Crypto trading bots can be defined as automated software designed to help you buy and sell cryptocurrencies. They help the user by facilitating the correct trade at the right time. This helps in increasing revenue and reducing losses and risks. These crypto bots can perform various tasks. This includes managing portfolios, simplifying complications, rebalancing, and many more. They allow you to trade in various cryptocurrencies like Bitcoin (BTC), Ethereum, and Litecoin.
The best crypto trading bots come with multifarious advantages. Although crypto markets are open 24/7, we, of course, cannot stay glued to the screen the whole time finding the best deals. This is where these bots come in. The concept helps in saving time for traders as they can execute for the best positions available in the market that are both efficient and goal-driven. They consequently help one is earning a good passive income. Further, they are devoid of emotions. Therefore any psychological issue won’t affect their ability to trade in the market, increasing performance. The best crypto trading bots have several functionalities, depending upon certain strategies they use. Some of them are:
- Arbitrage: This involves simultaneous buying and selling coins from one exchange to another. This allows for faster and safer profits.
- Market Making: It helps you in preventing large price swings in the market. It can also set buy and sell limit orders near the current market price.
- Momentum Trading: It is ideal for traders who wish to ride the positive momentum wave with the assets and sell them later when the momentum reverses. The idea is that the cost of the asset goes above average and then falls as it starts losing momentum.
- Mean Reversion: Under this, the crypto trading bot uses the strategy built on the assumption in case the price of the coin varies with the average, it can revert to that.
- Copy-trading: This involves the trend whereby one is enabled to automatically copy the trade tactics of other experienced traders. The elements are gamified with a leaderboard and a social community of the traders.
Selecting the top crypto trading bot can be difficult. Although one can look for certain factors like the credibility of the bot, the strategic performance, back-end support, performance under volatile situations, cost of the bot, and the ease of use.
We have compiled a list of the 10 top crypto trading bots you can look up to.
- Stacked: Creating an account on Stacked is absolutely free. Stacked makes it easy for you to connect the strategies of multiple crypto bots in the market to your account to automate your trades. You can click on each bot and see the historical trend and performance of the bots. Further, each bot has built-in risk management which also allows you to manually configure risk parameters like a stop-loss, as per your needs. It is supported on exchanges like Bybit, FTX, Binance, Bitmex, etc.
- Cryptohopper: This free crypto trading bot helps in managing all crypto exchange accounts from a single place. Exchanges like Binance, Bitfinex, Coinbase Pro, HitBTC, Kraken, Huobi, and many others allow the Cryptohopper bot to function on their platform. This bot is not just free, but will also keep your data private along with having a user-friendly interface. The user gets strategies and bot templates easily, and they can create their technical analysis. Real-time performance reports are available on both iOS and Android supported apps. EMA, BB, RSI, and similar other common indicators are supported through its algorithms.
- Token Sets: Token Sets differ from the status quo, although they are trading bots by definition. They differ from traditional bots given they are more focused on preserving decentralization, rather than being active on software like other bots. They come with built-in asset management strategies while each ‘set’ is like a smart basket of token of ERC-20 crypto assets which, based on the strategy used, balances itself. There are two types of these ‘sets’: Robo and Social Trading. Robo is the automated version following general technical rules and strategies while the Social Trading sets follow the directions of prominent fund managers and traders in the crypto market space.
- Pionex: Pionex is one of the few crypto trading options which provides 12 free bots to trade for retail investors. It functions on exchanges like Binance, Huobi Global, and Pionex for free, and is one of the biggest brokers of Binance. The trading fee of 0.05% is the lowest among most other major exchanges. It is approved by US FinCEN’s MSB (Money Service Business) License. The smart trade terminal allows the traders in one trade to set up the stop-loss, trail, and take profit.
- RoFx: Founded in 2009, RoFx has been known to provide solid services to its customers via its automated trading software. Risks are zero while investing alongside EA because the company is responsible for covering all the losses. It comes with multiple packages through which you have the opportunity to get more than 100% ROI in a year or nearly 10% a month on the initial investment made. It learns as it trades due to its artificial neural network.
- 3Commas: Looking to get maximum profit with minimal effort? 3Commas may be the answer to your question. With 20+ trading indicators, there’s plenty of room to create your trading strategy in the market. In case you use more than one bot, you copy similar settings from the other bots. By maintaining coin ratios, it allows you to balance your portfolio. It has an iOS and Android application and sends you notification of a deal via email, browser window, and the app itself. With acceptance over several exchanges like Binance DEX, Bitfinex, BitMEX, Coinbase Pro, Gate.io, KuCoin it supports Dollar Cost Averaging, Signals, Custom TradingViewSignal, Backtesting, etc. it starts as low as $14.50.
- Shrimpy: Shrimpy is a free cryptocurrency social trading platform that has been handling more than 120,000 executions per day with a total volume of US$1 billion. You can build your portfolio strategy, track your performance and also monitor the market from the tool. The dashboard offers statistics about each available asset and the performance metrics of the portfolio. The API Key is secured via encryption and stored using FIPS (Federal Information Processing Standards) 140-2. It can be used on exchanges including Coinbase, OKEx Liquid, Gemini, and Kraken.
- Trality: This is a platform for users who wish to gain profits without giving up their day jobs via algorithmic crypto trading. This free platform offers some state-of-art tools to create super-creative and highly intricate algorithms within this community-driven, educational infrastructure promoting learning and development for the trader. It is permitted to function on exchanges such as Binance, Kraken, Bitpanda, and Coinbase Pro. The strategies within the Trality platform are predefined and well-curated which run reliably for 24/7 trading. This blazing fast backtesting module follows live trade based on cloud computing technologies. For beginners, the graphical interface is in the form of drag and drop, while advanced users who know Python have the facility of an in-browser Python code editor.
- Coinrule: Coinrule enables you to trade among 150 different trading strategies without writing a single line of code. Exchanges like Binance, Kraken, Poloniex, Liquid, and Coinbase Pro allow Coinrule on their platforms to trade. It is a free platform that allows you to trade 24/7 while it offers real-time customer service. The encryption is military-grade, keeping your privacy and funds safe. The market indicator helps you in allocating your funds with ease while you set custom rules for trading. One can also test rule performance based on past data.
The best crypto trading bots enable you to get efficient, speedy, and time-managed trade. But like everything, the concept does have some cons. Crypto bots are not suitable for inexperienced traders and can require extensive monitoring, while having some security concerns. Therefore one must always take care before using them. Do not allow your bot to withdraw any money and limit the IP address from where the bot can function. Try monitoring your crypto trading whenever possible and ensure you are dealing with trusted and secure bots functioning on reputed exchanges.
Do check out our other curated lists as well.
ItsBlockchain | Cryptocurrency Trading and Investment Blog is India’s oldest and first publication platform for blockchain and cryptocurrency. They are the one-stop destination for crypto recommendations, tips, technical analysis, and blockchain-based technology resources.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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