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Best Crypto Trading Bots

Cryptocurrency trading bots, both paid and free, have become increasingly popular lately. But it can take ages for a regular trader like you to pick the best crypto trading bot that matches your trading strategies. Accordingly, in this article we will help narrow down your choices, so that you can pick the best bot.

Let’s start with some important context and a couple of explanations.

What are crypto trading bots?

Although they can seem esoteric and highly technical, a trading bot is just a type of software that allows a user to automate their trading according to their specific trading strategies.

The bot automatically executes buy and sell orders through your crypto exchange or trading platform without requiring your manual intervention.

The advantages of this are obvious. Unlike manual trading, a bot will be able to execute an order immediately if the listed price of a coin drops or rises by a pre-specified percentage. This allows you to react to the market quicker, but it also makes your trading more secure and disciplined, giving your crypto portfolio a high chance of profits.

Originally comprised of just a few lines of code, crypto bots have become evermore sophisticated. If you want, you can now trade any altcoin (e.g. Ethereum, Dogecoin, Litcoin, etc.) as well as Bitcoin (BTC) exclusively with bots.

Moreover, cryptocurrency exchanges themselves are now entering the trading bot space, launching Grid Bots and DCA bots to give their users better trading tools.

Lastly, it is important to stress that crypto trading bots will always work, in the sense that they will do what you tell them to do. Problems only ever arise if you have a faulty configuration (or trading strategy) that leads you to make bad decisions.

Used correctly and paired with a sensible strategy configuration, crypto trading bots will always improve your chances at making a profit.

Are trading bots legal?

Yes, completely. All major traders use bots of some kind, so why shouldn’t you?

What should you use your trading bot for?

Broadly speaking, there are three categories of functions that your bot is well-suited to deal with: repetitive tasks, complicated tasks, and issues of timing.

  • Certain trading tasks are incredibly repetitive and time-consuming. Instead of manually entering in, say, one hundred trades in a day, a crypto bot allows you to ‘copy and paste,’ saving many hours of your precious time. As another example, if you want to conduct an hourly portfolio rebalancing, shifting your assets according to the most up-to-date market changes, a bot allows you to do this without living with your eyes glued to your phone. This can make portfolio management significantly easier, reducing your risk.
  • Other functions are very complicated. Consider smart order routing, where you route trades through numerous trading pairs based on timing, asset quantity, and price within a short time limit. Executing this manually can be nearly impossible, but a well-programmed bot can do it easily. Another example is dollar-cost averaging, which takes advantage of even miniscule price movements to conduct a series of buy and sell orders. It can be done manually, but it is liable to make your head explode. In sum, a bot therefore gives you more trading flexibility.
  • Finally, market conditions can fluctuate very quickly, so some functions depend on uber-precise timing. If a coin is witnessing extreme price volatility, for instance, buying or selling even a couple of minutes late can waste thousands of dollars. So instead of watching the price chart in real time like a crazy person, waiting for the exact moment when BTC hits $40,000, you can simply trust that your bot will always trigger at the exact right time.

How to choose the right crypto bot

Before we get into our list of the best options, there are some things to keep in mind when choosing a bot.

  1. Mobile app / mobile view. Make sure your bot has proper mobile support, so you can monitor it more easily.
  2. Easy functionality. Especially for beginners, getting a bot that is user-friendly is crucial. After all, coding the bot yourself can be daunting.
  3. Price. Everyone will have their own preference on this, but generally you shouldn’t shun the best trading tools just because they cost a little money – after all, your trades should more than cover the cost.
  4. Support and documentation. With your money on the line, you want to feel secure and comfortable in your choice. So make sure the software comes with substantial support, including useful tutorials, and all the proper documentation (e.g., tracking all your trades).
  5. Trading tools. You want your bot to come with useful and sophisticated trading tools, like an exit and stop-loss trigger based on the level of risk you are comfortable with. These will also improve your overall trading by giving you new skills and knowledge.
  6. Non-custodial. Generally, you don’t want your software to ask you to deposit your crypto directly onto their platform. Pionex is the only exception on our list, and it uses Binance and Huobi in the back-end to safeguard your funds.
  7. Pre-built templates. Once again, this is critical for beginners. The best trading bots will give you many pre-built templates that can match to different types of trading strategies. This means you don’t have to configure every specific aspect of the bot yourself.
  8. Copy trading. This refers to copying the trading strategy of pro traders, who often share their strategies on social trading platforms.
  9. Indicators. When automating your strategy, especially after you’ve gained a bit of experience, you’ll probably be using advanced trading and technical indicators, and you want your trading bot to support those indicators.
  10. Team, history, and company. Lastly, be sure to research the company’s background, especially whether it has ever been hacked or had any major user issues.

Ten best crypto trading bots

Without any further ado, let’s get into our top ten list, which is ranked in no particular order.

  1. Pionex is technically not just a piece of software, but an exchange with in-built trading bots. Still, it is one of the best trading bot options around, providing tons of flexibility and easy functionality. It works by aggregating the liquidity of Binance.com and Huobi and integrating more than 15 FREE cryptocurrency bots, each tailored towards a particular strategy or method.It is totally safe, with MAS and MBS licenses from Singapore and the USA, and you don’t have to deal with API keys to use its software.
  2. KuCoin is another cryptocurrency exchange with built-in trading bots working seamlessly to execute trades. And although we think that Pionex has a better user interface and more options, KuCoin is an easy-to-use bot with strong performance.
  3. Bitsgap is famous for its unique automated bots. It relies on an algorithm based on a technique called GRID, which distributes investment proportionally within a predefined trading range, buying to a certain limit and then selling as soon as the price goes above the initial purchase. It also recently rolled out a Futures trading bot which opens and closes hundreds of small positions a day, taking in smaller returns but also minimizing risk.It comes with a user-friendly app, cloud-based functionality, and back-tested strategies. Try it out with a 14-day free trial.
  4. Cryptohopper is a strong paid option, working with Bitcoin and other cryptocurrencies. Unlike Grid bots, cryptohopper allows you to customize your own trading strategies or copy trading signals using the social Cryptohopper marketplace.Another great aspect to Cryptohopper is its range of third-party services and tools, like crypto signals, apps, a strategy designer, paper trading (simulated trading that allows you to test different strategies), and various templates.
  5. Coinrule is a fantastic option for beginners. It has a user-friendly interface that allows users to create their own cryptocurrency trading strategy step-by-step. Its template library has over 150 pre-set rules allowing any beginner to run trading to suit their needs, including stop loss, take profit, a grid trading bot, and technical indicator-based analysis. Furthermore, it comes with a create knowledge base, where users can read about new ideas posted by the Coinrule team, and allows you to test bots before using them.
  6. 3Commas is easily one of the top crypto trading bots. With a UI targeted for more advanced traders, 3Commas offers two subscription levels: Basic ($29/month) and Pro ($99/month). The community is quite strong and you can buy online courses to develop your trading savvy.
  7. Mudrex is maybe the best copy trading system, making crypto investing as easy as investing in a mutual fund. Their pricing model is arguably the best out there and offer various Bitcoin bots to match various risk appetites. It is unique in that it doesn’t build its own bots, but as a curated marketplace it brings together automated bots created by pros.
  8. Shrimpy is a paid crypto bot service that specializes in rebalancing, indexing, and strategic back-testing. It allows you to automate your portfolio according to specific ratios. Executing only a few trades every day, this service is better for holding strategies.
  9. TradeSanta works through eight main exchanges, HitBTC, Bitfinex, Bittrex, and Binance to make crypto trades simultaneously across all of these. Cloud-based and already with hundreds of thousands of users, it facilitates a broad range of strategies and tools from $14 to $70 per month.It is also well-known for its 24/7 customer service, helpful YouTube channel, and Telegram notifications – all of this make it an excellent choice for beginners.
  10. HaasOnline is unlike any other service. Using their very own scripting language (rather than, say, python), you can develop very complex trading bots using a drag-and-drop designer and intelli-sense editor. This allows you to utilize some of the best software out there, and anything you produce can be tested beforehand.Their current software is locally hosted and non-custodial, providing strong privacy and security. If you are feeling a little more confident with bots, its definitely worth it to get a HaasOnline license.

Conclusion

So there we have it, you are now well-suited to choose the bot that works best for you, making trading cryptocurrency easy and profitable.

Moreover, you now hopefully understand the benefits of automation in trading, and can make the absolute most of the crypto market. With the right bot in hand, you will soon be operating like other experienced traders, making profitable trades more regularly than ever before!

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