Time waits for no one, and financial markets are no exception, especially in the volatile world of cryptocurrency trading, which is why a precisely calibrated, safe, and dependable trading strategy is critical. In contrast to typical stock markets, cryptocurrency trading never stops, making it nearly hard for private traders to watch market swings, diversify risk, reduce mistakes, and maintain trading discipline. Every day, 24 hours a day, seven days a week, 365 days a year.
Unless, of course, you have some assistance, in which case crypto trading bots come into play.
What are Crypto Trading Bots?
Crypto trading bots are programs that automate bitcoin trading on your behalf. Typically, the investor/trader will need to pay attention to market figures that are important in trading and then decide which cryptocurrency to buy/sell and when. The study and interpretation of market statistics can be easily automated using crypto trading bots. They can collect market data, analyze it, calculate potential market risk, and execute bitcoin asset purchases and sales.
It’s similar to hiring a professional to handle crypto trading for you while you sit back and watch the profit increase. For example, you can program a crypto trading bot to buy additional Bitcoin when the price falls below a certain threshold. Crypto trading bots can frequently save you a significant amount of time and are less expensive than hiring human professionals.
How Do Trading Bots Work?
Investors look for the most useful crypto trading bots and then download the code from a developer. Many bots charge user fees, some of which are rather high. Each bot has various software and hardware requirements. An investor must understand how to best use a bot to optimize its influence.
For example, investors must establish up appropriate accounts on digital currency exchanges and fund such accounts with bitcoin holdings. They must still make investment decisions, such as when to buy or sell, in many circumstances. What a crypto bot is not is a get-rich-quick scheme for investors who are unwilling to put in the time and effort required for success.
General Features of Trading Bots
#1. Analysis of Market Data
The bots will save raw market data from many sources, evaluate it, and decide whether to purchase or sell a certain bitcoin asset. To obtain more precise findings, most bots allow users to specify which sorts of data are fed into the signal generator sector.
#2. Prediction of Market Risk
This module is an essential component of a crypto trading bot. This one, like the last one, uses market data to evaluate the possible risk in the market. The bot will select how much to invest or trade based on this information.
#3. Purchasing and Selling Assets
This module of the crypto trading bot employs APIs to buy and sell cryptocurrency assets in a strategic manner. You may want to avoid buying tokens in bulk at times, and in some cases, making a single purchase may be the best option. Such concerns are handled by the Execution module.
The Benefits of Crypto Trading Bots
The following are some of the main characteristics and benefits of crypto trading bots:
#1. More potent
The quantity of data that a human trader can process at one time is limited. Even if all of the data has been analyzed, it is difficult to get insights from it. Crypto trading bots may easily process large amounts of data and draw plausible conclusions.
#2. Efficient
Trading and selling cryptocurrency assets Using a crypto trading bot is always seen to be more efficient. You don’t have to be concerned about delays or, more significantly, human blunders. As long as the bot obtains accurate data and is developing appropriate algorithms, it can trade assets with a higher probability of profit. Another advantage is that these bots can operate 24 hours a day, seven days a week.
#3. Emotionless
Every choice made by a crypto trading bot is based on perception. It, unlike humans, has no fear of losing or greed for profit. Experienced traders may be able to make reasonable decisions by suppressing their emotions, but this is not always the case for everyone, especially beginners. A crypto trading bot, on the other hand, always keeps emotion out of the equation.
The Drawbacks of Crypto Trading Bots
When dealing with a volatile market, crypto trading bots are not without flaws. Situations such as the current Covid-19 outbreak can have an unanticipated influence on the market, and it is impossible to forecast how these occurrences would affect the economy. To maintain making money, you need a smarter, more psychologically motivated plan.
Because crypto trading bots lack this capability, this is one area where you must rely on your senses. Programming flaws can also affect the performance of crypto trading bots. You must also exercise extreme caution while setting the bot’s circumstances and behaviors, especially if you are building your crypto trading bot from start.
It is important to realize that crypto trading bots primarily assist in generating only modest returns. For the successful use of a crypto trading bot, it is critical to have a thorough understanding of the digital currency markets as well as a strong supporting investment plan.
A bot might be a valuable tool for some investors to aid in their cryptocurrency trading. Others, on the other hand, may no longer require the services of a crypto trading bot by the time they’ve done the work to equip themselves to utilize it properly.
Best 10 Crypto Trading Bots
The following is a hand-picked list of the Top Crypto Trading Bots, along with their most popular features.
#1. Pionex
Pionex is the world’s first exchange, offering 12 free trading bots. Users can automate their trading 24 hours a day, seven days a week without having to check the markets. It is one of the largest Binance brokers, aggregating liquidity from Binance and Huobi Global.
Features:
- For retail investors, Pionex offers 12 free trading bots.
- When compared to the majority of the main exchanges, the trading charge is the lowest. The trading cost is 0.05 percent for both the maker and the taker.
- Grid Trading Bot enables users to purchase low and sell high within a given price range.
- Grid Bot with Leverage delivers up to 5x leverage.
- The Spot-Futures Arbitrage bot enables ordinary investors to generate passive income with minimal risk. This strategy’s anticipated return is 1550 percent APR.
- Smart Trade terminal enables traders to set stop-loss, take-profit, and trailing stops in a single trade.
- The MSB (Money Services Business) License issued by FinCEN in the United States has been approved.
Pricing: Free of charge
Apps for iOS and Android
Exchanges: Binance, Huobi Global
#2. Cryptohopper
Cryptohopper is one of the best crypto trading bots that allow you to handle all of your crypto exchange accounts in one location. It lets you trade for BTC, Litecoin, Ethereum, and other cryptocurrencies.
Features:
- You may design your own technical analysis with this bitcoin trading robot.
- It is simple to obtain tactics and bot templates.
- Cryptohopper safeguards your account with security mechanisms.
- This free bitcoin trading bot protects your personal information.
- It has an easy-to-use UI.
- The program generates performance reports in real-time.
- Apps for iOS and Android
- EMA, RSI, BB, and other typical signals/indicators are supported by their algorithms.
- Apps for iOS and Android
Pricing: Free
Exchanges: HitBTC, Okex, KuCoin, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, Binance.
#3. Bitsgap
Bitsgap is one of the best bitcoin trading bots that allows you to easily manage your crypto holdings. This tool can analyze over 10,000 crypto pairings and choose the currency with the highest potential. It allows you to build your bot strategy with just a few mouse clicks.
Features:
- A chart allows you to simply view your trading.
- Bitsgap is a fully automated bot that operates 24 hours a day, seven days a week.
- You can experiment with different settings before making a commitment.
- It can be accessed without having to download it.
- For security reasons, your funds are stored on the exchange balance.
- This BTC trading program allows you to increase your profits.
Monthly cost: $19.
Exchanges: Binance, OKEX, Bitfinex, HitBTC, Bittrex, Huobi, Exmo, Kucoin, CEX.IO, Kraken, Poloniex, Livecoin, Coinbene, Coinex, Gate.io, Bitstamp, Liquid, Gemini, Bit-Z, Yobit, DDEX, Bithump, Bibox, BigOne.
#4. Shrimpy
Shrimpy is a cryptocurrency-specific social trading platform. This application includes automated trading algorithms that can help you boost performance while lowering risk. It assists you in developing a portfolio plan, tracking performance, and monitoring the market.
Features:
- FIPS (Federal Information Processing Standards) 140-2 is used to securely encrypt and store API keys.
- It has the potential to make portfolio management easier.
- Allows you to see the current market price.
- Provides a dashboard with details about each asset as well as performance measures for a portfolio.
Pricing: Free
Exchanges: KuCoin, Binance, Binance US, Bittrex, Bittrex Global, Coinbase Pro, Kraken, Poloniex, Gemini, Bitbox, BitMart, Huobi Global, HitBTC, OKEx, Bitstamp, Bitfinex.
#5. SantaTrade
TradeSanta is one of the best crypto trading bots, allowing you to easily manage your risk. This application lets you select the approach that best suits your trading style. It lets you establish your profit target and close the deal at the appropriate time.
Features:
- You can easily launch trading bots with a short and long strategy.
- Support is available 24 hours a day, seven days a week.
- It enables you to buy or sell a huge amount of crypto with ease.
- Provides a large number of pre-set templates.
- Bot can be tracked in real time.
Pricing: Free
Apps for iOS and Android
Exchanges: HitBTC, Binance, Bitfinex, Bittrex, Huobi, BitMEX, OKEx, and UPbit.
#6. 3Commas
3Commas is one of the best crypto trading bots, allowing you to boost earnings while decreasing losses and dangers. This application enables you to benefit with little effort. It allows you to build a strategy based on more than 20 trading indicators.
Features:
- In a single window, you can sell and buy coins.
- This platform allows you to trade 24 hours a day, seven days a week.
- Other bots’ settings can be copied.
- It allows you to balance your portfolio by keeping coin ratios constant.
- Deal notifications are provided by this bitcoin margin trading platform via a mobile app, internet, and email.
- Apps for iOS and Android
- Backtesting, Dollar cost averaging, Signals, Custom TradingView Signal, and other features are supported.
Price: $14.50.
Exchanges: Binance DEX, Binance.us, Bilance Futures, Bitfinex, BitMEX, Bittrex, Bybit, Bitstamp, Coinbase Pro, Gate.io, Cex.io, Exam, Huobi Global, KuCoin, HitBTC, Kraken, Poloniex, OKEx, YoBit
#7. CryptoHero
CryptoHero is a free AI-powered crypto trading bot that is easy to set up and use for crypto newcomers. It can enable you to automate your trades easily and for free right from your phone. There is no need for coding knowledge.
Features:
- Support for multiple exchanges. Connect your APIs with ease.
- An interface that is simple to use
- Track your crypto trading performance individually or aggregated across many exchanges with a single app.
- Preset Technical Indicators
- With their discovery tool, most popular bots are easily set up in only one click.
- Before launching, perform a quick backtest using past data.
- With a single click, you may access all of your exchanges in CryptoHero’s Trading Terminal.
- Paper Trading with No Risk
- Users can access technical help 24 hours a day, seven days a week via live chat.
- Web, iOS, and Android versions are all available.
Pricing: Free
Apps for iOS and Android
Exchanges: Binance, Huobi, OKEx, Bittrex, Coinbase Pro, FTX, Kraken, Kucoin, Bitfinex, Gate.IO.
#8. Quadency
Quadency is a digital asset management tool that offers both institutional and retail traders an automated trading solution. It simplifies the procedure for investing in cryptocurrency.
Features:
- This program allows you to easily customize bots.
- Offers a variety of automated tools as well as powerful TradingView (social network) charting.
- A high level of customer service is available.
- You may use it to trade on Bittrex, Binance, and Kucoin.
- It provides a wide range of trading bots that can be easily customized.
- Allows for automated trading.
Pricing: Free
Apps for iOS and Android are in the works.
Exchanges: AAX, Binance, Bittrex, Kraken, KuCoin, Liquid, OKEx, Binance US, Bitfinex, Coinbase Pro, Gemini, HitBTC, Poloniex.
#9. The Coinrule
Coinrule is an automated trading software that allows you to trade on exchanges such as Binance, Kraken, Coinbase Pro, and others. This application has over 130 trading strategy templates.
Features:
- Customer help is available in real time.
- It enables you to test rule performance on historical data.
- Create your own trading rules.
- It contains a market indication that allows you to easily deploy funds.
- Military-grade encryption is provided.
- You can trade at any time of day or night.
Pricing: Free
Apps for mobile devices will be available soon.
Exchanges: Binance, HitBTC, Coinbase Pro, Okex, Bitstamp, Bittrex, Poloniex, Kraken, BitMEX, Bitfinex, Bitpanda pro, Liquid, Binance US.
#10. Plurality
Trality is a platform for anyone who wants to profit from algorithmic crypto trading without quitting their day job. They provide cutting-edge tools for developing incredibly complex, highly creative algorithms inside an instructional, community-driven architecture that fosters trader learning and development.
Features:
- Strategies that have been curated and are pre-defined
- Graphical user interface with drag-and-drop functionality (for beginners)
- Python code editor in the browser (for advanced traders who know Python)
- Backtesting module that is lightning fast
- Live trading in the cloud. Your algorithms run consistently and never miss a trade.
Pricing: Free
Apps for mobile devices will be available soon.
Exchanges: Binance, Kraken, Bitpanda, and Coinbase Pro.
Trading Bots FAQ’s
Are trading bots illegal?
Bot trading is completely allowed in the bitcoin and stock markets (although only certain brokers allow it). That being stated, everything that would be criminal under regular circumstances is also illegal in bitcoin trading.
What do trading bots do?
Trading bots operate by reacting to market conditions. Based on trading platform analysis, it obtains the data required to execute a trade.
Can a bot buy and sell stocks?
You certainly can. Unless you’re a mathematical genius, it’s a terrible idea. Without a solid understanding of both the markets and the algorithms you want to use to manage your trading bot, you will quickly lose all of your money.
Related Articles
- Best Crypto Exchange: Top 10 in Different Categories by Reviews
- BEST CRYPTO EXCHANGE WITH LOWEST FEES: Top 11+ (Updated)
- Crypto Exchange: How to Pick the Best & Safest Options
- Crypto Staking: Definition, Best Practices & How to Stake Cryptocurrencies
- Psychological State of the Crypto Market: Here are the Indicators!
