What does it take to earn money with crypto trading bots? In dynamic markets such as cryptocurrency exchanges, there are multiple ways to profit and multiple ways to stand at a net loss.
HodlBot encourages keeping things in balance, rather than engaging its users in proactive crypto trading. A simple strategy and simple software, but does it earn money? Let’s take a look.
HodlBot Review 2023
The booming crypto trading industry is a battleground for competing strategies as many individuals come up with their own scripts, bots, and approaches to try and earn as much as possible.
Each of these comes with its own risks, however, as there’s always a certain ongoing risk with any crypto investment.
The prices of cryptocurrencies surge and crash all the time, and the resulting difference becomes the lifeblood of speculative crypto trading.
It is not enough to have a great vision and a good idea to be a successful crypto trader, of course. As in every business, having quality equipment and tools is crucial to the chance and level of success.
In crypto trading, bots are the means of profit, and having an efficient bot separates those with a net positive balance from all the net negative balances out there.
So, how do you pick a good trading bot?
Unfortunately, there are few absolutely decisive methods besides trial and error, due to the fact that scammers and failing software developers invest more into false marketing than the further development of their crypto bots.
How does HodlBot fit into the big picture?
An alternative approach to crypto trading, HodlBot claims to be a simple software that capitalizes on the explosive dynamics of cryptocurrency exchanges and various cryptocurrencies by means of optimized portfolio management.
Keeping the balance as the only method of crypto trading is both the theory and the practice of HodlBot developers and they claim that’s enough to bring in a steady income for their users, especially when every indicator out there shows that the industry is bound to grow in total worth.
Does the pitch match reality?
Is HodlBot a successful new alternative bot or something that leaves a lot to be desired?
We’ll try to provide a conclusive answer.
HodlBot is a crypto trading software that specializes in diversifying your cryptocurrency portfolio and keeping the balance by maintaining a fixed percentage of various cryptocurrencies.
Depending on the setting the users opt for, HodlBot can juggle between 10, 20, or 30 different cryptocurrencies and capitalize on the changes on the crypto exchange by selling when the value is high and buying when the value is low, simple enough.
Currently, the only exchanges supported are Binance and Kraken.
When compared to some other crypto trading bots, HodlBot is found to be very lacking in options and the choice of strategy and approach. In other words, with HodlBot you’re either hodling or sticking with the wrong crypto trading bot.
Due to its simplicity in strategy and execution, it is suitable to newcomers and those who are looking for options that require little oversight.
HodlBot can be set up and left alone to try and earn some passive income by spreading widely across the market and engaging in trade only when the circumstances are favorable.
As long as the average value of all cryptocurrencies selected in the settings grows, you’re in the black. On the other hand, if a cryptocurrency (or cryptocurrencies) crashes, you’ll stand at a loss.
And that’s the basic idea behind HodlBot.
Does it work, though?
Ease of Accessibility
At first glance it becomes obvious that HodlBot was designed with beginners and casual crypto traders in mind.
The mechanics of portfolio management and cryptocurrency balance are fairly easy to understand and implement, and HodlBot doesn’t offer much else.
The design is simple and even rookies will be able to handle the setup.
Rebalancing is done automatically, with general settings available in presets while a small degree of customization of indices and portfolios can be achieved if the users are willing to experiment on their own.
As previously mentioned, there are three basic settings: HODL10, HODL20, and HODL30.
The number designates the number of top-performing cryptocurrencies you’re willing to hold and the higher it gets, the bigger your total holding budget gets recommended by the service.
And that’s all there is. No more, no less.
A pretty humble service, both in what it offers and what it requires. If you’re looking for anything more than this, you’ll have to look elsewhere.
That said, it is a bit disappointing since there are alternatives that provide this as part of their basic package.
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To compensate a bit for its lacking offer, HodlBot comes pretty cheap. It scales with the total value of your account, and goes like this:
- $3 per month for account value under $500
- $6 per month for account value between $500 and $1000
- $14 per month for account value above $1000
In our opinion, if you’re willing to try portfolio management as a concept, going with HodlBot for a while might not be a bad idea. There’s even a 7-day free trial policy.
Sticking to HodlBot, though, isn’t too great since you won’t be able to grow in potential, experience, or performance. For $3 per month, you can afford to experiment.
For $14 per month, you might as well get a full-fledged crypto bit that has the totality of HodlBot as a part of its package.
Alternatives like Quadency and Bitsgap, for example, but more on that later.
HodlBot’s security policies have certain flaws. In fact, in some aspects HodlBot doesn’t follow the basic set of security standards embraced by the rest of the crypto trading industry.
It has to be said first that their server configuration is secured in the form of HTTPS, and they encourage users to use API for exchanges. The service itself has no permission to withdraw funds from your account directly.
However, the obvious fault in their security is the lack of 2FA (two-factor authentication).
Another layer of protection is always welcome, but when the competition uses it, you have no excuse not to offer it as well. Paying attention to proper safety of users pays off, HodlBot, better fix that as soon as possible.
Perhaps due to the simple nature of its software, HodlBot does not maintain a full 24/7 customer service.
Instead, it relies on its Wiki pages and elaborate guides and how-tos to provide instructions to its users. As there’s not much to wrap your head around in the first place, it might as well remain at that.
Optionally, you can share your questions in the Telegram community, where someone might provide a concrete answer. A working, around-the-clock service is lacking for HodlBot, though, and it often shows.
Ultimately, there are no guarantees that you’ll end up with a profit. Automated rebalancing, isolated and unsupported by other strategies, is highly susceptible to cryptocurrency crashes.
It is not rare that the value of some cryptocurrencies sinks down to $0, which will make the percentage of your budget that you assigned to it practically worthless.
On a lucky day you’ll perhaps win. On a disastrous day, you’ll lose. Nothing new under the sun for the members of the crypto trading community.
Finally, HodlBot should not be taken as a fully-formed crypto trading bot. At most, it is a single function isolated from other bots and made into a piece of software.
The price tag is fair and telling: for hodling, it’s okay. For anything more than that, you’ll have to look for something a bit more developed.
The difference? Everything else that they offer, and they offer so much. Check them out!