The crypto market is not an easy field to operate in, as sometimes it's unpredictable and hard to navigate. When trying to trade effectively we have to constantly be looking at price charts, global news, and regulations. Because of all that, it's common for people to miss out on important information and price changes which results in missing a huge chunk of profits or in worst-case scenarios, losing our whole investment. A good example of that is TerraLUNA which became practically worthless in a span of a few days and left thousands of investors with huge losses.
So what can we do to leave ourselves some free time and still be sure to succeed in the crypto market?
Here come the crypto trading bots. These bots run on automated software completing specific tasks that require little to no human intervention. Their main goal is to increase profits while lowering risks associated with losing investments. They have the ability to trade multiple cryptocurrencies on multiple platforms automatically.
The latest crypto trading bots don't just trade crypto. With the latest developments, crypto bots are now implemented with machine learning, artificial intelligence, and other innovations which help them collect information in real-time and use gathered data to their full advantage. With predefined trading strategies, they start to analyze this data and extract useful information to then use it to trade.
The trading bot's main target is predictions. After analyzing the gathered data and patterns, they start to predict how the market will change, which crypto will fall, and which will gain value. When choosing which bot to use, the correctness of their predictions should be one of the main aspects we should examine - the more accurately it predicts price movements, the more money we make.
After the bot finishes all these analyses and predictions, then comes the time to start trading. Bots start to place buy or sell orders on set trading platforms, and since most of these platforms allow limits and other types of orders to be placed and completed automatically, sell and buy orders placed by bots automatically go through, consequently making a profit or loss.
These trading bots can gather information from many available and relevant sources such as news sites, social media, crypto markets, and more. This is why those bots use machine learning and AI, so they can filter out relevant information. We can buy these bots already implemented on a specific trading platform, or buy separate software to use on the platform of our choosing.
We also have to mention that these bots are not perfect, and they won’t guarantee profits. Despite the fact that millions of dollars are going into their development they still make losses, although the intention is to limit those losses. So a large number of traders still intervene in bot's activities and don't just let them operate fully autonomously.
Pionex is one of the first exchanges that offered 16 built-in and completely free trading bots. Pionex users can automate bots to trade 24/7 without the need to always check the market, and in exchange pay a small trading fee of 0.05%. It aggregates liquidity from Binance and Huobi. When it comes to simplicity there are not many bots that are simpler to operate than this. Both Singapore and the US have granted Pionex MAS and BAS licenses.
Price: Free (Trading fee of 0.05%)
Exchanges: Binance, Pionex, Huobi Global
Mobile Apps: Android & IOS
When it comes to a unique automated trading bot, Bitsgap is one of the best options there is. A large number of traders with different levels of experience and skill sets use Bitsgap on a daily basis to automate their trading and maximize returns.
Bitsgap trading bot operates on an algorithm that's based on a technique called GRID. Proportional investment distribution, within a trading range predefined by the trader, helps us make profits on automated buy and sell orders.
Whenever the buy limit order is filled, the sell order is automatically placed by the bot just above the buy price. Bitsgap bot can operate non-stop until the price stays in the range decided by us. Each time the price fluctuates Bitsgap bot will be buying low and selling high. It also comes equipped with good risk-control tools, such as Trailing UTP, stop-loss, take-profit, and other exit strategies.
Price: $24/mo - $123/mo
Exchanges: Binance, OKEX, Coinbene, Bitfinex, HitBTC, Bittrex, Exmo, Huobi, Kucoin, CEX.IO, Kraken, Poloniex, Livecoin, Bit-Z, Gate.io, Bitstamp, Coinex, Liquid, Gemini,Yobit, DDEX, Bithump, BigOne, Bibox,
Cryptohopper is both a free and monthly subscription-based trading bot for various cryptocurrencies, but it also provides a 7-day free trial for its paid plan for you to try out.
Cryptohopper is well known for its market-making bot. It is similar to Pionex Grid Bot but focuses more on the spread. With CryptoHopper Bot we also gain access to the marketplace where you can support third-party services such as trading strategies, templates, and apps. The bot also provides a demo trading account, social trading platform, market arbitrage tool, strategy designer, and paper-trading mode.
Price: Free and paid plans ranging between $19/mo - $99/mo
Mobile apps: iOS & Android
Exchanges: Bitpanda Pro, Huobi, Poloniex, Kraken, HitBTC, Okex, KuCoin, Bitvavo, Bittrex, Bitfinex, Coinbase Pro, Binance
Coinrule is one of the best bots for beginners to start with. It implements Its “if-this-then-that” rule which helps even inexperienced traders to set up their own trading strategies in just a few minutes, as a friendly interface guides new users step by step on how to set up everything.
Its template library, which includes 150 pre-set rules, helps newcomers quickly get accustomed to their system and helps them choose the trading style that fits their needs. The amount of cryptocurrency trading strategies Coinrule has allows users to try out various trading strategies. These include a mix of take-profit, stop-loss, and other orders to make for good trading strategies and ideas which they regularly post on the platform's knowledge base.
Like some other platforms, Coinrule comes equipped with risk-free demo trading, where prices come directly from Binance, and is a great tool to set up your bot for testing.
Price: Free starter pack and $29.99/mo hobbyist pack
Mobile Apps: Coming soon
Exchanges: Okex, Bitstamp, Bittrex, Poloniex, Kraken, Binance, HitBTC, Coinbase Pro, BitMEX, Bitfinex, Bitpanda pro, Liquid, Binance US
3Commas is one of the most well-known crypto trading bots, primarily aimed at experienced traders as their interface is not very beginner-friendly.
3Commas is accessible with any device as long as it has an internet connection because it's a web-hosted platform. They provide various trading bots for different strategies.
The platform also offers good opportunities for the customization of trading strategies and bots can be set up to trade specific timeframes. One of its biggest strengths is its community, as users tend to share their own strategies and help each other out. Some do it for free, some ask for payments, but provide top-notch services.
Price: Free plan and subscription-based plan $29/mo - $99/mo
Mobile Apps: iOS & Android
Exchanges : Bitfinex, BitMEX, Bittrex, Bybit, Bitstamp, Coinbase Pro, Gate.io, Cex.io, Exam, Huobi Global, Binance DEX, Binance, Binance.us, Bilance Futures, KuCoin, HitBTC, Kraken, Poloniex, OKEx, YoBit
Absolutely! Crypto trading bots can be very beneficial for both newcomers and pro traders. The bot's main goal is to eliminate human errors and increase profits. Down below, we want to list some of the reasons why both beginners and pros should be using crypto trading bots.
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Yes. Crypto trading bots might not be perfect and in general, if run without any oversight, it is most likely that they will generate some losses. That being said, it is still a good tool to remove major human errors and make your trading experience more enjoyable.
Yes. Cryptohopper is a really good crypto trading bot that will benefit most traders. It is a user-friendly bot with a large amount of customization ability to further maximize profits.
Yes. Despite the fact that millions of dollars are going into the development of these bots, they are not perfect. If left unattended for a long period of time, the AI will most likely make small miscalculations which might result in a loss.
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