Unlike the stock market, which closes during the weekends, the crypto market never sleeps.
Also, due to its volatility, traders need to ensure that they don’t miss out on important trades. This makes it imperative that they find a way to keep an eye on the market. Since traders cannot react quickly enough to take advantage of the changes in price that will help them achieve optimal trade, they need help.
To achieve the best trades means that crypto traders need to be awake throughout the day and be ready to trade at any hour. Again, with the slowdowns in some trading exchanges and transaction times, some traders might miss certain profitable trades. The solution to these is that traders now use crypto trading bots.
This article will help you understand what crypto trading bots are, their pros and cons, and how they work, and also show you some of our favorite ones.
What are crypto trading bots?
Crypto trading bots are automated tools that help you as a crypto trader conduct your trading and execute transactions using some technical indicators. You can customize your crypto trading bot to execute trade orders on your behalf according to certain specifications.
For instance, you can tell your bot to buy a particular coin at $15 and repurchase it if the price falls to $12. Depending on the bot provider you choose, you will find many account options and supported coins there.
Trading bots are a controversial component of the crypto market. Some people think that it shouldn’t be allowed while others say it has some advantages. Anyway, here are some of its uses.
- Bots help to automate trading so the traders will have time for research, work, business, or anything else they want to spend time on.
- Investors use them to take advantage of the crypto market, which never stops all day worldwide.
- Bots react more quickly to the market, so they have a significant advantage over manual trading.
- A type of bot called an arbitrage bot takes advantage of price discrepancies across different exchanges.
How do trading bots work?
While some investors are still debating whether trading bots should be allowed in the cryptocurrency world, some traders have started using them. Each bot has a set of different requirements in terms of software and hardware. Though some bots are free to use, others need a huge fee to subscribe and use.
Typically, traders will download a code from the developer of a bot after discovering the bot that will be useful to them. The trader will now follow the instructions and set up their bot in the exchange they want to use.
As much as the bots can help traders, you still need to decide when to buy or when to sell. A crypto trading bot is not a get-rich-quick solution. It’s not a tool that once you get it, you will be winning all your trades. You still need to be involved and put in the time, effort, and knowledge necessary to make a great success in your trades.
Pros and cons of using a bot
Trading in the crypto market requires that you leave emotions at the door. If you cannot and notice that you buy and sell on impulse, then maybe you should consider using a trading bot.
Here are some of the pros of using a crypto bot. 👍
- Automated trading: A crypto trading bot offers you an automated investing and trading option that can stop you from panic trades. FOMO buying and selling can also make a trader lose money if they are not using a bot. A trading bot helps you stay clear of all these factors that might make you lose money.
- Efficient and Fast: A trading bot makes crypto traders have fast and efficient trades. If you are trading manually, it might take minutes or even hours to execute a single trade. But with a bot, you have fast speed, plus it can help you see opportunities faster.
- More time for you: Since the crypto market operates on a 24 hours basis, you can’t stay awake all day and night monitoring trades. But a crypto bot can help you operate in the crypto market 24 hours a day, 7 days a week. That way, you can have many hours on the market without being actively present.
Though there are advantages to using a trading bot, there are still some disadvantages.👎 Here are some of them:
- Monitoring required: Many bots can only provide marginal returns even if they are operating correctly. Therefore, you need to monitor it regularly to avoid losses since you are trading in a highly volatile market.
- Unregulated field: So many crypto trading bots are not designed well, and since it is an unregulated field, no one is checking.
- Knowledge needed: To use a bot effectively, you need a deep understanding of the cryptocurrency market and a good investment plan. Even though some bots come with predefined strategies, templates, and settings, you still need to know how to use them well.
Some traders notice that by the time they have done all the necessary things needed to use a bot, they no longer need the services. However, if you want to automate your trades and become more efficient, here are some bots you can use with their supported exchanges.
3Commas makes it easy to make money with bots that never sleep. Whether you use one of their many proven templates or create a fully custom bot, 3Commas gives traders the power to profit from any market condition.
Their wide variety of DCA, Grid, Options, and HODL bots can handle long and short positions, options, and futures using any strategy you can dream up. The 3Commas marketplace gives you access to templates and signals with a transparent track record of performance, so you can pick the one that works best for your goals.
Additionally, 3Commas offers powerful portfolio management and trade orchestration options, letting you control all of your crypto activity from one central interface. Use SmartTrade to execute trades on any major exchange with far more control and options than exchanges offer. Seize opportunities for quick profits with the scalping terminal.
Exchanges: Binance, FTX, OKX, KuCoin, Coinbase Pro (GDAX), Binance US, BitMEX, Bitfinex, Bitstamp, Bittrex, Bybit, Crypto.com, Deribit, FTX US, Gate.io, Gemini, Huobi, Kraken
WunderTrading is a crypto automation platform with mirror trading and crypto portfolio management tools. Users may create completely autonomous cryptocurrency trading bots with TradingView PineScript, earn passive cryptocurrency income by following highly skilled traders or trade manually with the sophisticated Trading Terminal.
The extensive range of trading capabilities that WunderTrading provides sets it apart from its competitors. You may utilize the Trailing-stop and even Swing-trade functionality on the WunderTrading platform. You may also use advanced trading features such as Stop-loss and Take-profit to improve trading strategies. You may incorporate numerous trading algorithms and technical indicators into your bots thanks to the TradingView integration. Their specific built-in Terminals may also be used to develop DCA and Spread tactics.
WunderTrading lets you manage several exchange accounts from a single dashboard. After adding your exchange accounts through API, you’ll be able to replicate trades across all accounts with a single click. The platform provides detailed statistics that are calculated and shown on the Dashboard so traders can keep track of gains and trade more effectively.
Coinrule has the broadest range of preset trading strategies, making it one of the most popular bots available. It allows users to customize investing with more than 150 trading templates automatically executed when market conditions meet already defined parameters. Coinrule regularly introduces new templates to its platform, from long-term holding strategies, and stop-loss settings to accumulation.
With free and paid plans, the number of templates you’ll gain access to varies according to the plan you choose. Its paid package comes with advanced charting options, unlimited template usage, even one-on-one trading tutorials, and lessons, while the free plan has 7 complimentary template strategies.
Exchanges: Coinbase Pro, Binance, Bitstamp, Bittrex, Poloniex, Kraken, BitMEX, Bitfinex, Bitpanda pro, Liquid, Okex, Binance US, HitBTC.
TradeHub is a turnkey crypto trading bot you can start with for free with their 14-day trial. It features countless trading strategies based on three basic principles of DCA, Grid, and Short.
TradeHub is super secure. They don’t store your funds; instead, they use API keys provided by your exchange and encrypt the trade data.
Moreover, you get a detailed breakdown of your trading portfolio, including individual strategies performance matrices.
One can start by connecting their exchange’s API keys and selecting the preferred trading strategy.
There are three subscriptions based on the number of bots and Telegram integration. And all it takes is $15 to get started.
Mizar is the only trading bot that is 100% subscription-free and comes with unlimited use of all features to scale your trading and diversify your portfolio. Mizar is backed by notable investors such as Nexo, KuCoin, Huobi, and WooX.
One of the biggest advantages of Mizar is that it is an all-in-one platform for cryptocurrency trading. It allows users to build up low-risk strategies and execute orders across multiple crypto exchanges, markets (spot & futures), and pairs from a user-friendly interface.
Mizar’s users can easily create long and short bots, manage their positions from TradingView or other systems, and trade from Mizar’s Smart Trading Terminal. Multiple entry zones, stop-loss, take profit, trailing, and DCA are some of the trading features offered by Mizar.
Mizar also offers a marketplace where users can share their strategies. Users can copy-trade the most successful strategies with a few clicks and trade as a professional. In exchange, traders are rewarded through a profit-sharing system on a monthly basis.
For less experienced traders, Mizar offers unlimited paper trading to let them build confidence without the need to commit real assets. In this way, users can learn how to trade or test their techniques and strategies risk-free.
No subscription fee, credit card, and downloading or installing of the platform is needed.
Exchanges: Binance, Binance.com, KuCoin, OKX, Coinbase, Bybit, Huobi, MEXC, Crypto.com, WOO X.
Bitsgap is one of the best bitcoin trading bots that can help you manage your crypto assets with ease and enable you to create a bot strategy with a few clicks.
This tool can inspect up to 10,000 crypto pairs and pick out the coins with the best potential. With Bitsgap, you can view your trading through a chart, test settings before trading, and access it by downloading it.
Exchanges: Kucoin, Livecoin, CEX.IO, Poloniex, Bittrex, Coinbene, Coinex, Huobi, Gate.io, Bitstamp, Liquid, Gemini, Bit-Z, Yobit, DDEX, HitBTC, Bithump, Bitfinex, Bibox, Exmo, OKEX, BigOne, Binance, Kraken.
Gunbot is one of the most advanced trading bots on the market.
Since its launch in 2016, years of consistently adding features and updates have made it to be a reliable piece of software, fully automating the crypto trading needs of more than 25000 active users.
Gunbot is user-friendly, easy to set up, and has many different customizable strategies for every type of trader/risk profile. On their marketplace, you can even find free, profitable ‘plug & play’-strategies ready to go. Gunbot frequently hosts tournaments, thereby providing its users the opportunity to earn a little extra on the side.
You can start trading with Gunbot for only 9.99$. As opposed to many of the other competitors, Gunbot works with a one-time payment instead of a monthly subscription.
Exchanges: Binance US, Bitmex, Bitfinex, Bitmex Testnet, Coinbase Pro, HitBTC, Huobi Global, OKEx, OKCoin, Bitstamp, KuCoin, Poloniex, Cex, Bithumb, Kraken, Bittrex, Coinex, Binance and +100 more.
Pionex is a crypto exchange with built-in trading bots, and you have access to 12 unique training bots at no extra fee. These trading bots allow you to automate your trading strategy, so you don’t need to monitor the market constantly.
This tool is an excellent option for mobile and high-volume traders. The main product of Pionex is the trading bot selection, even though it supports manual trading using crypto-to-crypto conversions. This bot executes traders’ buy and sell orders with no manual input but with predefined market conditions.
Pionex uses a maker-taker fee schedule. This means that you only pay when your placed trades ‘make’ liquidity in the market which also ‘takes’ liquidity from the market. If your trade is not matched immediately by an outstanding order on the books, you have to pay the maker fee. If your order is matched, you have to pay the taker fee.
Exchanges: Binance, Huobi global, Pionex,
Tradesanta is a cloud-based trading bot that can save you time when it executes trades on your behalf. It is easy to set up, allows you to automate trading across different exchanges, and choose the preferred setting when you create the bot. To scale your trading with Tradesanta, you can create as many bots as you want.
Furthermore, it supports a majority of the cryptocurrency exchanges available today.
Exchanges: HitBTC, Bittrex, Huobi, BitMEX, Bitfinex, OKEx, UPbit, Binance.
This is a crypto trading bot that hosts its services entirely on the cloud. That way, it can help you catch short periods of downtime that will have resulted in missed profits.
Also, the bot experiences no downtime and serves updates without interrupting your trades or putting a halt to your account. Even if you are offline, your Cryptohopper account will still be up and running.
This bot offers an intuitive and easy setup process, with no credit card information or platform installation required.
Exchanges: Okex, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, KuCoin, Binance, HitBTC.
This is a platform that enables you to make automated trading in crypto and save time. There are no coding skills required to use this platform, and you can create and control trading robots to trade with your strategies.
Botcrypto is a free bot trading platform that gives you 24 hours support with a visual editor.
Exchanges: Botcrypto can be used in Kraken and Binance.
This innovative, easy-to-use cryptocurrency trading bot was created to help you develop complex automated trading indicators and algorithms.
Axion Crypto can be used across many crypto exchanges, and you can create your own strategies with the Code Editor or builder. The price starts from $15 up to $90 per month.
With this tool, you can backtest ideas and new trading strategies, monitor and manage custom trades, and use a trading view or the manual system to send signals directly. The bots run in the cloud over the secure enterprise network that removes the necessity of downloading and installing the platform.
Exchanges: Binance, Altrady, Bybit, Kraken, KuCoin.
This is a platform for anyone who wants to create super creative, highly intricate algorithms within an educational, community-driven infrastructure which promotes learning and development. Trality is one of the most popular trading bot platforms globally, both for beginner and advanced crypto investors.
If you can code advanced trading algorithms, Trality has a tool called Rule Builder. It is a state-of-the-art graphical user interface that you can use to build your trading bot’s logic by simple drag-and-drop indicators and strategies.
Advanced users with Python coding knowledge can use their browser-based Code Editor, which is the most advanced of its kind. With the Code Editor, developers use their coding knowledge to create advanced and intricate strategies in a fast and secure way. They have different plans from free to paid.
Exchanges: Binance, Coinbase Pro, Bitpanda, and Kraken.
This is a unique platform that has a website, mobile app, and a beautiful user experience. Cryptohero app is easy to download, doesn’t overheat your phone, doesn’t use too much memory, and loads fast. They have a free (basic) platform and also a paid platform for their users.
They have a simple tutorial in their mobile app which helps traders create their first bot and start trading. There is a deals tab split between In progress and Completed, and you can review your dashboard for active orders, win/loss ratio, realized profits, and the total number of trades.
Exchanges: Binance, Kraken, Kucoin.
Hodlbot is one of the best cryptocurrency trading bots that help you to manage your trades with a user-friendly dashboard. With this software, you can create a portfolio of more than 350 coins and easily customize your portfolio according to your need. This bot allows you to rebalance your portfolio easily, and the price starts from $3 a month.
This crypto bot automatically keeps your portfolio on track. This bot encrypts your data using SHA 256 and helps you conduct marketing indexes in fewer efforts.
Exchanges: Binance, Kraken, KuCoin, Bittrex.
This is a cryptocurrency trading bot that helps you to backtest, deploy and make strategic trading decisions. Streak bot does not require coding skills, and it’s suitable for retail traders. This bot is a simplified trading tool based on an algorithm that helps traders to make systematic trades in cryptocurrency.
It tracks the markets movements for traders and helps you know the right time for entry and exit. There is a 7-day free trial to use streak.
Exchanges: Binance, Deribit, HITBTC, Okex, Huobi, Kraken, Coinbase Pro, Coinbase, ZB, BitMEX.
Final thoughts 👩🏫
As the crypto market gains more attention, traders now find it easier to work with bots to enhance their trading strategy. Even though bots can help traders execute trades and take advantage of price differences across exchanges, you, as the crypto trader, still need a solid trading strategy to have successful trades.
In case you wanted to create your own Tradingview indicators, try these Pine Script learning resources.
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