Whether you are a newcomer to the crypto market, or an experienced crypto trader, it is likely that you have heard of crypto trading bots. While you might assume that these types of cryptocurrency trading strategies are reserved for advanced traders, automated crypto trading can be done by even novice traders. Regardless of your trading experience you will want to pick the best crypto trading bot. But what is the best crypto bot? There are both free cryptocurrency trading bots and paid services, each coming with their own benefits. Whether you are looking for a Bitcoin trading bot, or an Ethereum trading bot, our definitive guide will walk you through the best crypto trading bots in the industry and help you decide which crypto trading bot is right for you.
A crypto trading bot is a piece of software that is designed to analyze cryptocurrency markets and to place buy and sell orders on the trader’s behalf. It is an automated crypto trading strategy that involves technical analysis and utilizes algorithmic trading rules to execute trades at an ideal moment in order to generate profit for the user.
Cryptocurrency trading bots act based on preprogrammed and algorithmic trading rules. Their decision making is hinged on the price fluctuations in the market, they analyze market conditions such as price, volume, time, and orders. The best crypto trading bots are often fine-tuned by their users to meet their own trading preferences. Left to their own devices even the best crypto bot can create losses for their users so despite automated bots doing the work for you, they need to be monitored and maintained.
There are a quite few things you need to look for when choosing the best crypto trading bot, especially when you consider the financial impact choosing a bad one could have on your portfolio. Things to look for in order to be considered one of the best crypto bots are:
This is an obvious one, since crypto markets never stop if your bot suddenly went offline you could miss out on a big live trading opportunity. Therefore it is important to pick a bot that has a good track record and is run by a reliable company. This can be accomplished by reading user reviews and testimonies.
Another obvious one. Your bot has access to your funds, and often your exchange account as it has to use a trading platform in order to execute the cryptocurrency trading strategies that you have programmed. Picking an unreliable or shady trading bot could easily result in losing a lot of funds. As with reliability, the best crypto trading bots will have track records of security.
While the best trading bot does not have to be easy to use, it is certainly something that is appreciated by both novice and advanced traders. After all, the whole point of using a crypto trading bot is to make your trading easier. Try and find a bot with an intuitive interface and simple control settings.
The whole point of using a bot is to automate trading to generate a profit, so this is another important factor. The best crypto trading bots generate the best profits for users. Do some research into the profitability of a bot before using it. Reliable companies provide information on their bot’s profitability.
The best crypto trading bot also has a transparent and often open source development process and support team. By choosing a bot with a reputable developer and trustworthy company history you can not only make extra profit but also get help if you need it. Knowing how the bot company operates is important information, make sure you do not choose a bot before looking into its founders and team.
There are a few reasons you might want to use a trading bot rather than executing trades yourself, the one caveat to using a bot being that you will still have to monitor what it is doing to an extent. Here are a few reasons you might want to use a trading bot:
Trading bots can analyze market conditions in multiple cryptocurrencies, simultaneously, and execute trades whenever there is room for making a profit. Whereas humans can only analyze cryptocurrencies and market conditions by going through them one by one. You can miss out on many profitable trades because you are looking at another crypto asset. Bots can do it all and more efficiently.
They can also conduct repetitive tasks such as periodic rebalances for you at a much faster rate. Not only that but they can execute trades instantaneously making their trades more effective than if you were to be sitting there executing trades manually.
With the price fluctuations commonly seen in cryptocurrency markets, human emotion can affect trade decisions negatively. But with an automated bot, it is pre-programmed and thus unaffected by emotion. Therefore, it will still follow its rules regardless of wild market changes.
The crypto markets never stop, neither does trading. However, you cannot always stay in front of your computer executing trades. By having a bot running you can take advantage of trade opportunities 24/7 instead of just when you have time. This increased ability to take opportunity results in higher profitability.
There are a few different trading strategies you can use your bot for, and many bots come programmed with one of these strategies in mind. We will take a quick look at a few of them:
This strategy is built on the assumption that if a price on a coin deviates from its average, it is destined to revert back to its average. Essentially this is a buy low, sell high strategy. If the price drops down below a market average, the bot will begin buying, if it goes up high, it will begin selling.
For this strategy, the investor holds short-term positions and sells at the peak of the wave before it crashes. This strategy is based on the belief that prices will continue to rise above expected averages and inevitably fall. This means that entry timing (when a trader buys into a market) and exit timing (when a trader sells out of a market) is vital. A bot can analyze data and determine when to sell a position before everyone else tries to do the same.
Arbitrage strategy makes a profit by buying and selling on exchanges simultaneously to make a profit on the spread. Unlike momentum trading, this strategy is independent of market performance and is fairly low risk. It simply requires speedy buys and sells in order to exploit price differences before they close up. This is where the bot comes into play as it can make these trades simultaneously.
Here’s a quick rundown of the some of the most popular trading bots currently on the market. Please keep in mind that utilizing a trading bot always has some inherent risk and nothing offers guaranteed profit. You should never risk more than you’re willing to lose. With that in mind here are some of the most reputable trading bot companies currently in operation.
TradeSanta is a cloud-based software designed to automate your cryptocurrency trades and works on cryptocurrency exchanges such as Binance or Huobi. You can use it to long, short, or do you own custom automation. It has an intuitive interface, no trading fees and reliable security measures.
TradeSanta ranges from free to $42 a month.
Shrimpy came to market in 2018 and has become popular in the trading community. It offers the obvious buy and sell features while also offering rebalancing, back testing and social trading. They have a free option that includes almost all features with an affordable paid version as well ($13/month). It supports major crypto exchanges such as KuCoin, Coinbase Pro and Kraken.
Haasbot is a more advanced bot which is reflected in its price that starts at $254 per year. Started in 2014, Haasbot supports a large number of cryptocurrency exchanges and can give you access to multiple bots that can implement trade strategies on different exchanges and currencies simultaneously. The bot is run on cloud and thus you will not miss out on any trading opportunity even when you are sleeping.
3Commas is a relatively new, more advanced trading bot with a number of sophisticated trading options built in. It has similar features to Haasbot but also has the ability to back test trade strategies on other portfolios. This can give you some insight on the strategies of the platform’s most successful users, essentially allowing you to copy their strategies, see how they work, and possibly build on top of them. The unique feature that separates this bot from the other bots is its ability to trail any crypto market. This allows the bot to trade a more profitable position even if your chosen sell target was already reached.
3Commas starts at $22 a month and caps out at $79 a month for their pro plan. It runs on a cloud and thus functions 24/7.
CryptoHopper is an advanced paid platform that is easy to set up and use. It is another cloud-based platform and requires no installation with 24/7 trading. The bot also integrates with traders who share their trading signals, allowing users to assign their bot to trade according to these traders’ signals. More experienced users can customize their own strategies. It can integrate with most major exchanges.
CryptoHopper offers three pricing packages with prices ranging from $19 per month to $99 per month.
Coinrule is an emerging, easy to use automated trading solution aiming to be used by both technical and non-technical traders. The platform allows anyone to choose from a number of set strategies which can be back tested before being deployed. More experienced traders can construct their own unique strategies, and as a result, traders of all levels can actively engage in the always open crypto market and trade 24/7.
Coinrule offers subscriptions ranging from $29.99 to $249.99 while also offering a free plan.
Gunbot features lots of built-in strategies including Bollinger Band, Ping Pong, and Step Gain. Most of its 6000 active users think that the Bollinger Band strategy is the best creates huge profits. Gunbot operates on several major cryptocurrency exchanges and is considered one of the best Bitcoin trading bots.
Gunbot is a paid service with costs ranging from 0.04 BTC to 0.25 BTC depending on your needs.
Apex Trader is a crypto trading bot platform that features trading bots that can be used to employ a number of trading strategies, is highly configurable, and provides over 100 technical indicators which means that anyone can create their own automated trading strategies and then deploy them to run 24/7 on a wide range of trading pairs. Strategies based upon Profit Taking, Reverse Trading, and Dollar Cost Averaging are all incorporated, and you can create and store an unlimited number of strategies.
Apex Trader has a 7-day free trial and then costs either 30 or 60 GBP per month.
Zignaly is a trading terminal with cryptocurrency trading bots that lets you trade automatically with help from external crypto signal providers. It is incredibly easy to use and can be utilized as a passive income machine. The platform lets you easily connect with a TradingView account, so you can use it with your favorite indicators. You can also customize your own strategy.
Zignaly is completely free to use and offers advanced features such as trailing while also offering the ability to pay for additional signal providers.