The best way cryptocurrency investors can automate buying and selling of positions based on key technical indicators is through the use of crypto trading bot.
Crypto trading bots help implement specific trading strategies and compete for the highest “win rate” or percentage of profitable trades. Some strategies include crossing certain moving averages and automatically triggering buying and selling.
This copy helps explain what a crypto trading bot is all about. It also profiles the best strategies for using Crypto trading bots. Furthermore, we outlined some of the best crypto trading bots for you to use. Finally, the advantages and disadvantages of trading bots are listed too.
Fasten seat belts, the ride is about to start…!
What Is A Crypto Trading Bot?
You might be wondering what a cryptocurrency trading bot is, this is simply a computer program or application that trades cryptocurrencies based on predefined conditions. Most crypto trading apps work straightforwardly. Approves the bot to buy or sell an asset when a certain price or metric is reached.
The crypto trading bot then processes the order and the order execution, so there is no need to monitor the platform all day to see when these price fluctuations will be reached.
An interesting fact is that these crypto bots can be customized to carry out orders based on the strategy you use to trade. For example, you can sell a lot of coins by a crypto trading bot for $10 and ask it to buy them back when the price returns to $9.
Most crypto trading bot providers charge a monthly or annual fee in exchange for using the bot’s services. The supported cryptocurrencies, exchanges and account options available through trading robots depend on the provider you choose.
Why Crypto Trading Bots?
Some of the benefits of using crypto trading bots are as follows:
- Traders can trade based on facts and trends rather than intuition and emotions.
- Increased earnings;
- Using this strategy helps limit risk and loss.
- Generate passive income at any time of the day or night.
- Whether you are sleeping, exercising, in the office, or doing other things, you can make money with automated transactions.
Trading Bot Strategies
We carefully outlined 6 unique crypto trading bot strategies . They are selected as a result of their usefulness and popularity among traders.
- Arbitrage bot strategy
- Grid bot strategy
- Market Making
- Momentum Trading
- Mean Reversion
- Copy Trading
#1. Arbitrage bot strategy
An arbitrage bot is a computer program that examines and compares the prices of cryptocurrencies on exchanges to make automated exchanges that take advantage of price differences.
For example, a bitcoin arbitrage bot might find that Kraken is trading BTC for $200 more per token than bitFlyer, causing the bot to buy BTC from bitFlyer and quickly sell it on Kraken for a small profit.
#2. Grid bot strategy
Bot Grid is simple and good for beginners. Simply define some “grids” with higher and lower restrictions for a certain encryption. Bot therefore shows a removable number of transactions to increase profit collection.
#3. Market Making
The main advantage of Market making is that it saves you from becoming a victim of large price fluctuations. This may include placing limit orders on buying and selling close to the current market price. Many market making bot traders are affiliated with their trading plans.,
#4. Momentum Trading
Momentum trading or trend-following techniques are perfect for riding the wave of bullish market momentum and selling your assets when it reverses.The fundamental notion is that an asset’s price would increase above average, then lose momentum and collapse. Purchasing and selling are critical in this situation.
#5. Mean Reversion
Reversion is a form of AI-based cryptocurrency trading bot that operates on the concept that if a coin’s price deviates from the average, it may be returned to the average. For instance, if the price of ZRX decreases from an average of $1 to 50 cents, many traders may view the recent decrease as a bargain and purchase bulk..
#6. Copy Trading
Copy trading is a trend that allows traders to automatically copy other traders’ transactions. Rankings and social communities are often involved. Many crypto trading robots can even copy other traders with a single mouse click.
Best Crypto Trading Bots
As the cryptocurrency market gains more and more attention, it’s easier than ever to get started with crypto trading bots to help you strengthen your investment strategy. below is a list of top crypto trading robots profiled according to their strategy.
- Crypto Hero
#1. Coinrule: Best for Preset Strategies
When it comes to offering the widest range of pre-built trading strategies, Coinrule’s wide selection is second to none. Cryptographic trading bots now allow users to customize their investments with over 150 trading templates that are automatically executed when market conditions meet predefined parameters. From accumulation to long-term holding strategies and stop-loss settings, Coinrule is constantly introducing new models to its platform.
The number of models you can access depends on the plan you choose, but Coinrule offers a free plan that includes seven free model strategies and a monthly trading volume of up to $ 3,000. Additional paid packages include advanced charting options, unlimited use of models, and features such as one-on-one tutorials and trading lessons.
- Provides real-time customer service.
- This allows you to test the performance of your rules against historical data.
- Define custom rules for trading.
- It has market indicators that help you easily allocate funds.
- Provides military grade encryption.
- You can trade 24 hours a day, 7 days a week.
Mobile Apps: none yet
Exchanges: Binance, HitBTC, Coinbase Pro, Okex, Bitstamp, Bittrex, Poloniex, Kraken, BitMEX, Bitfinex, Bitpanda pro, Liquid, Binance US
#2. Pionex: Best for High-Volume Traders
Pionex is a cryptocurrency exchange with integrated trading bots. You can access 12 unique trading bots at no additional charge. These bots allow you to automate your investment strategy so that you don’t have to constantly monitor the market.
Pionex offers low commercial commissions and a complete mobile application. Pines would be a great option for high-volume and mobile investors. Although Pionex supports manual trading of crypto-to-crypto conversions, its main product is the selection of trading robots.
Pionex uses a maker-taker fee plan, which means that you pay a fee when you perform trades that “create” liquidity in the market and “take” liquidity out of the market. If you place a trade that doesn’t immediately match a pending order on the books, you’ll pay the manufacturer’s fee. When you place a trade order that is immediately compared to a pending order, you pay the receiver’s fee.
- Pionex offers 12 freee crypto trading bots for retail investors.
- The trading fee is the lowest compared to most major exchanges. The trading fee is 0.05% for creators and buyers.
- Grid Trading Bot allows users to buy low and sell high within a certain price range.
- Leveraged Grid Bot offers up to 5x leverage.
- Spot Futures Arbitrage Bot helps retail investors generate passive income with low risk. The estimated return of this strategy is 15 ~ 50% APR.
- With Smart Trade Terminal, traders can set stop loss, take profit, and follow suit in a trade.
- US FinCEN MSB (Money Services Business) License Approval
Mobile Apps: iOS & Android
Exchanges: Binance, Huobi global, Pionex
#3. Shrimpy: Best for Connecting Crypto Exchanges
Shrimpy allows you to log into any of the 18 exchanges and manage your wallet. You can log into multiple exchanges and add as many wallets as you want.
Choose your preferred account style, whether it’s a beginner, professional, or business. At a low cost, you can easily catch up with Shrimpy and help your bot keep your investment when you don’t have the time.
Use the demo account to test your investment options. Copy experts using social trading. This is a simple platform that allows you to consolidate your investments if you have the potential to spread your money across several different exchanges.
- API keys are encrypted and stored securely using Federal Information Processing Standards (FIPS) 140-2.
- It can simplify the management of your portfolio.
- You can see the market price live.
- Provides a dashboard with statistics for each asset and portfolio performance metrics.
Exchanges: KuCoin, Binance, Binance US, Bittrex, Bittrex Global, Coinbase Pro, Kraken, Poloniex, Gemini, Bitbox, BitMart, Huobi Global, HitBTC, OKEx, Bitstamp, Bitfinex
#4. Cryptohopper: Best All Around
The cryptocurrency market is constantly on the move, even short downtime can result in lost profits if you trust a crypto trading bot. Cryptohopper is a 24/7 trading robot that hosts its services entirely through cloud storage.
This means the bot will experience no downtime and updates will be provided without disrupting your operations or stopping your account. Even if your network is disconnected, your Cryptohopper account will continue to work.
Cryptohopper also offers a simple and intuitive setup process that does not require credit card information. Just sign up for your account and start investing without installing the platform. The bot also integrates social feelings with other investors, which can further improve your trading and help you refine your strategy.
- You can do your own technical analysis with this bitcoin trading robot.
- You can easily get strategies and bot templates.
- Cryptohopper protects your account with secure protocols.
- This free crypto trading bot keeps your data private.
- It offers an easy to use interface.
- The tool offers real-time performance reports.
- IOS and Android mobile apps.
- The algorithms support EMA, RSI, BB and other common signals / indicators.
Mobile Apps: iOS & Android
Exchanges: HitBTC, Okex, KuCoin, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, Binance.
#5. Trality: Best for Automating Strategies
Trality is a bot for trading crypto which can be used by anyone who wants to create highly complex and highly creative algorithms within an educational and community infrastructure that facilitates learning and development as a trader.
Founded in Vienna in 2019, the platform has rapidly grown into one of the most popular choices in the world, from beginners to advanced players.
For advanced users familiar with Python coding, Trality’s browser-based code editor is the most advanced of its kind. With this tool, developers can use their coding knowledge to create complex and advanced strategies safely and quickly.
Two tools allow you to perform ultra-fast backtesting so you can validate your algorithms before you bring your new bot to the real market. You can also trade on paper to see what’s happening now without spending money. Trality can start a flexible pricing plan for all types of users for free.
- Organized and predefined strategies
- Graphical interface drag and drop (for beginners)
- Python code editor integrated into the browser (for advanced traders with Python knowledge).
- Ultra fast backtest module Cloud-based live trading.
- The algorithm runs 24/7, ensuring that you never miss a transaction
Mobile Apps: none yet
Exchange: Binance, Kraken, Bitpanda, Coinbase Pro
#6. Crypto Hero: Best Mobile Platform
CryptoHero is a unique platform with a great website and user experience. However, their mobile apps are even better. The app is easy to download and won’t overheat your phone, use too much memory, or slow downloading.
Signing up for CryptoHero allows you to choose between a base platform or a paid platform before you start trading. The mobile app provides a simple tutorial to help you build and invest in your first bot. The Transactions tab is divided into In Progress and Completed, which allows you to view the dashboard to see active orders, realized profits, W / L ratios, and the total number of transactions.
Easily access all your information without digging into the confusing interface. Concepts can be complicated and creating your trading robot is a professional experience, but with CryptoHero you can easily dive into the crypto market with little experience.
Plus, instead of sitting in front of your computer for hours, you can carry it with your mobile app. This app is also useful if you travel or travel frequently, if you want to treat your cryptocurrency investment as a hobby, or if you want to limit your investment to one device.
- Support for multiple replacements.
- Easily connect the API.
- User friendly interface.
- Track the performance of all crypto transactions individually or aggregated across multiple exchanges in one app.
- Technical indicator with preset.
- The most popular bots are easy to set up with one click thanks to the detection function.
- Quickback testing using historical pre-deployment data.
- Easy access to all exchanges with one click on the CryptoHero trading terminal.
- Risk-free paper transactions.
- 24/7 technical support with live chat available to users.
- Available on the web, iOS and Android.
Mobile Apps: iOS and Android
Exchanges: Binance, Huobi, OKEx, Bittrex, Coinbase Pro, FTX, Kraken, Kucoin, Bitfinex, Gate.IO
#7. WunderBit: Best for Social Trading
The Estonian-based Bitcoin exchange WunderBit is another crypto trading bot that offers authorized and regulated cryptocurrency transactions. The company ensures that customers can buy and sell Bitcoin safely and reliably at the highest exchange rates.
WunderBit enables social trading. That is, you can register as a trader or investor. If you register as a trader, investors can order you to manage their investments. As an investor, you can follow one or more traders of your choice and copy their trading strategies for fees that are only deducted from profitable transactions.
If you have never traded before, we recommend that you use this option. WunderBit fees vary depending on the type of transaction you are doing.
- It allows you to choose the type of asset you want to trade.
- This platform uses DCA (Dollar-Cost Averaging), which can improve the entry price of the position.
- You can track the balance automatically.
- Easily manage multiple crypto exchange accounts.
Mobile Apps: Android
Exchange: Binance, BitMEX, FTX, FTSUS, HitBTC.
#8. Botsfolio: Best for Non-Techy Types
With Portfolio, a powerful crypto trading bot, you can trade without coding or trading skills using three simple steps.
- Determine your investment goals: Answer a few questions to learn how to allocate your investment in various cryptocurrency trading strategies.
- Connect the exchange: Add your investment to the crypto exchange and launch Botsfolio in minutes.
- Get updates: Bots are automatically traded from your account. Track your automated cryptocurrency trading activity with Botsfolio’s intuitive visual dashboard.
- It allows you to trade without technical skills.
- This app allows you to determine your investment goals.
- You can easily log into your exchange.
- You can exchange it for Bitcoin, Monero, Bitcoin Cash, etc.
#9. TradeSanta: Best for Saving Time
This is a cloud-based crypto trading bot that can automate transactions on various cryptocurrency exchanges. TradeSanta saves time as its crypto trading bot executes transactions on your behalf.
You can choose your preferred settings when creating a trading bot. You can then create individual trading robots that just want to take trading to the next level.
TradeSanta supports most of the major centralized cryptocurrency exchanges, making it easy to create accounts today.
- You can easily start trading robots with short and long strategies.
- We provide 24/7 support.
- It allows you to buy and sell large numbers of cryptos without hassle.
- Provides a variety of predefined templates.
- You can follow your bot in real time.
Mobile Apps: iOS & Android
Exchange: HitBTC, Binance, Bitfinex, Bittrex, Huobi, BitMEX, OKEx, UPbit
#10. Quadency: Best for a Unified Experience
Quadency is a crypto trading bot that makes it easy to create trading strategies, operate on major stock exchanges. It buys, sells, researches, and access all of your assets.
You can see all of your assets in every exchange and wallet you use. This is without having to download a million apps or get lost in the process. Market filters built into advanced charts are the best way to dig deeper into the security and assets you care about.
You can ignore all the information about advertising and social media while using a free service that handles everything.
- With this app you can easily customize your bot.
- It provides a variety of advanced TradingView (social network) automation and graphing tools.
- You can get a good level of customer support.
- You can trade on Bittrex, Binance, and Kucoin.
- We have a variety of trading robots that you can easily customize.
- Supports automatic transactions.
Mobile Apps: iOS and Android are under development
Exchange: AAX, Binance, Bittrex, Kraken, KuCoin, Liquid, OKEx, Binance US, Bitfinex, Coinbase Pro, Gemini, HitBTC, Poloniex
Open Source Crypto Bot List
Crypto trading bots are an increasingly popular tool for almost all crypto traders. Trading robots allow traders to develop fully automated Bitcoin and cryptocurrency trading strategies. As a result, there are now over 100 trading robots at different prices for digital asset traders.
Fortunately, there are plenty of free open source bots on the crypto trading bot market. This bots allow you to test algorithmic trading before investing in real-world deployments.
Below is a list of 5 best open source crypto bot
Advantages Of Crypto Bots
If you are a commercial type that tends to introduce more market movements through your emotions than the trading strategy. The crypto trading bot can help you strengthen your transactions. Some of the benefits that originate from a cryptographic commercial bot include:
- Automated Investment Options: From panicking selling to fear of missing out on a purchase, there are countless reasons a person chooses to complete a trade that causes them to lose money. None of these factors are relevant if you rely on automated investment bots.
- Faster Speed: It can take minutes or hours for individual traders to fully analyze the entire cryptocurrency market for opportunities. The moment you might find a potential opportunity, the market can change in the opposite direction.
- Cryptocurrency trading robots are more efficient. They scan entire sections of the cryptocurrency market in just a fraction of a second. Your crypto bot can also enter and execute orders faster than you can manually enter the same orders. If you want to add another layer of speed and efficiency to your trading, using a crypto trading bot might be the right move for you.
- More time on the market: It’s not feasible for investors to spend 24 hours trading. Crypto trading bots provide you with additional hours of exposure without requiring you to be actively monitoring your positions.
Disadvantages Of Crypto Trading Bots
Cryptocurrency trading robots are not for everyone. Some of the disadvantages of using these features are:
- Not for inexperienced entrepreneurs: using crypto trading bots requires adequate knowledge in the use of robots. Changing the configuration of these experienced robots can cause mass losses.
- It requires monitoring: Cryptocurrency trading bots are not useful in high volatility times. It is because they are not attached to money and therefore can lead to a massive loss.
- Security concerns: Crypto robots execute transactions through integration with APIs. Due to the nature of exchanges and bots, there can be unwanted risks such as phishing and loss of funds. Therefore, traders should be very careful when trading cryptocurrencies.
Lots of crypto trading bots exist today and they meet the needs of traders. But it’s very germane to understand the way each of them works before employing their use. Thus, you need to know which trading strategy best suits you.
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