Scam? Legit? I understand that those are really big concerns when you hear things like a cryptocurrency (whether it be Bitcoin or Ethereum) trading bot, so here are my thoughts and my results from using Cryptohopper.
IMPORTANT DISCLAIMER: I am not affiliated, associated or endorsed in any way, shape or form by Cryptohopper. Just somebody blogging about his opinions pertaining to Cryptohopper. Do use other sources in order to supplement what I say and do not take this blog post as financial advice.
First, just a bit of my background. I’m a cryptocurrency enthusiast, no real history with cryptocurrency trading bots, but I did my research, and I found that Cryptohopper was something that seemed pretty legit, so I decided to give it a go.
What’s great about Cryptohopper is that you can try it for a month… completely risk free (I mean, of course apart from your investment). If I’m not mistaken, no credit card details, no nonsense. You literally just make an account, set up your API key and give it to Cryptohopper, and Voila! Your hopper is ready to go.
Lots of exchanges which you can use with Cryptohopper. I think at the moment they are promoting the use of Huobi with the use of a promo code, but Poloniex, Bittrex, Kraken, Coinbase Pro and Binance are among the exchanges that Cryptohopper is compatible with.
I decided to play with it a little, and decided to play with 2 hoppers. One of which, I used the free trial, so their ‘Bunny’ trading bot, and another being a ‘Hare’ bot, which is their more sophisticated trading bot, with you being able to select more coins. I put 1 ether worth of cryptocurrency to start with in each of the two accounts (I converted 1 ether into the Bitcoin equivalent for the ‘Hare’ trading bot) and I just went with it.
I bought 2 reputed signals –> Mining Hamster (USD 6/month) and Cryptogrower (USD 5/month). So, what exactly are signals? These are basically services which look at the trends of the market, i.e. market history, price/volume changes and tell you which coins they feel have a high change of increasing (for buying) or decreasing (for selling) in price. Based on this, your bot can follow the signals and make the profits.
The beginning is really rough. You kind of get a bit of anxiety about a few things. Initially, you’re playing with all the settings, wondering whether it is ideal for you and the market. I personally have it on advanced technical analysis settings (which uses signals as well). My strategy is slightly less aggressive with profit taking at ~7.5%. So initially you’ll play with your settings and wonder WHY IS MY BOT NOT BUYING ANYTHING?
The answer? Just wait. If your settings are not TOO aggressive, and if you have signals that just don’t match your coins yet, you actually just have to wait for a bit for the bot to do the magic.
After your bot starts getting going, you encounter the next problem. Why is there a sea of red negative numbers in all my purchases. And the temptation will surely be there to put a stop to all of it and sell everything in case it gets worse, but I feel with the bot that you need to trust in it if you want to reap the results. Anxious people, I highly DON’T recommend you use it (or even get into the cryptocurrency space in general). Certain settings may be stronger in certain market conditions, and different market cycles may yield different results.
My Results From Two Weeks?
Surprisingly good results is what I saw. After a few days, it was down a little bit from my initial investment, but for my ethereum account, it has converted that 1 ether into 1.15 ether (so talking about a 15% profit), whilst it has turned 1 ether worth of coins into an astonishing 1.50 ethers in my Bitcoin account (but I think this one’s partly due to the reduction in the value of Ether over the past 2 weeks).
I think the 15% profit is probably a much fairer reflection of the results of the trading bot, although if you talk about the initial Bitcoin amount vs current Bitcoin amount, I do believe it is either around the same, or reduced slightly (neutral/loss).
So, is it worth it?
And my answer to that is? Not if you want to invest a small amount. If you’re expecting to invest anything less than an Ether worth of cryptocurrency (at least as of right now), you might be better off even just holding your cryptocurrency.
The maths of my investment in Ether:
- 1 Ether invested –> 15% profit, maybe if you’re optimistic – I will assume it will yield a 20% profit by the end of the month (~36 USD/month)
- I used a bunny account, I recognise it is a trial for month 1, but assuming I keep using it (USD 19/month)
- The signals that can be subscribed to, I personally subscribed to one that was for Ethereum – Cryptogrower only works for Bitcoin trading bots (USD 6/month)
- So we’re talking about a net increase in value of ~11USD/month if you take the costs into account, and you have to factor in the fact that the market IS slightly crazy, and you have to play around and perhaps even lose some value initially whilst learning
Just my two cents on using Cryptogrower. If you’d like to see more content like this, or would like to see my settings/actual transactions that the bot has done, please to leave a comment in the comments section below. If you guys are interested, I’m more than happy to write up a more detailed review of Cryptohopper, maybe even a few months after using.