Cryptohopper: An Honest Review & Tutorial For Beginners
Recently, I have been doing some detective work to find out how I can better use my money to make money. And by money, I mean of course, crypto. Sliding from one option to another, I came across a trading bot called Cryptohopper and decided to give it a shot since it had a monthly trial for free. This is my honest Cryptohopper review.
I have to say I am generally very satisfied with this product and, therefore, I decided to write a lengthy Cryptohopper review/tutorial so you can decide if this service is worth your pennies!
After all, we all have a life and, spending three quarters of it in front of a computer screen just doesn’t make things better.
Even if crypto is your baby (which I totally understand!).
Cryptohopper Review: What is this bot all about?
Cryptohopper is an automated crypto trading bot that trades for you, so you can focus on the important things in life. Made by people who value time off the computer, this software can help you “outsource” your trading and allow you to relax all while you make profit automatically.
Get started in 3 easy steps
One of the aspects that makes Cryptohopper remarkably safe and convenient is that we don’t store your funds.
One of the things that makes Cryptohopper a great option, even for trading beginners, is that they do not store any of your funds. Your money remains in your wallets and only an API code is used to create and manage your trades.
1) Choose your exchange
This Cryptohopper review would not be complete if I didn’t explore the compatible exchanges. The bot is with many, including Huobi Pro, Binance, Coinbase Pro, Cryptopia, Bittrex, Kraken, Kucoin and Poloniex.
Keep in mind that the bot has a partnership with Huobi Pro, therefore offering better transaction fees for those who use Cryptohopper. From an “ease of use” perspective, Huobi is probably your best bet. We, however do not recommend using Huobi for your trades, at least for now, since there has been some issues going on lately.
2) Register your Cryptohopper account.
After successfully signing up on Cryptohopper and get an account, you will see your dashboard.
From your dashboard, you are able to create as many “Hoppers” as you can handle. Keep in mind though, every new “Hopper” needs a separate subscription and trade strategy depending on the exchange your account is using.
Now you can choose from the templates the bot offers or create one yourself, depending on your experience.
Once your Hopper is created, you can go to the config tab. Give your unique API key (can be found on the exchange you are using) and paste it in your config.
Good to remember: Coinbase Pro provides a passphrase together with the API code and Kraken gives you two separate API codes.
Save your changes.
3) Set up your config
It’s time for the most important step so pay close attention. You now need to configure your Hopper. As aforementioned, the templates offer pre-existing settings, which is good if you are just starting out.
However, this does not necessarily mean you are in profit. To become a successful trader you need to take into account the market conditions as well as the sentiment to form a strategy that fits the current market cycle.
From here there are really only two ways to proceed. If you are a beginner, it is a good idea to follow a signals channel, whether paid or free (more on that further down).
If you are a more experienced trader, you can trust your technical analysis and form your own trading strategy.
It is very important that you keep educating yourself no matter where you currently stand. Long term success comes from constant observation, experience and knowledge improvement. You can improve your skills by following forums, Discord/Telegram groups as well as popular Facebook/Twitter personalities. These will hone your skills and improve your potential profits.
What do I do with existing positions on the exchange?
If you already are an active trader, you may sync your pre-existing positions to Cryptohopper or keep them out of the bot’s reach if you decide to turn auto-sync off.
If, however, you do sync your existing active trades, you can also activate the “hold” setting, to keep the coins and sell them manually whenever you please.
Bot Configuration / Settings
Now it’s time to talk about the centre of operations, the core of your Bot. Let’s delve into the Settings of your Cryptohopper.
In the Config Pools tab you can set your configurations for all of your coins or set-up a strategy for a specific coin only. These are called “Config Pools”; seting up a different setting for each chosen coin.
If you already had a config implemented on all your coins, the Config Pool will override the coin-specific strategy with the new settings.
Since we all out on our Cryptohopper review we had to test the “risk-free” options as well. You can test the bot’s abilities without risking your money by deactivating the “Live Bot”. By doing so, the bot will continue executing trades, just without your funds. The output and results can be a good indicator of success for your current strategy.
Find your base currency by selecting the currency your funds are in.
If you are a beginner, we recommend working with either the USD or the Euro, since these FIAT currencies are more stable compared to others.
If your exchange does not support FIAT, you can also choose Tether(USDT) as your base currency.
Look at your options carefully because the coins you want to trade will determine the exchange you will be using.
It goes without saying that you should only invest in cryptocurrencies you have researched and you feel comfortable trading. After all, the responsibility lies solely with you, not with the bot.
The bot is the tool but YOU are the one using it.
To see the available trading strategies (which is a good idea if you are just starting out), check the Documentation for a detailed overview of just about anything Cryptohopper-related you might want to explore and learn more about.
What is the expected profit you are looking to make per trade?
It is important to remember that each exchange has its own fee structures. Most exchanges are charging you in the range of 0.1-0.5% per trade. Therefore, you should set your minimum profit percentage above the fee deduction. So, if an exchange charges 0.5% for a trade, your profit should be at least 0.55%. Depending on the comfort you feel with risk you should be working at the range of 1%-3%.
For my cryptohopper review, I used Binance and pay half the fees in their BNB coin, which takes the fees down to a mere 0.05% per trade.
Arbitrage refers to the instant trade of one or more cryptocurrencies between exchanges for odds for a minor risk-free profit.
Arbitrage trading may not be the strongest suit of Cryptohopper if you decide to trade on Binance like I do. The opportunities are limited since there are less coins available and, in the current bear market, the price spikes are very limited. That does not necessarily mean you should not do it. Just make sure you are absolutely sure before going into a trade.
Triangular arbitrage trading on one exchange is also possible. If you feel like wetting your feet, Poloniex and Bittrex are our recommendations since the coin availability is so broad.
You can easily enable “Arbitrage only allowed coins” in your configurations panel to arbitrage trade solely with coins you want in your approved coins list.
It is utterly important to understand how stop losses work before you even consider to start trading. Not understanding how stop loss works may result in a big portfolio “hit”.
By enabling Stop Loss on Cryptohopper, your coins will be sold with a minor loss if they go lower than the configured percentage.
This option may come in handy if you trade with signal groups.
Max open time buy/sell
Every time the bot places an order, what is the approximate timeframe for it to complete the trade? You can easily set a configuration for the amount of time one position can remain open, after which your trade will be fulfilled.
Amount Per Position
This is an important setting and it really depends on how much money you are trading with.
It is a good idea to start trades with a maximum of 5% of your total trading portfolio. This means that, if you are trading with $1000 USD, a position should not take more than $50 USD.
When you get more accustomed with the bot, you can allow it to chose the amounts by itself, by leaving the Maximum allocated amount empty.
I like to trade with low risk and low reward. Since I will be using the bot for a longer period of time with a position I would otherwise hold I am not really in a hurry to make more profit in a short amount of time. Here is how my settings look
- Percent Profit: 1.2%
- Percentage lower bid: 0.3
- Percentage higher ask: 0.3
- Stop-loss: ENABLED
- Trailing stop-loss: ENABLED
- Trailing stop-loss percentage: 1.2
- Arm trailing stop-loss at: 3
- Use trailing stop-loss only: DISABLED
- Hold assets when new target is the same: ENABLED
- Auto close positions within time: 2 weeks
- Max open time sell: 15
- Max open time buy: 40
- Max open positions: 30
- Max percentage open positions per coin: 2
- Percentage buy amount: Aprox. $100-200 per trade
- Minimum BTC amount per order: N/A
One problem that I faced with Cryptohopper is that there is no opportunity to sell parts of a position as a wave goes down (otherwise known as averaging down). You need to place these orders on your own. I hope this will be worked on in the future.
Another problem I faced using the bot is that there is no clear indication if the signals are short term or long term, which can be confusing, especially for beginners. I choose to close my trades in this short timeframe even with risks on possibly a better profit but through that I still have the opportunity to catch some last minute great signals that look more promising. I used trailing stop for that. This is basically a stop that trails the price on the way up and allows me to hop on a ascending wave. The stop kicks in only at around 3%, which means that, if a price jumps straight to 3% the 1.2% profit taking is disabled and the trailing stop kicks in this stop is at 1.3% of the (then) current price. If the price goes down by 1.3% I sell automatically. So if, for example, a coin increases in value by 20% or more the trailing stop will follow the wave and only place a sell order if the 1.3% drop occurs. This is be far one of the most useful tricks I learned while working on this Cryptohopper Review.
I like to think that Cryptohopper would work better if the developers added more features, like price averaging if you are caught off guard with a bag that is facing a loss. Another option would be to add trailing stops where the % of the trail increases the more a wave ascends.
I believe that this bot is best used with (paid) signal groups. This is because it is not best in terms of configuration currently.
As I mentioned before in this Cryptohopper review, this bot is one of my favourite tools if used in combination with the proper signal groups. I like to work with paid signals since their average results are often much better than free groups. And since you are paying for the bot you may as well invest in quality information as well. And make sure you check for signal groups that inform you for short vs. long term positions so you don’t get stuck with bags you don’t want.
The bot makes some good recommendations on the best signals to use but I like to go with mininghamster since their signals are fast I am confident I won’t get stuck with my bags.
A few tips to manage risk
We will complete our Cryptohopper Review with some risk management tricks. In order to manage your risk you need to be very careful with your settings. Do not take this lightly as slight adjustment could lead to bad results.
- During market crashes it is a good idea to limit your trades except if you feel very confident in your calls or positive events such as the upcoming ETF decisions are coming up. Nothing is certain, therefore do not blame us if you base your settings and trades off this Cryptohopper review.
- Learn how to use stop losses and utilise them to your benefit.
- Constantly do your own research on forums such as Reddit and Bitcointalk.
- If the market conditions / sentiment is positive, increase your % of potential profit. Likewise, if the market goes sideways, decrease your % and limit your trades
- For beginners or for individuals who are not familiarised with taxation of trades, it’s best to trade pairs with stable coins such as Tether (USDT).
- Continue to improve your trading knowledge constantly.
That’s it folks. If you made it until here you have completed our Cryptohopper Review. If you intend to make use of the software, great! We have secured the following discount code for you: SV260
Use the code upon checkout to explore Cryptohopper at a discounted rate.
All in all, I like Cryptohopper and I believe in its potential. There are, however, other trading bots that I may choose over this one for particular reasons, all of which will be analysed in future posts.