31 Best Crypto Trading Bots (Free & Paid) in 2021

Last Updated: November 18, 2021

Jason

Jason

Crypto trading bots are technically automation software tools that aid you in trading in cryptocurrencies. The reality, however, is that dealing in cryptocurrency without the help of trading bots is difficult, to the point of being unviable.
17 Best Crypto Trading Bots in 2021
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Do you work with cryptocurrency?

If the answer is yes, then you know how hectic, dynamic, and unstable the market often is.

After all, the regular currencies had several centuries of time to evolve on their own; cryptocurrencies, on the other hand, had about a decade.

How does one person keep up with this ever-changing, never-sleeping market? With a little help from a software friend, of course.

And we have just the right crypto trading bots for you!

👉 Get the Best Crypto Trading Bot

What is a Crypto Trading Bot?

Crypto trading bots are technically automation software tools that aid you in trading cryptocurrencies.

The reality, however, is that dealing in cryptocurrency without the help of crypto trading bots is difficult, to the point of being unviable.

Closing in on a deal in just the right time would require a person or a team to monitor the market with great attention around the clock, around the week, non-stop.

A couple of seconds can separate you from a juicy transaction and humans just aren’t as good at giving undivided attention to mundane tasks as hardcoded AI.

And that’s not even half the improvement over good ol’ humans’ all-organic approach.

Many little mundane tasks that would nail you down to the office desk can be done by crypto trading bots.

Small tunings and hourly checks do not require you to sleep behind the desk and log in every hour or so. A well-designed crypto bot is like a clock: you wind it and let it do its activities without worrying whether the time is right.

Complex tasks turn easier, forecasting becomes more reliable, and blind guessing gets replaced by precise algorithms: the virtues are plenty, while downsides practically do not exist.

Indeed, crypto trading bots represent the necessary tool for every serious cryptocurrency trader.

But which one to pick?

The market is flooded with all sorts of names and brands and you aren’t really ready to invest your money into the first software that you stumble upon.

We’re traders, not gamblers, right?

Best Crypto Trading Bots

This is precisely the reason why we’ve compiled a list of the best crypto trading bots.

With our seal of approval, you can skip the doubting part and start trading as soon as you pick an option.

Here they are!

Pionex

Pionex Bot Review – All-In-One Option or a Generic Crypto Trading Solution?

Perhaps “cryptocurrency pioneers” sounds a bit far-fetched today when cryptocurrency has become a common word in tech-literate households, but at the time when they began, the Pionex team was indeed one of the pioneers of the industry.

Years of experience behind their belt have made them a frequent contender for the top position of every crypto trading bot list.

In fact, Pionex has developed a whopping array of FREE general and specialized crypto trading bots: 12 bots can settle all your trading needs!

From grid and leveraged grid bots to margin grid and reverse grid bots, Pionex is the Swiss army knife of crypto trading software.

And Pionex even boasts its own exchange, the bots come mainly as an interface with which you navigate it. Thus, the bots are free, and Pionex aggregates liquidity from Binance and Huobi as well.

Trading with Pionex is easy, reliable, safe, and free. Pros and beginners alike use it, we use it, and there’s no reason for you not to use it. Full recommendation on this one!

👉 Get Your FREE Trading Bot!

Coinrule

Coinrule

Coinrule is a recent addition to the crypto trading bot industry, and they have excellent features.

They are also a great choice if you are relatively new to the trading bot industry, and need a little bit of guidance in the beginning.

👉 Start for FREE

At the same time, they are well suited to advanced traders too. They support some of the most popular exchanges including Kraken and Binance and can be used for free in the beginning.

If you want to pay for one of their subscriptions, it’s going to cost between $29.99 and $249.99 a month.

Naturally, you gain access to different features, based on activity levels and differing experiences. We suggest that you go for a starter account in the beginning to see how they work.

Bitsgap

Bitsgap

Looking for a special automated crypto trading bot that’s effective and made for pros, but you lack the skill and/or experience for handling complex, coding-intensive scripts?

Then Bitsgap might be just the solution for you.

A plethora of people with various levels of coding and/or trading experience use it on a daily basis! Maximizing returns via automation of trading is a unifying policy, no doubt.

The guiding principle of this neat piece of software is simple. It works as a GRID bot, distributing proportionally within the limits set by the trader.

It buys when the price is low and sells when the price is high, with orders automatically placed as soon as the margin moves.

It’s just like you’re online 24/7 and making adjustments yourself, except that you actually have your life. Which is awesome!

👉 Get 14 Days FREE

It’s cloud-based so forget about tiring setups and downloads. The logic is simple, transparent, and effective.

Backtested strategies and risk-free demo mode ensure that you can predict the behavior of the algorithm and the market, so no worries there.

Oh, and let’s not forget that Bitsgap allows you to test the software for 14 days before buying it.

Quadency

Quadency

With lofty research and time investment as a base for a crypto trading platform, success is guaranteed. That’s why Quadency has been destined for the toplists since the start.

Forget about scouring the web for market insights and having to devour tons of ads and fluff for each piece of constructive market exchange information.

Why?

Because Quadency has already done it for you.

Couple that with intensive insights and powerful trading bots, all in one simple interface designed for seasoned veterans and green recruits alike, and you have a recipe for expert crypto trading.

Backtesting takes the primary role with Quadency.

👉 Open FREE Account

It’s always better to have your crypto trading bot base its activity on recent history than in abstract calculations done in the pitch dark. After all, it’s your money, not the bot’s money.

So yeah, you can load a tried-and-true preset, but you can also customize something of your own if you so choose. After all, the basic pricing plan is free! As you grow in experience, you can opt for more powerful paid plans.

Their software speaks for itself, there’s little we can add here, really.

Tradesanta

Tradesanta

With Tradesanta, it’s Christmas all-year-round for crypto traders, ho, ho, ho.

Like all Santas, Tradesanta comes from heaven. If cloud-based techs count as heaven, of course.

Anyways, they specialize in making automated crypto trade easy, and have all the software needed to back their claims up.

Set up your trading pair in 8 major exchanges and get rolling within 2 minutes with your own set crypto bot.

Long and short strategy bots, GRID bots, profit margins and filters, large volume trading, and many more features get covered in their package.

It doesn’t come free, though, although you can take it out for a trial run for 3 days.

It doesn’t look like much, but the stuff they do, they do well. Tradesanta’s perfect for those who’re just starting or don’t require too advanced features.

Oh, and their community is welcoming, too!

Cryptohopper

Cryptohopper

Having people do software tasks is not only inefficient but also susceptible to oh-very-human emotions.

People often fall prey to fear and excitement and react emotionally instead of rationally.

Cue Cryptohopper, a crypto trading bot that automates trading and removes you from the equation! Don’t worry, though, cash still flows into your wallet, not the bot’s.

Cryptohopper ties together in one place all your exchange accounts and allows trading to and from multiple locations from one interface.

Over 10 exchanges have partnered with Cryptohopper, including HitBTC, Okex, KuCoin, Bitvavo, and Huobi.

More than just a market-making and exchange tool for experienced and inexperienced alike, Cryptohopper is a place akin to a social media platform, just for crypto trading.

Exchange ideas, learn from your peers, and embrace ideas from the source–Cryptohopper is both a tool and a welcoming community.

The strategy you can forge for yourself here will most likely bring more revenue than something that comes from a template or of the top of your head.

Join them now for free with the Pioneer package and a 7-day trial for the professional Explorer package!

Mudrex

Mudrex

Looking for somewhere to invest safely and simply? Welcome to Mudrex, the home of stable exchanges and smart investors!

Being open and transparent about deals is the key stability factor of every aspect of free trade.

To sate the appetites of even the most demanding crypto traders, they have various crypto trading bots and strategy builders online, sourced directly from expert programmers.

With a user base of 10,000+ and more than half a billion $USD in total traffic, Mudrex is huge and profitable.

It boasts a thriving community and its deals and exchanges are backed by numerous high-profile VCs and angel investors.

A safe haven for crypto traders? Count me in!

It’s worth mentioning that Mudrex has no bots of its own. Instead, as stated before, they outsource the software from some of the market’s most prominent coders.

More than anything else, Mudrex is a marketplace of ideas that connects avid traders and all those who yearn to learn more about the budding business of cryptocurrency exchange.

Smart auto-pilot investing coupled with unprecedented learning rate? Mudrex’s got it all figured out, it seems!

3Commas

3Commas

So, you already have a good knowledge of crypto trading and automation software that deals with it, and you’re looking for something on a more professional level? We have just the thing!

3commas is an advanced level of the crypto trading game. The tools they develop are intended for pros only.

The UI is designed for efficiency, not ease of use. It can seem like a lot to take in at once, but if you know what you’re doing, 3commas’ bots can do the work of several other crypto trading bots simultaneously!

GRID bots, dollar-cost averaging trading bots, smart trading terminals, options trading, paper trading, backtracking, exhaustive market analysis…

You name it, 3commas provides it. And at affordable prices as well! The basic package–even for free.

With the efficiency-to-cost ratio being one of the highest among the candidates on this list, 3commas is a no-brainer choice. The only downside?

You’ll need to learn a lesson or two about handling crypto bots first before you tackle these bad boys.

But hey, the people from the community offer courses on handling the stuff themselves, so you might as well start there. When the rewards are as great, no task is too difficult!

HaasOnline

HaasOnline

You’ve heard about subscribing for crypto trading bots and related software, right.

But did you ever want to “code” your own trading automation software? If the answer is yes, regardless of your previous coding experience, then Haasonline offers you exactly that.

Haasonline has developed their own scripting language called HaasScript in which you can design your own trading bot that can actually be quite complex.

With a drag-and-drop designer and intuitive intelli-sense editor, you aren’t required to have a tight grip on coding or programming skills of any kind, only a good sense of the crypto market and a clear vision.

Paper trading and backtesting come as in-built options, so safety and reliability come first. Your very own custom-made bot can start trading in 25+ exchanges as soon as you reveal it to the world!

Apart from this flight into creativity and design, Haasonline also offers the basic, pre-set crypto trade bots for trade arbitrage and market-making that we’ve come to know and cherish. 

Also, Haasonline is cloud-based, with all the accustomed benefits like zero download/installation and general ease of access.

Shrimpy

Shrimpy

A little something comes to all the hodlers out there, but this little something packs a big punch. It’s called Shrimpy and boy does it rock crypto trade!

First, the basics. Everything that you can expect from a crypto trading bot comes here. Designed for crypto trade automation, it features instant market arrangements with clear and transparent service.

However, the service that made Shrimpy desirable in the first place is rebalancing.

Instead of merely buying and holding cryptocurrency, Shrimpy realigns your portfolio to eek out the maximum from your available assets and rebalances it to specific ratios.

Backtesting is a no-brainer with services like this, and Shrimpy does smart to include it in its package.

This neat little crypto trading bot also features social trading in which you can “borrow” (wink wink) other trader’s actions and strategic placement of assets. It’s all public info! Free real estate, right?

Everything above serves to minimize risks and maximize profits. Does Shrimpy succeed in this? Hell yeah!

Botsfolio

Botsfolio

Let’s take a step back from customization and pseudocoding and return to the basics.

Do you lack the skills and experience to make your own bot, assess your own strategies, or neither? Botsfolio can help you set your course within the crypto trading market.

How does Botsfolio accomplish that? It’s easy–it literally asks you.

To be precise, it gives you a query in a form of a risk assessment quiz that then uses your answers to provide you with the best course of action for your current situation.

Based on your answers, Botsfolio determines your financial goals, investment conditions, and risk-benefit ratio. The bots are pre-made, the strategies pre-set. Yours is only to reap the benefits!

Due to the sheer scope of strategies provided to various users, Botsfolio has 5 bots available for diverging approaches to crypto trading.

The most used is the Hedged trading bot due to its proactive trading with minimized costs. 

This baby comes for free for a whole month, and afterward you can opt for a package that suits your needs and budget.

Napbots

Napbots

Crypto trading automatically while you’re taking a nap? What’s better than Napbots?

Napbots does free trade good service with its democratic approach to crypto trading. Everything on it is perfectly transparent, reliable, and safe.

How come? Well, Napbots gives its users direct access to some of the world’s best-performing algorithms, all without previous installs, setups, and tweaks.

Pick your trading style, your goals, and your strategy, and the specific code that matches your preferences becomes your own personal currency trader.

There’s always the option to diversify, allowing you to grasp multiple approaches to your trading. Have a sample of them all and choose the one that suits you the most?

Not a problem!

Link your crypto exchange pair, select the strategy (or strategies), and observe the bot doing wonders.

Or nap while it’s working, both options are more than valid.

Botcrypto

Botcrypto

Crypto bot, Botcrypto… Okay, the name’s not that creative. What Botcrypto does, in fact, is to let you be the one who is creative.

After all, you’ll be making your own crypto bot if you decide to roll with these guys.

Don’t worry, there’s no coding.

Drag and drop the components in a pretty simple and welcoming interface, decide on the trading strategy, choose what features and technical indicators you want to implement (MACD, RSI, Ichimoku clouds, moving averages…), and that’s pretty much it.

Optionally you can set a bar that terminates the script if you wish to cut your losses or take your profits, as well as the option to implement push notifications, but that’s just some quality of life improvement.

As long as you’re backtesting it and doing paper trade, your software is free. When you decide to go live, you can pick between two pricing plans.

Pretty decent options, if you ask us, and pretty affordable while we’re at it.

Trality

Trality

When it comes to finding a decent crypto trading bot, Trality might just become your new trading reality.

What does Trality offer that sets it apart from the rest of the crowd? Trality offers a degree of customizability of your new cryptocurrency trading bot that can put some of the most detailed scripts to shame.

They have honed the whole process of designing your own code to suit your unique trading circumstances which has as its direct consequence a piece of software that is much more effective than your average bot.

What nails it down to the top position it occupies today is its unique Code Editor that allows you to implement changes without collapsing the script in Python.

The result of this flexibility can easily bear fruit as some of the most elaborate, yet simple pieces of code you can operate.

Zero-programming-skills people also have the option of “codeless” setup, don’t worry.

Couple this with several exchange markets and delicate backtracking options and you have yourself a first-class crypto trade service.

Gunbot

Gunbot

Cloud options aren’t your thing? You prefer all your data safely huddled in your personal computer?

Gunbot values your privacy and respects your security breach fobias.

That’s precisely why Gunbot offers zero data-collecting, light-installation option for your crypto trading.

Consistent trading due to automated market exchange strategies? Check.

Easy to get started? Sure.

Free updates without a subscription? Included.

Windows, Mac, Linux, ARM compatibility? Yup.

As you can see, Gunbot adapts to your individual needs, not the other way around.

Unlimited bot instances and over 100 crypto exchanges serve as the prowess of its technical aspect, not only its adaptability.

Gunbot is good and they know it/show it.

Cryptotrader

Cryptotrader

Running out of ideas?

Or running a surplus of ideas that you want to monetize?

Cryptotrader is your crypto trading strategy think-tank. If you’re looking for a place to enhance your cognitive crypto trading capabilities, you’ve just found it.

The main asset of Cryptotrader is in its ideas. In fact, it is a marketplace of ideas in which you can trade for effective trading strategies.

It’s a bit meta, but the idea is pretty simple.

Cryptotrader is armed with a powerful scripting tool that’s not hard at all to use.

Once you’ve spotted a good idea, you can purchase it (rent it, subscribe to it, call it what you wish) and implement it in the form of a bot.

Likewise, if you’ve worked out a million-dollar setup (hypothetically… or not), you can find a worthy buyer here.

You can also do live backtesting and trading in this cozy little crypto trading nook.

Pretty accurate simulations can show you approximately how your strategy will fare against others.

Which is pretty useful. As is Cryptotrader in general.

CryptoHero

CryptoHero

We all sometimes feel like the only way we’re ever gonna earn money with cryptocurrency trade is if a hero comes to our help.

A nifty crew assembled around that idea and decided to give us exactly that–a hero to save our cryptocurrency idea of fortune and prosperity!

Jokes aside, CryptoHero’s a compact piece of code that helps people with all levels of experience.

Whether you’re a pro or a newb, CryptoHero can automate your trade and optimize your trading strategy.

In the nature of a true superhero, Cryptohero is always there for you, as long as you have a phone with you. 

You’ll be able to trade trending cryptocurrencies like Bitcoin and Ethereum with automation scripts via technical indicators 24/7. Just as the market needs.

CryptoHero allows for several exchanges and tracks your crypto trading performance one at a time or aggregation across all operations, just in this one app in your phone, on the go, wherever.

Extensive backtesting also provides a reliable forecast of your future purchases.

Not all heroes wear capes. Some are crypto trading bots that don’t have a material body to put a cape on. Duh.

Zignaly

Zignaly

Zignaly is a hub that assembles various renowned traders around its idea of a cloud-based crypto exchange platform.

In other words, if you’re looking for a zero-installation, expertly-outsourced, third-party crypto automation, you’ve come to the right place.

What’s the deal with them?

The goal is to allow third-party signallers such as Mining Hamster Signals and Crypto Base Scanner to directly predict the market circumstances and advise you on how to act upon them.

Trailing stop-loss is another lucrative feature that doesn’t always pop up in your crypto trading bots search. Oh, and there’s no limit on trades!

Fun, useful, profitable. What more should a crypto trading automation software be?

Exchange Valet

Exchange Valet

Exchange Valet is more of a trading toolset for crypto trading, as well as a portfolio management platform for your crypto assets.

There aren’t too many platforms out there that offer the variety of tools that these guys do, so this is definitely an advantage.

The ability to set stop losses at the same time and take profit orders is advantageous, especially considering most platforms don’t support this type of approach.

These tools are great for traders that are really active in the industry. They can also help you keep an eye on all of your differing positions, so that you can rebalance them automatically.

Apex Trader

Apex Trader Review – The Peak or the Bottom of Crypto Trading?

Apex Trader is great as a new platform that can offer its clients easy trading through automatically conducting your trades via their bots.

The platform comes with trading bots that can be used to employ a variety of different trading strategies that work through API connections and include popular crypto exchanges like Binance.

They are very configurable and provide more than 100 technical indicators which means anyone can come up with their own automated trading strategy, and then execute it to run around the clock with a wide range of trading pairs.

They even have a free trial for seven days that you can make the most of.

Cap.Club

Cap.Club

Cap.Club is a simple yet effective way to gain access to advanced trading features. They were developed in Russia, and they currently work on Bittrex, and a couple of other platforms.

They offer their traders the opportunity to buy and sell algos, as well as advanced order types.

One of the first things that you are going to notice about this crypto trading bot is how simple it is when it comes to both the interface and the website.

If you are just starting with automated trading, and you don’t have a lot of coding knowledge, then the simplicity of this platform could be a big advantage.

They offer their platform in two versions. The free version is going to provide you with all the trading strategies that you need, but of course comes with its limits.

The full version is going to send you alerts through both Telegram and email, or as with the free one, you only get communication through email.

They are simple to use and offer their clients a lot of high-end features.

Signal Groups

Signal Groups

Signal Groups is a platform that has been developed specifically to use with Binance. They offer traders the tools that they need to use Binance effectively, as well as a high level of connectivity.

If you want automated trading, or you want to try and use another exchange, then we don’t recommend this platform.

These guys give their clients the tools that they need to take profit orders and simultaneous stop loss. They also offer laddered buying.

Most of the features that you can get through this crypto bot are extremely useful when it comes to the average trader, but it isn’t ideal for crypto investors that are looking for long-term trades.

Live Trader

Live Trader

Live Trader could be considered your one-stop trading bot platform, and depending on which package you think is going to be the best, they can help you gain access to between 25, 250, and 1000 uniquely designed trading bots.

They also work with some of the largest crypto platforms out there, including Binance, Kraken, and Bitfinex. They host their platform on the cloud, which makes it easy to run with just about any hardware out there.

They also have lots of support tools on the Internet, so that you can get your account set up really quickly.

The bottom line with these guys is that they offer their clients a lot of features, so you will never be lacking when it comes to this aspect of trading online.

Gekko

Gekko Review – Neat Open-Source Trading Bot or Obsolete Coding?

Gekko is a trading bot that is open source, and also doubles as a backtesting platform, and it supports more than 18 different exchanges for Bitcoin.

The best part is that it is completely free to use, and it is also relatively straightforward, so that you can get started with them even if you don’t have a lot of experience in the industry.

They also offer their clients a number of different plugins that are going to make it easier for you to stay updated regardless of the connectivity that you have.

They are not necessarily a high frequency trading block, but they do have basic strategies meaning that they are a great place to start.

Zenbot

Zenbot Review – A Stressless Source of Income or Unattainable Nirvana?

Zenbot is another trading bot that is open source, and ideal for Bitcoin traders.

They are available for users to modify and download as they see fit, the only issue with these guys is that they haven’t updated their platform in a number of months, which means that they haven’t added any exchanges to their platform in almost a year, which most likely means that they have access to a lot less information than some of their rivals.

However, they do offer their clients high frequency trading, and they support multiple cryptocurrencies, as well as Bitcoin.

Kryll.io

Kryll.io

Kryll.io is easily one of the best crypto trading bots in the industry that can assist you in developing a strategy no matter what level of skills you have.

It connects directly with platforms, without needing to go around APIs or anything. They also say that you can use the application through a smartphone, or tablet.

This way, you can take them wherever you go. They can help each and every one of their clients perform technical analysis easily, and they even have a drag and drop editor.

Their crypto bot works around the clock and allows you to set up your strategy within just a couple of clicks of the mouse. It isn’t going to cost you anything to use these guys and you can download them for Android or iOS.

ProfitTrailer

ProfitTrailer

ProfitTrailer is a crypto trading bot that can help you trade cryptocurrency without any issues or hassle. It offers a dashboard that is intuitive and gives you a nice overview of all of your trading.

It also helps you customize your currency buying strategies. With these guys you can easily see your sales without any issues, and you can also take a look at possible trades.

They are also going to protect your liquidity and help you buy or sell multiple cryptocurrencies at the same time.

These guys aren’t free, but they do have support for Binance, as well as Poloniex and Bittrex, among others.

Margin

Margin

Margin is a platform that can help you execute all of your cryptocurrency trades really easily. They say that their application helps you make decisions when purchasing digital currency, and helps you check out multiple charts at the same time.

They have a drag and drop order feature, and they make it super easy for you to quickly set up your trading bot.

They can even help you create a customized strategy, and it’s only going to cost you $15 a month. They support a multitude of exchanges, including of course Binance.

Wunderbit Trading

Wunderbit Trading

Wunderbit Trading is a platform that is based on the cloud, and helps you invest in your cryptocurrency assets seamlessly.

They help you create completely automated trading bots, and they can even help you choose the type of assets that you are hoping to trade.

They also use dollar cost averaging, that allows you to improve your position entry price.

You can track your balance automatically and manage more than one crypto exchange account at the same time. These guys are completely free to use, and you can download them to Android.

Hodlbot

HodlBot Review – Alternative Way of Earning or Less Than a Crypto Trading Bot?

Hodlbot is one of the best crypto trading bots that can help you come up with a custom portfolio easily. They also help you do this with more than 350 coins, and we think that their user-friendly dashboard is one of the best in the business.

They can also assist you in rebalancing your portfolio easily, and conduct marketing moves without any hassle.

They’re more than willing to protect API keys so that nobody who is unauthorized can access them and it is going to cost you just $3 a month. They support Kraken, Binance, Bittrex and KuCoin.

Stoic.ai

Stoic.ai

If you’re looking for one of the best cryptocurrency trading bots in the business right now, then you definitely need to check out Stoic.ai.

These guys might not have been around for too long, but what they lack in experience, they certainly make up for in expertise, and the fact that you can download them as an app and take them on the go means everything.

There aren’t too many exchanges and cryptocurrency trading bots out there that have an app developed yet, so capitalizing on this is going to mean that you can make the trades that you want, wherever you are.

They talk about how they can help you select the top traded coins in the industry, so that you are taking well-balanced risks when it comes to your investments, and as far as the coins that aren’t really going to be doing too well in the future, they can help you facilitate sales.

This way, you can ultimately purchase more of what is going to increase in value, so that you can end up making more money than you would with another exchange out there.

The world of cryptocurrency trading bots is challenging and difficult to ascertain, so making an alliance out of a company like this is definitely advantageous.

Types of Trading Bot Strategies

We all know that the cryptocurrency market isn’t as mature as other financial markets, but because the market is digital, the technology is quickly catching up, which means that investors have been able to access a wide range of trading strategies which we will talk about below.

The better your crypto exchange strategy, the more likely you are to make a profit and benefit from trading in general.

Arbitrage

Arbitrage Trading

Abritrage is the process of buying assets in one market, and then selling them in another market for a higher price, which of course is going to earn you a profit.

Because cryptocurrency exchanges are decentralized, a lot of the time you can find a wide margin between prices offered on different exchanges, meaning that you can end up making a lot of money.

These days, the spread between platforms is a lot smaller, but they do still crop up from time to time, and trading bots can make it easier to find these margins.

Arbitrage can also be used by traders that are looking to involve futures contracts in their strategies for trading by making the most of any margin that comes up between a futures contract, and its underlying asset.

Market Making

The market making strategy provides its traders continuous buy and sell prices on a number of different digital currencies, as well as derivatives contracts.

This is in order to make the most of the spread between the buy and sell price. If you want to implement a market making strategy, you need to create both buy and sell limit orders near the marketplace that you are using.

When the price fluctuates, your crypto bot is going to automatically place your orders so that you can profit from the margins.

This approach is definitely profitable at times, but there is a serious level of competition involved with this strategy, which can result in it being unprofitable, especially if you are trading in a low liquidity environment.

Momentum Trading

Momentum Trading

Momentum trading has been developed for being able to make the most of positive momentum when it comes to assets, and selling them off when the market momentum reverses.

This is a very basic idea, and it is based on the belief that the cost of your asset is going to increase beyond its average and then decrease as it runs out of momentum.

When you find yourself in this particular situation, buying and selling becomes essential.

Mean Reversion

Mean reversion is a certain kind of crypto trading bot which applies a strategy that is built on the assumption that if the value of the coin is different from its average, you can take it back to the average.

Copy Trading

Copy trading Involves you being able to automatically copy the trade of other traders.

Of course, this involves being involved in a social community, and these days a lot of crypto trading bots out there let you copy other traders with just a click of the mouse.

This definitely isn’t frowned upon, so don’t feel like you’re cheating or anything.

Do Trading Bots Work?

CryptoTrading Bots

Trading bots function because they react to the market. They gather data that they need in order to execute a trade based on what’s going on with that particular trading platform.

However, when it comes to crypto currency, the trading platform only tells one side of the story, because many rises and falls in that industry are based on other, external sources, which are impossible to be programmed into the bot for further analysis.

Also, as we mentioned, the difference between exchanges has gone down quite a bit over the last few years, which means that opportunities for profiting off these spreads is much lower than previous years.

A lot of trading bots these days use a method known as ‘exponential moving average’, which is a good starting point for getting into the market and working out what’s going on.

This approach tracks the market prices over a particular time period, and your bot can be programmed to react to what that price does, including moving beyond the average.

When you program a bot, you can set the threshold to respond to particular risk appetite.

However, one of the disadvantages to this approach is that it is based on history, which of course all traders know is not entirely indicative of future performance, especially when it comes to the cryptocurrency industry, where there is a high level of volatility.

Therefore, the question of whether trading bots are effective or not is multifaceted, and could be interpreted as yes, they work, but they might not work for everybody.

Trading bots offer their users a number of different advantages, including being able to constantly interact with the market, without it taking up your whole day.

It also helps to remove the emotion out of trading, but one disadvantage is that if you use the wrong trading strategy, or you rely on someone else’s trading strategy that isn’t effective, you could end up making bad market trading decisions and losing everything that you have invested.

Reasons to Consider Using a Bot

Cryptos are a great new class of assets, but it is difficult to make a return from them as you would with stock or cash.

The majority of people associate stocks with gains from appreciation and price, but the majority of the best stocks out there pay out in dividends.

This really isn’t realistic in the cryptocurrency market, so you’re looking at a very different trading environment.

When it comes to investments, being able to create a passive income is essential. As the last year has indicated, we can’t make the assumption that asset prices are going to show gains year after year.

One argument for holding onto your stocks through a bear market is that they will continue to pay out their dividends, which you can then reinvest in the company when things aren’t going so well.

When it comes to cryptocurrency, it is more like a commodity then a company when it comes to investing, which of course leaves investors with an issue.

When it comes to a bear market, there’s no reason to hold onto a commodity, because it isn’t going to give you any return, aside from a price appreciation.

Trading Bots Give Income Options

If you want to make sure that your cryptocurrency portfolio is working for you, then using a trading bot can be helpful.

There are many different kinds of trading bots out there, and some can make the most of market movements to create gains automatically for you.

So, instead of relying on dividends, trading bots take advantage of your cryptocurrency holdings to make an income through trades.

No, this approach for income generation isn’t going to be as secure as compounding on dividends, but it is one of the only options when it comes to cryptocurrency investors.

A cryptocurrency bot is helpful because unlike a human being, it is looking for income opportunities literally around the clock.

Just remember though that there is no such thing as free money. This means that any risk that can potentially generate a return for you also has the potential to lose money.

This is why it is important to make sure that any investment platform that is automated that you choose to entrust with your cryptocurrency assets can prove that they have worked for other clients, and the risk doesn’t outweigh the benefits.

Be Realistic About Your Returns

In the world of cryptocurrency, with all the competition out there and volatility of the market, it can be easy to get carried away when you are thinking of how much money you might be able to make.

Yes, the years that led up to the huge cryptocurrency rally of 2017 were like a gold rush, but now, the stark reality of the cryptocurrency market is setting in.

If you are looking for the kind of returns that many were able to make in 2017 with a trading bot, you are either going to go broke, or be sorely disappointed.

The bottom line here is that if you want to create a return, you have to take on risk. Of course, the bigger the risk you take, the greater the possibility of a return.

When you take big risks, you also have the possibility that you will face a huge loss. There is no such thing as being able to take the risk out of trading, no matter how advanced your trading skills are.

The good news is that there are a lot of low-risk trading strategies that do offer returns as well as an algorithm that is going to make sure that you don’t lose everything.

How Do I Pick the Best Crypto Trading Bot?

Crypto Trading Bot

Let’s talk a little bit about everything you need to know when it comes to picking the best crypto trading bot.

We have covered a lot of bots on the list above, so being able to whittle it down to one is going to take a bit of know-how, as well as reading the information that we discuss below.

  • Free Trial: There are a lot of trading bots out there that help you by letting you trade for free. This is ideal if you are wanting to try out a crypto trading bot for free first before you register for it long term.
  • Social Trading: Of course, it’s always a good idea to develop your own trading strategies, but a lot of the time, you might like the choice of being able to follow other traders as well. A good marketplace for strategies can be built within a trading tool, just make sure that it is cost efficient, and easy to make a profit.
  • Backtesting: You need to make sure that the crypto trading bot you are signing up for has a backtesting feature, which is going to help you quickly test trading strategies out against historical data, so that you can see how your strategy might perform before executing it.
  • Indices: There are a lot of trading bots out there that provide crypto automation for your portfolio so at this level, it is important to check how they have created their indices. A high-quality trading tool is going to have information on how the market cap is weighted in the index.
  • Server or Cloud Based: The majority of cryptocurrency trading bots out there are based in the cloud, and if you find this convenient, go for it. However, just know that if you do want to download a cryptocurrency bot that is based on the server, you will need to keep your server or computer running at all times, so it is better to avoid tools like this.
  • Trading Communities: Cryptocurrency trading communities are a great choice if you want to really make the most of the trading tool that you have chosen. You will need to be able to compare your experience of that trading bot with others, and you can do this through the platform’s own forum, or on a third-party forum, like Reddit, or Telegram.
  • Tutorials and support: There are a lot of crypto currency bots out there that have come up with blogs, videos, and training tools to help educate their clients. If you are brand new to the world of trading, you can go through a source like this, so that you can get a much better idea of the tool. This is also going to help you save time while you are actually trading your cryptocurrency.

Pros and Cons of Using a Crypto Trading Bot

As with everything in life, the world of cryptocurrency and trading bots has both its advantages and disadvantages.

Let’s take a look at the pros and cons so that you can determine whether a crypto trading bot is right for you.

Pros
  • Efficiency: A crypto trading bot is capable of analyzing market conditions, and they can do so in more than one cryptocurrency. This is not possible for people who are doing everything manually, unless you are the world’s best multitasker. If you are relatively new to the world of cryptocurrency trading then the entire process is going to be incredibly time consuming, and if you still have a day job, using a crypto trading bot is going to be efficient.
  • Increases Your Speed: Another thing that you have to think of if you choose to do everything yourself is speed. There’s no way that you can do everything manually and keep up with a cryptocurrency trading bot. The bottom line is that trading bots help you place your orders quickly, and because it is such a quick moving market, any delay in your cryptocurrency trades could lead to a loss in profit.
  • Running Period: Of course, as human beings, there’s no way that we can spend all day every day in front of our computer, examining our investments. When you use a crypto currency trading bot, it can run 24/7 for you, and therefore not miss any opportunities.
Cons
  • Not good for novices: If you haven’t got a huge amount of experience in the world of cryptocurrency trading, then you are going to find the learning curve pretty steep in the beginning. Cryptocurrency trading requires serious knowledge when it comes to using a bot, because changing the configuration of a bot without any prior experience could lead to a massive loss. As we mentioned above, there are some trading bots out there that are great for beginners, but for the most part, they’re pretty technical.
  • You will need to monitor: Cryptocurrency trading bots are not helpful if you are sitting in a higher volatility period. It is because they are not attached to the money, and this could result in a huge loss.
  • Security issues: A lot of cryptocurrency bots execute their trades through integration with API. This means that there is the risk of losing funds, and phishing so you have to be really careful when you are trading cryptocurrency through a cryptocurrency trading bot.

Helpful Tips for Trading Crypto

  • Try to limit the access of the current trading bot to an exchange, so that it can only write or sell orders. It does not need API access to withdraw money.
  • For an added layer of security, you need to limit your IP address.
  • Make sure that there is enough balance on your exchanges, like Binance and Coinbase.
  • There is a chance that the exchange itself could end up getting hacked. This is why you need to only associate with companies that have a good reputation and offer their clients robust security features.
  • You will need to consistency adjust the trading bot, so that it can keep up with market movements.
  • If you want to make your trades as convenient and efficient as possible, try to find a crypto bot that is mobile-friendly so that you can take it wherever you go.  

Conclusion

As you can see, even if it would be possible to do crypto trading without the use of a handy crypto trading bot, you’d miss out on so much stuff.

Crypto trading bots can work as you’re sleeping, spending time with friends and family, or doing some entirely different business.

Their numbers are vast, though, and we won’t deny the existence of a fairly large number of dubious software and shady brands that seek to scam you for your money.

A single misstep can cost you a fortune and a career in cryptocurrency. The stakes are always high if you’re looking to make crypto trading your full-time career.

The driving goal behind compiling this list was to make quality software and hard-working teams visible to those who perhaps don’t know what to look for.

And what people are supposed to look for is reliability, security, profitability, transparency, and ease of use.

By vouching for these best crypto trading bots, we wanted to save your time, money, and nerves.

Don’t fall prey to wrongdoers of our otherwise-noble cryptocurrency trading, especially when there exists a bunch of people who have devoted their careers to make your crypto exchanges much easier.

Whomever you pick, be sure you haven’t made a mistake.

These people have been in the industry for most of its existence, and some of them have even actively participated in creating it.

Not only do they know what they’re doing, but they’re doing it better than anyone else.

Okay, let’s put a stop to praise here. But really, they’re that good.

In fact, don’t trust us. Try them out for yourself, then get back to us. We’ll exchange our experiences.

One day, perhaps, you’ll be the one writing praises.

Until then, good luck with your trades, and may the algorithm bring you the riches that you deserve.

Written by Jason

Hi! I’m the editor at EarthWeb. I have a deep interest in technology and business. I also enjoy testing products out. Contact me to be featured!