Best Crypto Trading Bots

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In traditional markets, automated trading accounts for 73% of all U.S. trading volume. The situation is similar in the crypto market. Using a crypto trading bot is not a novelty anymore, and the industry is getting flooded with new solutions.

The biggest challenge for retail traders is to make the right choice - this can make or break your training success. So, this guide covers the best crypto trading bots and everything else you should know before running an automated strategy.

What Is a Crypto Trading Bot and How Does It Work? 

A crypto trading bot is software that automates technical analysis and interpretation of market statistics. It can execute the buying/selling of cryptocurrency assets without human intervention based on pre-established parameters.

For example, you can set up a bot to buy a certain amount of BTC when its price goes lower than a specified limit.

Most crypto trading bots have several key components in common:
  1. 1
    Market data analysis: Bots gather raw market data from different sources and interpret it. They need to come to a conclusion whether it’s a good opportunity to buy/sell a specific crypto asset. Sometimes, traders can fine-tune the type of data the bot will receive.
  2. 2
    Market risk prediction: Then, crypto trading bots calculate the potential risk of entering the market. Bots can often change the specific amount of crypto bought/sold baked on the expected risk.
  3. 3
    Buying/selling the assets: Finally, bots use APIs to handle assets strategically. The Execution module takes care of aspects like carrying out the transaction.

Advantages of Using Crypto Bots

Here are the main benefits that crypto trading bots bring into speculative activity:

  • Efficiency: Bots are good at multitasking, e.g., scan and analyze several assets and exchanges simultaneously. Not only do they study the data, but they can also catch onto the changing sentiment in seconds.
  • Speed: Bots waste no time and take advantage of opportunities instantaneously. In the fast-moving world of cryptocurrency, where it can take moments for a trade to lose value, this advantage is huge.
  • Simplicity: While some crypto trading bots are targeted at advanced traders, most commercial solutions make market entry easier. You don’t need a deep understanding of technical indicators - knowing how to configure a set of parameters is enough.
  • Discipline: They take emotional trading out of the equation. As much as we can pride ourselves on holding positions despite temptation, we can still get sidetracked. Emotionless automated trading makes you stick to the strategy until the time is right.
  • 24/7 operation: The crypto market never closes, and it never sleeps. The same can be said about bots. Even if the trader isn’t awake, the program will continue monitoring and act at any time.

Drawbacks of Using Crypto Bots

Even considering all the positives, you should be aware of the other side of the argument. Below are several disadvantages inherent to most bots:

  • Trading risks: Crypto trading bots are not perfect, and losses do occur. Sometimes, they can’t overcome the volatile nature of cryptocurrencies and trading in general. To minimize risks, employ a risk management strategy.
  • Security concerns: There have been a few cases in the past where people gave bots access to their private API keys. As a result, bots manage to withdraw all the user’s funds and perform an exit scam. You can prevent this by limiting access rights.
  • Faulty algorithms: Some algorithms are not adequately tested, and you might be trapped in a strategy that will never work. Reliable vendors try to catch these early on, but you never know.
  • Requires monitoring: Don’t be misled by the word automated - your involvement is still needed. Programs and schedulers are not attached to the money, so you want to be there in case of successive losses.

Types of Crypto Trading Bots

There are multiple ways of automating the trading process - and it gets more complex than just letting crypto trading bots open/close positions like you would in manual trading. If you want to know what exactly the bot is doing while you’re not there, figure out which type of bot you’re dealing with.

Algorithmic Trading Bots

Algorithmic crypto trading bots are code-driven programs, the main components of which are a combination of mathematical models, complex formulas, and human oversight. Since they use technical indicators, they are also sometimes called technical trading bots.

Algo trading runs on rules that generate and execute buy and sell signals. They account for variables such as price, time, and volume. And if all of these conditions are met, the bot will be set in action. The decision to buy or sell assets is not the only functionality - but we’ll talk about that later.

Overall, algorithmic crypto trading bots are the conservative trader’s best friend and the most widely-used type on the market.

Arbitrage Bots

Not surprisingly, arbitrage crypto trading bots are based on the arbitrage strategy (which we also cover in the later sections). But briefly, it’s the simultaneous purchase and sale of an asset to profit from a price difference.

If you choose this bot type, here is how the process will go. You’ll have a base currency and choose one or several crypto assets that are prone to offer arbitrage opportunities among certain exchanges. Then, you’ll need to connect your exchange accounts and determine how long your positions should stay open on the exchanges configured. The bot will look for such opportunities and place simultaneous orders.

Market-Making Bots

Market-making is a High-Frequency Trading business. This crypto trading bot provides liquidity by filling up the order book with buy and sell orders and charges a spread. Thus, other market participants can execute their orders at any time. Many market-making bots are affiliated with their trading project to support the efficient exchange of assets.

For example, for an asset trading at around $1, the bot places a buy order for $0.99 and a sell order for $1.01. When both orders get filled by other traders, it generates a profit of $0.02.

Profile Automation Bots

This is a more unique type of bots that doesn’t focus on specific transactions. Instead, profile or portfolio crypto trading bots create, obtain, and maintain the portfolio with their preferred diversification level. This is less about active trading and more about automating the tedious process of managing a portfolio of assets.

How to Choose the Best Crypto Trading Bot - Tips and Basic Criteria

While crypto trading bots can be different, there are certain points that are important for all bots available in the market today. We used the following criteria in our own research as well:

  • Reputation: What does the wider crypto community think of this bot? Good bots have good reviews, and there is no other way of looking at it. Search far and wide - user reviews, dedicated review articles, forums, etc. to verify the service has a reputable track record.
  • Reliability: Can the bot work 24/7 without glitches? If the answer is no, you could be missing out on profitable opportunities or, even worse, actively losing money. A reliable bot capable of having well-executed strategies without going offline or experiencing lags. A long trail of contented clients should help you figure that information out.
  • Security: Crypto trading bots can get targeted by hackers, which is, unfortunately, common for the entire industry. You need to be sure that developers have done everything in their power to ensure security. Look at authentication methods, two-factor authentication, API key encryption mechanism, and privacy policies related to trading data.
  • Ease of use: The main purpose of using a bot is to make trading easier. Ideally, it should cater to traders of different levels of expertise. For beginners, there should be premade setups. For the more advanced users, there should be more customization options that are still easy to navigate.
  • Prices: Some bots are available for free - no complaints. However, if you want superior features and a higher level of service, you’ll probably have to go for a paid one. At the same time, you don’t want it to be overpriced. After all, you want to make a profit and not break a bank for a piece of code.
  • Support and tutorials: Some traders have no idea of how to use a crypto trading bot. It doesn’t mean that they should give up. Instead, they should be able to find articles, training modules, videos, and other types of educational content to get started.
  • Customer support: If the bot doesn’t run smoothly, customer support should be easy-to-reach and fast. Also, find out how long it takes for the service to fix bugs and roll out updates.

Our List of the Best Crypto Trading Bots

Now is the part you’re probably most interested in - what are the best crypto trading bots out there? Below are 10 great solutions that stand out based on functionality, price, convenience, and other factors.

3Commas

3Commas is a smart trading terminal enchanted with the crypto trading bot feature. It offers numerous bots that you can filter out based on the bot type, profit per day, days running, deal start condition, and exchange.

3Commas interface

Crypto trading bot types

Simple, Composite, Short, Composite short

Exchange support

21 exchanges (Binance, Bitfinex, Bittrex, CEX.IO, Huobi, Poloniex)

Ideal for

Beginners, advanced traders

Demo/backtesting

Yes

Manual trading

Yes

Customer support

Website contact page: https://3commas.io/about/contacts

Email: [email protected], [email protected]

Twitter: @3commas_io

 Reddit: r/3commasCommunity

Education

Trading school, paper trading, and an active learning community

Features:

  • Different types of bots for different traders: For example, there is a simple bot that runs one trading pair and a composite bot for multiple pairs trading.
  • Advance order types: Users can set up advanced order types even in exchanges that currently don’t support them. All that’s required is to link the exchange to the 3Commas profile.
  • Trader’s diary: It automatically saves all executed trades and collects statistics. Then, you can scroll through the pages of trades or export them and use filters for a specific exchange, pair, or date.
  • Signals marketplace: You can search for trading signals from Cartelsignals and Crypto Quality Signals Premium, and other providers.

The onboarding process may be overwhelming. But once you learn all the controls, the customization options are straightforward. Plus, you can choose between different types of crypto trading bots based on your skill level.

All data is protected through physical measures, such as secure areas, technical measures, such as encryption and secure servers, and organizational and administrative measures. In case of a breach, the service will implement its Incident and Breach Response Plan. Also, 3Commas encourages users to enable 2FA and install the authentication app.

3Commas prices

3Commas has been described as the service disrupting the crypto sphere. Needless to say, it has an outstanding track record. That said, we have to point out that there are some negative reviews, especially on TrustPilot and Reddit. These reviews are hard to verify but still important to consider.

Pros

Cons

  • Affordable considering advanced features
  • Offers an affiliate program
  • Comprehensive education and learning tools
  • Some features are too complex for new traders

Trade Santa

TradeSanta is a cloud-based software where you can customize and deploy a crypto trading bot in two minutes. As long as you remember to set stop-loss and take-profit orders, it can be a source of consistent profits from market fluctuations.

Trade Santa interface

Crypto trading bot types

12 bots (Grid, Leveraged Grid, Margin Grid, Infinity Grid, Reverse Grid, Leveraged Reverse Grid, Dollar-Cost Averaging, TWAP, Trailing Take Profit, and Spot-Futures Arbitrage)

Exchange support

7 exchanges (Okex, Huobi, Upbit, HitBTC) and Bitmex coming soon

Ideal for

Beginners

Demo/backtesting

Yes

Manual trading

No

Customer support

Email: [email protected]

Official Telegram chat available through the website

Education

Video tutorials, guides, documentation, bot templates

Features:

  • Bot templates: Members a trading bot in just 5 minutes using pre-set templates or build and customize strategy from scratch. Here are the types currently available: long bot templates, short bot templates, custom templates.
  • Extra orders: TradeSanta can add to the position. In other words, the added size of the position can potentially make a smaller move yield a bigger profit.
  • Real-time tracking: If you’re not ready to let the bot go solo (which you shouldn’t do anyway), the bot’s progress can be tracked from anywhere with transparent analytics and Telegram notifications.

The features, settings, and strategies are nicely packed within its design and UI. The dashboard has a user-friendly layout that should take a long time to get familiar with.

Trade Santa only works with exchanges with high-security standards. Also, API keys only allow the bot to trade, which means they can’t access your funds or withdraw them. The website undergoes regular security audits. And lastly, there is an entire section listing security tips.

Trade Santa prices

In terms of reputation, we found no issues. There are dozens of dedicated articles giving this crypto trading bot five stars, and regular traders seem to like it as well. The only thing is that reviewers aren’t satisfied with the quality of support.

Pros

Cons

  • Simple and straightforward
  • Supports a fair range of programmable parameters
  • Active Telegram community
  • Poor customer support

Pionex

Pionex is a cryptocurrency exchange - the first one that brought GRID crypto trading bot to their platform. There is no need to connect to other services or exchanges - you can track your strategy statistics, create all types of bots, even from the mobile application.

Pionex interface

Crypto trading bot types

12 bots of the following types: Grid, DCA, Arbitrage

Exchange support

Built-in exchange

Ideal for

Traders of different levels but not complete beginners

Demo/backtesting

Yes

Manual trading

Yes

Customer support

Support center on the website

Customer service email: [email protected]

Telegram group: @pionexen

 Live chat

Education

No general educational section

Features:

  • A number of unique or rare functions: The crypto trading bot boasts Trigger Price, Stop Loss Price, Close Bot At, AI backtesting feature, Grid Spacing - Arithmetic/Geometric, Release Profit, Orders Displayed on the Chart.
  • Lists of ranked free bots: Users can cast their votes for the best trading bots on Facebook, which shows a community-driven approach of the service.
  • Liquidity aggregated engine: Pionex is the first exchange that aggregates the liquidity from Binance and Huobi Global (50~60% of the orders) to reduce slippage.

Since Pionex is not only an automated trading service but also an exchange, the in-browser interface is more complex than some other platforms featured in this article. It’s nothing to be intimidated about - just know that there are more features to discover.

Pionex was the first service with in-built trading bots to get the U.S. MSB (Money Services Business) license by the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). All clients can have a peace of mind knowing there’s an oversight. Since the exchange was established, it has been operating safely, with no hacks or exploits. Even giants like Binance can’t say the same.

Pionex has no monthly subscription fee. You just need to pay regular trading fees that are some of the lowest when compared to other exchanges, only 0.05%

Pionex prices

The Pionex app is highly rated by users, with the iOS version rated 4.8 stars out of 5, while the Android version is rated 4.7 out of 5 stars.

Pros

Cons

  • No monthly fee for the bot
  • Well-regulated and reputable
  • Innovative liquidity engine
  • Few out-of-sample strategies
  • No support for custom trading strategies

Cryptohopper

Cryptohopper is a data-driven, technologically advanced crypto trading bot. It specializes in different types of bots, including market-making bots that recognize market trends and configure different trading strategies per market trend. In other words, you don’t need to go through the hassle of adjusting strategies.

Cryptohopper interface

Crypto trading bot types

3 categories: Trading Bot, Market Maker, Arbitrage

Exchange support

13 exchanges, including 4 official partners - HitBTC, OKEx, Bitpanda Pro, Bitvavo

Ideal for

Advanced traders

Demo/backtesting

Yes

Manual trading

No

Customer support

Email: [email protected]

Phone number: +31858769694

Internal chat

 Discord, Youtube, Reddit

Education

Cryptohopper Academy, tutorials, Facebook learning community

Features:

  • Strategy designer: Create your own technical analysis with indicators and candle patterns, such as RSI, EMA, Bollinger Bands, MACD, Parabolic Sar, etc.
  • Mirror trading: This enables you to fully copy an expert by subscribing to signalers who send out trading signals.
  • Comprehensive marketplace for multiple products: You can subscribe to trading signals, discuss trading strategies on the internal chat, and, of course, buy strategies and crypto trading bot templates from the marketplace.

Cryptohopper specializes in offering more advanced charting tools and trading options. So, inexperienced traders may not find their way around the platform and the crypto trading bot as easily.

Cryptohopper doesn’t give exchanges permission to withdraw funds. This means even in case of a hack, users’ crypto assets can’t be moved. The website is protected by Cloudflare, and any saved passwords and API keys are encrypted in the database.

Cryptohopper prices

When you combine Cryptohopper bot’s overall popularity and reputation, it’s easy to see it as a trustworthy service. Unfortunately, it was recently flooded with bad reviews on TrustPilot. But based on their repetitiveness, it seems to be an orchestrated move by third parties.

Pros

Cons

  • Tried and tested - over 60 million trades opened
  • Good signal marketplace
  • Lots of features and customization options
  • Users have to pay extra for signals

Bitsgap

Among other useful functionalities, Bitsgap offers a crypto trading bot with ready-made strategies based on successful backtest results. It works just as you would expect - when the price moves, the algorithm automatically sets Buy and Sell orders.
Bitsgap interface

Crypto trading bot types

Multiple GRID trading bots

Exchange support

28 exchanges (FTX, Bitfinex, Huobi, Coinbase Pro, Bittrex, HitBTC)

Ideal for

Medium-level to advanced

Demo/backtesting

Yes

Manual trading

Yes

Customer support

Help Center

Live chat

 Telegram chat: @bitsgap

Education

Educational hub

Features:

  • Smart strategy design: Users can create their bot trading strategy with just a few clicks with the help of tutorials in the educational hub.
  • Ready-to-go strategies: For those who don’t want to make their own, there are pre-configured strategies based on successful backtest results.
  • Different types of orders: Traders can choose any of the following orders (or several at the same time): Stop-Loss, Take-Profit, Shadow, and Market Orders.
  • Performance assessment: Assess your crypto trading bot’s performance with the TradngView charts. Evaluations can be conducted at any time and automatically sent to you for review.

Self-admittedly, Bitsgap tries to simplify their trading tools to make them easy to use for anyone. Judging from the interface, we can’t say that it’s suitable for complete beginners. The dashboard is a bit more technical - but nothing too overwhelming.

The majority of banks worldwide use 1024-bit encryption, while Bitsgap uses RSA 2048 encryption. There are also measures like protection from failed login attempts, 2FA authorization, internal security audit, and resisted access for employees.
Bitsgap prices

The number of users on Bitsgap is still modest as compared to platforms that provide similar services. Still, the majority of reviews we found online are positive, praising it for consistent profits and excellent customer support.

Pros

Cons

  • Extensive portfolio history and management controls
  • Free package for small budget accounts
  • Relevant skill-level market and trading insights
  • Limited crypto trading bot functionalities
  • No mobile app

Shrimpy

Shrimpy simplifies portfolio management through its social trading crypto trading bot. Users can simply browse the leaderboard and choose the portfolio they find the most desirable and diversified. Anyone can become a social trader and receive payments for every followed trade.
Shrimpy interface

Crypto trading bot types

Algorithmic, Portfolio

Exchange support

14 exchanges (Binance, Kraken, Bittrex,

 Poloniex, Gemini, BiBox)

Ideal for

Beginners

Demo/backtesting

Yes

Manual trading

Yes

Customer support

Email: [email protected]

Phone number: 628-400-1753

Help Center for Portfolio Management and Developers

Chat support window

Education

Guides, blog posts, communities on YouTube, Twitter, and Reddit

Features:

  • Portfolio rebalancing: This feature takes advantage of the cyclical nature of the market by putting selling high and buying low on auto-pilot.
  • Social aspect of trading: Users can view the most popular allocations on the platform, follow industry leaders, and develop their own strategy by working with the community.
  • Automation of multiple portfolios: Each portfolio is treated completely separately. One can be automated at the same time as the other or not at all. Besides, three different portfolios follow three different leaders.

By laying out the features in such an accessible way, Shrimpy makes it easy for complete beginners to pick up this crypto trading bot. There are only a few tabs and a clean, minimal interface. Some traders may find that the dashboard lacks details, but it depends on how involved you want to be.

Now, let’s talk security. Every API key is encrypted and stored using FIPS 140-2 validated hardware security modules. All website data is transmitted over encrypted Transport Layer Security. In order to further improve the security, Shrimpy also offers the ability to input assets through Cold Storage.
Shrimpy prices

Shrimpy’s crypto trading bot is a perfect introduction for new-day traders. Experienced day traders would find it quite different from conventional tools but may still enjoy it. The reputation is solid, with criticism only mentioning the limited technical aspect.

Pros

Cons

  • Best suited for investors
  • Intuitive interface
  • Automated portfolio rebalancing
  • No trading bot scripting support

HaasOnline

HaasOnline is advertised as the world’s most advanced crypto trading bot. It allows users to develop, backtest, and deploy high-frequency crypto trade bots and connect them to dozens of exchanges. The three main products are HaasScript, HaasOnline CLoud, and HaasOnline Trade Server.

HaasOnline interface

Crypto trading bot types

Trade bots, Arbitrage bots, and Order bots

Exchange support

18 exchanges (Bitmex, Deribit, Ionomy, Coinbase, Bitpanda)

Ideal for

Advanced traders

Demo/backtesting

Yes

Manual trading

No

Customer support

‘Contact Us’ window on the website

Education

Documentation, tutorials & guides, Discord community

Features:

  • Pre-built crypto trading bots: Inside this functionality, users have access to accumulation bots, Intelli Alice machine learning tech, trendline charts, a unique Mad Hatter bot, email alerts, and a lot more.
  • HaasScript: You can either use the drag-and-drop visual designer to generate scripts without coding or the intelligent text-based editor to craft the scripts line-by-line.
  • Cloud management: The team at HaasOnline manages its secure, high-speed, global infrastructure without requiring your involvement.

If you were looking for something more complex than Shrimpy’s sleek interface, HaasOnline might be just right. The built-in trading crypto trading bot has a slight learning curve. But the layout is easy to navigate since each feature is separated by a special tab.

HaasOnline doesn’t support deposits or withdrawals from the HTS platform to eliminate the possibility of a malicious person using a compromised trade server. They also highly recommend that users enable 2FA as an additional security measure.
HaasOnline prices

The project is one of the more transparent on the market and has provided a clear outline of how it operates. This instills confidence in prospective users.

Pros

Cons

  • Capable of complex trading strategies
  • One of the best-performing bots
  • Great company reputation
  • High technical barrier
  • Premium pricing

Zenbot

Zenbot is a command-line crypto trading bot using Node.js and MongoDB. It connects to your chosen exchange while you dictate its actions through online natural language and chatbox hosts. One important distinction is that it’s an open-source system.

Zenbot interface

Crypto trading bot types

Trade bots, Arbitrage bots, and Order bots

Exchange support

11 exchanges (Bitstamp, Bittrex, CEX.IO, GDAX, Gemini, Poloniex, The Rock Trading)

Ideal for

Traders with some coding knowledge

Demo/backtesting

Yes

Manual trading

No

Customer support

No traditional customer support

Education

Community of real users and contributors to the project

Features:

  • Customizable parameters: The crypto trading bot has a flexible sampling period and trade frequency - averages 1-2 trades/day with the 1h period, 15-50/day with the 5m period.
  • Plugin architecture: Enables implementing new strategies, integrating exchanges, and communicating with third-party services.
  • Extensive documentation on GitHub: The docs folder features 18 branches of documentation and 58 tags.

Zenbot is an advanced platform, which is probably the right option for investors with experience and has been on the playing field for a long time. Complete beginners may find the command-line interface too difficult.

The topic of security also takes teamwork. Anyone can suggest a security policy or report a vulnerability.

There is no one in charge, yet it’s still well-maintained, at least to an adequate degree. For this, it’s considered a reputable tool among developers. But there is limited feedback since it cuts out a huge portion of traders that weren’t willing to dive into the code to write their own strategies.

Pros

Cons

  • Completely free
  • Powerful pattern matching mechanism
  • Easy for users to modify the code
  • Requires prior experience
  • Not updated often

Zignaly

Zignaly is a copy crypto trading bot, which means you can copy expert traders under the profit-sharing model. Aside from copy trading, the bot can work based on your own (or recommended) settings and rules and is fed signals from 46 providers.

Zignaly interface

Crypto trading bot types

Social trading bot

Exchange support

Binance, KuCoin

Ideal for

Beginners, average traders

Demo/backtesting

Yes

Manual trading

Yes

Customer support

Email: [email protected]

 Live chat

Education

Education ecosystem, documentation, Discord group

Features:

  • 100% delegated and performance-based crypto trading bot: You can Connect Zignaly with your preferred signals providers and accept multi-targets.
  • Copy trading: This feature ensures a high watermark as a fair win-win model and 100% same results as the trader (one single position).
  • Profit sharing: Users can grow their portfolio by investing in the same trades as their chosen trader and only pay fees for successful positions.

The elements of the navigation terminal won’t take much time for newbies to get familiar with. It offers a good toolset, although with some limitations. The main thing is that it offers everything you need to get started.

The funds in the Zignaly Exchange go directly to Binance, and it is under Binance security. And this is where you don’t need to worry at all. Binance meets the internationally recognized ISO/IEC 27001 standard, and they also keep an insurance fund for emergencies, known as SAFU.

Zignaly doesn’t have monthly subscriptions to use the crypto trading bot. The free account will get you unlimited exchange accounts, coin pairs, positions, and priority support.

Pros

Cons

  • Free to use
  • Lots of signal providers
  • Easy to use for people new to trading bots
  • Limited number of exchanges available
  • Not as polished as some of its competitors

Trality

Trality is a platform offering creator tools to build your own crypto trading bot. It targets those who want to make the most of their quantitative skills and code sophisticated trading algorithms. But there are also more relaxed tools if you’re eager to try out something new and simply test out a trading idea.

Trality interface

Crypto trading bot types

Algorithmic bot, no-code bots

Exchange support

Binance, Kraken, Coinbase, Bitpanda

Ideal for

Advanced traders, “Python gurus”

Demo/backtesting

Yes

Manual trading

No

Customer support

Twitter: @trality_bots

Education

Documentation, blog

Features:

  • Code Editor: Set up a trading bot with several built-in functions and data science libraries like NumPy and Pandas.
  • Blazing-fast backtesting: Backtest directly in the browser on individual timeframes or automated scenario tests.
  • Cloud-based live-trading: Direct and reliable access to tickers, order books, and more 24/7.
  • Marketplace of bots: Users can either publish a bot to the Trality Bot Marketplace or follow bots by Creators.

To secure our website and optimize loading times, Trality uses the Cloudflare CDN. And the host providers are Amazon Web Services and Google Cloud Services that are known for robust global infrastructure. All other details are available in the Privacy Policy.

Traders will need to know Python to code their algorithms, which is why we can’t say Trality is an easy-to-use crypto trading bot. But if you do have some coding knowledge, you should find the Code Builder nicely structured.

Trality prices

Interestingly, there aren’t many reviews on Trality. But the complete transparency about the team behind this project makes up for it. They come from a range of backgrounds, which you can read about on their website.

Pros

Cons

  • Run by a team of experts
  • Different ways to create a trading bot
  • Fast crypto trading bot creation
  • Limited methods of communication
  • Not an established brand

Best Crypto Trading Bots Strategies

When it comes to strategies, there are endless opportunities for experimentation. Below are a few that you can try with crypto trading bots. But please remember not to dive headfirst into a new strategy - start slow and work your way up.

Mean Reversion

Prices move back and forth following a broader trend. While doing so, they often revolve around a mean. A mean reversion strategy is based on a phenomenon that prices may shift away from their average but will eventually revert back. Statistically, extreme fluctuation is likely to be followed by a less extreme event.

When the mean reversion strategy is hardcoded into a crypto trading bot, it will sell the asset in bulk when the price goes up. When it falls back, it will accumulate the asset again.

Arbitrage

We’ve already talked about the fact that arbitrage crypto trading bots take advantage of the price differences of exchanges. This happens due to geography, time, and regulations. So, the bot spots these market inefficiencies and places trades on multiple exchanges at the same time. Potential profits aren’t huge, but they add up over time.

Consider a use-case example of an Arbitrage bot. one exchange has listed asset X for $1.00 and another exchange - for $1.03. The bot will buy X on the first exchange and then sell on the second.

Arbitrage is a relatively low-risk strategy. It just requires speedy buys and sells, even simultaneous - the perfect task for a bot.

Momentum Trading

Momentum trading is also called the trend-trading system. The basic premise is that the price will increase over time until it eventually runs out of momentum and drops. Imagine market volatility as a series of waves. Momentum strategy involves holding short-term positions and selling at the peak of the wave before it crashes.

In momentum trading, timing is also essential. Sometimes, these momentum switches happen when you’re not behind the computer. Crypto trading bots monitor the market and take care of the buy-in and sell-off for you.

Natural Language Processing (NLP)

Prices of cryptocurrencies tend to fluctuate depending on news articles, statements, and other types of content online. Crypto trading bots running on NLP programming try to respond to these changing sentiments. They interpret the content and enter the market at advantageous times and leave when the sentiment gets negative.

Copy Trading

Copy trading bots follow one trader's positions and place the same orders as them. Not every trader’s action and portfolio are mimicked, though. This strategy incorporates a social community and gamification elements, such as a leaderboard. So, only prominent traders are involved in these strategies, and they usually receive some sort of incentive for sharing their trading activities.

Final Thoughts

Hopefully, this guide narrows down all the countless choices of crypto trading bots. As you can see, we’ve created a selection for all budgets and skill levels. But! Even upstanding services aren’t safe from trading risks. That goes for all bots, exchanges, wallets, coins you invest in or trade, etc.

When choosing crypto trading bots, use backtesting and live testing. The first one will show you the bot’s performance using historical price data. The second one will run your strategies on the live market without actually investing.

Lastly, bear in mind that different coins behave differently, so what works for Bitcoin may not work for Ethereum. BTC tends to be the steadiest coin and may respond well to strategies that altcoins will not. Choose your strategies as diligently as you choose bots.

FAQ

Find out more or solidify the knowledge you already have with these questions.

Are Crypto Trading Bots Profitable?

The truth is not every crypto trading bot is profitable, and even with good ones, not every transaction it carries out will be profitable. But if you choose the right bot and configure it to your preferred trading strategy, it’s very likely to perform more efficiently than a human would.

Do Trading Bots Really Work?

It ultimately depends on the person running it. Bots place orders automatically and use trading opportunities based on the pre-defined settings. If the strategy behind the bot is strong and you don’t intervene, it can work, and it can work very well. Another important variable is the market dynamics - sometimes, even the best crypto trading bots can’t outperform certain market moves.

Are Crypto Trading Bots Legal?

Yes, automated trading is not banned by any government or any crypto exchange. The only thing you need to look up first is whether your chosen broker allows trading bots. But overall, any action that a bot performs on behalf of a trader isn’t seen any differently.

How Much Money Can a Trading Bot Make?

There is no limit, actually. Your potential rewards depend on how risky the strategy is. You can calculate the risk/reward ratio with the formula: R = (Target Price – Entry Price) / (Entry Price – Stop Loss). A ratio of 1:1.5 is good - you shouldn’t go lower than 1:1.

What Are the Best Crypto Trading Bots?

The best crypto trading bots are described above: 3Commas, Trade Santa, Pionex, Cryptohopper, and six more. But the best trading bot is the one that you’ll be able to use comfortably. Don’t use bots that don’t suit you or the ones you don’t understand.

Jack Evans


I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments.
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