Best Crypto Trading Bots in April 2024

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Contributor, Benzinga
April 11, 2024

Take your crypto trading to the next level with the help of these highly efficient and reliable crypto trading bots.

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The crypto market is more competitive than ever, with new digital currencies constantly being introduced and existing ones experiencing fluctuations in value on a daily basis. This makes staying on top of the market and making informed trading decisions a time-consuming task. That is why many investors are turning to crypto trading bots. Bots are solving some of the biggest issues with crypto trading, including the emotional element and time-consuming process of opening and closing trades. Crypto trading bots can entirely automate the trading process and find strategies with the most winning trades.

Benzinga’s guide for beginners will help you learn more about crypto trading bots and introduce you to a few of the best that are currently available. 

Quick Look: Best Crypto Trading Bots

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What Is a Crypto Trading Bot?

A crypto trading bot is a computer program that buys and sells cryptocurrency based on a predefined set of parameters. This allows you to take a trading strategy you like and automate the time-consuming act of actually opening and closing the trades manually. 

Most bots allow customization options so you can tailor the trades to your specific investment goals and risk tolerance. Some of the major customization options include stop-loss levels, take-profit levels, maximum amount to invest per trade and which indicators to consider when opening and closing trades. 

How Do Crypto Trading Bots Work?

You give access to the bots to trade your funds. This is usually done through an account on a platform that supports bots or has some of its own. This allows the bot to buy and sell tokens for you based on the specific strategy you want to employ. 

For example, if you open an account with 3Commas, you can fund the account and allow a bot to trade for you. Say you want to trade a strategy that buys a token when the relative strength index (RSI) is below 30, meaning that it is potentially oversold. Once the RSI goes below 30, the bot will automatically place a buy order for a specified amount of your portfolio, such as 1% of your portfolio. Once the exit parameter is met — the stop-loss or take-profit level — the bot will automatically close the trade. 

7 Best Crypto Trading Bots

Before getting started with a cryptocurrency trading bot, figure out which crypto trading bots are best for you. There are plenty of options currently on the market, so you can find a trading bot that fits your needs best.

1. Best for All Skill Levels: 3Commas

3Commas is a crypto trading platform that offers tools for both beginners and experts to become profitable traders. It offers educational resources, a dashboard to track exchanges and a library of bots and algorithms. 3Commas allows you to connect several exchanges, such as Coinbase and Kraken, to its application programming interface (API), which allows you to view your portfolio and have access to trading bots. This makes it easy for beginners to set up and begin trading. Additionally, it has nearly 3,000 bots to choose from. The platform has affordable plans and an intuitively-designed interface for setting and adjusting trading parameters.

Pros

  • Connects to some of the most popular brokers
  • Thousands of bots to choose from
  • Simple interface

Con

  • Somewhat high fees for more advanced traders

2. Best for Advanced Technical Analysis: Learn2Trade

Learn2Trade is a valuable platform for anyone looking to learn how to trade cryptocurrencies. With its educational resources, trading signals and community support, Learn2Trade can help you navigate the complexities of the crypto market and start making profitable trades. Additionally, Learn2Trade takes into account all market conditions for its advanced crypto trading bot. Using technical analysis and live market sentiment analysis, the algorithm looks for the most profitable trades throughout the day. It also offers signals, copy trading and a variety of other asset classes.

Pros

  • Lots of trading features
  • Daily tips and tricks
  • 79% success rate for the algorithm

Con

  • Tedious process to open an account

3. Best for High-Volume Investors: Pionex

Pionex is a cryptocurrency exchange with built-in trading bots. It is one of the most powerful crypto platforms available, offering over 15 unique trading bots. These bots allow you to automate your investing strategy so you don’t need to constantly monitor the market. The bots also allow for lots of customization and have low fees for each trade. In addition to trading bots, Pionex also offers a wide range of cryptocurrencies for users to trade, including popular options like Bitcoin, Ethereum, and Litecoin, as well as lesser-known altcoins. The platform also supports a variety of trading pairs, allowing users to easily exchange between different cryptocurrencies.

Pros

  • Low fees on all trades
  • Unique bots to fit different investment objectives
  • Strong mobile app

Con

  • Bots can be confusing for beginners

4. Best for Businesses Wanting Exposure to Cryptocurrency: Iconomi

Iconmi is a crypto trading platform that offers accounts for both individuals and businesses. It is easy to set up an account, and there are tons of learning resources available on the site. The platform also offers a strong social aspect, allowing users to share strategies and get referral bonuses. With its diverse range of assets, expert-managed DAAs and emphasis on security, Iconomi is a great option for those looking to get started in the world of digital assets.

Pros

  • Offers business accounts
  • Ability to share information with other users
  • Clearly noted pricing on the site

Con

  • May not suit the investment style of all businesses

5. Best for Copy Trading Investors: Cryptohopper

Cryptohopper emphasizes technology with its platform. It uses cloud computing to allow its bots to run 24/7 and place trades when your device is offline. It also has a Social Trading Platform, which allows users to communicate via an internal chat, receive trading signals and trade bot templates. This can be a great way for novice traders to learn from more experienced traders and potentially improve their trading results.

Pros

  • 24/7 offline trading
  • Lots of ways to communicate with others

Con

  • The best bots can be expensive

6. Best for Low Cost: Coinrule

Coinrule is a cutting-edge platform that allows users to create automated trading strategies for cryptocurrencies. It places an emphasis on its free offerings. Users can backtest strategies, create bots and communicate with others for free. It also has paid plans with a low monthly fee and a small portion of the traded volume. Coinrule's user-friendly interface makes it accessible to both experienced traders and beginners. The platform provides a range of pre-set templates for those new to algorithmic trading, as well as advanced customization options for more seasoned traders.

Pros

  • Low monthly and trading fees
  • One-on-one trading sessions
  • Supports lots of the top brokers

Con

  • Marketplace bots can be low quality

7. Best for Derivatives: Phemex

Founded in 2019, Phemex offers a variety of trading options for users looking to buy, sell, or trade cryptocurrencies. Phemex has AI bots for trading futures contracts, which allow traders to gain leverage on their trades. It offers over 600,000 bots from nearly 200,000 bot traders. These bots can be sorted by several parameters to find the one that suits you best. All of the bots are free.

Pros

  • Up to 100 times leverage on trades
  • Lots of bots to choose from
  • Bots are free

Cons

  • Complex fee structure
  • Minimum withdraw amounts

Advantages of Using Crypto Trading Bots

  • Automated investing: Most traders understand how big of a role emotions play in investing. However, with trading bots, the emotional aspect is completely taken out of the picture and can lead to much better risk management. 
  • Increased efficiency: Trading can be very time-consuming, as it takes hours each day to comb through the markets and look for opportunities. However, the bots allow you to do other things and let the bot take care of the trading.
  • Diversification: Bots can use a variety of strategies and can oftentimes be customized to support different needs. This can help diversify your portfolio and spread out risk. 
  • More time on the market: Unlike the stock market and the bond market, the cryptocurrency market operates 24/7. Crypto trading bots provide you with additional hours of exposure without requiring you to be actively monitoring your positions.

Disadvantages of Using Crypto Trading Bots

  • Prior knowledge: Using bots requires prior knowledge of crypto trading to determine which bots will work best for you. The customization settings can also be very sensitive, which could be an issue for a beginner.
  • Constant monitoring: Because the crypto markets are extremely volatile, you have to continually monitor your bot to make sure that it is not losing money quickly. 
  • Lack of human judgment: While the elimination of human emotion can be a good thing, it also means that bots are unable to interpret the context of a trade, which can lead to poor trading decisions.

Bots for Both Beginners and Advanced Traders

Bots provide a unique opportunity for beginners to learn about markets through paper trading and backtesting, as well as a chance for advanced traders to make the most of their knowledge. This new technology is also continually improving, hoping to bring the most profitable bots to traders around the world. 

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Frequently Asked Questions

Q

Are crypto trading bots successful?

A

Different crypto trading bots can be successful based on the strategies they use.

 

Q

Are crypto trading bots free?

A

Some crypto trading bots are free but not all.

Q

What is the best AI crypto trading bot for beginners?

A

The best AI crypto trading bot for beginners would be one that is user-friendly, has a good track record of accuracy and profitability and offers features such as demo trading modes and customer support. Some popular options for beginners include 3Commas and Cryptohopper. As recommended by a Reddit user, “to find the best AI crypto trading bots, it’s important to research and compare various options.”

 

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About Caden Pok

Caden has been involved with cryptocurrency for several years, began trading and investing in crypto in 2018 and is highly experienced with DeFi technology. He took part in undergraduate research studying cryptoeconomics and is a member of Wolverine Blockchain, a group designed to educate students on cryptocurrencies and blockchain technology. Currently, he mines multiple coins and holds positions in Cardano and Ethereum.