Did you know that to trade on Bitvavo you can also use a Bitvavo trading bot? On Bitvavo you can trade in more than 175 different crypto currencies, which is a considerable number for a fairly young trading platform. Moreover, Bitvavo is of Dutch origin, which means that both the interface and the support are available in Dutch. When trading at Bitvavo, you can make use of different trading strategies. Especially if you’re interested in day trading or scalping you can’t do without a trading bot. What a Bitvavo trading bot exactly is and how you can automatically trade on Bitvavo you can read in this article.
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What is a Bitvavo trading bot?
A Bitvavo trading bot is basically a software program. It uses artificial intelligence to analyse the market. You can set the program so that its predefined algorithms analyse the desired currency for you and buy or sell when the conditions you set are reached. In fact, Bitvavo’s bot can trade automatically, making it easier to generate profits.
When do you need a Bitvavo trading bot?
When prices rise, market sentiment is good. Then more traders come into action and trade more actively. The most profit can be made with day trading, but in order to make a killing you have to keep a close eye on the prices. If you like trading, this is probably not a punishment, but even if you would trade full time, it is not possible to sit in front of the computer 24 hours a day to keep an eye on the crypto prices. So if you trade in your spare time, it won’t work out at all. This is the moment where a trading bot offers a solution. For this reason Bitvavo has entered into a cooperation with Cryptohopper, so you can trade automatically with the trading bot of Cryptohopper and Bitvavo.
What is the advantage of a bitcoin trading bot with Bitvavo?
A Bitvavo trading bot can monitor the market for you 24 hours a day and make trades while you are at work or enjoying a well-earned night’s sleep. A trading bot can react to any price fluctuation. And by automating the trading process it can save you a lot of time and ideally generate a profit.
Crypto trading bots, however, cannot do the thinking for you. You are the one who has to come up with the trading strategies that the bit can execute for you. There is also no crypto trading bot that truly understands human behaviour, which is perhaps the most important pattern to recognise for a successful trader. Even the best crypto trading bot is just a tool in your toolkit, so delve into successful trading strategies as well.
How does a Bitvavo trading bot work?
A crypto trading bot is a kind of virtual personal assistant which keeps an eye on the prices for you 24 hours a day. Although the bot is equipped with artificial intelligence, you first have to tell the bot exactly what it should do in certain situations.
Most bots are fully configurable. You can think of and enter a strategy, and the bot will then execute this strategy according to your settings. This means that you have to have a strategy of your own, or have taken it over from someone.
The Bitvavo trading bot from Cryptohopper can be set up for any coin traded on the Bitvavo trading platform. An important difference between Cryptohopper and some other crypto bots is that you don’t need to withdraw money from your Bitvavo account first. By simply creating a link, you can let Cryptohopper trade with your account on Bitvavo.
How to activate the Cryptohopper Bitvavo trading bot?
If you have an account with Bitvavo, you can use the trading bot of Cryptohopper. For this you’ll first have to create an account at Cryptohopper as well. Creating an account at Cryptohopper is very simple. If you want to create an account, you’ll have to go to the website of Cryptohopper, where you’ll find the “Get Started” button at the top right of the page. You will also need to have money in your Bitvavo account with which the bot can start trading.
Now you need to link Bitvavo to Cryptohopper. Follow these steps to establish the link:
- Login to your Bitvavo account, click on your name at the top of the screen and choose ‘API’ from the dropdown menu.
- Now you need to create an API key. To do this, click on “Request New API Key” and enter a name for your bot, for example “My Cryptohopper Bitvavo bot” and tick all the options except “Include”.
- Now go to Cryptohopper and log in to your account there. Click on ‘Baseconfig’ in the menu. Click on “Exchange” and select Bitvavo from the list. Fill in the requested data and the API key you just created at Bitvavo. It will take a while for the key to be loaded, but then your Cryptohopper account and your Bitvavo account will be connected.
You have now created a ‘hopper’ as a trading bot on Cryptohopper is called, and you are ready to trade with your brand-new bot on Bitvavo.
What can the Cryptohopper Bitvavo trading bot do for you?
Now that you have created a hopper, you can start entering your trading settings. When you start, make sure you know what you are doing. You need to know the terms used and you need to have a strategy. If you start trading with a bit without knowing what you are doing it could cost you a lot of money.
The Bitvavo trading bot from Cryptohopper can be set up in a number of ways:
Buying: Here you can specify in which currency the bot can trade. You can also see here how many positions you can have open at once.
Selling: Here you can set when the bot can sell certain coins. You can enter your selling strategy here and specify your stop-loss.
Marketplace: At Marketplace you will find strategies of active traders that you can take over. Sometimes you have to pay a fee for this.
Backtesting: Backtesting is an interesting feature of Cryptohopper. With Backtesting you can try out a strategy or certain settings. The bot examines the results of your settings based on historical price data. Although the result of Backtesting is no guarantee for the future, it does give you an insight into how your bot would have performed and what profit you would have made.