10 BEST Crypto Trading Bots in Mar 2023
Crypto trading bots are automated software that helps you buy and sell cryptocurrencies at the correct time. The main goal of this software is to increase revenue and reduce losses and risks. These applications enable you to manage all crypto exchange accounts in one place. Many such programs allow you to trade for Ethereum, Litecoin, Bitcoin (BTC), and more with ease.
Following is a handpicked list of Top Crypto Trading Bots/Robot with their popular features and website links.
Best Bitcoin & Automated Crypto Trading Bots / Robots Platform
| Name | Trading Bot Details | Exchange | Free Trial | Link |
|---|---|---|---|---|
 Pionex |
Grid Bot, Arbitrage Bot, DCA Bot, and 12 others. | Binance, Huobi global, Pionex | Lifetime Free | Learn More |
 Cryptohopper |
Arbitrage,Copy Trading, and 10 more | HitBTC, Okex, KuCoin, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, Binance | Lifetime Free Basic Plan | Learn More |
 Bitsgap |
High Frequency Algorithm Trading | Binance, OKEX, Bitfinex, HitBTC, Bittrex, Huobi, Exmo, Kucoin, CEX.IO, Kraken, Poloniex, Livecoin, Coinbene, Coinex, Gate.io | 7 Days | Learn More |
 Trality |
Create your own using the Rule Builder and the Code Editor. | Binance, Kraken, Bitpanda, Coinbase Pro, FTX | Lifetime Free Basic Plan | Learn More |
 3Commas |
DCA Bot, HODL Bot, Options Bot, GRID Bot, SmartTrades | Binance, OKX, KuCoin, Coinbase Pro (GDAX), Binance TR, Binance US, BitMEX, Bitfinex, Bitstamp, Bittrex, Bybit, Crypto.com, Deribit, Gate.io, Gemini, Huobi, Kraken | Lifetime Free Basic Plan | Learn More |
 Quadency |
Accumulator, Bollinger Bands, MACD, Mean Reversion, Multi-level RSI. | AAX, Binance, Bittrex, Kraken, KuCoin, Liquid, OKEx, Binance US, Bitfinex, Coinbase Pro, Gemini, HitBTC, Poloniex | Free | Learn More |
1) Pionex – Best for Crypto Trading for Beginners and Advanced Users
Pionex is one of the world’s 1st exchanges with 12 Free trading bots. Users can automate their trading 24/7 without always checking the markets. It aggregates the liquidity from Binance and Huobi Global and is one of the biggest Binance brokers
Types of Bots: Grid Trading Bot, Rebalancing Bot, Spot-Futures Arbitrage Bot.
Price: Free Trial
Exchanges: Binance, Pionex Huobi global
Features:
- Pionex provides 16 free trading bots for retail investors.
- The trading fee is the lowest compared to most of the major exchanges. The trading fee is 0.05% for the maker and taker.
- Grid Trading Bot allows users to buy low and sell high in a specific price range.
- Leveraged Grid Bot provides up to 5x leverage.
- Spot-Futures Arbitrage bot helps retail investors to make passive income with low risk. The estimated return for this strategy is 15~50% APR.
- Smart Trade terminal allows traders to set up stop-loss, take profit, trailing in one trade.
- U.S. FinCEN’s MSB (Money Services Business) License approved
| 👍 Pros | 👎 Cons |
|---|---|
| Allows users to buy low and sell high in a specific price range. | No support for custom trading strategies. |
| Spot-Futures Arbitrage bot helps retail investors to make passive income with low risk. | |
| You can deposit or withdraw from your bank account and trade with USD |
Types of Bots: Grid Trading Bot, Arbitrage Bot, Martingale Bot, Spot-Futures Arbitrage Bot, Rebalancing Bot, DCA, etc.
Price: Free
Mobile Apps: iOS & Android
Exchanges: Binance, Huobi global, Pionex
2) Cryptohopper – Best for Copy trading investors and Fixed Fee Option
Cryptohopper is one of the best-automated trading bots that helps you to manage all crypto exchange accounts in one place. It allows you to trade for BTC, Litecoin, Ethereum, and more.
Types of Bots: Arbitrage, AI, Market-Maker, and Mirror Trading.
Price: $0 Trading Free and fixed Monthly Pricing
Exchanges: Kraken, Binance, Bittrex, Okex, KuCoin, Coinbase Pro, HitBTC, etc.
Features:
- This bitcoin trading robot allows you to create your own technical analysis.
- You can easily get strategies and bot templates.
- Cryptohopper protects your account by secure protocols.
- This free bitcoin trading bot keeps your data private.
- It offers a user-friendly interface.
- The tool provides real time performance reports.
- Algorithms support EMA, RSI, BB, and other common signals/indicators.
- Very advanced strategy designer with 30+ Indicators and 90+ Candle Patterns
| 👍 Pros | 👎 Cons |
|---|---|
| It offers an easy and intuitive setup process, with no credit card information required to join. | Technical support can be limited. |
| 24/7 trading bot that hosts its services entirely using cloud storage. | |
| Allows you to Paper Trade to check your strategy with zero financial risk | |
| Robust Backtesting Data |
Free Trial: Lifetime Free Basic Plan
Types of Bots: Mirror Trading, Market-Maker, Arbitrage, AI,
Price: $0 Trading Free. Fixed Monthly Pricing
Mobile Apps: iOS & Android
Exchanges: HitBTC, Okex, KuCoin, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, Binance
3) Bitsgap – Best for arbitrage across multiple crypto exchanges.
Bitsgap is one of the best bitcoin trading bots that enables you to manage your crypto assets easily. This application can analyze more than 10,000 crypto pairs and detects coin with the shortest potential. It enables you to create your bot strategy with a few mouse clicks.
Types of Bots: Futures bots, Unlimited Smart orders, Grid Bot, etc.
Price: $29/month
Exchanges: Binance, Bittrex, Huobi, Kraken, HitBTC, Poloniex, Livecoin, etc.
Features:
- You can easily view your trading through a chart.
- Bitsgap is a fully automated bot that works 24/7 hours.
- You can test settings before investing.
- It can be accessed without downloading it.
- Your funds are kept on the exchange balance for security purposes.
- This BTC trading software helps you to gain maximize Profit.
- 100+ technical indicators and 12 chart types for quick crypto research
| 👍 Pros | 👎 Cons |
|---|---|
| Available on over 25 brokerages. | Does not have any native mobile application. |
| Simple to use with a lot of functionality. | |
| Detailed Tradingview Charts that help assess your bot performance |
Price: $29/month
Free Trial: 7 Days
Types of Bots: Grid Bot, Unlimited Smart orders, Futures bots, Trailing Up & Down for bots, Take Profit for bots
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) Trality – Best for building bots for selling
Trality is a platform for anybody who wants to profit from algorithmic crypto trading without giving up the day job. They offer some state-of-the-art tools to create highly intricate, super creative algorithms within an educational, community-driven infrastructure that promotes learning and development as a trader.
Types of Bots: You can create your own rule using the Rule Builder
Price: Free
Exchanges: Coinbase Pro, Bitpanda, Binance, Kraken, FTX etc.
Features:
- Curated, pre-defined strategies
- Easily rent out bots from experts
- Drag-and-drop graphical interface (for beginners)
- In-browser Python code editor (for advanced traders who know Python)
- Blazing-fast backtesting module
- Cloud-based live-trading. Your algorithms run reliably 24/7 and never miss a trade
- Use Boolean Logic over 100+ technical indicators
| 👍 Pros | 👎 Cons |
|---|---|
| You can choose between The Code Editor and The Rule Builder to create your trading bot. | No mobile application is available. |
| Trading strategies are end-to-end encrypted. |
Free Trial: Lifetime Free Basic Plan
Price: Free
Types of Bots: Create your own using the Rule Builder and the Code Editor.
Mobile Apps: Coming soon
Exchanges: Binance, Kraken, Bitpanda, Coinbase Pro, FTX
5) 3Commas – Best overall crypto bots
3Commas is committed to helping traders reap maximum profit success by minimizing investor risks and limiting exposure to losses. With no need to install additional software and already integrated across a large number of exchanges, 3Commas is a favorite among traders. Focussing primarily on providing useful tools and easily customizable features, traders can create, connect and adjust their crypto trading strategies accordingly.
Types of Bots: DCA Bot, HODL Bot, Options Bot, GRID Bot, SmartTrades
Price: $0 on a lifetime basic plan
Exchanges: Binance, OKX, KuCoin, Coinbase Pro (GDAX), Binance TR, Binance US, BitMEX, Bitfinex, etc.
Features:
- Quickly access bot presets, templates and strategies via the marketplace
- Next-level data feeds
- Educational materials
- Detailed FAQ section
- 24/7 support
- Smooth learning curve for beginners
- 3Commas Wallet App
| 👍 Pros | 👎 Cons |
|---|---|
| Automated portfolio rebalancing | Detailed interface may feel overwhelming to begin with – need some time to adjust |
| Smart & Copy trading features | Hard to measure profitability as it depends on user settings |
| Test all Pro features in 3-day free trial | Hard to track average profitability, as most bots are built by users |
| Integrated across major exchanges | |
| Bots for all crypto markets – bull, bear, sideways | |
| Unique bot options |
Types of Bots: DCA Bot, HODL Bot, Options Bot, GRID Bot, SmartTrades
Mobile Apps: iOS & Android
Exchanges: Binance, OKX, KuCoin, Coinbase Pro (GDAX), Binance TR, Binance US, BitMEX, Bitfinex, etc.
Free Trial: Lifetime Free Basic Plan
6) Quadency
Quadency is a digital asset management application that provides an automated trading solution for institutional and retail traders. It streamlines the process of investing in cryptocurrencies.
Types of Bots: Accumulator, Bollinger Bands, MACD, Mean Reversion, Multi-level RSI.
Price: Free
Exchanges: AAX, Binance, Bittrex, Kraken, KuCoin, Liquid, OKEx, Binance US, Bitfinex, etc.
Features:
- This app enables you to customize bots with ease.
- It provides a range of automated tools and advanced TradingView (social network) charting.
- You can get a good level of customer support.
- Allows you to trade on Bittrex, Binance, and Kucoin.
- It offers varieties of trading bots that can be customized with ease.
- This one of the best trading bots supports automated trading.
| 👍 Pros | 👎 Cons |
|---|---|
| It offers a cryptocurrency trading bot for investors of all levels. | Quadency platform does not have a mobile app. |
| You can select pre-built popular strategies, customize them, and go live in minutes. |
Price: Free
Types of Bots: Accumulator, Bollinger Bands, MACD, Mean Reversion, Multi-level RSI.
Mobile Apps: iOS and Android
Exchanges: AAX, Binance, Bittrex, Kraken, KuCoin, Liquid, OKEx, Binance US, Bitfinex, Coinbase Pro, Gemini, HitBTC, Poloniex
7) CryptoHero – Best Value-for-Money bot with powerful features
CryptoHero is a trusted crypto trading bot that offers features suitable for new to advanced traders. It offers many different bots that allow a trader to make money in bull, bear and range-bound markets. It has a Bots Marketplace that offers proven bots set up by experienced traders. New users can choose to deploy those bots easily with a few clicks. CryptoHero offers web and mobile access, allowing a trader to trade anywhere at anytime.
CryptoHero also does not share trading data with any exchanges without users’ permission. It is not a participant of any exchange broker or affiliate programs.
Types of Bots: Grid Bot, DCA Bot, Simple Bot, Advanced Bot, Price Bot, Martingale, etc
Price: Free to Use
Exchanges: Binance, Crypto.com, OKX, FTX, Coinbase, Kraken, Bittrex, Bitfinex, Gate.io etc.
Features:
- Simple to use User Interface.
- Cloud-based crypto trading bot that automates trades 24/7.
- Configure strategies without writing any code. Deploy strategies risk-free on Paper Exchange.
- Ultra-fast backtest lets users determine the effectiveness of the strategies.
- Portfolio management allows one-click view for digital assets across all connected crypto exchanges.
- Trading terminal allows for manual trading conveniently across exchanges.
- Bots Marketplace with many proven bots that a new user can deploy easily
- Intelligent data center that offers traders access to valuable crypto and financial data.
| 👍 Pros | 👎 Cons |
|---|---|
| Offers a perpetual free plan. | Professional Plan offers up to 30 bots only. |
| Has Web, iOS and Android clients. | |
| Very responsive Customer Service team | |
| Many advanced features such as trailing stoploss, combination trigger conditions and more. |
Price: Free to Use.
Types of Bots: Grid Bot, DCA Bot, Simple Bot, Advanced Bot, Price Bot, Martingale, etc
Mobile Apps: iOS and Android
Exchanges: Binance, Crypto.com, OKX, FTX, Coinbase, Kraken, Bittrex, Bitfinex, Gate.io, Kucoin, Tokocrypto, Indodax, Bitget, Mandala, Huobi, Tradestation and more
8) Coinrule – Best for Advanced Trading Indicators
Coinrule is an automated trading platform that enables you to trade for Binance, Kraken, Coinbase Pro, and more exchanges. This application offers 150+ trading strategies templates.
Types of Bots: Trend Following Technique, Order Types, Total 200+ Rules
Price: Free
Exchanges: Coinbase Pro, Bittrex, Binance, Bitfinex, Bitpanda pro, HitBTC, etc.
Features:
- It offers real-time customer service.
- It allows you to test rule performance on past data.
- Set custom rules for trading.
- It has a market indicator that helps you to allocate funds with ease.
- It provides military-grade encryption.
- Test your strategy with robust backtesting data
- You can trade 24/7.
| 👍 Pros | 👎 Cons |
|---|---|
| You can create automated trading rules based on popular indicators. | No native mobile application. |
| It offers different plans for an extra level of trading. | |
| A professional team of Crypto Experts backs it. |
Free Trial: Lifetime Free Basic Plan
Price: Free
Types of Bots: Order Types, Conditions and Triggers, Trend Following Technique, and Accumulation Bot. Total 200+ Rules
Mobile Apps: Coming soon
Exchanges: Binance, HitBTC, Coinbase Pro, Okex, Bitstamp, Bittrex, Poloniex, Kraken, BitMEX, Bitfinex, Bitpanda pro, Liquid, Binance US, Kucoin, FTX, and Binance Futures
9) WunderTrading – Best for Copy Trading
WunderTrading – a top trading bot platform that allows traders to easily automate their trades and create passive crypto income. It also provides a social trading network where users can copy-trade professional traders.
Types of Bots: DCA Bot, Copy Trading, Futures spread trading, and more
Price: Paid plans from $9.95 to $44.95 per month. 7-day trial on a PRO plan
Exchanges: Binance, Bybit, FTX, OKX, Kucoin, Bitmex, Deribit, Bitget, Coinbase PRO, etc.
Features:
- Smart Terminal: Easy to use features including multiple Take Profit targets, Trailing Stop, Swing Trading, DCA, and Move Stop Loss to breakeven.
- TradingView/Custom signal automation: Create complex trading strategies that are executed automatically 24/7 without your involvement.
- Copy-Trading feature allows users to copy other professional Traders and Bots in a few clicks for Free.
- Multiple Account Management: As a feature in Terminal and for any Bot, Trader can manage numerous exchange accounts (connected through API) simultaneously.
- Futures Spread Trading: creating and trading spreads of different crypto assets on the same exchange.
- Arbitrage Trading: Traders can create strategies to benefit from price-difference across different crypto exchanges.
- Crypto Portfolio Tracker: You can monitor your balances automatically via the easy to use, versatile, and feature-rich cryptocurrency portfolio tracker tools.
| 👍 Pros | 👎 Cons |
|---|---|
| Cloud-based trading bot platform | Doesn’t support paper trading |
| 14 supported exchanges | No GRID bot |
| Built-in Terminal to trade manuallyt | |
| Professional customer support | |
| Highly customizable trading settings | |
| Copy-trading through the Marketplace | |
| Professional Signal Providers |
Types of Bots: DCA Bot, Copy Trading, Futures spread trading, Arbitrage trading, Trade all API accounts simultaneously and more
Price: Paid plans from $9.95 to $44.95 per month. 7-day trial on a PRO plan
Mobile Apps: iOS & Android
Exchanges: Binance, Bybit, FTX, OKX, Kucoin, Bitmex, Deribit, Bitget, Coinbase PRO, Huobi, Kraken, Bitfinex, etc.
Free Trial: Lifetime Free plan is available.
10) Shrimpy
Shrimpy is a social trading platform made for cryptocurrency. This application has automated trading strategies that help you improve performance and reduce risk. It helps you build portfolio strategy, track performance, and monitor the market.
Types of Bots: Index, Rebalance,Copy Bots
Price: $15 per month.
Exchanges: KuCoin, Binance, Binance US, Bittrex, Bittrex Global, Coinbase Pro etc.
Features:
- Your API key is securely encrypted and stored using FIPS (Federal Information Processing Standards) 140-2.
- It can simplify your portfolio management.
- Allows you to view the live market price
- It offers a dashboard that includes statistics about each asset and portfolio performance metrics.
| 👍 Pros | 👎 Cons |
|---|---|
| Easily copy top traders or imitate portfolios of investment funds like Coinbase Ventures, Blockchain Capital, or Binance Labs. | The trading terminal is not supported |
| Can automate trades on multiple accounts simultaneously. | |
| Automatically track balance changes to hardware and software wallets. |
Price: $15 per month.
Types of Bots: Index, Rebalance,Copy Bots
Exchanges: KuCoin, Binance, Binance US, Bittrex, Bittrex Global, Coinbase Pro, Kraken, Poloniex, Gemini, Bitbox, BitMart, Huobi Global, HitBTC, OKEx, Bitstamp, Bitfinex
11) TradeSanta
TradeSanta is one of the best trading bots that enables you to manage your risk easily. This application allows you to choose the strategy that suits your trading style, and it enables you to set your target profit amount and close the deal at the right moment.
Types of Bots: MACD, RSI, and Bollinger signal.
Price: 5 Day Free Trial
Exchanges: HitBTC, Binance, Bitfinex, Bittrex, Huobi, BitMEX, OKEx, UPbit
Features:
- Allows Spot and Futures Trading
- You can launch trading bots with a short and long strategy with ease.
- It provides 24/7 support.
- It allows you to buy or sell a large volume of crypto without hassle.
- It offers a wide range of pre-set templates.
- You can track the bot in real time.
| 👍 Pros | 👎 Cons |
|---|---|
| Simple to use crypto trading bot with an intuitive design. | Does not have support for decentralized exchanges. |
| It supports most major cryptocurrency exchanges. |
Free Trial: 5 days
Types of Bots: MACD, RSI, and Bollinger signal.
Price: Free
Mobile Apps: iOS & Android
Exchanges: HitBTC, Binance, Bitfinex, Bittrex, Huobi, BitMEX, OKEx, UPbit
12) HaasOnline – Best for Intermediate to Advanced Bot Traders
HaasOnline is one of the oldest and well-respected crypto trading bot platforms available. You can manage automated trading on over 37 exchanges. Create bot strategies with a click of a mouse or develop your trade bot line-by-line.
Types of Bots: Inter-exchange Arbitrage. Recreate almost any trading strategy with bots.
Price: Free Basic and Premium Subscriptions
Exchanges: Binance, Binance.US, Bitfinex, BitMEX, Bitpanda Pro, Bitstamp etc.
Features:
- Allows traders to recreate virtually any trading strategy with bot automation.
- This bitcoin trading robot allows you to create your own technical analysis.
- This free bitcoin trading bot keeps your data and codes private.
- Use custom dashboards to monitor your trading bots and market movements.
- The tool provides real time performance reports.
- Includes HaasScript, a purpose-built scripting language developed by HaasOnline for trade bots.
| 👍 Pros | 👎 Cons |
|---|---|
| On-premise and cloud-based trading bot platforms for optimal control. | Does not offer native mobile apps. |
| Non-custodial trading only requires an exchange API key with no withdrawal permission. | |
| Paper trade using live order books to check performance with no financial risk. | |
| Use backtesting & batch-testing to find historical optimizations that improve future ROI. | |
| No blackbox trading bots, know exactly what makes your bot run. |
Free Trial: Lifetime Free Basic Plan
Types of Bots: Recreate almost any trading strategy with bots. Some examples are Accumulation, Portfolio Index, Grid, Dollar-cost-averaging, Arbitrage, Scalping, Market Making, Trailing Stop, and Futures Bots
Price: Free Basic and Premium Subscriptions
Exchanges: Binance, Binance.US, Bitfinex, BitMEX, Bitpanda Pro, Bitstamp, Bittrex, Bybit, Cex.IO, Coinbase Pro, Crypto.com, Deribit, FTX, Gemini, HitBTC, Huobi, Ionomy, Kraken, Kraken Futures, Kucoin, Mandala, OKCoin, OKX, Poloniex
Cryptocurrency Trading Guide:
Crypto trading bots are automated software that helps you buy and sell cryptocurrencies at the correct time. The main goal of this software is to increase revenue and reduce losses and risks. These applications enable you to manage all crypto exchange accounts in one place. Many such programs allow you to trade for Ethereum, Litecoin, Bitcoin (BTC), and more with ease. To find a suitable platform for using trading bots, consider exploring some of the best crypto exchanges in the UK that offer advanced trading tools and features.
Below are some of the Best Free Crypto Trading Bots or Robots:
- 👍 Pionex – Best for Beginners and Advanced Traders
- 👍 Cryptohopper – Best for Day Trading
- Bitsgap – All-in-one Trading Automation Platform
- Trality – Best for Algorithmic Trading
- 3Commas – Best overall crypto bots
- Quadency – best trading bots supports automated trading
- CryptoHero – Best Value-for-Money bot with powerful features
A well-executed bot can conduct many functions for you like portfolio management, rebalancing, intelligent order routing, data collection, etc.
Here are the points you should exactly improve with trading bots:
- Repetitive Tasks: Repetitive tasks take a lot of time and effort. An excellent automated Crypto trading bot helps you to virtually copy and paste a specific task to conduct trade with no hassle. One of the good ways where bots can help with repetition is in periodic rebalances.
In case you have to conduct hourly rebalances, then you will get two options:
- Set the alarm every hour to rebalance your portfolio.
- Create a program and trading bot to rebalance the portfolio every hour.
- Timing: Timing accuracy is important for trading. If you want to sell your currency, it is good to observe the price carefully. Here, the bot can monitor the market and execute a trade at the correct time.
- Complications can be simplified: Every exchange pair in crypto trading should be carefully determined as per its asset quantity and trading price. The entire route needs to be finished within a specific time and the condition of the market. A wisely chosen trading bot can help you automate complicated and impossible strategies with ease.
Also Check: Best Cryptocurrency to Buy Right (Now)
Here are the important points that help you to pick the best crypto trading bot/crypto robot:
- Free Trial: Many trading bots enable you to trade for free. It is ideal that you try the free Crypto trading bot yourself before purchasing it.
- Social Trading: It is ideal for developing your trading strategies, but many times you may like the option to follow other traders. A good strategies marketplace can be built within a trading tool of your own choice that is cost-efficient and easy to get Profit.
- Backtesting: You have to check whether crypto bots have backtesting features or not. It enables you to quickly test trading strategies against historical data so that you can see how your strategy perform under market condition.
- Indices: Many trading bots provide portfolio crypto automation, and it is essential to check how they have created their indices. A good trading tool must-have information like how coins are sampled and how the market cap is weighted in the index.
- Cloud-Based or Server Based: Most crypto bots are cloud base, and if you find them convenient, you can go for it. On the other hand, if your bots are not cloud-based and you require to keep your server/ computer running all the time, it is better to avoid such tools.
- Trading Communities: Trading communities are a good approach for those people who have to get the most out of the trading tool. You need to compare how active the trading communities are on Discord, Telegram, or Reddit.
- Support & Tutorials: Many crypto traders have developed training modules, videos, blogs, and to educate their users. In case you are new to trading, you can go through such a source to get a better idea of the tool. This will also help you to save valuable time while actually trading currency.
- Crypto Tax Software Integrations: It is easy to rack up your high number of traders when you trade with crypto bots. In case you do not have the right software, this will make reporting your crypto profit and loss on your taxes challenging. It is crucial to look at the crypto tax software companies which are compatible with your desired Crypto Trading Bot Platform. Having good crypto tax software that supports your crypto trading strategy can make your tax reporting easy.
It depends on various factors. Most trading bots claim to achieve a high success rate that will work fine. However, sometimes, this will not be appropriate when the market condition is not favorable. Creating a bot based on your trading style and convenience is always better.
Trading bots are simply software; therefore, there is no guarantee of profitability. There are also many risks associated with automated platforms and trading bots. You need to understand that trading bots are commonly designed for traders, not investors, and they are also not appropriate for people new to crypto trading.
Yes, a trading bot is completely legal in cryptocurrency and the stock market (although only certain brokers allow it). Anything that is illegal under normal circumstances is also illegal for cryptocurrency trading.
Also Check: Best Crypto Wallets
Here are the important types of best Crypto Trading Bots:
- Arbitrage: Arbitrage strategy involves simultaneously buying coins on one exchange and selling them on another. It is one of the first strategies crypto traders should utilize to make fast and safe profits.
- Market Making: The primary benefit of market making is that it helps you to prevent large swings in price. It can involve making both buy and sell limit orders near the current market price. Many market-making bot traders are affiliated with their trading project.
- Momentum Trading: Momentum Trading or trend following system is ideal for riding a positive momentum wave with assets and selling them when market momentum reverses. The basic idea behind this is the belief that the cost of your asset will increase above its average and then run out of momentum and fall down. In such a situation, buying and selling become crucial.
- Mean Reversion: Mean Reversion is a type of AI crypto trading bot in which strategy is built on the assumption that if a price of a coin differs from its average, you can revert back to its average. For example, if the price of ZRX falls to 50 cents from an average of $1, many traders may perceive its latest price as low and buy in large quantities.
- Copy Trading: Copy trading is a trend that enables you to automatically copy the trade of traders. It often involves a leaderboard (gamification elements) and a social community. Many crypto trading bots also enable you to copy other traders with just one mouse click.
You can file taxes for crypto arbitrage bot trading by just importing trades from exchanges to your cryptocurrency tax software. Ideally, you are aware of the total number of trades the bot will make. Trading bots having high frequency may allow numerous trades per day.
It can result in tens of thousands of transactions. However, most of the tools can handle such trading on the crypto tax plan.
Following are the way to create a crypto trading bot:
- Backtesting: You must backtest your bots against historical data of the market before trading. You should also ensure that your backtest is much realistic as possible. This can be done by considering slippage, latency, and trading fees. You also need to collect high-quality market data by accessing the exchange APIs key.
- Strategy Implementation: This is the next step in which you have to specify the calculations that help your bot find out when and what to trade. Once you create a strategy, you should backtest it to see how it works.
- Execution: In this stage, your logic will be converted into an API key request that the crypto exchange can understand. Many bots enable you to simulate your strategy with fake money.
- Job scheduler: Now, it is time to finally automate your entire process by setting up a job schedular to execute the trading strategy.
Here are the essential points to select the best software for crypto trading:
How credible is the team?
In case you are going to trust a bot with your portfolio, then ensure that the team behind it is as qualified and credible as possible. It can be done with a single checklist:
- Know the work experience level of your team members to Identify their qualifications.
- Find whether they have maintained a portfolio or not.
- Know whether bot functionality is perfectly documented or not.
- Gather information about how they are getting their funds
You have to ensure that the team remains transparent about their development. This way, they can be kept responsible for their actions.
Check your bot is using the strategy that you have to implement:
You should find out which bot will align with your strategy, which is especially important. You have to look over the bot’s website and read the guides and reviews written by other people. Furthermore, you should also know how it can be helpful to configure the bot. If you are not technologically inclined, it does not make any sense to subscribe bot.
Know how your team is providing strong support:
The next thing you need to check is the level of support provided by your development team. This can be done by following the below checklist:
- Check those organizations have an active community on Reddit, Telegram.
- The development team should actively communicate with those communities.
- Ensure that developers are giving solutions to any possible bugs on time.
How expensive is it:
You have to check the pros and cons before actually using it. This will help you to save your time and money. You can also go through the free crypto trading bot services provided by any Crypto Bot Trading Platform and compare them with paid ones.
Check is it possible to adjust the bot according to market conditions:
Bots execute strategies in their own way, so sticking to a particular approach will require to see your bot is running satisfactorily or not. This way, you will not lose your investment due to poor strategy execution.
Finally, check whether it is easy to use or not.
People who are new in crypto trading have to go through the following points:
- Functionality: Crypto trading bots come with a user-friendly interface that provides detailed analytics. Many bots enable you to set up profits and loss targets and customize your trading strategies.
- A wide range of tools: This is an important point that helps you to create, analyze, and backtest your portfolio. You can also choose a crypto robot that enables you to copy the strategy of a successful trader.
- Simulated profit and loss order: Here, you should be able to establish the price at which you have to make a profit or sell to stop losses.
- Mobile App: Find whether the mobile app of the chosen crypto trading robot is available or not. This will help you to trade at any time.
Here are the pros/benefits of using trading bots:
- Efficiency: Bot can analyze market conditions in more than one cryptocurrency. It is impossible for people who are not good at multitasking as they can only analyze market conditions by going; on the other hand, they are not multitasking.
- Increased speed: Trading bots helps you to place the order quickly. Delay in cryptocurrency may lead to a loss in its value. Therefore, it is more effective than humans.
- Running period: It is impossible to always stay in front of your PC and examine your investments. Trading bots, in this case, run 24/7 and therefore do not miss opportunities.
Here are the cons/ disadvantages of using trading bots:
- Not for inexperienced traders: Cryptocurrency trading requires proper knowledge in using the bots. Changing the configuration of these bots without any experience can lead to massive losses. Therefore, a Binance trade bot is not much helpful for inexperienced users.
- Requires monitoring: Cryptocurrency trade bots are not useful during high volatility periods. It is because they are not attached to the money, which may lead to a massive loss.
- Security concerns: Crypto bots execute trades through integration with API. The nature of exchanges and bots can pose some unwanted risks like phishing and losing funds. So, traders need to be very careful while trading cryptocurrency.
Here are our Top Tips:
- Limit the access of the crypto trading bot to an exchange such that it can only write or sell orders. It does not have API access to withdraw money.
- You should limit the IP address from which you access the crypto trading bot for an extra layer of security.
- Ensure there is enough balance in the exchanges like Coinbase, Binance, etc.
- There is a chance that the exchange itself may be hacked. Only deal with reputed exchanges with solid security features.
- Remember that Crypto Bots are not a money printing machine, and you will need to constantly tweak the trading bot in sync with the market changes.
- Install the mobile app of the CyrptoBot to monitor trades and Crypto signals easily.
Best Cryptocurrency Trading Bots for Automated Crypto Trading
| Name | Trading Bot Details | Exchange | Free Trial | Link |
|---|---|---|---|---|
| Pionex |
Grid Bot, Arbitrage Bot, DCA Bot, and 12 others. | Binance, Huobi global, Pionex | Lifetime Free | Learn More |
| Cryptohopper |
Arbitrage,Copy Trading, and 10 more | HitBTC, Okex, KuCoin, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, Binance | Lifetime Free Basic Plan | Learn More |
| Bitsgap |
High Frequency Algorithm Trading | Binance, OKEX, Bitfinex, HitBTC, Bittrex, Huobi, Exmo, Kucoin, CEX.IO, Kraken, Poloniex, Livecoin, Coinbene, Coinex, Gate.io | 7 Days | Learn More |
| Trality |
Create your own using the Rule Builder and the Code Editor. | Binance, Kraken, Bitpanda, Coinbase Pro, FTX | Lifetime Free Basic Plan | Learn More |
| 3Commas |
DCA Bot, HODL Bot, Options Bot, GRID Bot, SmartTrades | Binance, OKX, KuCoin, Coinbase Pro (GDAX), Binance TR, Binance US, BitMEX, Bitfinex, Bitstamp, Bittrex, Bybit, Crypto.com, Deribit, Gate.io, Gemini, Huobi, Kraken | Lifetime Free Basic Plan | Learn More |
| Quadency |
Accumulator, Bollinger Bands, MACD, Mean Reversion, Multi-level RSI. | AAX, Binance, Bittrex, Kraken, KuCoin, Liquid, OKEx, Binance US, Bitfinex, Coinbase Pro, Gemini, HitBTC, Poloniex | Free | Learn More |
