10 Best Crypto Trading Bots for 2022 – CryptoNewsZ
Many crypto trading bots offer features that help experienced traders develop and refine their trading strategies. There are paid and free cryptocurrency trading bots available in the market, each having a huge advantage over the other.
Whether a free Bitcoin trading bot or a paid one, our comprehensive guide will delve deeper into the best crypto trading bots in the industry to help you decide the best option.
If you are participating in cryptocurrency trading due to witnessing an ever-growing trading volume on major exchanges, it requires some technical know-how; here, the best crypto trading bot can help you. We have shortlisted a list of the top 10 crypto trading bots with details to help you with your trading strategies and how to configure the bots.
Pionex is one of the most popular exchanges and offers a crypto trading bot for trading cryptocurrency available at zero registration cost. The bots allow users to automate their investing strategies so that they do not constantly need to monitor the market. Pionex uses crypto-to-crypto conversions to support manual trading, fulfilling pre-defined market conditions. In addition, the Smart Trade Terminal offered by Pionex allows traders to set up, take profit, and stop loss all at once.
Cryptohopper hosts trading services for both novice and advanced traders using cloud-based storage. It offers an intuitive and easy set-up process without requiring any credit card information. The crypto trading bot integrates a trader’s social sentiments with other investors, enhancing the trading experience and refining trade strategies. The platform’s dollar cost averaging (DCA) bots perform repetitive tasks while buying digital assets at distinctive price ranges, giving an average buying price. With mirror trading, Cryptohopper allows beginners to copy trades of experienced traders, profit from their strategies, and learn about trading.
Coinrule is a beginner-friendly trading bot that requires no technical skills. Traders can apply their existing trading rules and start trading with the backtesting feature and a demo account. Coinrule gives access to template strategies that can trigger actions as the market changes. The trade bots manage volatility without any code required to maximize profits. Coinrule also introduces new templates regularly, from stop-loss settings and long-term holding strategies to accumulation.
TradeSanta is a cloud-based trade bot designed to place orders from multiple exchanges using indicators like RSI. It offers DCA, Grid, and Futures bots that allow users to trade assets. There are three plans available (basic, advanced, and maximum plan) along with a free plan valid for 3-days.
3Commas is a relatively new trading bot that uses DCA to make trade decisions. It is a cloud-based bot supporting around 20 exchanges. Beginners can use paper trading to test their strategies. In addition to our 3Commas review, advanced traders can get their value from the Smart Trading tool, which allows trading from multiple supported exchanges and currency pairs. The crypto margin trading platform offers deal notifications via mobile apps, emails, and browsers.
Bistgap is a relatively new bot that allows automated trading with pre-configured algorithms to benefit from fluctuating market conditions and price movements. Bitsgap offers an intuitive interface that allows users to view trading easily through charts. Backtesting allows users to optimize pre-configured bots during both bear and bull markets. Bitsgap keeps funds on the exchange balance for safety and security purposes.
HaasOnline is a powerful automated bot with a backtesting engine that can draw information from upto 56 weeks of past data. Flash crash trade bot is a premier feature offered by HaasOnline, allowing traders to carry out spread orders on their chosen markets. It supports options bots, backtesting, paper trading, scalping, arbitrages, dollar cost averaging, and more. HaasOnline offers HaasScript, which is a scripting language developed for trade bots. It has custom dashboards that allow traders to monitor their market movements and trading bots.
Zignaly is a crypto trading terminal that allows users to trade automatically with assistance from external signal providers. It is extremely easy to use and can be utilized to earn passive income. With the TradingView account, users can access the market with their favorite indicators and customize their trading strategies. Users at Zignaly can fully or semi-automate crypto bot exercises. Zignaly focuses on providing a simple and low barrier to entry trade platform so that beginners can start trading.
Coinigy is a leading cloud-based crypto terminal that allows users to integrate with other exchanges and trade crypto across different platforms. Partnership with CoinLedger has allowed Coinigy users access tax reporting and file taxes on transactions. It offers pricing data, Arbitrager Matrix, portfolio management, aggregation tools, and full-featured spot trading.
Gunbot is extremely customizable but not cloud-based software and needs to be set up with a server. The marketplace offers different strategies like free, Plug & Play, profitable, and more. Gunbot regularly hosts tournaments that provide users with an opportunity to earn additional money on the side.
Crypto bots are trading software designed to analyze the crypto market and place trade orders on behalf of traders. It is an automated crypto trading bot that involves portfolio management and technical analysis. It uses algorithmic cryptocurrency trading strategies to execute them at the ideal time to capture fluctuation profit.
Automated crypto trading bots function based on algorithmic and preprogrammed trading strategies. The decisions are based on trading price movements in the crypto market and analyze prevailing market conditions, including volume, time, price, and orders. Crypto traders fine-tune the best crypto trading bot to meet their trading preferences.
To understand how the best crypto trading bots work, you must understand the different strategies and crypto bots available. The following paragraph will explain the functioning of the best trading bots.
Many traders are still in a heated debate about whether trade bots should be allowed in the world of crypto exchanges. Most bots have a set of requirements when it comes to hardware and software. There are many free crypto trading bots, while others require massive trading fees to subscribe to and use. Traders typically download a unique code from the developers of a crypto trading bot platform and follow the instructions provided there to set up their automated bot on the cryptocurrency exchanges that they have chosen to use.
As much as the best Bitcoin trading bots help BTC traders via automated trading bots, they still need to decide when to trade them. Note that the best crypto trading bots are not a get-rich-quick solution but only an automated trading solution that will win all the trades. Traders will still need to put in their effort, time, and knowledge to make profits from successful trades.
A few types of cryptocurrency trade bots can be used to execute trades automatically, and they are programmed keeping in mind specific bot trading strategies. The following are the types of trade bots available in the market –
Arbitrage refers to buying at a lower price and selling at a higher price. Traders can use different ways to perform arbitrage while trading cryptocurrencies. Arbitrage trading strategy makes profits from buying and selling on major cryptocurrency exchanges. It is independent of the performance of the market and hence, has a fairly low level of risk. It simply involves speedy and smart trading to exploit price differences prevailing in the crypto market.
The primary advantage of the market-making strategy is to help traders prevent large fluctuations and movements in prices. Market-making trading bot strategy creates liquidity, similar to the grid trading bot. Still, they perform close to the market price by creating trade orders on both sides of the order book, thereby making small profits.
In this trading strategy, the traders hold a short-term position and sell it when the price is at the peak before the crash. It is also known as the trend following mechanism, ideal for trading on a positive momentum wave with digital assets and selling them when the market’s momentum reverses. This crypto trading strategy is based on the idea that prices will rise above the expected average and then inevitably fall. Hence, entry and exit timing is vital in momentum trading, and the crypto bot can help analyze the data and determine the perfect time to sell a position.
The mean reversion strategy is an advanced bot built on the assumption that traders can revert it to the average value if a particular crypto coin’s price deviates from the average price. This strategy essentially involves a buy low, sell high mechanism. For instance, if the price of a crypto coin drops below the market average, the bot strategy will start buying, and if it goes high, it will start selling.
The main concept of copy trading is to automatically copy the trading strategies of experienced traders with just one click of the mouse. The crypto bot trading platform copies the trades, often involving a leaderboard, gamification elements, and an interactive social community. The copy trading concept is useful for beginners who are new in the trading world and do not have adequate trading skills and knowledge of advanced trading indicators, trading tools, and trading signals.
A grid bot allows traders to perform high-frequency cryptocurrency trades. Grid trading bot performs low trades at close price ranges to make crypto trading bots profitable. Grid bots are suitable for beginners as they need to set multiple grids of lower and upper-cost limits for a particular cryptocurrency. The grid bot does everything else as it makes an array of interchangeable trades and accumulates profit for inexperienced traders.
The sandwich bot strategy detects when traders place bids on a particular cryptocurrency. The bots then place higher bids on the same coin and bet the traders will still want to have the tokens. If the sandwich bot wins the coin, it immediately tries to sell it to the original bidder at a relatively high price.
Before trading crypto, it is always important to know how the free trading bots and related tools work and their features. The following features to look at before starting your automated trading journey.
There are several key features to look for in crypto trading bots and tools, especially considering their financial impact on portfolio management. Many traders wonder, “Are crypto trading bots worth it?”. To answer that, one must consider the reliability of the bots to understand their worth and use.
Since the cryptocurrency market never stops, traders can miss out on great trading opportunities if the bot suddenly goes offline. Hence, it is important to choose a bot with an excellent track record and is run by a reliable crypto trading platform. To learn about the reliability and trustworthiness of the bot, traders can go through user reviews, feedback, and testimonials.
Among all the features mentioned here, reliability and security are the most important factors. Trading bots have direct access to client funds and their trade accounts on multiple crypto exchanges to execute the user’s program crypto trade strategies. Choosing a shady or unreliable bot that does not use modern and advanced security measures can easily lead to a loss of funds.
Reliable bots are also those that have great track records of security measures. In most cases, traders must integrate their best crypto exchange account with the trading bot. Creating an API key for reputed exchanges provides relevant permissions related to trading, thereby ensuring safety.
Now, to answer the most relevant question, “Are trading bots profitable crypto platforms?“. Yes, they are profitable. Using a bot to automate the entire trading process to generate profit. The best crypto trading bots generate profits for advanced, beginners, and other traders. However, before using a trading bot, traders must conduct extensive research and look into the profitability factor, as an unreliable trading platform may not generate enough profitability for the users.
Having mobile support allows traders to monitor their trading bots easily on the go. Most bots have a mobile app that offers the same experience as the browser version, with all the required features and functionality.
Most of the trading bots we have featured in our list are free bots that allow users to automate their trades with a free trial. A free trial is ideal for beginners who want to experiment with the bots before purchasing them.
Transparency is one of the biggest factors to consider to earn profits from automated trading. A reputable and trustworthy developer with a transparent website ensures that the traders do not have to deal with mishaps like losses or hidden trading fee.
Many new traders in the crypto trading world will require the option to follow experienced traders and their own trading strategies. This feature is called social trading, which makes it cost-efficient and easy for new and inexperienced traders to benefit from profitable strategies built by professional traders.
Backtesting is an excellent feature that allows traders to test strategies against records to check how their strategies and algorithms have performed under real market conditions. Access to backtesting creates realistic simulations that consider latency and slippage. The accuracy of backtesting is mostly reliable as it pulls data from past trades. The best crypto trading bots offer backtesting tools and a robust community where traders can share their configurations with other community members.
Most bots are cloud-based. A cloud-based trading bot is for those who prioritize convenience, as non-cloud-based bots or server-based bots require traders to keep their computers or servers running at all times to avoid missing out on important trades.
Most of the trading bots mentioned in the list above have made huge investments in community developments active on different channels like Discord, Reddit, or Telegram. It is important to consider the language and the country of the trading community as regulations surrounding crypto trading are different in different countries.
While looking for the best crypto trading bots, it is also important to check out the educational content on the official website. Many bots have developed blogs, videos, and training modules to educate their clients.
Users may find it easy to execute several trades with automated trading tools. This makes reporting crypto profits and losses on taxes quite challenging. Hence, choosing a bot that has tied up with crypto tax software companies is important. This will keep users’ tax reporting stress-free and easy.
When choosing the best trading bot for crypto that makes trading decisions based on emotion-driven market movements rather than random trading strategies, traders must know how to get help with top crypto trading bots for trade. The best cryptocurrency trading bots have the following advantages and disadvantages –
Crypto bots help analyze market trends and conditions for more than one digital asset. People who are not efficient at multitasking can use trade bots for efficiency.
Bots can help place trade orders quickly. Any delays in placing orders can lead to losses and therefore, trade bots tend to be more efficient than human beings.
It is not possible for any trader to be online 24×7 and sit in front of the PC to examine investments. For this reason, trade bots are used as they run 24×7 so that traders do not miss any golden opportunity.
There are innumerable reasons why traders lose money while executing trades such as panic selling and making fear-of-missing-out purchases. Relying on automated investments or crypto bot trading can be a great advantage for such traders as they are not driven by emotions.
Trading requires prior experience and knowledge especially when it comes to using bots. Changing configurations without proper experience may lead to losses and hence, trade bots may not always be helpful for beginners.
Monitoring requires the traders’ attention, which may make the users wonder – “are crypto bots risky?” Probably not; bots may not always be useful, especially during periods of high volatility, since they are not attached to the value of funds. Without proper knowledge or skills, monitoring the market may lead to losses, especially during periods of high volatility.
Now you must be wondering, are crypto trading bots safe? Answering this question is difficult because bots execute trade orders through API access. The nature of bots and exchanges can bring unwanted risks like losing funds and phishing. Hence, traders need to be careful when it comes to security of their funds while using bots.
Bots can cost money and at the same time, they do not guarantee profitability. Hence, traders need to decide if the indicators used by the bots will bring profits before using them to automate the trades.
Although there are some down points of using trade bots, many traders have been building bots and using them to execute trades automatically. Here are a few reasons why traders want to use trading bots despite the drawbacks mentioned above–
Automated trading involves preprogrammed trade decisions that are not driven by emotions. Price fluctuations in crypto markets can lead to emotion-driven trade decisions and massive losses. Now the question arises: can you automate crypto trading? Yes, however, using preprogrammed automated bots can lead to proper trade decisions unaffected by emotion.
Users can employ different strategies while using bots as they are programmed for multiple scenarios. The most common strategies include mean reversion, momentum trading, arbitrage, market-making, copy trading, sandwich bots, and other bots.
A well-executed bot can conduct several functions, such as portfolio management, data collection, intelligent order routing, rebalancing, and more. Crypto bots should be used for –
Repeated Tasks – The best-automated can be used for repetitive tasks as it virtually copies and pastes particular tasks and conducts trades without hassle.
Timing – Timing accuracy during crypto trading is also important. The bot monitors the market and executes trades at the ideal time.
Simplifies Complications – Every trading pair must be determined carefully based on the asset quantity and price range. A wisely chosen bot can help automate impossible and complicated strategies with complete ease.
To sum up, the various advantages of trade bots have made them extremely popular in the crypto market. This has led to the development of thousands of automated bots, which has made choosing the best option a challenging task. Best crypto trading bot must consider beneficial features since they require almost zero technical skills to operate. This guide for crypto bot trading will help users to trade cryptocurrencies like a pro using automated crypto trading bots.
The best crypto trading bots are available free of cost so that beginners can start trading today. The influence of human emotions on crypto trades is drastically reduced, making trade decisions perfect and profitable. However, it is important to remember that trading and investing using bots still involves losses as they do not guarantee profits.
Yes, crypto trading bots are legal. If anything is illegal under normal circumstances, it will also be illegal for crypto trading.
Trading bots are automated software that does not guarantee profitability. There are several risks associated with automated bots. Note that these are designed for experienced and professional traders and not investors.
Yes, but one can also lose money using a bot. Knowing how the technology works is important before investing too much in it.
Yes, it is legal to use trading bots, although many have projected objections to how automated trading impacts the market.
Bots are used by traders who want to take advantage of the cryptocurrency markets without being present 24×7 in front of the monitor. The biggest advantage of using bots is that traders can enjoy automated trades and never miss out on golden opportunities.