Investment in new domains is unsettling, yet a bold venture often leads to highly profitable decisions. And what venture newer that cryptocurrency?
Undoubtedly, investing in cryptocurrency is a step that would rake profits, but only if done rightly. At this juncture, investors need a guiding hand, because trading cryptocurrencies is nothing like stock market trading; this is a new kind of market that never sleeps. It’s no fun when you have to watch your portfolio greeted with huge irreparable damage while you might miss amazing opportunities that last for a very short duration of time, that occur during ungodly hours.
The volatility of this market, which makes it highly risky, is also what makes it so much worth investing in. But how do we deal with a market that fluctuates day in and day out, 24×7, without mercy?
Thanks to the plethora of technological advancements that have been taking the world by storm, a solution is not impossible. Trading bots have become the need of the hour, with everyone from traders to casual investors trusting them to handle their cryptocurrency investment, thus automating the whole process.
One such free bot that’s used is the Gekko trading bot.
What is Gekko Trading Bot?
The Gekko trading bot is a free to use, open source cryptocurrency trading bot, coded entirely in node.js, and made to run on your local system. You have to possess some knowledge about the cryptocurrency market to use the system, and the bot helps you implement the ideas and algorithms you think is a best fit. It keeps an eye on the market 24×7. While you cannot monitor the market all the time, it should not affect your portfolio adversely, or at least, that’s what Gekko aims at.
Gekko interacts with financial exchanges directly, and buys or sells on your behalf, based on its analysis of the market, often adhering to a set of pre-programmed rules, which you can customize as per your needs.
Gekko Trading Bot Review: Key Features
The Gekko trading bot aims to run your personal strategy on the live market, and automatically make trades when conditions are met. This is why users are often encouraged to test their strategy using a paper trader or backtesting.
Gekko offers backtesting and a paper trader, both as options to those who need to perfect their strategy.
Backtesting performs analysis of past data and reports how your strategy would have performed in the past. This helps new users to play around with strategy until they figure out their winning formula.
The paper trader is a Gekko feature that enables users to test their strategy with respect to the current market data and fluctuations, using fake money, and making phantom trades. This prepares you to understand the real efficiency of your strategy against real-world conditions.
The final step is the Gekko trading bot, where you can start real trade automation using the trading bot. It assures complete confidentiality as far as trading strategy and portfolio details are concerned.
Gekko also supports a number of plugins to keep the user notified of trades, and increase its efficiency. These include, but are not limited to- IRC, telegram, email.
Another key feature is the visualization of the trades made so far, and its effect on the user’s portfolio. This acts as a testament to the bot’s performance in the form of a graphical analysis. This prepares the user to make any changes in his strategy, based on existing results. All this can be done from the user interface, which displays charts, as well as risk statistics, while also providing resources to monitor local data.
Gekko offers around 130 indicators, in varying combinations, that shape your custom strategy. All market data seen is stored to simulate later strategies, and form a part of backtesting.
It provides exchange support for 16 exchanges, including Bitfinex, Bitstamp and Poloniex.
It runs on all major operating systems, Windows, Linux and macOS. In addition, it can be run on cloud, or even on your R-Pi without a hitch.
All this is done in utmost confidence and the only communication is with the exchanges, unless the user wishes to share information.
Is Money Making Possible with Gekko?
Gekko can indeed be a lifesaver, especially when you are not able to make trades, or are unable to make decisions, specifically when the market takes a hit. If nothing, it will definitely minimize losses. If your strategy is as good as you think, it might even be able to pick up some profits, as opposed to you personally making trades.
What is a slight damper is the fact that Gekko remains unaffected by media reports, which tells us that it cannot predict market fluctuations which are based on the said media reports. This makes it ill-suited for high-frequency trades.
Cryptohopper vs. Gekko
Cryptohopper is another trading bot that helps you automate your cryptocurrency trading.
It is set apart by the fact that it does not require any installation or local system based software. It overcomes space constraints due to its running on cloud 24×7. It is especially suited for those new to this form of trading, and for those are not well versed in programming. In addition to this, Crypto Hopper is definitely more user-friendly, and comes with a set of built-in trading strategies, as compared to Gekko.
While Gecko is free to use, Crypto Hopper has a number of plans available, the lowest being priced at $129. It ranges up to a profession plan costing $2999.
Although Crypto Hopper is a paid service, many people prefer it due to its ease of use.
Gekko Trading Bot: Worth Your Time?
Trading bots are definitely here to stay, and they are the best way to automate and manage your cryptocurrency portfolio. Gekko is especially suited for beginners, as well as those who are willing to experiment. With a little knowledge in coding, you can make quick profits, as well as minimize losses, making it highly profitable. It has a great community support of traders and developers, and now is as good a time as any to start out.