Automated Bitcoin Trading UK – Best Auto Trading Platforms in 2021
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If you’re thinking about trading Bitcoin online – you’ll be accessing a marketplace that operates 24/7 and attracts billions of pounds in volume each and every day. However, unless you are experienced in this trading arena – you might find it challenging to make consistent profits.
The good news is that there are several ways in which you can trade Bitcoin automatically – which is ideal for those with little to no knowledge of how this space works.
In this guide, we explain everything there is to know about automated Bitcoin trading UK and how you can get started in less than five minutes!
Table of Contents
#1 UK Broker for Automated Bitcoin Trading – eToro
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Automated Bitcoin Trading UK – A Quick Guide For 2021
If you’re looking for a quickfire guide on how to get started with automated Bitcoin trading in the UK – follow the steps below. In doing so, you will be using the eToro Copy Trading feature – which allows you to automatically trade Bitcoin by copying an experienced cryptocurrency investor like-for-like.
- Step 1: Open an Account with eToro – eToro is an online brokerage that is regulated by the FCA. As such ─ you will first need to open an account with the platform. Next, upload a copy of your ID for identity verification purposes.
- Step 2: Deposit Funds – Before you can get your automated Bitcoin journey underway – you will need to deposit some funds into your newly created eToro account. This top-rated broker supports debit and credit cards, e-wallets, and bank account transfers.
- Step 3: Choose a Copy Trader – Click on the ‘Copy People’ button and spend some time researching the many verified traders that use eToro. You can look at data such as the trader’s historical ROI (return on investment), monthly gains, risk rating, and trading strategy.
- Step 4: Enter Stake – Once you have selected a suitable trader to copy, you will need to enter your investment stake. At eToro, this can be any amount above $500 – which is about £360.
- Step 5: Start Automated Bitcoin Trading – And finally – confirm your investment with your chosen eToro trader. ,
Now that you have confirmed your investment, all subsequent buy and sell positions that your chosen trader places will be mirrored in your own eToro account. This allows you to trade Bitcoin automatically without needing to lift a finger!
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Choose an Automated Bitcoin Trading UK Platform – Full Reviews
If you like the sound of trading Bitcoin in an automated manner – you first need to select a suitable platform. It is the platform itself that will facilitate your automated trading needs. After all, if you want to buy, sell, and trade cryptocurrencies like Bitcoin – you need access to the markets. The only way to do this safely is via a regulated and trusted brokerage site.
To point you in the right direction – below you will find a brief selection of the best-automated Bitcoin trading platforms in the UK.
1. eToro – Overall Best Platform for Automated Bitcoin Trading (FCA Regulated)
eToro is one of the largest and most popular brokerage sites in the UK -with the provider now home to over 20 million clients from around the world. Regulated by the FCA, ASIC, and CySEC – this platform offers a safe and secure passage to the multi-trillion dollar cryptocurrency industry. First and foremost, eToro allows you to buy and sell digital assets on a spread-only basis.
This simply means that instead of paying a commission, your trading fee amounts to the difference between the ‘buy’ and ‘sell’ price of Bitcoin. This averages just 0.75% at eToro, which is very low. In addition to Bitcoin, the platform also allows you to trade heaps of other cryptocurrencies. For instance, you can instantly place buy and sell orders on Ripple, Ethereum, Bitcoin Cash, EOS, Dogecoin, Litecoin, and more. What we also like about eToro is that you can trade digital currencies at a minimum of just $25 – or about £18.
In terms of its automated Bitcoin investment services, this comes in the form of the eToro Copy Trading tool. In a nutshell, this gives you access to thousands of successful traders that use eToro to buy and sell assets. You can elect to ‘copy’ any trader of your choosing like-for-like. So, if your chosen investor allocates 15% of their capital into a Bitcoin buy order, you will do the same. The Copy Trading tool is ideal for beginners and comes at no extra charge. The only thing to bear in mind is that you need to invest at least $500 into each trader.
We should also mention the CryptoPortfolio service at eToro – which is also a way to automate your Bitcoin trades. Put simply, this is a diversified portfolio that not only includes Bitcoin – but lots of other digital currencies. The portfolio is managed by the team at eToro, so this allows you to trade Bitcoin in a passive nature. If you like the sound of eToro, it only takes five minutes to get started. You can meet the minimum deposit amount of $200 (about £145) by using a debit/credit card, e-wallet, or bank account.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Buy thousands of UK and international stocks at 0% commission
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Regulated by the FCA, CySEC, and ASIC
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
2. Learn2Trade – Semi-Automated Bitcoin Trading via Signals
This option is arguably a semi-automated way of trading Bitcoin from the comfort of your home – insofar that you will need to personally place buy and sell orders. This is because instead of relying on a robot or Copy Trading tool, you will receive Bitcoin trading signals.
In a nutshell, providers like Learn2Trade send you trading ‘suggestions’ that contain all of the information you need to place the respective position at your chosen broker. For instance, Learn2Trade might tell you to buy Bitcoin at an entry price of $45,200. This will be based on the research compiled by the team of analysts working in-house at Learn2Trade.
As such, this allows you to trade Bitcoin without needing to have any knowledge of charting research or technical analysis. On the contrary, Learn2Trade does this for you. What we also like is that Learn2Trade provides stop-loss and take-profit order prices with all of its signals. This allows you to trade in a risk-averse manner. The Learn2Trade premium plan – at £35/month, will get you 3-5 crypto signals per day (Mon-Fri).
Pros
- Trusted crypto signal provider
- More than 30,000 members in its Telegram group
- Premium plan offers 3-5 signals per day (Mon-Fri)
- Prices start at £35 per month
- Top-rated customer support via live chat
- All signals sent in real-time
Cons
- You will need to place the suggested orders yourself via a broker
Cryptoassets are highly volatile unregulated investment products. There is no guarantee that you will make money with this provider. Proceed at your own risk.
3. Cryptohopper – Customized Automated Bitcoin Trading Bots
The next option to consider in your hunt for the best automated Bitcoin trading site is Cryptohopper. This platform specializes in trading bots – meaning that an algorithm will buy and sell Bitcoin on your behalf in a fully automated manner. On the one hand, Cryptohopper is best suited for experienced trading pros.
This is because the most successful bots are created from the ground up. This is something you can do at Cryptohopper in a relatively straightforward way – but you do need to know what metrics to insert. For instance, you might program your bot to sell Bitcoin when the RSI exceeds 70. On the other hand, Cryptohopper also offers a marketplace.
This allows you to purchase an oven-ready Bitcoin trading bot. There are hundreds to choose from at Cryptohopper and best of all – you can take the bot for a test drive via its demo account. Once you are happy with the performance of your bot – you can then deploy it into your chosen cryptocurrency exchange. You will need to pay a monthly fee to use Cryptohopper – with prices depending on your chosen plan.
Pros
- Build a Bitcoin trading bot from the ground up
- Purchase a ready-made bot from the Cryptohopper marketplace
- Competitive monthly fees
- Well-designed website
Cons
- You need to have a relatively firm knowledge of Bitcoin trading concepts
- Not suitable for complete newbies
- Lower-priced plans come with lots of limitations
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
How Does Automated Bitcoin Trading UK Work?
So now that we have reviewed the best platforms that are operational in this industry – we can now explore how the automated Bitcoin trading phenomenon actually works. In its most basic form – automated Bitcoin trading providers offer exactly what it says on the tin. That is to say, you will have the opportunity to trade Bitcoin in a fully automated manner.
This means that you can enter this ever-growing marketplace without needing to do any work. In particular, this will be of great interest to those of you that do not have any knowledge of Bitcoin or how the wider cryptocurrency markets work. After all, in order to make consistent gains in this arena – you need to perform technical and fundamental analysis. These skills – as we cover in more detail later – can take years to master.
Similarly, automated Bitcoin trading UK is also beneficial to those that are somewhat time-staved. This is because the process of performing daily research on the Bitcoin markets is not something that can be achieved in a matter of minutes. On the contrary, the most successful traders in this space dedicate countless hours each and every day – with the view of finding a suitable trading opportunity.
In terms of the fundamentals, automated Bitcoin trading comes in various forms. For instance, there are plenty of so-called trading bot providers that claim to make huge daily returns. These bots operate on the back of artificial intelligence – which sounds great at first glance. However, most Bitcoin bots lose money – which is why we prefer Copy Trading. We discuss the different types of automated Bitcoin trading in the next section.
Types of Automated Bitcoin Trading in the UK?
In this section of our guide, we are going to explore the many different types of automated Bitcoin trading that is available to UK residents. This will allow you to make an informed decision as to which trading system is right for you and your financial goals.
Automated Bitcoin Copy Trading via eToro
We would argue that the best form of automated Bitcoin trading UK can be found at eToro – an FCA-regulated broker with over 20 million clients. As we briefly explained earlier, Copy Trading allows you to select a successful investor that uses the eToro platform and then copy them like-for-like. In doing so, you can trade Bitcoin throughout the day without actually needing to do anything.
After all, it is the responsibility of the trader in question to perform research and analysis. And most importantly – the individual will be risking their own money on the positions that they place. This means that they are financially invested in their buy and sell orders and thus – you can be somewhat sure that the trader will not act irrationally. Any order that they do place will be mirrored in your own eToro portfolio.
Here’s a simplistic example of how automated Bitcoin trading works at eToro:
- Let’s suppose that you decide to invest £1,500 into an eToro trader that has expertise in Bitcoin and other cryptocurrencies
- A few hours after you invest, your chosen trader risks 10% of their capital on a Bitcoin buy order. This means that you automatically allocate £150 on this trade – which is 10% of the £1,500 you invested.
- A few days later, the trader closes their Bitcoin buy order – with the position resulting in a profit of 25%
- You automatically close the position too and also make 25%.
- On your stake of £150 – your 25% profit amounts to net gains of £37.50
Crucially, the above process will be repeated every time your chosen trader enters a position. This means that you can sit back and not only allow the individual to perform research on your behalf – but place the appropriate buy and sell orders, too.
With that said, there is no guarantee that your chosen trader will make consistent profits. As such, the process of researching a suitable trader for your financial goals and tolerance for risk is imperative. Fortunately, eToro makes the process a simple one. This is because you will have access to a comprehensive filter system that you can use to find a trader that alligns with your goals.
For instance, the filters allow you to search by:
- Annual Gains: You can focus on traders that have made a minimum amount of annual profit – for example, 15%
- Monthly Returns: You can also view trader’s historical returns on a month-by-month basis
- Trade Duration: This filter allows you to see the average amount of time that the individual keeps a trade open. If this figure is in the minutes or hours, then you know they are a short-term day or swing traders. If this figure is in the days or weeks, then they are likely a longer-term investor.
- Risk: eToro automatically assigns its traders a risk rating – which is facilitated by an in-house algorithm. The higher the score, the more risk the trader takes. This filter ensures that your chosen trader has an appetite for risk that is similar to yours.
- Time at Platform: This is another important filter to look at. Essentially, the longer the individual has been using eToro to trade – the better. After all, this will provide you with a much more comprehensive overview of how good the individual is at trading Bitcoin and other digital tokens.
The above filters are just a few of many. Ultimately, the key point here is that eToro gives you all of the information that you need to select an automated Bitcoin trading pro that meets your needs. Take note, the minimum investment per trader is $500 and you can exit your position at any given time. Plus, you can also add or remove assets from your Copy Trading portfolio should you wish.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Automated Bitcoin Trading Bot
Bitcoin robots or ‘bots’ are rampant in the cryptocurrency scene. On the surface, these bots sound like the ideal way to benefit from an automated Bitcoin trading system. This is because the bots operate on a 24/7 basis – constantly placing buy and sell orders on your behalf. The underlying software is supposedly backed by artificial intelligence and machine learning – meaning that the bot operates in an autonomous manner.
However, the key issue is that the vast majority of automated Bitcoin trading bots lose money. That is to say, you might find that your chosen bot initially places a few successful trades. But, eventually, you will find that the bot goes on a prolonged losing run – subsequently resulting in your trading funds being wiped out.
- We find that the main reason this happens is that the bot does not have the capacity to acknowledge what is happening in the real world.
- That is to say, if there is a negative news story surrounding Bitcoin – such as increased regulatory scrutiny or an exchange hack – the bot will not be aware of this.
- On the contrary, the bot will continue to follow the pre-set conditions that it has been instructed to meet.
An additional problem that we have with automated Bitcoin trading bots is that most providers active in this space make bold claims that cannot be independently verified. For instance, you will regularly come across providers that promise double-digit percentage returns each and every day. Seasoned Bitcoin traders know that returns of this magnitude are not possible on a consistent basis. But, this doesn’t stop people from getting drawn in.
In comparison, all of the data and statistics that you see with the eToro Copy Trading service are 100% transparent, verifiable, and legitimate. After all, eToro is not only regulated by the FCA – but ASIC (Australia) and CySEC (Cyprus) too.
Semi-Automated Bitcoin Trading via Signals
The third option that you have when searching for an automated Bitcoin trading service is a signal provider. As discussed earlier, platforms like Learn2Trade offer real-time Bitcoin signals that tell you what positions to place with your broker. This means that you are engaging with a semi-automated system – which ensures that you have full control over your trading funds.
Before signals are sent to you – the in-house team at Learn2Trade will perform in-depth charting research and technical analysis. Once a potentially profitable investment has been identified, the signal parameters will be distributed so that you and your fellow members can place the appropriate trade.
Here’s an example of how Bitcoin signals work when using a popular provider like Learn2Trade.
- An analyst at Learn2Trade has noticed that Bitcoin is oversold – meaning that now could be a good time to enter the market. As such, a signal is distributed via Telegram.
- The signal tells you to place a buy order on BTC/USD at $39,100
- You are also told to enter a stop-loss order at $38,000. This means that should the trade not go as planned and thus – Bitcoin drops to $38,000 – the stop-loss order will automatically close your position. This prevents losses from spiraling out of control.
- Additionally, you are told to place a take-profit order at $42,000. This ensures that should Bitcoin hit a price of $42,000 – the take-profit order will automatically close the position. This has the desired effect of securing profits from a price target has been triggered.
As per the above example, Learn2Trade provides you with everything you need to trade Bitcoin in a semi-automated manner. All you need to do is place the orders that the signals suggest and you are good to go. In total, Learn2Trade sends out 3-5 signals per day – throughout the week. This will cost you £35 per month, albeit, the provider offers a 30-day moneyback guarantee.
Cryptoassets are highly volatile unregulated investment products. There is no guarantee that you will make money with this provider. Proceed at your own risk.
Benefits of Automated Bitcoin Trading UK
If you’re still not sure whether automated Bitcoin trading is right for you – this section of our guide explains the many benefits that the phenomenon offers.
Ideal for Newbies
It is fair to say that most people in the UK have at the very least heard of Bitcoin. But, simply being aware of an asset is not enough to ensure you will make money.
- On the contrary, in order to trade digital tokens like Bitcoin successfully, you need to understand the market.
- Not only that, but you need to have a firm grasp of being able to analyze pricing trends, perform technical analysis, and ultimately – make risk-averse investment decisions.
- In the case of chart analysis, this requires an understanding of indicators like the Moving Averages, Bollinger Bands, RSI, and MACD.
This process can take many years to master – which means that newbies will eventually lose money. This is why automated Bitcoin trading UK is so popular with inexperienced investors – as zero knowledge of the market is required.
Perfect for Time-Starved Traders
Even if you do have a basic understanding of the Bitcoin marketplace and wider trading arena – you might not have the required time to succeed in this industry. This is because performing research can be very time-intensive. In other words, experienced traders will often spend several hours of the day researching the markets.
As such, if you have other commitments – for example, full-time employment, you likely won’t have enough time to execute the necessary analysis. Once again, this is where automated Bitcoin trading systems can assist. For instance, by utilizing the eToro Copy Trading tool – the only research that you need to perform is when choosing an investor to copy. After that, everything is 100% automated.
Start Bitcoin Copy Trading Now >
Trade Around the Clock
Another top benefit of automated Bitcoin trading is that you have the opportunity to access the markets around the clock. For example, if you decide to deploy an automated bot, then it will scan the markets 24 hours per day – 7 days per week. This will enable you to gain exposure to trading opportunities even when you are asleep.
This is also the case with Copy Trading, insofar that you can elect to copy traders from several different regions. In doing so, you will always have a skilled investor watching the markets on your behalf!
Avoid the Emotional Side of Trading
Seasoned investors will all tell you the same thing. That is, most newbies end up losing money because they are unable to handle the emotional side of trading.
- Put simply, when inexperienced investors encounter a losing position – they often proceed to make irrational decisions.
- For instance, the individual might risk more money than they can afford to lose on the next trade – with the hope of winning back the money they previously lost.
- The good news is that you can bypass the emotions of trading when engaging in an automated system.
This is especially the case when utilizing the eToro Copy Trading tool, as you will be backing experienced investors that are well versed in the art of trading emotions. In other words, seasoned Bitcoin investors know that losing trades are just part and parcel of this industry.
Risks and Drawbacks of Automated Bitcoin Trading UK
Although the benefits of automated Bitcoin trading are plentiful, you also need to consider the risks before parting with any money.
The main drawbacks and risks of automated Bitcoin trading UK have been summarized below:
- Risk of Loss: Ultimately, like all trading endeavors, there are no guarantees that you will make money. On the contrary – and irrespective of the automated Bitcoin trading system you opt for – there is every chance that you will lose some or all of your investment. As such, proceed at your own risk.
- Hyperbole: You will come across hundreds of so-called ‘expert’ Bitcoin trading robots that can make unfounded financial returns. Inexperienced traders are often drawn in by this hyperbole without performing the necessary research.
- Volatility: One of the key issues with the Bitcoin trading space is that the cryptocurrency markets are still super-volatile. Most people invest in this asset class for speculative reasons – so you might find that your portfolio moves up and down in value at a rate you find uncomfortable.
The most important thing is that you enter the automated Bitcoin trading scene with your eyes open. Never pay for a trading product or service that promises ‘guaranteed’ returns or makes claims that you cannot independently verify. And of course – never risk more than you can realistically afford to lose.
How to Get Started With Automated Bitcoin Trading UK in 5 Minutes
If you have read our guide on automated Bitcoin trading UK up to this point and wish to proceed – we are now going to explain the steps required to get started. For this tutorial, we are going to walk you through the process at FCA-regulated broker eToro – so you can utilize its user-friendly Copy Trading tool.
Step 1: Open an eToro Account
You will first need to register an account on the eToro website. Hit the ‘Join Now’ button from the homepage and enter your first and last name, email address, and mobile number. You will also need to choose a username and a password – which you will use to log in to your account moving forward.
eToro will need to collect some additional personal information from you. This includes your home address, date of birth, and national insurance number. Finally, you will be asked to upload a copy of your passport/driver’s license and a proof of address. This is a mandatory requirement at all FCA-regulated brokerage sites.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Make a Deposit
Before you can use the eToro Copy Trading tool – you will need to make a deposit. The minimum first-time deposit at eToro is $200. However, the minimum investment stake per copy trader is $500. As such, you’ll need to invest at least this amount should you wish to use the Copy Trading feature.
In order to fund your deposit, you can choose from a debit card, credit card, e-wallet, or bank transfer. All deposits attract a small FX fee of 0.5%. You will, however, be able to use the Copy Trading tool at no extra cost – meaning you don’t need to pay your chosen investor a commission.
Step 3: Choose a Successful Bitcoin Trader to Copy
Now that you have a funded account, you can proceed to click the ‘Copy People’ button. This will provide you with everything you need to carefully choose a trader to copy.
As we discussed earlier, you will have ample filters to help you make this decision. This includes data points surrounding the trader’s risk level, preferred market, average monthly return, and more.
Step 4: Start Automated Bitcoin Trading
If you have selected an eToro Bitcoin trader to copy – all that is left for you to do is confirm your investment. You can do this by clicking on the ‘Copy’ button – which will populate an order box. In the ‘Amount’ field, add the size of your investment.
Finally, click on the ‘Copy’ button to complete the process. Thereon – any trades that your chosen investors make will automatically be mirrored in your own account. At any point should you wish to stop copying the individual – you can do this from within your eToro portfolio.
Automated Bitcoin Trading in the UK: Conclusion
This extensive guide has covered the nuts and bolts of automated Bitcoin trading in the UK. We’ve talked about how the phenomenon works and the many different ways to access this marketplace. We’ve also reviewed the best platforms in the UK that allow you to benefit from automated Bitcoin trading.
In summary, we found that the best option on the table in terms of transparency and trust is eToro – which offers a Copy Trading tool. This enables you to trade Bitcoin in a fully passive manner and most importantly – you will be doing so via an FCA-regulated broker. Getting started with the Copy Trading tool should take you no more than five minutes from start to finish!
eToro – Best Broker for Automated Bitcoin Trading UK
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