Having a bot buy and sell cryptocurrency, while you’re sleeping does sound appealing right? Cryptohopper is a leading software that automates trading and you may be wondering if it works and is it profitable and legit?
Cryptohopper can be profitable and is legit, but is riskier than a buy and hold strategy!
Keep reading and I’ll share the pros and cons of using Cryptohopper. I’ll share the largest risks with using the software and a free trading bot. Lastly, I’ll share my favorite crypto strategy and why.
Pros of Cryptohopper?
Cryptohopper is one of the most popular software that helps with trading crypto. The software does work in ALL the big exchanges and can work with nearly all cryptocurrencies.
One of the BEST features of Cryptohopper is exchange arbitrage. You might think that the price of crypto is the same on every exchange, but this isn’t true.
Every exchange usually has a different price for a cryptocurrency. With these different prices, there is an opportunity to earn money.
The bot can buy a cryptocurrency from 1 exchange and sell it on another for a profit. The problem with this idea is there is a lot of variables in play such as liquidity, fees, price slippage, and price impact.
You can learn more about all these various fees from a recent post by clicking on the link HERE.
The good news is there is a trick. If you hold the Binance token and trade on Binance (the exchange) the fees can be cut by 50% and this will save you some money.
Cryptohopper does have some nifty features and one is paper trading. If you are skeptical (Like ME) of a trading bot you can test it out with fake money and see how you do.
If you start to see consistently high returns, then you can risk your own money.
The downside of this is you still have to pay for the software, but they do have a 7-day trial (but the options are limited). This can be a great idea to build up your confidence and test the waters before you jump in.
Another cool feature is if you find a trader that is doing “very” well you can copy their strategy.
The fourth cool thing about the software is it takes emotions out of investing. Cryptocurrency is a big rollercoaster that can drive some people crazy.
By having software do the investing then maybe it can help some people.
The last benefit is there is training and support. The support is through online chat or supporting a ticket there is no phone support.
Cons to Cryptohopper?
One of the biggest disadvantages of the software is…
What happens if the software gets hacked and ALL your crypto is transferred? The good news is there is a way to stop this from happening.
You will need to connect any bot to a crypto exchange using something called an API. You can set permissions such as block it from making any withdrawals, but allow it to make buy and sale orders.
You can protect yourself even more by whitelisting addresses. This way ONLY addresses that you whitelisted will be able to receive your crypto money.
Another “LARGE” con is when it comes to who created the software there is an anonymous team.
When someone doesn’t stand behind their product it sends a red flag.
The third negative I see with the software is the marketplace. This is negative because you’re probably going to be buying trading strategies and not selling them.
Yes, you can copy from other traders, but if they are good they are going to want money for them.
Oh, and one more disadvantage with trading crypto is you pay “twice” as much in taxes than if you buy some and wait 12 months to sell it.
The largest problem with crypto is TAXES and you can check out this post HERE to get an idea of how to save money and make your life easier.
Can you Earn Money with CryptoHopper?
You can earn money with the software and one example is Cryptolabs and he says he earns around 7% returns per week.
Here is a video of him talking about it.
If you are going to use Cryptohopper only invest what you’re willing to lose and it’s probably best to start small. You can learn more about the pricing of Cryptohopper by clicking on the link HERE.
Free Trading Bot
At this point, you may be wondering if there is a FREE trading bot. The good news is there is and it’s an exchange that I’ve used many times called Kucoin.
What is great about Kucoin is you can use it if you’re in the U.S. The downside of the trading bot is it only works with the currency you have on the exchange.
Over 2.5 million Kucoin trading bots have been created.
One of the features is that it can automatically buy a small amount of crypto each month. This can take the emotion out of trading and can be a good thing for some people.
Kucoin also has a classic grid, which attempts to profit from the daily craziness of crypto. You can have the computer automatically set the parameters or do it yourself.
Also, you can do it with MANY pairs, but the most popular are Bitcoin and USDT (Tether).
How the bot works = when it goes below a certain point it will buy and when the price rises so much it will sell.
Very simple and it’s FREE. You can learn more about Kucoin by clicking on the link HERE.
My Favorite Crypto Strategy!
I’m NOT a fan of buying and selling cryptocurrency short-term. There are SO many variables and when it comes to MOST cryptocurrencies such as Bitcoin I don’t ever want to sell it.
The million-dollar question is how do you earn money with crypto if you don’t sell?
A great idea is something called liquidity mining. To make things very simple liquidity mining is when you become the bank and you earn money from fees, slippage, and other things.
It works on DEFI “decentralized finance” which is a big field in crypto. Most DEFI work with Ethereum and the bad news is the gas fees and Ethereum is riskier due to it being Turing complete.
Turing complete means it can do “everything” and there is more of a chance of something going wrong. There was a BIG hack that split Ethereum into 2 and there was another one recently that you can read about HERE.
The project “I really like” is built on Bitcoin, so it’s more simple and less risky. Plus, I know the creators, it has a big community and they have some great ideas on how to grow their project.
Anything with banking can work with DEFI. Oh, and the returns are “not bad.”
I recommend clicking on the link HERE to learn more. You can use the code 939517 for $30 in free coins if you make a deposit of over $50. They also have a decentralized exchange where you can earn even more, but it takes some learning.
I hope this blog post on if Cryptohopper is profitable and legit was helpful to you. Bye for now.