Nowadays, cryptocurrency is a popular investment option worldwide. The market is volatile and there are several risks associated with trading, but the rewards are also great. This is why people look for profitable trading occasions through which they can establish a steady source of passive income.
It is not possible for everyone to rigorously analyze the market and study charts throughout the day. This is the reason why many individuals are now taking the help of trading bots that are capable of trading on autopilot. However, it is not always easy to determine whether a robot is efficient or not. Therefore, in this article, we have highlighted some of the top options in the market.
Crypto bots and their role for traders
Crypto bots are programs that are built on preset algorithms. They are responsible for submitting long and short trades to exchanges once a set of conditions is satisfied. Many traders are prone to making emotional decisions and this can ruin profit-making opportunities. Unlike a human trader, a bot does not trade based on impulses. It is meant to grow the account and mitigate losses. Additionally, it can run 24/7 without pause.
Common types of crypto bots
Let’s look at the different types of systems in this category:
These bots perform a set of operations by buying and selling the same crypto amount at the same time from different exchanges. This way, it tries to capitalize on the difference in exchange rates. Such is the nature of the trade that the crypto amount on both exchanges remains unchanged.
Algorithmic trading bots
These systems run on the basis of algorithms that tell them when to buy, sell, or hold assets. They use the power of artificial intelligence to make informed decisions. Since they remain active 24/7, there are no chances of missing out on trades.
Grid trading bots
These bots place a series of long and short trades at preset intervals within a fixed price range. This way, they create a grid of orders. They are most effective in markets where the prices fluctuate quite frequently.
Market-makers supply liquidity for a crypto asset by submitting both bid and ask limit orders on exchanges. They earn profit by collecting the bid-ask spread over several orders.
Why are crypto bots so necessary for trading cryptos?
You might be wondering “are trading bots profitable?” These systems analyze market data, forecast risk, and place buy and sell orders based on their calculations. They monitor the market 24/7 and place orders when the conditions are satisfied. The majority of bots connect to exchanges using secure API keys. For making their decisions, they also analyze historical data. This way, they make informed decisions and generate steady profits.
Crypto bot strategies
Let’s look at some of the popular bot strategies:
The main idea behind this trading approach, is that the asset’s price will return to its mean value over time. Here, the best option is to take advantage of the price ranges occurring after a major rise or fall. Essentially, it involves trading around the central value.
While using this strategy, traders try to take advantage of the minor price differentials for assets across various exchanges. It is a relatively risk-free strategy. You don’t need several years of experience behind you to start arbitrage trading.
Here, traders focus on the short-term price shifts and try to capitalize on market volatility. They use various indicators like candlestick patterns, RSI, and MACD to forecast trends. The main idea is to buy when an uptrend is detected and sell at the highest peak prior to the fall.
Natural Language Processing
This technique is used to ascertain the market sentiment by analyzing news releases, newspaper articles, and social media posts. Financial releases impact the price of pairs and NLP is useful for going through multiple sources in a short time.
Are crypto bots legal?
Yes, it is completely legal to buy a trading bot. Most developers test their bots before releasing them. Nevertheless, some brokers do not allow users to trade using automated systems.
Are there any risks with trading crypto bots?
There are some inherent risks with automated crypto trading. Your bot account might be accessed by a hacker and they might steal your API keys. If the algorithm is erroneous, you will make losses instead of profits.
Positives & negatives
Here are the advantages:
- Eliminating emotional decision-making: Due to the highly volatile nature of the crypto market, emotion-based decisions can be disastrous. Bots can eliminate emotions from the trading process.
- Highly efficient: These systems can perform multiple tasks at the same tide, unlike human traders.
- Suitable for beginners: Novice traders might not be able to analyze price charts and market data. Robots can do the heavy-lifting for them.
Let’s look at the disadvantages:
- Limited assets: A cryptocurrency robot is programmed to work on a few assets only.
- Technical issues: When the code is unstable, the program can crash or lag, thus affecting profits.
10 of the best crypto bots for 2022
Comparing the best crypto trading bots
|Trading bot||Key features||Price||Trial period|
|Pionex||16 free in-built trading bots, 0% commission for buying crypto, trade using USD||0.05% fee||No|
|CryptoHopper||Powered by artificial intelligence, backtesting, and paper trading, strategy designer||Free||7 days|
|TradeSanta||Mobile app, spot, and futures trading, pre-set bot templates||$15/month||3 days|
|Bitsgap||Portfolio management, demo trading, 2-factor authentication||$29/month||7 days|
|Quadency||Over 1500 crypto assets, portfolio analytics, integrated market-scanner||Free||No|
|3Commas||Bot presets, advanced analytics, 18 exchanges supported||Free||3 days|
|Coinrule||Strategy tester, 150+ trading rules, trigger actions||Free||No|
|Trality||Rule builder and code editor, fast backtester, cloud-based||Free||No|
|HaasOnline||Cloud-hosted, 25% commission for referrals, scripting language for developing bots||0.009 BTC||14 days|
|Zignaly||TradingView signals, copy trading, SAFU fund||Free||No|
Pionex offers 12 different trading bots for its users. They use various strategies like Arbitrage, DCA, Leveraged Grid, Reverse Grid, Margin Grid, and Grid. While some of the bots require a minimum deposit of $100, others let you get started for just $20. There is no heavy fee to be paid for using this platform. You can simply download the program for free from the official website.
Pionex aggregates liquidity from top exchanges like Binance and Huobi. It has a Money Service Business license from FinCEN and several companies like Gaorong Capital, Shunwei Capital, and ZhenFund have invested in it.
- Low minimum investment
- Vast community of traders
- High trading volume
- Lets you purchase the price dips
- 15-50% APR for Arbitrage bot
Pionex: reputed trading bot with low commissions
|Community support via Discord and Telegram||No support for fiat currencies|
|Low trading fees||No custom strategies|
|No monthly subscription|
Pionex has been covered by several well-known media outlets. It is a licensed platform offering pre-built bots in exchange for a small trading fee. This makes it suitable for newcomers.
This is an AI-powered bot that trades 24/7 on autopilot. Its parent company is based in The Netherlands, and it supports 15 top exchanges. It is a secure platform that uses 2-factor authentication and supports Google Authenticator and YubiKey. You don’t need to be an expert to get started with this platform. You can purchase strategies and bot templates and subscribe to signals thanks to the social trading feature.
CryptoHopper has DCA bots that let you double or triple your investments. You can create customized triggers for the bots to take action when there is a major market event. Also, you can test your strategies risk-free in a simulated environment.
- Custom sell orders and notifications
- More than 50% trading commission through referred affiliates earning
- Strategy designer for building custom strategies
- Paper trading and backtesting
CryptoHopper: high-rated bot with cheap paid plans
|Educational resources||Free plan offers limited features|
|No additional fees|
This is arguably the best crypto bot in its price range. It has a lot of advanced features and ready-made strategy templates you can choose from.
TradeSanta is a website and app that was launched in 2018. This platform is extremely easy to use since it lets you carry out trading operations using a mobile app. You can set this system up in just ten minutes. Prior to investing real money, you can use a demo account to test the effectiveness of the strategy. These robots use API keys to connect to exchange accounts, and they don’t have permission to deposit or withdraw money.
The unique aspect of this platform is the referral program through which you can earn a 20% bonus. It is one of the few systems that allow trading with leverage.
- Risk management features like stop-loss, trailing stop-loss, and stop signals
- Demo accounts for testing
- Futures and spot trading
- Signals based on Bollinger Bands, RSI, and MACD
- Create bots from scratch
TradeSanta: versatile platform with cheap pricing plans
|Affordable plans||Short trial period|
|Readymade bot templates|
TradeSanta lets you create bots using your own configurations as well as copy the templates created by others. Thus, it is suitable for both novice traders and experts.
Bitsgap lets you conduct cloud trading 24 hours a day, 365 days a year, across more than 25 supported exchanges. It has portfolio management features that let you view the live performance of your digital assets. Thanks to the free exchange simulator, you can practice trading without taking any risk.
Here, you can integrate TradingView charts to make more informed trading decisions. There are multiple in-built strategies you can choose from. Alternatively, you can build your own. You don’t need to download any software programs since this is a cloud-based platform.
- Multiple order types
- Pre-built trading strategies
- Compatible with over 25 exchanges
- Smart strategy design
- 7-day free trial
Bitsgap: new crypto platform with advanced tracking features
|Demo trading functionality||Expensive plans|
|Data import from multiple exchanges|
|Helpful knowledge base|
Bitsgap has one of the best portfolio management systems, and this lets you monitor your portfolio on autopilot. The platform has high-end security and supports different types of orders. However, the pricing plans are not too cheap.
On Quadency, you can trade in over 1500 digital assets through one platform. It has a portfolio analytics feature that lets you get the complete performance breakdown for live and historical performance. You can view your asset allocations and PnL reports. Thanks to the deep insights offered, you can make more informed decisions.
The popular trading strategies on this platform include Accumulator, Grid, Portfolio Rebalancer, Market Maker, Market Maker Plus, and Smart Order. You can also execute custom strategies by defining alert conditions. The smart contracts of Quadency have been audited by Zokyo, and security issues were detected.
- Intuitive user interface
- Offline wallets for tracking performance
- Advanced charting tools
- API key encryption
- Experienced team members
Quadency: highly secure platform offering premium trading bots
|Customizable trading interface||No margin trading strategies|
|Integrated market scanner|
This platform supports a large number of assets and lets you keep track of market shifts in an efficient manner. You can customize the layout of the interface based on your preferences. Last but not least, it is completely free.
3Commas is a crypto trading bot that has trading strategies for different market conditions. The bots available on this platform reduce the average acquisition cost while enhancing your profit margin. With the DCA Short and Long bots, you can take advantage of Bear and Bull markets, while Grid bots allow you to trade in Sideways markets.
Thanks to the smart trading terminals on this platform, you can set your trades to initiate based on specified triggers. If you are not sure where to begin, there are bot presets designed by experienced traders that you can copy. It is also possible to copy trades automatically by integrating signals.
- Portfolio investment tool
- Trading terminal paired with TradingView indicators
- Short, medium, and long term strategies
- 18 exchanges supported
3Commas: commission-free platform with advanced portfolio features
|High-end security features||Lack of information on parent company|
|Large number of compatible exchanges|
No matter your trading level, you can work easily with this bot. There are bots for different markets, and the dashboards tell you exactly how your live trades are performing.
Coinrule is a free crypto trading bot platform, but it has paid plans for advanced users. Here, you can build automated trading rules and find market indicators that allow you to allocate your funds in an intelligent fashion. There are over 150 rules to choose from, in case you don’t have the technical knowledge to build one on your own.
The parent company behind Coinrule is quite transparent, and the platform works with over 10 popular exchanges. It offers military-grade security, so you don’t need to worry about the safety of your funds.
- Extensive Knowledge Base articles
- Strategy testing based on historical data
- Over 150 preset trading rules
- Trigger actions based on market shifts
- Advanced operators and indicators
- TradingView integration
Coinrule: secure bot offering multiple advanced strategies
|Advanced indicators and strategies||Mobile app not available|
|No withdrawal rights|
Coinrule offers a wide range of plans for different types of traders. Beginners can get started with the free plan and strategy templates that require no coding skills. The paid plans come with advanced features that are suitable for pro traders.
Trality is an Austria-based platform that has been featured in renowned online media outlets like The Cointelegraph, Investing.com, Trending Topics, and Der Brutkasten. The unique aspect of this platform is its creator tools. Python developers can use the code editor to build advanced trading bots and backtest them to gauge their effectiveness.
Trality also has a rule builder where you can use Boolean logic to arrange technical indicators and build your own strategies. This platform has a daily trading volume of over 10 million and more than 80k verified users.
- Cloud-based platform
- Official exchange APIs used
- End-to-end encrypted strategies
- Multiple ways to build trading bots
- Virtual accounts for paper trading
Trality: cloud-based Bitcoin trading bot with flexible rule builder
|Paper trading for validating strategies||Only four exchanges supported|
|Free plan with high trading volume|
Trality only supports four exchanges, so if you are someone who likes to store their assets on different exchanges, it might not be for you. That being said, it lets users build strategies effortlessly and has some of the most affordable plans.
HaasOnline has all the necessary tools for it to be deemed the best cryptocurrency trading bot on the market. Building automated strategies on this platform is easy. You can select visual blocks to form a vast library to create indicators and custom strategies.
HaasOnline has a high-end scripting language known as HaasScript with more than 600 commands. On this platform, you can mitigate risk using simulated trading. You can also earn Bitcoin by referring friends.
- 23 top exchanges supported
- Zero trading commissions
- Advanced scripting language for creating strategies
- 25% commissions for referrals
- Cloud management in a secure environment
HaasOnline: advanced bot with high-end strategy builder
|Wide range of strategies||Not suitable for beginners|
|Transparent parent company|
|Detailed trade and position logs|
HaasOnline is a platform for pro traders and advanced users who can build their own strategies using scripting languages. It lets you tweak your strategies based on changing market scenarios.
Zignaly lets you automate your trading process using crypto signals. You can also copy the trades conducted by others in exchange for a monthly fee. There is a profit-sharing model through which you can invest in individuals performing well in the market. This system lets you conduct trades using signals sourced from TradingView.
While conducting trades, Zignaly uses trailing stop losses. It also has DCA-based rebuy strategy options. Copy-trading on this platform is based on a high watermark model. You can start small, and a fee needs to be paid only when you make profits.
- SAFU fund protecting your investment
- Database in secure DMZ
- 2-factor authentication
- Copy trades of more than 80 pro traders
- Free service with unlimited coin pairs and positions
Zignaly: free platform with a high trading volume
|Profit-sharing model||Supports a limited number of exchanges|
|No minimum investment amount|
Zignaly lets you minimize your risk by diversifying your portfolio and copying the trades of several individuals. It is easy to get started with this platform, and there are no hidden fees. This is one of the few systems that secure the user’s funds.
Best crypto bots summary
After going through this article, you should have a clear idea about the best crypto trading bot for your trading objectives. If you are a novice trader, it is better to get started with a pre-built strategies system. Remember always to test the performance of your trading systems using paper trading. Trading bots can be a great way to explore the market while being assisted by advanced tracking tools.