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Cryptocurrencies have become the major talking points in the financial world today. Retail and institutional traders continue to seek new ways to explore the values in these currencies.
The wide availability of learning tools has made it easy to learn trading in recent years. However, many traders do not have enough time and resources to manage trades.
This is where crypto trading bots come into the picture. The bots are designed to make trading more efficient while saving time. In cryptocurrency trading, the bots may eliminate the need for a trading strategy.
Automated trading dates back to the 1950s as a means of buying and sending funds. Likewise, trading bots have existed since the early 2000s. There are several crypto trading bots available today. It becomes quite challenging for traders to choose the best one to use.
This article outlines 10 of the best crypto trading bots for you to use in 2021. I have examined several factors and selected the most reliable bots to trade with. I’ll provide you with a detailed review of each bot to help you make informed decisions for your trading.
Too lazy to read? Spoiler especially for you. Best crypto trading bots:
Crypto trading bots are software programs designed to help you automate your trading. They are a great means to amplify your trading strategy and take advantage of the crypto market.
Unlike stocks and forex markets, the crypto trading market never closes. The market runs 24/7, and you always need to have an eye on your trades. Trading bots provide the necessary help to carry out trading actions even when you are asleep.
The best crypto trading bots leverage machine learning and artificial software to observe the market. They scrutinize price movement in the market. Then, they react based on predefined algorithms to execute trades automatically.
Ideally, the bots are designed to generate higher risk-adjusted profits. Several retail and institutional traders now turn to these bots to get a firm grip on their trading activities. With the crypto trading bots, many traders just sit back and watch their profits grow.
In basic terms, trading bots communicate directly with exchanges occurring in the crypto market. Then, they automatically place orders on your behalf. The design of the bots allows them to monitor the movement of market prices. This helps them to decide the next actions to take based on preset rules or algorithms.
Crypto trading bots gain access to the market via API keys. The keys tell the exchange that you’ve allowed a bot to access your account and trade for you. A crypto trading bot has three essential parts. They are:
Therefore, it is important to ensure that the trading bots you choose will excel in all three parts.
There are six major types of crypto trading bots that you can choose from. They include the following:
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As I have mentioned earlier, the cryptocurrency market never closes, and it has very high volatility. You can become very profitable if you trade the cryptos wisely. However, the market’s volatility also increases the risk of losses that you can incur.
The crypto trading bots are available to help mitigate a number of the risk factors. A well-designed trading bot can carry out some essential functions. They include portfolio management, rebalancing, smart order routing, data collection, and more.
First, it is essential to note that you need to first take care of the basics before leaving a bot to complete the work. The trading aspects you should automate are the time-consuming ones. These are repetitive and could be unnecessarily complicated.
The following are aspects you can improve using trading bots:
Repetitive admin tasks such as setting buy & sell orders, stop losses, and take profits, take a lot of time and effort. Using a trading bot will help you “copy and paste” tasks virtually. That way, you can execute trades efficiently.
For example, a crypto trading bot can be of great help in periodic rebalances. That is when you need to rebalance your portfolio at a specific time interval. You won’t always have to set the alarm now and then to rebalance the portfolio. Instead, the trading bot can be programmed to rebalance your portfolio at any time you want it.
Functions such as smart order routing can be nearly impossible to execute on your own. You need to carefully determine every pair to include in the trade using its timing, asset quantity, and trading price. Then, the trades are routed through numerous pairs. The route needs to end within a given time-limit before there’s a change in market conditions.
While the idea seems straightforward, the execution can be nerve-wracking. Other similar trading strategies are also nearly impossible to execute. Crypto trading bots are the best option to help automate these seemingly impossible strategies. All you’ll need to do is watch your trades play out with ease.
Some daily responsibilities may not allow us to sit in front of our screens and monitor price movement at all times. Let’s say you have a well thought out portfolio that may also be diversified. The level of research work you may have to do each day may be difficult to handle alone.
Also, as I have already mentioned, the process of trading involves many cumbersome and repetitive tasks. The crypto trading bot will conduct these tasks efficiently throughout the day. That way, the process becomes much simpler for you.
These two factors are among the most critical aspects of trading. Timing has to work in harmony with a high degree of accuracy to help you achieve your trading’s best results. A trading bot can be programmed to monitor the market and take trades at the correct times with high-level precision.
For example, the price of crypto X is going down, and you’re ready to sell your position the moment X hits the $1500 support line. Without a trading bot, you’ll have to observe the price chart patiently before taking the trade.
Human error or some distractions may prevent you from pulling the trigger at the correct time. The trading bot will eliminate this, and take the right trades on your behalf.
There are thousands of crypto exchanges all over the world. These exchanges provide their services 24/7 since the crypto market never shuts down.
This offers a fantastic benefit to traders. However, price tends to change around the clock often. This means that you need to remain awake at all times, reading and monitoring the price charts.
That is the only way you can ensure the best leveraging of your funds. While it is humanly impossible not to get some personal down-time, a trading bot will automate your trades while you sleep.
Here we go-
Cryptohopper is another innovative crypto trading bot. This bot allows efficient automated trading and easy portfolio management for several cryptocurrencies. It is a great tool that helps manage every one of your trades and exchanges from one place.
The expert team at Cryptohopper also provides a trading community for users. There, you can subscribe to signals and buy bot templates. You can also discuss strategies with other experienced traders, helping you trade like an expert.
There are three major trade strategies with this bot. You can use the market-making strategy or arbitrage strategy. Also, there’s an option to backtest or simulate your trading.
Cyptohopper also allows you to design your strategy to meet your unique needs. A significant advantage of the platform is that you do not need any coding skills to use the trading bot.
Many customers who Cryptohopper claim to get up to 100% profits daily. Others recorded steady growth in their accounts from compounded gains.
The pricing involves a monthly subscription. The Pioneer package is a free package that allows you to check out this crypto trading bot. You’ll need to have a monthly subscription of $19 for the Explorer package and $49 for the Adventurer package. The Hero package is considered the ‘Pro trader package”, and it comes at $99.
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This crypto trading bot allows you to make a good profit with little effort. 3Commas is a great bot suitable for crypto traders at any level. The interface is user-friendly, allowing you to create your strategy based on over 20 indicators.
3Commas incorporates a smart trading interface for copy trading and portfolio management. The bot’s dashboard links you to the top crypto exchanges available. You can easily set trailing stops and take profits.
Every one of the algorithmic trading bots is customizable. An example is a long bot designated for the bull markets. There are also composite options for more advanced customization. 3Commas has an active social community and support team to help you have a smooth experience.
Users record up to 21.42% monthly returns from 3Commas. A user uses two bots that take nine trades simultaneously and take 2% profits every time. The customer also says there are safety orders available to prevent losses.
The Starter package is priced at $14.50, while the Advance package comes at $24.50. You need to pay $49.50 to enjoy the Pro package. Each of the payments is monthly membership fees. There’s a free trial that you can use at any point on the platform.
Coinrule is one of the best places to start your journey with bot trading. Being one of the newest trading bots on the market, the UK based company focuses on making trade strategy designs highly accessible.
This platform has beginners’ best interests in mind, thanks to the beautiful UI and comprehensive tutorial. Coinrule allows you to develop your trading strategies in the Rule Page section. The platform has a simplified Rule Base interface.
The interface allows you to set the conditions for your trades easily. You don’t need to have a coding background to use the platform. Trade orders taken on this platform are called “Rules” to carry on the spirit in the name.
Coinrule puts you in complete control of your trading bot for smart fund allocation. There are over 150 Rules you can choose from, and you can build your own Rules. You can also use the trading bot on your favorite exchanges such as Binance, Kraken, Coinbase, etc.
Coinrule investors recorded 67% of profits despite the historical market collapse in April 2020.
There are four different packages in Coinrule. The first is the ‘Starter’ package, which allows you to try the bot for free. This package features 1 exchange, 2 live Rules and 7 strategies. On the other hand, the ‘Hobbyist’ package comes at $29.90 monthly.
The ‘Trader’ package comes at $59.99 per month, while you’ll need to pay $449.99 monthly for the ‘Pro’ package. Each of the packages has its unique offering, with ‘Pro’ offering the most features.
Shrimpy offers a robust platform for experts and beginners to simplify their trades in the easiest ways. This trading bot company provides users with many useful features that make them stand out.
An example is the smart routing for trades that Shrimpy built to give you the best possible trades rate. You won’t have to choose direct trade pairs. Instead, Shrimpy analyses the best rate across various exchanges. That way, you can have a profitable automated trade.
One great advantage of Shrimpy is that it supports a wide range of exchanges, including Binance, Coinbase, Huobi, and others. The platform also seeks to add other reputed crypto exchanges that are popular among traders.
You can access API through Shrimpy.io to view balance and place trades. It is a secure process that disallows the moving of funds out of the exchange. Shrimpy also allows you to build third-party apps with their APIs. Portfolio management and automated training have never been easier.
Customers find it easy to rebalance across coins on Shrimpy and move into a large position. Also, they sweep profits from other different positions in a few easy clicks.
The Hodler package allows new users to create their portfolios and connect to exchange accounts free of charge. On the other hand, the Professional package comes at $13 per month. This package comes with all of the best features from Shrimpy. The Enterprise package allows easy customization to suit you.
Here’s another relatively new trading terminal providing robust automated trading opportunities. Zignaly began operations as a top crypto signal provider. However, the company has grown into a reliable trading platform with plenty of tools for users.
This platform offers trading bots, copy trading, and a crypto terminal. This cloud-based software has its team focused on simplifying every process from start to finish.
A fantastic feature of Zignaly is how deep they integrate signals. This platform allows you to bring in signals from your favorite providers and automatically trade on these signals. Zignaly is in partnership with CryptoTrader. Tax to give users automated tax reporting.
Users find the copy trading option on Zignaly very useful. It allows them to copy pro traders and earn profits as they do.
It is entirely free to use Zignaly for automated portfolio management and other operations. The free subscription offers you unlimited exchange accounts, coin pairs, and positions. Support is a priority with Zignaly.
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Crypto investments have become as easy as mutual fund investments, thanks to Mudrex. This y-combinator backed platform offers a wide variety of trading bots to meet your risk appetite. Mudrex is very transparent, and it provides one of the best pricing models available today.
Backed and connected to the top exchanges in the crypto market, Mudrex offers the best functionality. This company created a marketplace that allows pro traders to develop and configure crypto bots.
They make all the information regarding bot performance available publicly. That way, you can easily understand the use and navigation of the bots. The trading strategy builder available at Mudrex is the most advance.
The builder comes with backtesting software. The engine helps you to create and test your strategies before deployment.
Pricing is based on the amount each user wishes to invest. That is, there is no fixed fee attached.
Quadency throws backtesting up a significant notch. It uses info based on data and numbers for more effective backtesting. Nothing beats knowing the performance of a pair based on historical data.
With this platform, you have a smarter way of trading and managing your crypto portfolio. It also helps you to automate your trading strategies and monitor even your offline wallets. Quadency gives you access to over 3500 pairs and the world’s leading crypto exchanges.
The sophisticated algorithms used for the trading bots are made easy. There are many pre-built strategies to choose from and customize to your taste. You can also easily track the performance of your assets over time.
Beginners and passive asset investors will enjoy the free Lite package. The Pro package is an excellent option for active asset traders and portfolio managers. It comes at $39.00 per month. As an advanced trader, quant, or algorithm developers, the $79.00 per month Unlimited package will please you.
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Kryll allows you to create your unique trading strategies without having any coding background. This platform runs 24/7, managing your crypto portfolio while you’re asleep. It is integrated with several top exchanges and technical analysis platforms.
Backtesting your strategies is also accessible without any hindrance. There’s no need for API withdrawal rights once connected to your favorite exchanges. You can run your best strategy from any mobile device.
Kryll also allows you to centralize your portfolio and trade without stress. This platform takes the complex idea of automated trading and makes it very easy. It is also one of the best platforms for personalized and unique online trading platforms.
Reviews from Kryll customers show live trading profits of up to 172%. A user on Twitter recorded a profit increase from 11% to 125% without doing a thing.
There’s no subscription needed for Kryll. You only need to pay for the time you use on the platform. Backtesting is free and unlimited, with the most accurate data available.
Cryptotrader is one of the first original cloud-based bot platforms. You can easily connect to exchanges through API for running automated trading. The details are easy to locate and understand with a range of free automated strategies.
This platform creates a robust marketplace for users to transact using bots created by pro traders. The bot creator puts a price on the bots and detailed notes on the bot’s operation. The details also include the bot’s past performance and suggestion for effective use.
Cryptotrader also allows you to create your trading strategies for sale in the marketplace. There’s no need for software installation; the company rents servers for you. You can backtest your strategies and see how it works in various market conditions.
Cryptotrader offers different packages. These are Basic, Regular, Pro, VIP, and Premium packages. Payment is in BTC or LTC, with prices ranging from 0.0009 BTC to 0.0216 BTC monthly. Also, the high-end prices enable more features and no limits on traded amounts.
Pionex is one of the first few exchanges with built-in trading bots. This platform takes liquidity from various exchanges and aggregates them. Many traders consider Pionex as one of the biggest brokers for Binance.
Asides from its deep liquidity, Pionex can offer more than ten different trading bots. These bots work 24/7 to automate your trading and manage your portfolio. This platform has the US FinCEN’s MSB License.
One of the most popular bots is the Grid trading bots that allow you to sell or buy at the best prices. The smart trading terminal also enable traders to manage trades with the best-leveraged token.
A trader recorded over 10.56% profits using the Grid trading bot on Pionex. Another user’s bot made 19.56% profits when BTC broke the $20,000 barrier in December 2020.
Using Pionex’s bots is free of charge, and the platform only charges 0.05% trading fees.
Before you can trust a bot with your trading portfolio, you have to ensure that it is designed for your best interest. You should consider the following factors before choosing a crypto trading bot:
Do Trading Bots Work?
Yes. Trading bots ensure that you don’t have to worry about the fluctuations in the crypto market. They make trading more efficient and help you save time. Well-executed trading bots come with advanced software that will help manage your portfolio. They leverage machine learning and artificial software to observe the market. Bots created to meet your unique preferences will offer higher chances of success.
Are Crypto Trading Bots Profitable?
Bots that are appropriately configured can be extremely profitable. However, the bots do not offer guaranteed profitability because they are software. Automated programs also have many risks associated with them. That is why it becomes crucial to choose the best trading bot company. This will ensure reliability, transparency, and ultimately, profitability.
Are Crypto Trading Bots Legal?
Bot trading is entirely legal in the cryptocurrency market. As long as your broker welcomes the use of the trading bots, you are good to go.
How Can You Create a Crypto Trading Bot Yourself?
If no trading bot in the market meets your unique requirements, you can always create your bot. To create an efficient crypto trading bot, you need to have some technical expertise and knowledge of the crypto market.
The first step is to research to understand your bot’s main goal and the platform you’ll use. Then, you can go ahead and code the bot to meet your preferences. You need to ensure that you use accurate data close to the actual trading as required.
The only way to ascertain a bot’s functionality is by testing it. Carry out extensive checks and find out bugs and issues that may prove costly. Once you complete with coding and testing, you design the bot while taking market risk and flaws into account.
Cryptocurrency trading leads the current trend and will do so for the foreseeable future. Over the years, crypto trading bots have become vital tools for traders. Both retail and institutional traders have found them useful for more effective trading.
However, some trading bots can be out there to take your money. That is why it is crucial to carry out the necessary research before you get one for yourself. I have done the legwork for you and selected the best trading bots to choose from. The information in this article will guide you to make the right decision.
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