The rising growth of technology and the growing digital ecosystem worldwide has created many opportunities for the best crypto trading bots. These bots bring many advantages like automated trading, multiple customization options, and the ability to maintain human oversight to help the traders stay healthy with their trading game. There are various types of cryptocurrency trading bots available in the market. Some are meant to serve the ace traders, while some are meant to help the beginners. Whatever the case is, the best crypto trading bot can help you achieve a lot if you can understand its mechanism correctly. Let’s dive a little deep and further understand this technological phenomenon.
What is a Cryptocurrency Trading Bot?
A cryptocurrency trading bot uses an API to interact with the trader’s exchange account and automatically perform the trades based on market data and information analysis. The trading bots only perform the trades when the market conditions fulfill the specific set of standard criteria to generate maximum economic benefit in favor of the user. You should also know that a trading bot can combine two essential metrics, i.e., market signals and technical analysis signals, to execute smart trades. Market Signals include order, price, volume, and time whereas Technical Analysis Signals involve moving averages, Bollinger bands, etc.
Should You Select the Best Crypto Trading Bot or a Platform?
There are many crypto trading bots available for users to try. They can help in the automation of the trades and then wait until the bot generates profit. However, the story is not always about the generation of profits. You can connect the bot with your account on the exchange and allow the automatic trading to take place, but you will still have limited control over the bot’s plan or strategy. So if you are an advanced trader, then this limited control will become a limitation for you. The options for customization are also limited.
Another major drawback of the crypto bots is their limited scope, as these bots do not consider all the necessary factors for making a good market move. A bot is incapable of recognizing or predicting the factors like crashes or exchange hacks that severely affects the market graphs. So, if there is no personal administration of a human involved, the bot might also make a bad trade.
You cannot just blindly trust the bots. To overcome the limitations of trading bots, something else has entered into the market known as- a Customizable Cryptocurrency Trading Platform. These platforms provide the traders with a granular control option of their trading plans and automated rebalancing strategies to protect the profits. Not only this, but you will be surprised to know that a customizable cryptocurrency trading platform comes with a plethora of advanced features like-
- Social Integrations
- Extensive Community Support
- Paper Trading
- Back Testing
- Portfolio Tracking
- Copy Trading
- Auto Portfolio Rebalancing
Hence, the smart move will be to go with crypto trading platforms to unveil all the modern technological advantages, as discussed above. For this purpose, the best crypto trading bot platforms have been detailed in this blog’s later section. So, even if you are a beginner reading this blog, you will not face any difficulty in understanding them.
But before we get to the list of the best crypto trading platforms, you need to know the core reasons to consider using the best crypto trading bot platform.
Why Should You Use the Best Crypto Trading Bot Platform?
There are a lot of reasons why you should go with a crypto trading platform. Trading operations and activities on the crypto market live 24*7, but humans can’t maintain continuous whole-day monitoring to capture the opportunity. However, with a crypto trading bot at your back, you will not need to worry more about staying awake all the time. Automated trading features will take care of your sleep and trading both.
Not just this, but there are many more advantages of a crypto trading bot that will convince you to use one. Let’s check-
Saves your time
The most significant advantage of automation is time-saving. You don’t need to watch the markets all the time because the bot will take care of this job. This feature also helps all those ace players of crypto trading who are short with time. Also, the automation feature is advanced enough to assist you to generate maximum profits efficiently.
Hunts for the new opportunities
A bot never sleeps. It is always awake for you to hunt for opportunities that can yield more economic returns. The crypto market is volatile, and its behavior changes all the time. But a bot navigates its way in this volatility to find the opportunity for you depending upon your established parameters.
Ignores all the emotions
Emotions and trading should never go hand-in-hand. It is not the right combination, and the results can be disastrous. Daniel Kahneman quoted, “The more emotional an event is, the less sensible people are.” When a user watches the price, then it stirs emotions. When the emotions are stirred, then it reduces our ability to reason. When we don’t reason, we end up making bad decisions. Not every trader can control their emotions because of the crypto market’s volatility and continuously changing patterns in the price. To succeed in this game, control of the emotions is a priority.
However, with crypto trading bot platforms, there is no such place for emotions. A bot is a designed program that lacks emotional intelligence. This feature prevents the traders from falling into the trap of emotions and allows them to carry on with the emotionless trading.
Makes use of advanced strategies
The crypto trading bot platforms are thriving today because of the wide range of advanced strategies that they follow when put into use. The strategies include:
Follows the trend: The bot uses the trend following strategy to navigate crypto assets and capture the advantage from such movements’ momentum. If the crypto assets are trending upwards, then this strategy will go long. On the other side, the strategy will go short if the crypto assets are trending downwards.
Arbitrage Trading: A bot is capable of arbitrage trading. The idea behind arbitrage trading is to take economic advantage of the imbalances in the prices of the assets between different markets or exchanges. For example, a crypto asset like Bitcoin (BTC) might be offered for USD 10000 at Binance, whereas the same asset (BTC) might be available for USD 9700 in FTX Exchange. A trader can now take advantage of the price difference of USD 300 by purchasing the BTC from Ftx and then selling it on Binance.
However, it might be challenging for a trader to monitor such prices and execute arbitrage trading. Well, you don’t have to worry anymore because the crypto bots today are now capable of arbitrage trading to help you earn.
Copy-trading: Copy trading is an advanced and trending feature that involves copying another trader’s trading patterns. Crypto trading platforms like eToro have popularized this concept and helped traders build a strong community to help each other. With copy trading features, it becomes effortless to follow the footprints of expert traders.
Now, this feature of copy trading can be executed by a crypto trading bot as well.
Best Crypto Trading Bots
Since you know the background and basic understanding of crypto bots, it’s time for you to know the best crypto trading bots and their pros and cons. Let’s jump into the topic.
3Commas is a magnificent crypto trading terminal that provides users with videos and easy-to-understand documentation. This trading bot platform is also active on YouTube to guide the beginners with the new features and how they work. For example, 3Commas released a significant update on March 14, 2019, on the platform. To make the users aware of the update’s novelties, one company employee made a complete video on the YouTube channel. 3Commas was started in 2014 and as old as the largest trading bot platform- Haasonline and provides the same features.
On this platform, you can execute your first trade in 10 minutes. The signing-up process on the platform is straightforward, and if the user still encounters difficulty creating the account, he or she can consult the support team. After the account has been activated, the user can connect the bot to the exchange. To connect the bot, you will need an API key, and each crypto exchange has its API key.
As of now, more than 20 exchanges provide support to 3Commas. Some of these exchanges are- Bitmex, Bittrex, Bitfinex, Binance, BitStamp, Poloniex, HitBTC, Coinbase Pro (GDAX), CEX, etc. Hence, trading on multiple exchanges from 3Commas alone is an outstanding characteristic that you can consider. From a safety point of view, this platform is reliable, and the users’ accounts are well secured. You are not required to hold or deposit any funds on 3Commas.
Another great character of this platform is the customizable options that it offers. You can customize the dashboard and set it up as per your own needs. You can choose any theme and adjust the positions as well as the colors of all the charts. This option makes it very easy for users to use the platform.
Now, let’s have a look at the Pros and Cons of 3Commas.
- It is straightforward to access and understand. The clear explanations and documentation are constructive.
- It provides the option to trade with paper money.
- It provides a wide array of customization options.
- It provides copy trading and portfolio management features.
- The customer support service is fast and responsive.
- The detailed analytics are provided.
- Real-time notifications can also be activated on mobile or desktop.
- The platform offers a “Concurrent Take Profit and Stop Loss” feature.
- The majority of the attractive features are available in the “Pro Pack” pricing option, which is a little expensive.
- The pricing plans are also not stable. They keep on changing.
Cryptohopper is one of the leading crypto trading bot platforms designed and developed by a Dutch company. It can be used by traders of all levels, from beginners to ace. However, it has some functionalities that can be used only by experienced traders. Cryptohopper was designed to help the traders execute smart trading, but there is no guarantee to generate profits.
You can sign-up for free on this platform and use a 7-day free trial period to make the judgment and decide whether to go with the bot or not. However, you will like to engage with it because it hosts impressive features like- mirror trading, paper trading, automatic trading, trailing features, etc.
Cryptohopper can be connected to many global exchanges like- Binance, Bittrex, Kraken, Kucoin, Coinbase Pro, Huobi, Poloniex, etc. API. It is also expected that more exchanges shall provide connectivity support to the Cryptohopper soon. One of the great features of this platform is that it is entirely cloud-based. This means that the bot can be accessed from any web browser, and it will always stay online. Also, it will be much easier to install additional resources when more crypto traders join the platform.
Cryptohopper also provides traders with an opportunity to create their trading bot templates to develop a personal trading strategy. A template can be developed for every market condition and then linked to the platform. As a Cryptohopper user, you can also perform in-depth technical analysis with the help of indicators. The indicators can be switched on or off to evaluate whether some trading patterns from history will happen again. It will help you determine if a trading pattern will repeat, and you will be in a better position to respond to such patterns.
From the safety point of view, this platform is safe to use, and many reasons support this statement. There are already more than 200k users registered with it, and it is also registered with the Dutch Chambers of Commerce. A user is not required to store any tokens on the platform.
Now, let’s have a look at the Pros and Cons of Cryptohopper.
- The platform is entirely cloud-based.
- It is easy for beginners to learn the functionalities that the platform has to offer.
- A detailed analysis is provided to the users.
- The platform has an interactive drag and drops user-interface.
- Market making and arbitration functions are available on Cryptohopper.
- The information about the creators of this bot is not available on the website.
- The pricing of the bot is relatively high, considering that it is providing regular technical features.
- Trustpilot score is average, with a 3.6 rating out of 5.
Gunbot is a cryptocurrency trading bot that was founded by Gunther de Niro in the year 2016. The bot uses specific algorithms engineered for an in-depth study of the crypto market to make profitable decisions. Even after the bot is a new player in the market, it offers users with competitive features and provides connectivity options with leading cryptocurrency exchanges. Some of the exchanges that have extended support to the Gunbot are- Nash Exchange – The Best Dex, – Binance, Bittrex, Kraken, Kucoin, Coinbase Pro, CoinEx Huobi, Poloniex, etc. API., and much more.
Gunbot also allows you to create your strategies and implement them in the way you like. If you are new to the cryptocurrency trading ecosystem, then you can copy and follow the strategies used by experienced traders for improving your game. The only objective of Gunbot is to help you maximize your earning statistics, and for this purpose, it uses strategies like- Bollinger Bands, Ping Pong, Step Gain, 1000Trades, etc. Also, you are not bound to use only one specific trading strategy on this platform. You can bring multiple strategies in the trading process if it is helping you attract better returns.
Now, let’s have a look at the Pros and Cons of Gunbot.
- The bot has a user-friendly interface.
- All the updates can be downloaded for free of cost.
- The platform comes with a built-in browser interface. It can be accessed from the local machine or via the internet.
- The users can interact with the bot through Telegram.
- Offers competitive features like Dollar-cost averaging (DCA) and reversal trading to the users.
- It allows users to use unlimited trading pairs.
- The beginners might face some troubles while understanding the features of the bot.
- The software is very technical, which sometimes annoys the users.
- The software is robust and demands a machine with high specifications.
- Gunbot does not offer the users the feature to hedge with USDT or USD.
Established in the year 2018, Quadency is a cloud-based crypto trading bot platform and portfolio management solution that operates through web browsers. It provides a seamless crypto trading experience to the users on a single interface. Quadency is suitable for professional traders who require technical analysis tools as well as advanced crypto charting. It allows the users to connect several different exchanges via API keys into a single platform. Data like transactions, orders, and balance from the exchange are automatically synced with the bot once the connectivity has been established.
When writing this post, the platform can be integrated with 13 exchanges that include Binance, Bitfinex, Gemini, and much more. You can refer to the image shared below to know all the supported exchanges.
The platform allows users to access more than 3000 trading pairs to trade. You can navigate to the ‘Market Overview’ page of the platform to collect all the leading coins’ summary and details.
The trading interface of Quadency is clean and comfortable to browse around. You can navigate to the different menus like Dashboard, Bots, Trade Portfolio, etc. Once you are done connecting your exchange with the bot, you can click on trade and start the trading process. The trading tools are also diverse and include order management and advanced trading charts. Along with that, the trade execution can be done using- Limit Order, Market Order, and Stop Order.
The Quadency automated bots can help you execute trades with the help of a wide array of 10 pre-built strategies that include- Market Maker, Grid Trader, MACD, Bollinger Bands, etc.
As far as the platform’s security is concerned, it is reliable and safe to use because of various integrated features like- 2FA, encryption of users’ information, multilayer 256-bit encryption protection, etc.
Now, let’s have a look at the Pros and Cons of Quadency.
- It provides professional and advanced tools.
- The bot offers a wide range of strategies.
- It is easy to configure and navigate.
- It can be integrated with leading exchanges.
- There is no mobile version of the bot.
- It does not offer Margin Trading,
- The beginners might find it difficult to understand.
The role of a crypto trading bot platform is to make things easier for a trader. It can automate the trading process for you and execute smart trading on your behalf. This post discussed the best crypto trading bot platforms that are well suited for beginners and ace traders. If you can use them properly, then these bots can be one of your best decisions in the cryptocurrency space. All you need to do is implement the correct settings and effective trading strategies for maximizing your chances to earn more. So, before selecting a bot, you should ensure that it has maintained a good reputation among users and the market.