Best Crypto Trading Bots – Automation at Its Finest in Crypto Trading
If you are a crypto enthusiast, chances are, you have heard someone mention crypto trading bots before. There is a notion that these systems are only suitable for those who possess some technical knowledge; however, this is not entirely true. There are trading bots that are suitable for beginners. They use simple logic to enhance your revenue while reducing losses and drawdown. Using these applications, it is possible to manage your entire exchange account from a single platform. Of course, it is vital to gain some fundamental knowledge about the crypto market before you start trading.
Our Top Picks For Best Crypto Trading Bots:
What exactly are crypto trading bots?
A crypto bot is a software program built to monitor the prices of crypto assets and take part in long and short trades in your stead. Developers code a set of instructions into these systems based on which they operate. Although these bots follow various trading schemes, the common objective is to generate gains by selling an asset after its value crosses a certain limit.
How do crypto trading bots work?
When someone develops a trading bot, they program it to work on the basis of algorithmic principles. The system monitors trading volume, time, and asset value, making decisions depending on price swings. Each trader has their own trading style, and they usually customize these systems accordingly. If you wish to use a bot developed by a third party, you must pay a certain amount of money in terms of subscription fees.
What is the difference between a trading bot and a human?
Although the market provides endless profit opportunities on a daily basis, it is not always feasible for a manual trader to act on them promptly to make the maximum gain. Those who have day jobs cannot keep an eye on the exchanges 24*7. This is why many of them are opting for automated crypto trading. Since they can remain active at all times without needing rest, these software programs have a clear advantage over humans.
What are the types of crypto bots?
The various categories are given below:
- Trend traders: These robots analyze the asset’s momentum. Once the price rises, they initiate a buy trade, and once it goes down, it sells the asset.
- Arbitrage: This trading scheme involves capitalizing on the price differentials between various exchanges. Since the differences have narrowed down in recent times, these systems have lost their effectiveness.
- Coin lenders: With these bots, you can give a margin loan to another individual who gives you back the amount sometime in the future, along with interest.
- Market makers: When the trading frequency for an asset is high, it will have wide spreads. The system tries to take advantage of them by placing a sell trade at a price that exceeds the market value.
Are crypto trading bots profitable?
While a system following a solid trading scheme can be advantageous, automated cryptocurrency trading is not a shortcut way to becoming a millionaire. The profitability of a bot largely depends on its in-built trading algorithm, but traders also need to know how to use it properly.
What are the risks of using crypto bots?
Even the best crypto bot comes with its fair share of risks. Your account can be accessed by a hacker and they might steal your API keys. There are several scam bots that are based on erroneous settings. These systems are prone to suffering heavy losses. Also, if there are drastic price shifts in the cryptocurrency market, you can lose a substantial amount of money.
What to look at when picking a trading bot?
While purchasing crypto trading bots, it is important to look into certain factors. Since these systems do not come cheap, you need to know you’re making a safe investment. Here are some things you need to consider:
Reliability
Since trading goes on 24*7, you don’t want to miss out on lucrative trading occasions because of technical malfunctions in your system. Thus, you ought to look for a system that has a history of making profits in the live market, and that is sold by a trustworthy vendor.
Ease of use
The main purpose of an automated system is to simplify the trading process. As such, traders certainly appreciate bots that don’t have complex functionalities. Ideally, it should have a user-friendly interface and controls that are easily understandable.
Security
Since you’ll be investing real money into your trading account, you need to pick a system that has adequate safety measures in place. There have been many instances of traders losing money after their accounts got hacked. Because of this, you should choose one that has enterprise-level security.
Profitability
Of course, if a system is not profitable, it makes little sense to invest in it. To get an idea about its profitability, you can check out third-party review websites. See whether most people are saying good things about the robot and try to determine an average score.
Transparency
A reliable vendor always maintains transparency about the system and the team members working on it. You ought to make sure the people working behind the scenes have adequate knowledge and experience. The vendor should also share the official address and contact details.
Advantages of crypto bots
Most crypto robots are user-friendly, and you can use them without any technical know-how. As long as you know which assets to trade and at what time, the system operates automatically based on the selected trading scheme. You can use them with various exchanges at the same instance.
It is possible to program the automated system with certain conditions based on which it can cease trading. Thus, you are less likely to suffer heavy losses. The majority of developers make the source code for their systems public, so you can understand how they function.
Disadvantages of crypto bots
It is true that the best crypto robots make tedious operations easier, but this does not mean you should not monitor them consistently. It is not wise to let the system function on its own without any oversight. To make sure it is working as expected, you ought to program the appropriate rules. Doing this requires a sound understanding of cryptocurrency dealing.
Hackers often attack exchanges to steal API keys. They may use this to withdraw all the money from your account. Finally, there is the risk of running into a scam bot that promises large returns but fails to deliver in the live market.
Common bot strategies
Some of the common trading schemes are given below:
- Mean reversion: Robots using this scheme work on the principle that a value of an asset ultimately returns to its average after some time.
- Momentum: This scheme involves the system placing long trades when there is a bullish momentum and going short when it changes course.
- Naïve Bayes: Here, the system calculates an event’s likelihood of occurrence. It uses machine learning principles for initiating orders.
- NLP: This involves the robot analyzing the market sentiment by monitoring crypto-related news updates.
What are the best crypto trading bots?
There is no one system that suits all. Different individuals have different profit objectives and trading styles. This is why you need to study the features of each system to determine whether it is suitable for you. Here are some of the top crypto trading bots:
1. TechBerry
Best crypto trading bot
TechBerry formulates a complex strategy by obtaining data from 100k+ social websites using artificial intelligence. TechBerry presents six membership plans, including Green, Silver, Gold, Platinum, Dimond, and Infinite. The cheapest package costs $19 for a one-year subscription, whereas the Infinite demands $499. There is also a trial option available which is durable for 14 days, where traders do not have to pay any subscription fees.
It is possible to monitor real-time trade to study the live execution and profitability of the platform. The system supports 50+ regulated brokers who come under the ruling of top regulators such as FSA, CFTC, etc. Traders do not have to be concerned about losing funds as the service provides insurance up to 100%. Company has been providing its services to members, traders, and financial institutions since 2015.
Read more about TechBerry in this review
2. Bitsgap
Crypto trading bot supporting 25+ exchanges
Bitsgap allows you to conduct automated trading on more than 25 major exchanges. It has ready-made strategies that have passed historical tests. You can check the backtests to see the profit and loss projections. This platform does not store your funds and you don’t need to make any downloads. You can analyze the performance of the bot using TradingView charts.
There is no need for additional configuration from the user’s side. The vendor offers a 7-days free trial, which means new users will find this service quite suitable. On the downside, this platform does not have a mobile application at this moment.
3. Quadency
Great bot for asset management
Quadency has an intuitive dashboard from where you can conduct transactions on major exchanges. It supports over 1500 crypto coins. Thanks to the advanced portfolio analytics feature, you can keep a close eye on all our holdings and monitor their performance. This platform also offers you valuable insight from renowned market experts, thus helping you make better decisions.
The trading interface is highly customizable, so you can adjust it according to your preference. You can select from several advanced strategies and customize them to suit your trading style. However, there is no mobile trading app.
4. CryptoHopper
Crypto bot for social traders
Thanks to the wide range of social trading available with CryptoHopper, and you can get in touch with members of the crypto community. You can discuss trading approaches and try out the bot templates. This system lets you use well-known schemes like arbitrage and market-making while providing you with market insight.
Even if you don’t possess any specialized know-how, you can build your own trading schemes using a drag and drop tool. Technically proficient merchants can edit the JSON code to custom-build their rules.
5. TradeSanta
Crypto bot for large volume traders
TradeSanta allows you to trade in large volumes without making the value rise or fall. It lets you take advantage of both bear and bull markets and provides transparent analytics so you can monitor the trading outcomes from anywhere. Using the preset templates, you can quickly launch a customized bot or build your own schemes.
With TradeSanta, you can use volume filters, day filters, and Bollinger Bands to enter a trade at the right moment. Even with the basic plan, you can deal in an unlimited number of pairs.
6. 3Commas
Customisable crypto trading bot
With 3Commas, you can conduct trades on 23 different exchanges. It lets you manage all your transactions from a single window and optimize your trading parameters. You can set multiple profit targets for your orders and study TradingView charts simultaneously.
Not only can this bot analyze the trading performance, but it can also mimic the functions of other systems. It allows you to maintain a balanced portfolio using coin ratios. The simple user interface makes it perfect for beginners who can also benefit from the free plan.
7. CryptoHero
Cheap crypto trading bot for novice traders
The AI-powered bots at CryptoHero use several technical indicators like RSI, Bollinger Bands, and EMA. Once you select your parameters, you can analyze the performance of each system via simulations. You can also conduct paper trades with zero risk and test the schemes using archival data.
The basic plan is free while the premium plan only costs $13.99 per month. When you purchase this product, the vendor provides you with a user guide that helps novice traders with the fundamentals of cryptocurrency dealing.
8. Zignaly
Crypto copy trading bot
Many experts consider this the best crypto trading bot as it permits you to invest in other traders who are making profits in the live market. Zignaly has DCA-based rebuy strategy options and also uses trailing stop losses for each trade. Thanks to the high watermark model, you don’t need to pay a performance fee in case the funds are not performing well.
Zignaly keeps your money secure through a SAFU fund. It stores API keys with RSA encryption and has a two-factor authentication process that makes it difficult for others to access your sensitive data.
9. HaasBot
Crypto bot for advanced traders
This cryptocurrency robot has some advanced functionalities like portfolio management, market scanner, bot extensions, and custom order types. It prevents third parties from tracking your data by storing the API keys on secure hardware. Additionally, it shields your positions using additional risk management layers.
This system also has its own scripting language, which an advanced trader can use to build custom algorithms and technical oscillators. It is also possible to backtest your scripts and run them across several exchanges.
10. GunBot
Good choice for margin trading
This robot emphasizes flexibility and speed and runs on different operating systems. With GunBot, there is no need to subscribe, and you can access all the functionalities by paying a one-time fee. It employs complex grid schemes where you are required to specify the expenditure for each trade and set the maximum buy orders.
GunBot can also use the dollar-cost averaging technique to set dynamic profit targets for long and short trades. Spot and margin traders can find several optimized trading schemes on this platform.
11. Shrimpy
Excellent crypto bot for portfolio management
With Shrimpy, you can supervise your portfolio and scan the live market through a single portal. Using the portfolio backtest feature, you can test your trading schemes with archival data. This system also lets you mirror the schemes of other merchants and mimic the investment portfolios of Coinbase Ventures, Blockchain Capital, and Binance.
Since you can manage the entirety of your portfolio for all the exchanges, you don’t need to visit each of them one by one to conduct trades. It encrypts and stores API keys using FIPS 140-2 validated hardware security modules.
12. Coinrule
Crypto bot for swing and day traders
There are more than 150 rules to follow with this trading bot, and it also lets you custom-build your trading schemes. It is compatible with the top exchanges. The system does not have withdrawal rights, and you don’t need to share your private keys.
You can test your schemes with archival data and use the free plan to trade in low volumes. The vendor is very transparent when it comes to the company’s service history, and there is a wealth of data to be found in the blog section.
13. Apex Trader
Apex Trader has an intuitive dashboard that lets you view charts on TradingView, select coins automatically, and view in-depth performance statistics. The system can employ a multitude of trading schemes depending on the market conditions.
There are more than a hundred oscillators you can use with this system, including RSI, MACD, PSAR, SRSI, and MFI. You can choose from pre-built schemes or combine them to create your own rules. Apex Trader lets you manage 75 open positions simultaneously.
Summing up
Before jumping into crypto trading, you ought to spend some time scrutinizing the price shifts patterns in the market. Using demo accounts and paper trading will let you test the effectiveness of your trading schemes without spending any real money. A trading bot is simply a tool that can make the process more streamlined.
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