Cryptocurrency traders use crypto trading bots to automate their investments and maximize their profits while trading. When used with other risk management tools, a crypto trading bot can help take some of the emotion out of your trading strategy, enabling you to place and execute trades based on data and trends. But what are the advantages and disadvantages of using these bots to enhance your trading — and are they really profitable?
Our guide for beginners will help you learn more about crypto trading bots and introduce you to a few of our favorite trading bots currently available.
What is a Crypto Bot?
A cryptocurrency trading bot is a computer program or application that you authorize to buy and sell crypto according to predefined specifications. Most crypto trading apps work in a straightforward manner — you authorize the bot to buy or sell an asset if and when it reaches a specific price point. Your bot then takes care of placing and executing your order so you don’t need to monitor your platform all day to see when price movements are reached.
You can customize your crypto bot to execute orders according to your unique trading strategy. For example, you might instruct your bot to sell a lot of coins at a price of $10 and buy them back if the price falls back to $9. Most cryptocurrency 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 your trading bot will vary depending on the provider you choose.
Best Crypto Bots Right Now
As the cryptocurrency market gains more attention, it’s now easier than ever to get started with a bot to help enhance your investment strategy. Let’s take a look at a few of our favorite crypto trading bots now.
Best for Beginner and Advanced Traders: Trality
Trality is a platform for anybody who wants to create highly intricate, super-creative algorithms within an educational, community-driven infrastructure that promotes learning and development as a trader.
Founded in Vienna in 2019, the platform has quickly become one of the most popular choices worldwide for both beginner and advanced crypto traders.
- For those who don’t know how to code advanced trading algorithms, they developed a state-of-the-art tool called Rule Builder – A graphical user interface that lets you build your trading bot’s logic by simply dragging and dropping indicators and strategies.
- For advanced users who know Python coding, Trality’s browser-based Code Editor is the most advanced of its kind. This tool allows developers to make use of their coding knowledge to create intricate and advanced strategies securely and fast.
Both of their tools allow you to perform lightning-quick backtests so you can validate your algorithms before deploying your new bot into a live market and you can paper trade to see how it is performing right now without using real money.
Trality is absolutely FREE to get started with flexible pricing plans for all sorts of users.
Best for Advanced Options: 3Commas
Investors experienced in the cryptocurrency market and looking for the widest possible range of advanced features should consider 3Commas. 3Commas provides investors with some of the most sophisticated settings and features we’ve seen from crypto bot providers. Some of the platform’s most unique features include:
- Same trade terminals: With the 3Commas Smart Trade terminal feature, you can simultaneously view currency exchange rates and your Trading View signals. This allows you to take profits while also protecting yourself and your investment with stop-loss signals.
- Options trading bot functionality: You can do much more than just buy and sell cryptocurrencies with 3Commas. The platform supports automated options trading and also includes an explainer course for new investors interested to learn more about the options market before they start investing.
- Connection with 23 exchanges: 3Commas offers connection with 23 major cryptocurrency exchanges on all of its paid accounts. In addition to trading, you can refine your investment strategy with 3Commas’ paper trading functionality.
3Commas can offer an excellent choice for intermediate and experienced investors. 3Commas begins at $14.50 per month and extends to $99 per month depending on your chosen billing frequency and your package plan.
Best for Consistent Connectivity: Cryptohopper
The cryptocurrency market is constantly moving — even short periods of down time can result in missed profits when you rely on a cryptocurrency trading bot. Cryptohopper is a 24/7 trading bot that hosts its services entirely using cloud storage.
This means that the bot experiences no downtime and updates are served without interrupting your trading or putting a halt on your account. Even when your network is offline, your Cryptohopper account will continue working.
Cryptohopper also offers an easy and intuitive setup process, with no credit card information required to join. Simply sign up for your account and get started investing — no platform installation required. The bot also integrates social sentiments with other investors, which can further enhance your trading and help you refine your strategy.
Best for Low-Cost Access: Pionex
If this is your first time trading crypto using a bot, you might wonder if want to commit to purchasing a month-long package. If you want to explore trading bot functionalities without making a commitment, consider opening an account with Pionix.
Pionix, the world’s first cryptocurrency exchange with a built-in trading bot, means you can directly buy and sell cryptocurrencies while also using 1 or more of the platform’s 12 native trading bots. You’ll pay just 0.05% in fees when using the platform. With a variety of bots to choose from and an easily programmable system, Pionix offers an excellent choice for investors who don’t know whether a trading bot is quite the right fit.
Best for Preset Strategies: Coinrule
When it comes to providing the widest range of preset trading strategies, it’s hard to beat Coinrule’s wide selection. The crypto trading bot currently allows users to customize investing with more than 150 trading templates automatically executed when market conditions meet predefined parameters. From accumulation to long-term holding strategies and stop-loss settings, Coinrule constantly introduces new templates to its platform.
Though the number of templates that you’ll have access to will vary depending on the plan you choose, Coinrule offers a free package with 7 complimentary template strategies and up to $3,000 in monthly trading volume. Additional paid packages include features like advanced charting options, unlimited template usage and even one-on-one trading tutorials and lessons.
Best Mobile Platform: CryptoHero
CryptoHero is a unique platform with a website and a beautiful user experience. However, their mobile app is even better. The app is easy to download and doesn’t overheat your phone, use too much memory or load slowly.
When you sign up for CryptoHero, you can choose the basic or paid platform before commencing with your trades.
The mobile app has a simple tutorial that helps you create your first bot and invest. The Deals tab is split between In Progress and Completed, and you can review your Dashboard to see your active orders, realized profits, W/L ratio and total number of trades. All your information is easy to access without digging through a confusing interface.
While the concept can be complex and building your own trading bots is a specialized experience, CryptoHero makes it easy for you to dive into the crypto market without much experience. Plus, you can take it with you in a mobile app instead of sitting at your computer for hours at a time. The app is also helpful if you travel or commute often, prefer to treat your cryptocurrency investments as a pastime or want to confine your investments to one device.
Best for Social Trading: Wunderbit.io
Bitcoin exchange Estonia-based Wunderbit offers licensed accredited and regulated cryptocurrency trading. The company allows its clients to buy and sell Bitcoin safely and securely at the best exchange rates.
Wunderbit allows social trading, which means you can register as a trader or investor. If you register as a trader, investors can commission you to manage their investments.
As an investor, you can follow 1 or more traders of your choice and copy their trading strategies for a commission, deducted from profitable trades only. You may want to tap into this option if you’ve never traded before.
Wunderbit’s fees and commissions differ depending on the type of transaction you execute.
Best for Non-Techy Types: Botsfolio
Botsfolio, a powerful crypto trading bot, lets you trade without coding or trading skills using 3 simple steps:
- Decide your investing goal. Answer few questions to know how to allocate investment in different cryptocurrency trading strategies.
- Connect your exchange. Add investment amount to your cryptocurrency trading exchange and get Botsfolio up and running within a few minutes.
- Get updates. Bots automatically trade from your account. You can track your automated cryptocurrency trading activities on Botsfolio’s intuitive visual dashboard.
Get Botsfolio today.
Best for Saving Time: TradeSanta
TradeSanta is a cloud-based trading bot that allows you to automated trading across different crypto exchanges. TradeSanta can save you time as its crypto trading bot executes trades on your behalf.
You can choose the preferred setting when you create the trading bot. Then you can create as many separate trading bots as you want to scale your trading.
TradeSanta supports most of the major centralized cryptocurrency exchanges, and it’s easy to start your account today.
Best for a Unified Experience: Quadency
Quadency lets you trade on all top tier exchanges from a single, fast and intuitive interface featuring various order types for every trader. You can choose from pre-built popular strategies, customize, and go live in minutes.
It allows you to monitor all of your assets from exchanges and even offline wallets to track your performance over time. And Quadency offers advanced charting so you can go beyond market cap rankings with integrated market screener and charts coupled with high quality streaming data.
Skip the noise of social media and ad-blanketed news sites with market insights from respected industry insiders with Quadency.
Do Crypto Bots Actually Work?
Many crypto trading bots purport a high level of successful trades. However, remember that the cryptocurrency market constantly changes and price trends always fluctuate. If you plan to take a completely hands-off role when it comes to investing, you may not see the same type of results that you would actively managing and reprogramming your trading bot based on market conditions.
Are Crypto Trading Bots Profitable?
Crypto trading bots can help you make more educated trades and remove some of the emotions that might lead to increased losses. However, it’s important to remember that crypto trading bots are simply pieces of software. They cannot guarantee a profit for any investor and they may quickly become less useful during periods of high market volatility.
Advantages of Crypto Bots
If you’re the type of trader who tends to make market movements driven more by your emotions than your trading strategy, a crypto trading bot might be able to help you enhance your trades. Some of the advantages that come with using a crypto trading bot include:
- Automated investing options: From panic selling to fear-of-missing-out buying, there are a countless reasons why a person might choose to execute a trade that causes them to lose money. When you rely on an automated investing bot, none of these factors will come into play.
- Faster speeds and more efficiency: It can take an individual trader minutes or even hours to fully scan the entire cryptocurrency market searching for opportunities. By the time you spot a potential opportunity, the market could shift in the opposite direction.
Crypto trading bots offer more efficiency, scanning entire sections of the cryptocurrency market in as little as a fraction of a second. Your crypto bot can also enter and execute orders faster than you can enter the same orders manually. If you’re looking to add another layer of speed and efficiency to your trading, employing a crypto trading bot might be the right move for you.
- More time on the market: Unlike the stock market and the forex market, the cryptocurrency market operates 24 hours a day, 7 days a week. 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 Bots
Cryptocurrency trading bots aren’t for everyone. Some of the disadvantages that come with using these features include:
- Prior knowledge: Though many cryptocurrency trading bots come with predefined settings and templates, you’ll need to know how to set these templates and when each template will be executed. If this is your first time trading cryptocurrencies, changing the settings on your trading bot can result in fast losses.
- Requires monitoring: Trading bots aren’t a “set-it-and-forget-it” solution to cryptocurrency trading. The cryptocurrency market is volatile, and trading bots can result in losses during periods of high volatility. If you don’t have the skills or knowledge to monitor the market, a trading bot may not be the best choice for you.
Invest in a Crypto Trading Bot
If you aren’t sure cryptocurrency trading is right for you, you might want to take some time to learn more about the market by monitoring how prices change. Tracking how some of the largest cryptocurrencies move and practicing with a paper trading account can help you enter the market more effectively.
For the crypto trading bots in this list we considered pricing plans, account minimums and number of features. If the bot has a free trial or free membership option, they are prioritized. We also looked for tiered pricing which we consider an added benefit for a variety of users.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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