading bots are good bots that are more or less suitable for one. Especially the trading bot from margin stands out with very good presentation and the price-performance ratio. It is perfect for beginners but also offers advanced packages.

If you do not like margin, you can switch to the similar alternative Cryptohopper. Both margin and Cryptohopper can be tested before buying. Gunbot is quite specific with the Bitcoin payment method and the more technical user interface. This Gunbot is practically suitable for professionals.

bitcoin-3327922_1280

Buy and Hold vs. Trading

What does “HODL” mean? Actually, it is a typo and should be called “hold”. This term originated in a forum 2013 when a user published an entry about Bitcoin’s crash at the time. In his heading of the post (“I am HODLING”) he made the supposed spelling mistake. This post was spread quickly and Memes came into being and the term “Hodl” was born.

So, this term stands for keeping its coins, even in times when prices are falling. This approach is not new, because the buy and hold strategy has been around for some time and is applied to e.g. stocks and other investments. It is expected to generate profits over a long period of time and it’s a bit more relaxed than trading in contrast.

Hodl or Trading?

But the “Hodl” strategy also carries risks, because the market can continue to lose value for years and so the motivation is dwindling and some “hodlers” capitulate and then sell with (heavy) losses. In order to minimize the risk trading comes into play here. So, trading coins are not just bought and held for months or years, the time horizon is much shorter. Since the price of e.g. Bitcoin even in the bear market does not sink like a straight line, but fluctuates with up and down, it is possible to make profits even with overall falling prices.

Here you can find the best trading bots in comparison

Here’s a fictitious example:

Below we’ll look at two people (Person A and Person B) who both buy bitcoin at a fictitious bitcoin price of $ 20,000 in January. However, the two people pursue different strategies.

Person A buys the bitcoin and wants to hold the bitcoin until it gains value.

Person B buys a Bitcoin but wants to trade with Bitcoin. We simply assume that the person trades on a monthly basis.

Now let’s take a look at the portfolio development of both persons over one year.

Person A has bought a bitcoin and keeps this bitcoin with the hope of value enhancement. At the end of the fictitious year, the value of Bitcoin is $ 6,000. Person A thus has a (book-) loss of  $ 14,000 after one year.

Person B buys a bitcoin with the intent to trade from the beginning. As seen in the picture, the person sells the Bitcoin on a first price recovery for $ 16,000. Then the person analyzes the market and waits for a buy signal/entry point. In May it is the right time and the person buys again the one Bitcoin however for $ 7,000 and sells in June this for $ 9,500. The person then waits for an entry point, which is $ 5,000 in August. In the following month, it will be sold again for $ 5,600. Last, the person buys in November for $ 4,200 and sells for $ 6,000. What does the balance look like?

Person A (Buy and Hold):

Buy $20.000  →Value end of the year $6.000

= (book-) loss -$14.000

Person B (Trading):

Buy $20.000 →Sell $16.000

Buy $7.000 →Sell $9.500

Buy $5.000 →Sell $5.600

Buy $4.200 →Sell $6.000

= + $900

Even if the course continues to fall after that, it will always recover for a short while and sometimes rise again. No price is linear but up and down (with a downtrend the “down” is longer and steeper).

Conclusion

Despite the same starting conditions (same purchase time and price), the final result is very different. Person A has a loss of $14,000, whereas Person B is $900 plus. Person B thus is able to take profits even if the market is in a downward trend and can realize profits again and again. Person A in such a situation unfortunately has the disadvantage that it has to accept (book-) losses because of the initial $20.000 is only $6.000 there. To sell in such a case would result in the person realizing 70% loss. Continuing to wait could lead to increased losses.

Of course, this example is greatly simplified and it is assumed that the trader finds the “optimal” entry and exit points. But in this example, we also assumed that Person B acts monthly. So what if you act weekly, daily, hourly or even every minute, and always more often takes a margin?

Unfortunately, such people as Person A are often those who panic at such a downtrend and sell at a loss, or just do not give up hope and keep the coins with the hope at some point maybe to be again at plus-minus zero and to exit the market. So, you see the “Hodl” strategy is suitable when the market is constantly going up or you are investing very long term. Because over many years one minimizes the risk, because both in the classical stock market as well as in the crypto market the course rises over many years, even if it is some years in the downward trend.

In order to take less risk and also to realize profits in a bear market, trading is ideal for this. Of course, the trade must be well considered.