Best Crypto Exchange for Intermediate Traders and Investors
-
Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.
-
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
In this guide, we’ll go through how to use Coinrule, Robinhood, and Wealthsimple platforms to automate your cryptocurrency trading. At the same time, we’ll look at some of the strategies and techniques that you may utilize to carry out recurring investing and auto-deposits.
Introduction
The term “automated crypto trading platforms” refers to software that automatically trades cryptocurrency on your behalf. When it comes to investing in cryptocurrencies, auto trading is a solid solution for those who don’t have the time to trade or want to invest over the long term.
In general, each trading platform is unique in terms of its features and trading strategies. Firstly, if you want to make regular investments and crypto auto-deposits, additional variables are taken into account, such as whether you wish to invest daily, weekly, or monthly and how much you wish to invest.
However, if you want a trading bot to execute trades on your behalf, you must connect the bot to that account and then choose one or multiple trading strategies to employ.
Thereupon, automated trading allows you to participate in the cryptocurrency market without having to continuously watch your computer since automated trading purchases or sells your crypto at predetermined intervals on your behalf.
Why automate trading
Using automated trading is a useful technique to diversify your cryptocurrency assets in a strategic manner. By the same token, if you are using a trading bot you may be able to make trades based on the price of an asset, technical indications, or the percentage of value in your portfolio, depending on the automated trading method you use.
If you believe that a certain trading strategy will outperform the market, you should consider using a crypto trading bot. Nevertheless, bear in mind you cannot ensure that you will beat the market by using a crypto trading bot; rather, a trading bot merely makes trades for you following an algorithm.
On the other hand, recurring investments are automated financial instruments that enable people to save money for the long term and accumulate a fund for unexpected expenses.
By its very nature, the cryptocurrency industry can be extremely volatile, and the fear of losing money can deter many potential investors from entering the market. Via making recurring (regular) investments, traders can concentrate on reducing the risks and stress associated with trying to time the markets.
Best Crypto Exchange for Intermediate Traders and Investors
-
Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.
-
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
3 platforms to automate crypto trading
Coinrule
Coinrule is an automated crypto trading bot system that is unique and easy to use, making it suitable for technical and non-technical traders. For traders who are used to working with more limited trading interfaces, the platform opens up a whole new world of trading possibilities.
Additionally, Coinrule allows anybody to choose from various preset trading strategies without the need for any coding knowledge. In turn, traders with varying degrees of experience and ability may participate in the continuously open cryptocurrency market and trade at any time of day or night.
Trading bots
Coinrule uses trading bots, which are computer programs that trade on an exchange account by executing trading instructions on the users’ behalf. Their API (application programming interface) given by the exchange allows them to do this.
The most basic definition of an API is that it acts as a point of connection between two or more computer-based interfaces (in this case, web applications), allowing them to communicate with one another and carry out the user’s commands.
Security and user interface
Although It has only been in existence for a short amount of time, the crypto trading bot service already offers a number of features that are on the level with, if not better than, those provided by the majority of other established rivals.
For instance, security features include secure login and authentication, DDoS-proof- attackers, management of API keys, and payment processing via Stripe, labeling transactions as Merchant-Initiated Transactions (MITs)to avoid gathering personal data from consumers.
The user interface of Coinrule, in addition to its security, is another area in which the company specializes. Among automated trading systems, it offers one of the most user-friendly user interfaces on the market. Immediately upon entering the web interface, users are provided with the essential features and functions of the cryptocurrency trading bot service.
Trading strategies
Currently, Coinrule has one of the broadest selections of pre-programmed trading methods, and the execution of automated algorithmic trading techniques (also known as bots) enables users to personalize their investments with more than 150 trading templates that are automatically performed when market circumstances match specified criteria.
Furthermore, Coinrule continuously introduces new templates to its platform, ranging from accumulating tactics to long-term holding strategies and stop-loss settings.
Prices
Though the amount of templates available varies by plan, Coinrule provides a free package that includes seven free template techniques and up to $3,000 in monthly trading volume. Additional paid-for features include sophisticated charting options, unrestricted template use, and even one-on-one trading tutorials and training sessions.
Exchanges
The cryptocurrency exchanges Coinrule supports Binance, BitMEX, Coinbase Pro, and Kraken, among others, and traders may get access to it for free by creating a Starter account.
Conclusion
To compete with professional traders and hedge fund managers, investors may utilize Coinrule as their automated cryptocurrency trading platform of choice, taking advantage of the technologically advanced and dependable tools available on the market. Users may begin trading using the platform’s trading capabilities within a few minutes of signing up for a free account.
Ultimately if used correctly, long-term investors may benefit from using automated trading systems, which allow them to use additional methods and robotic technical skills in their investment strategy implementation.
Note: If you’re interested in learning more about automated crypto trading solutions, including their features, functions, pricing, as well as pros and disadvantages, we suggest reading our Best Crypto Trading Bots guide.
Robinhood
In the investment industry, Robinhood is a DIY (do it yourself) trading app that allows beginners to test the waters without incurring any commission fees. Aside from equities and exchange-traded funds (ETFs), investors have the option to automatically invest in cryptocurrency, which is what we will focus on in this guide.
In fact, at the moment, Robinhood doesn’t provide an official API; however, by setting up recurring investments, you may auto-invest in cryptocurrencies with Robinhood Crypto on a timetable that suits your needs.
What is Robinhood Crypto
Robinhood Crypto is a new feature that currently, over half of the population of the United States has access to and which the firm plans to continue launching on a state-by-state basis.
Using Robinhood Crypto, traders can purchase and sell cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin, among others.
However, it is important to remember that not all cryptocurrencies are traded on Robinhood Crypto, although the platform allows you to keep tabs on the price of a number of different cryptos not listed.
Robinhood has expanded its crypto services by launching a recurring investment feature to encourage long-term cryptocurrency holdings while reducing the impact of market volatility.
How recurring investments work
On September 8, 2021, Robinhood launched crypto recurring investments, a new tool that enables you to buy your favorite cryptos regularly, commission-free, and with as little as $1, on a daily, biweekly, or monthly schedule of your choosing.
Recurring investments offer a strategy for building up portfolios and mitigating the effects of market volatility while saving long term.
Investing in cryptocurrencies is becoming increasingly popular, and Robinhood believes its new service will help investors by allowing them to concentrate on long-term growth rather than the inconvenience of constantly monitoring cryptocurrency prices.
Due to the nature of the crypto space, the markets may be very volatile. Therefore, consistently making long-term investments may help you concentrate on future development while reducing risk and reducing the stress associated with trying to time the markets. This investment method is known as dollar-cost averaging.
In order to reduce the price fluctuations that may occasionally occur, dollar-cost averaging promotes investing money gradually at frequent intervals and regardless of where the market prices are at any one moment.
Below is an image showing the benefits of dollar-cost averaging compared with lump-sum investing, reflected by the average cost per coin.
Recurring investment fees
Many other cryptocurrency trading platforms impose a commission fee of up to 4% for each cryptocurrency transaction that is executed. Sometimes, additional costs on other platforms are greater for modest recurring transactions than for a single big buy.
A benefit of making recurring crypto investments via Robinhood is that no fees are charged for setting up recurring investments even across several different coins. For example, if you make an order at Robinhood and pay $100 to purchase Bitcoin, you will receive Bitcoin valued at $100.
Importantly, you have complete control over the quantity and frequency of payments you receive. When your recurring investment is due, Robinhood will automatically buy crypto at the best available price for you.
How the recurring order works
As previously mentioned, recurring investments is an automated investment strategy likened to dollar-cost averaging. Using it, you may set up automated purchases of crypto at certain times.
Listed below is are the main features of an order:
- Orders for recurrent cryptocurrency investments will usually be handled between 2:30 and 4:00 p.m. ET each day;
- You may set up a recurring investment for any currency available on Robinhood Crypto;
- To ensure that recurring cryptocurrency orders are filled fairly, Robinhoods system attempts to place all recurring cryptocurrency orders for a given coin at about the same time;
- Crypto recurring orders are set as limit orders placed up to 1% above the previous trading price. This implies your purchase may fill for less than your specified dollar amount. In this case, the difference is then refunded to your crypto purchasing power;
- Dividing your investment amount by the price of a coin at the moment your order was completed will provide the amount of cryptocurrency you will get for your recurrent investment.
How to set up recurring investment
What you need to do to get started:
- To begin, choose the cryptocurrency you want to buy on Robinhood Crypto from the drop-down menu.
- The option to make a “Recurring Investment” may be found on the right-hand side of the screen.
- Then choose the currency you want to buy in and the quantity to purchase, as well as the start date and frequency.
- Then choose “Review Order” to finish the process.
Alternatively, as Robinhood themselves put it, “set a schedule and stack your coins. Introducing crypto recurring!”
- Set a schedule.
- Invest.
- That’s it.
Conclusion
Suppose you want to make investing a habit and grow your portfolio long-term. In that case, Robinhood crypto recurring investments is one way to go about it since it is possible to implement this type of practical investing strategy on the platform without incurring transaction fees that are comparable to those charged by other platforms.
Robinhood’s mission is to democratize finance for all. Thus all types of traders’ objectives are covered, whether it is to build your cryptocurrency portfolio, become a full coiner, or develop an investing strategy for the long term. Traders may achieve each strategy with regular investments that are less stressful and time-consuming.
The methods used here are quite similar to those used in stock trading, except that there are no extended hours parameters since the crypto market is open 24 hours a day, seven days a week.
Ultimately, the approach taken by the online brokerage firm in launching the feature is to encourage automatic investing rather than trading per se.
Note: If you’re interested in learning more about Robinhood trading platform be sure to read our Robinhood vs. Wealthsimple Trade comparison guide.
Wealthsimple Trade
Wealthsimple Trade is an online trading platform that many consider the Canadian equivalent of Robinhood. As “the smarter way to invest,” the firm promises to remove financial obstacles that prevent Canadians from growing their money.
Furthermore, the company’s award-winning financial technology services provide low-cost, easy access to worldwide, diversified index funds and presently has 1.5 million investors.
Their signature feature was low-cost passive investing through a Robo-advisor. Still, they now encompass stock trading, cash deposit, tax filing, and in the summer of 2020, announced itself as Canada’s first licensed crypto trading platform.
Wealthsimple Cryptocurrency:
The Wealthsimple Crypto feature is a new addition to the Wealthsimple Trade platform that offers cryptocurrency trading. Via the Wealthsimple Crypto feature, users may trade Bitcoin and Ethereum among 26 crypto coins listed.
Moreover, the firm’s zero-commission rule applies to all types of trade, including cryptocurrency trading. Thus, clients can purchase and sell crypto without having to pay exorbitant fees.
In particular, Wealthsimple Crypto is suited to both those new to crypto and investing as well as more experienced traders; the user interface is extremely intuitive, while the design is simple and structured.
How to add funds
As long as you’re already acquainted with the app’s trading interface, crypto is nothing new. Traders may connect their Canadian bank account or utilize money from another Wealthsimple account if they already have one.
- Firstly, access your cryptocurrency portfolio via the app, go to your list of investment accounts beneath your account icon in the upper left corner of your app and choose “Crypto.”
- Choose the crypto option.
- Fund your crypto account and begin trading right away.
The value of your holdings may be converted to Canadian dollars, and the money can then
be sent back to your bank account if you wish to cash out your crypto gains or if you decide that this space isn’t for you.
How to set up auto-deposit
To begin with, allocating a portion of your funds for investment, crypto auto-deposits are an appropriate means to start building wealth. Furthermore, your crypto auto-deposits may be scheduled to occur on a weekly, biweekly, or monthly basis.
Putting your money on autopilot means the following:
- Auto-deposits – Automatic contributions;
- Automatic rebalancing – This feature means that Wealthsimple will rebalance your portfolio as the market changes;
- Easy access – Users can also manage their accounts from anywhere via the website or mobile app.
The time it takes for your funds to become accessible for trading once you set up an auto-deposit is 3-5 business days.
This can be achieved in five easy steps:
- Enter the Trade app on your mobile device and then touch the Profile icon in the top left corner of the screen.
- To add money to an account, choose Funding, then Add funds, and then pick the account to which you’d want to add the funds.
- Enter the necessary amount and choose the “One-time” option from the drop-down menu. Select the frequency at which the automated deposit will be made.
- To schedule a deposit for a future date, choose Today from the drop-down menu that displays and then select a day from the calendar picker that appears.
- After that, you’ll need to decide which bank institution will receive your deposits. Review your transaction details, and then click on the Submit deposit option to complete the transaction.
Cancelling an automatic deposit
Traders may cancel an auto-deposit up to 24 hours before the next scheduled deposit is due to take place. Unless you cancel an auto-deposit at least 24 hours before the next planned deposit, Wealthsimple will execute the previous deposit and cancel any future deposits for you.
In order to cancel an auto-deposit:
- Using your mobile device, log into the Trade app and choose the Profile icon in the upper left corner of the screen.
- You’ll find your auto-deposit under the Upcoming heading of Activity, so choose that.
- If you want to cancel an auto-deposit, go to the bottom of the page and choose Yes, cancel it.
It’s important to note that if you want to modify your auto-deposit, we suggest canceling your current one and creating a new one.
Please note: Virtual money does not appear on the list of authorized investments maintained by the Canadian Revenue Agency for those wanting to hold Bitcoin in a tax-free savings account (TFSA). With that being said, it is feasible to acquire exposure to Bitcoin via a Bitcoin Exchange-Traded Fund (ETF).
Conclusion
Wealthsimple doesn’t support cryptocurrency wallets. Rather than giving users full control over their Bitcoin private keys, the financial technology platforms that generally cater to the traditional investment industry prefer custodial agreements over providing individuals complete authority over their own crypto private keys.
Nevertheless, the platform through crypto auto-deposit assists traders in focusing on long-term growth, reducing risk, and alleviating the stress associated with timing the markets.
Keep in mind that auto-deposits take 3-5 business days to clear before you may begin trading money, regardless of the size of the deposit. To take advantage of a market opportunity if one presents itself, we recommend making an instant deposit instead.
Benefits of automated crypto trades
Taking use of automatic cryptocurrency trades may provide you with a number of significant advantages, including:
Trading bot benefits
Many cryptocurrency traders currently consider crypto bots to be a sound trading technique that provides measurable advantages. This is due to the fact that automated trading bots support.
- Timing: Since crypto bots trade using software, they can purchase and sell crypto considerably faster than a human trading manually. Use a bot to automate market orders while trading using an indicator.
- Repetition: The majority of cryptocurrency bots on the market trade 24 hours a day, seven days a week. A cryptocurrency trading bot may be used to automate the process of trading cryptocurrencies based on market indications, saving you time and effort.
- Consistency: Bots may operate constantly and reliably execute instructions depending on certain indicators. In this respect, bots outperform humans. Using a trading bot eliminates the danger of “emotional trading” while trading cryptocurrency.
- Save time: Use a crypto trading bot to save time since the software monitors the market and makes transactions on your behalf. Automated trading bots are ideal if you don’t have the time or inclination to watch the bitcoin markets all the time.
Recurring investments & auto-deposit benefits
The majority of cryptocurrency traders now view recurrent cryptocurrency purchases to be a good long-term objective with quantifiable advantages. This is due to the fact that recurrent cryptocurrency investments assist in:
- Remove emotion: Emotions may lead investors to make rash decisions, instead of following a planned crypto trading strategy. A recurring purchase also reduces the stress that some people experience when a cryptocurrency’s price changes often. You’re less likely to invest big amounts at peak market value since you know your assets are spread across peaks and troughs.
- Diversification: Expert cryptocurrency traders frequently advise diversification to reduce risk and maximize profits. A recurring purchase of different cryptocurrency tokens may also assist in diversifying your crypto holdings. In other words, you don’t have to put all your money into one or two cryptos.
- Build your portfolio gradually: many individuals are limited in their cryptocurrency investment. For many, the cost of a recurrent purchase is less than what they spend on coffee each week. Small, regular investments, on the other hand, will help to build up your portfolio.
Drawbacks of automated crypto trades
When it comes to selecting automation, there are certain drawbacks, including the ones listed below:
Trading bot drawbacks
- Previous experience: Advanced traders are the ones that benefit the most from automated trading bots. If you are unfamiliar with the trading indications that are utilized by trading bots, it is recommended to learn the fundamentals before using a bot.
- Trading bot security: Although crypto bots are usually safe, you must store your crypto money on an exchange in order to utilize a trading bot. Holding your cryptocurrency on an exchange increases your chance of being hacked, although the vast majority of big exchanges are very secure.
- Monitoring: Even if the trading bot keeps an eye on the market for you, you should still keep an eye on the price of cryptocurrencies. This is because cryptocurrencies are very volatile, and your trading approach may not sync with the current market environment.
Recurring investments & auto-deposit drawbacks
- Owning the keys: If you buy cryptocurrency on some trading platforms, you may not necessarily “own” it, meaning you can’t access your wallet or transfer it to any other wallets out of the platform.
- Coin value: Due to a lack of intrinsic value, price volatility is a significant issue, and certain cryptos, even after years of recurrent investments, may still be worthless in the long run.
- Regulation: Even if the technology is perfected and all the issues mentioned above are eliminated, there will still be risks associated with investing in this technology until it is adopted and regulated by the federal government.
- Limited control: There is also a lack of control, and it is not always appropriate for short-term investment purposes. It ultimately entails systemic risk, which is the possibility that a loss may be sustained owing to collapse of the whole investment platform.
Conclusion
Overall, if you have a good understanding of the market, investing in cryptocurrencies may be a fantastic way to diversify your financial portfolio while also reaping the benefits of unusually high returns on your investment.
For investors to benefit from market fluctuations, they should continue to regularly make the same amount of investments to build a corpus that will eventually result in a profit.
A recurrent purchase via a cryptocurrency trading platform becomes as regular and simple as paying a bill through direct debit once it has been established. However, instead of gradually paying off debt, you are incrementally accumulating assets and increasing your wealth if you’re wise in your choice of crypto coins.
Best Crypto Exchange for Intermediate Traders and Investors
-
Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.
-
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
