Keep in mind that here (depending on which exchange you choose) transaction costs are added per trade. For example, all trades on the popular Bittrex exchange contain a commission of 0.25 percent. If you want to restore money to euros, then you also have to take into account the costs of the Bitcoin network, which at the time of writing often charge 0.001 BTC (about 5 euros).

Tradebots and arbitration bots

Not in the mood to keep track of all prices and exchanges? You can also use different tradebots, which make decisions on behalf of the user through a technical analysis of the exchange rate. You can give an authorization to the tradebot software to trade on your behalf via an exchange API. The more serious tradebots cost (periodically) money and come in the form of extensive software packages that can largely be programmed further, based on their own insights and tactics.

  • The use of a bone has unique advantages and disadvantages. First the speed. As a human, it is difficult to recognize and act on a gradient pattern within a fraction of a second, but a bot could do this and get in or out within a fraction of a second.

Many tradebots are programmable to implement certain technical strategies, such as the popular Regression Slope Cross, MACD, StochRSI or Aroon. A tradebot acts without intervening emotions (no panic reactions) and prevents human errors. All points of the fundamental analysis we discussed above cannot be taken into account by a tradebot, which is a major disadvantage for many investors. A number of well-known and commonly used tradebots are Haasbot, Tradewave (a community where users exchange strategies) and Cryptotrader. The neuer capital trading platform full review opens up all the options there.


Another important way to make money from crypto currency is through arbitrage, or the difference in price of the same currency on different exchanges. This can save a few dollars per coin, which can be traded very quickly through an arbitration bid. With large amounts of money this can yield a lot of returns, it is also called ‘high frequency trading’. An example of a popular open source and free arbitration bid is Blackbird. This can be downloaded for free on GitHub and can be used to trade Bitcoin on various exchanges through long and short positions.