The crypto market has been a hot topic for quite a long time now. While this market kept growing, the usage of cryptocurrency trading bots has also risen in popularity.
Crypto trading bots are nothing but software programs that communicate with currency exchanges to analyze trading data and afterwards use this info to place buy or sell orders on the user’s behalf.
To monitor market activity, these bots follow a defined and pre-programmed set of regulations. Crypto bots may come with pre-installed trading techniques, but users can also customize the bot according to their needs. There are now numerous crypto trade bots available, some for free and some in exchange for a subscription fee.
We’ve compiled a list of 11 of the top cryptocurrency trading bots in this article.
We have also discussed some of the benefits and drawbacks of using a bot and what to look for when selecting a bot.
Why Should You Consider Using Cryptocurrency Trading Bots?
The crypto market is notorious for its tremendous volatility. Moreover, it never shuts down.
When traded intelligently, bitcoin and other cryptocurrencies are incredibly profitable, but it also increases the risk of substantial losses. Some of these risk considerations can be mitigated using a cryptocurrency trading bot.
Bots, unlike humans, will only make a trade based on the facts and patterns available, removing feelings and reactions from the decision-making process.
Bots can also function around the clock, allowing the user to trade even when they are sleeping or otherwise busy.
Trading bots have the additional benefit of working quicker and more effectively than humans trading manually.
When properly configured, they can analyze data and execute trades across various exchanges and cryptocurrencies.
But when should you use a trading bot? What exactly could you improve by using it?
When Should You Use A Crypto Trading Bot?
1. Repetitive Tasks Bots
Repetitive tasks need a significant amount of time and effort. A cryptocurrency trading bot will let you virtually “copy and paste” specific tasks to conduct trades easily. Periodic rebalances are one of the finest ways for bots to assist with repetition. If you wish to perform hourly rebalances, you must, as the name implies, rebalance your portfolio every hour. So you have two choices:
- Set a reminder for every hour to rebalance your portfolio and lose your mind in the meantime.
- Use a trading bot that will rebalance your portfolio every hour until the end of time.
The choice is yours.
2. Bots for Accurate Timing
Timing and reaching a high degree of precision in your trade are critical. Every trade you make might have a significant influence on your prospective profit. Let’s look at an example. Assume the price of Bitcoin is falling, and you want to sell your stake as soon as it reaches the $8,750 support line. Manually, you would have to wait and carefully study the price trend, but even then, you might not pull the trigger at the proper time.
On the other hand, the bots can be easily programable to watch the market and make trades at the appropriate times.
3. Trade to Simplify The Complications
To understand the complications, let’s consider the idea of “smart order routing.”
- The main idea is to route trades through a variety of trading pairings.
- Each trading pair must be appropriately determined in terms of timing, asset quantity, and trading price.
- This full route must be completed within a particular time frame before market conditions alter.
Although it might sound easy to understand, carrying out this trade could be practically difficult. This is only one of many complexities that should be considered when trading.
Some strategies might as well be difficult to implement.
Trading bots automate and make these complications easy for you.
But like every other software program, trading bots have their own pros and cons. Let’s take a look.
Advantages of Using Crypto Trade Bots
- They are emotionless. Huge price changes in the bitcoin market might lead to irregular and impulsive trades by human traders. Trading bots eliminate this risk by placing orders based only on the data supplied and a defined set of parameters.
- They are effective. While human traders can only research one cryptocurrency market at a time, bots can scan and analyze multiple markets simultaneously, discovering chances that a trader might otherwise overlook.
- They act swiftly. In the fast-paced world of cryptocurrencies, time is key. A human can take significantly longer to make trades, and the trade may lose value in the meantime. Bots, on the other hand, can place orders instantaneously, seizing opportunities as they arise.
- Trade bots run around the clock. These work 24 hours a day, seven days a week. Even the most devoted bitcoin trader cannot spend the entire day and night in front of their computer. A bot will continue to monitor the market and place orders in their absence, ensuring that they never have to stop trading.
But keep in mind that a trading bot is not a silver bullet.
While the proper bot utilized intelligently can help you enhance your profits, there are some risks to consider before installing a crypto trading bot.
Disadvantages of Using Crypto Trade Bots
- They must be monitored properly. You can’t just leave a bot running and forget about it; you’ll need to monitor its performance and make improvements as required. Furthermore, a bot will not consider other factors that may affect the market, such as global events or breaking news, and may make poor trades without human input.
- They necessitate prior experience and understanding. Although some bots come pre-programmed with trading techniques, most function better when customized to the user’s preferences. As a result, the user will need to grasp how the market operates and the technical aspects of trading with a bot.
- They could pose a security risk. Crypto trading bots connect with exchanges via Application Programming Interfaces (APIs), which implies that two machines collaborate without human intervention. Because the centralized nature of bots and exchanges leaves them vulnerable to hackers, you must take precautions such as keeping your API key secret and disabling automated withdrawals. You should also look into the security record of any bot you are considering as an option.
Things To Consider While Buying A Cryptocurrency Trading Bot
One of the most appealing aspects of a bot is its ability to trade around the clock.
You will miss out on opportunities if your bot remains offline or struggles with other problems.
Check reviews and feedbacks from other users to determine its reliability.
As previously stated, hackers target trading bots and platforms, so your bot must be as safe as possible.
Look for one with a proven track record of cybersecurity.
Check to see if the bot’s staff is reliable and authentic and if there is an active group of satisfied users.
3. Ease of Use
Most people want a bot that could make trading easier for them. So, find one with an easy-to-use interface appropriate for your level of competence.
Moreover, you should look into its customer support, how updates are distributed, and whether issues are resolved in a fast and effective way.
It is also important to choose a bot that best matches your trading technique and determine how much customization would be necessary.
A bot is only useful if it continuously makes money for its users.
Before investing your time and effort in a bot, check reviews to determine its rate of success.
Some bots are free to use, while others have a hefty price tag.
In general, a paid bot provides superior functionalities and better service. However, before deciding, consider what you are getting for your money and whether it is worth the cost.
11 Crypto Trading Bots To Make Your Life Easier
1. Coinrule Bot
Fee: The starter account comes for free. Hobbyists need to pay $29.99 per month.
Coinrule is a web-based bot that supports various cryptocurrencies and several of the most popular exchanges, including BitMex and Coinbase Pro.
It is a good alternative for both beginners and experienced crypto traders due to its basic, user-friendly design.
Users do not need to know any code to set the trading rules.
2. Cryptohopper Bot
Fee: Starting from $19.99 per month.
Cryptohopper, another cloud-based bot, is simple to set up. It is used to trade several cryptocurrencies.
One distinguishing feature is its ability to integrate with professional traders and trade following their trading signals.
More advanced users can program the bot to follow their own strategy.
Cryptohopper is compatible with a wide range of popular exchanges.
Fee: $15.99 per month
This is another cloud-based trading bot that is comparatively new to the market.
Zignaly provides a high level of freedom with no restrictions on the cryptocurrencies you may trade.
Another appealing feature is the opportunity to follow skilled traders and incorporate their market fluctuation analysis.
At the moment, the bot only supports Binance and KuCoin, but creators guarantee that other exchanges will be added soon.
Zignaly takes pride in its transparency, and users may directly connect with the creators while also enjoying a 30-day free trial.
Fee: A free package gives users access to portfolio tracking tools. Professional plans begin at $13 per month.
Shrimpy was designed for traders who cannot afford more expensive bots. Therefore it strives to provide a wide range of free services.
Shrimpy’s built-in auto trading algorithm is its main feature.
Backtesting, which compares your strategy to previous results, and social trading, which allows the user to follow and replicate other traders on the platform, are two more tools Shrimpy offers.
The bot works with some of the most popular exchanges, including Kraken and Binance.
Fee: Starting from $22 per month.
This cloud-based bot features an easy-to-use UI and a variety of tools.
The ability to backtest tactics on the portfolios of other traders is its main attribute. This allows you to learn from the performances of the greatest traders on the platform and apply their techniques to your own strategy.
With 3Commas, users can trade multiple cryptocurrencies simultaneously on exchanges such as Bittrex, KuCoin, and Binance.
Fee: Starting from $14 per month
TradeSanta is an automated trading platform. Its unique feature is a strong yet user-friendly UI. Traders can build bots from templates or from scratch, integrating them with advanced features like stop loss and trailing take profit.
TradeSanta employs a number of trading tactics. Furthermore, it provides a manual trading terminal, virtual trading bots, and a way to purchase or sell large quantities of crypto.
TradeSanta works with major exchanges, including Binance, Huobi, Okex, and HitBTC.
Fee: Nothing at all. It’s free.
As Zenbot is an open-source trading bot, the code is free for traders to download and customize.
Although it requires technical expertise due to the lack of a user interface, it features ready-made methods and features such as paper trading – simulated trading that allows users to try out techniques in real-time.
Zenbot can handle high-frequency trading and accepts a variety of cryptocurrencies in addition to bitcoin.
Fee: Starting from 0.073 BTC (for three months).
Since Haasbot is hosted in the cloud, it, like other cloud-based bots, can continue to operate even when the user’s computer is turned off.
Haasbot has a pre-configured strategy, but this strategy can also be customized. One of its important benefits is the ability to access a number of bots that can trade with many currencies and exchanges simultaneously.
This bot demands more input from the trader than most others in the market. Therefore, it is best suited to people who are well-versed in the crypto market.
Fee: The initial plan is free and does not have a time limit. It encompasses the entire set of services offered by Trality. Paid plans begin at €9.99 per month.
Trality is a platform that allows anyone to design and invest in automated crypto trading bots. The advanced bots can be built by creators utilizing two state-of-the-art tools:
- Trality Rule Builder — A powerful and effective drag-and-drop user interface for creating trading bots using pre-defined strategies and technical indicators. The Trality Rule Builder requires no programming skills to use, making it suited for both novice and experienced traders.
- Trality Code Editor — A robust in-browser console for coding bots using Python. It covers all of the libraries and technical indicators required to create the perfect algorithm.
The platform is totally cloud-based, which means your bots will operate 24 hours a day, includes a lightning-fast backtesting tool, and supports both live and paper trading on the most prominent exchanges through API.
Fee: A lifetime license for 0.01 BTC.
Gunbot is a bot that must be downloaded onto the user’s computer and comes with many built-in strategies. These can also be tailored to the user’s trading preferences.
Gunbot is well-known for being a highly adaptable and effective trading bot that provides good value for money.
It supports most of the major exchanges, including KuCan, Kraken, and Bitfinex, and could be used to trade with a range of cryptocurrencies.
It is relatively difficult to operate and is best suited for individuals who have prior experience dealing with bots.
Fee: For three months, the fee starts at roughly 0.073 BTC.
This cloud-based bot provides users with a marketplace where they may buy and sell trading strategies, as well as backtesting tools.
It also delivers SMS and email market updates throughout the day and is supported by the most popular exchanges, including Coinbase and Bitstamp.
CryptoTrader is best suited for users with some coding skills, while less skilled users can access a range of free and paid-for strategies.
Cryptocurrency trading bot or not?
A cryptocurrency trading bot will never be able to replace a human trader completely. Even so, when utilized appropriately, it can decrease some of the risks and assist you in trading more effectively and successfully.
With so many bots available these days, it is easier than ever to identify the tools you need to automate your trading, but make sure you choose the right bot based on your specific tastes and level of experience!