|1. Cryptohopper||2. 3 Commas||3. Gunbot|
Investing in the stock market has often been the most popular form of passive income for most. But the word of the day has been cryptocurrency for quite sometime. These digital assets are often used for transactions, but not many understand how they have managed to take the financial world by a storm. Many still, are unwilling to accept this shift.
Cryptocurrencies are here, and they are here to stay. With the increasing interest in cryptocurrencies, it is safe to say that they are indeed a major player in the investment sphere, and even those who weren’t all too sure when it came up, are eager to take the plunge and make quick profits with it.
Although many people are not well versed in the world of cryptocurrency to immediately start making money off of them, it has come to a point where many people depend on them for at least a portion of their income and being ignorant means missing out on a huge profitable asset.
With cryptocurrencies, you can make profits in two ways. One way is by buying coins and hoarding them for a long time, or you can manually trading them continuously on the cryptocurrency market. The latter is preferred by those who do not have the required patience to wait it out. Unlike a traditional stock market, the cryptocurrency market is always awake, and this volatility is a huge risk factor when it comes to investing in this field.
While making money is a given in the field, it is still difficult for a newcomer to navigate the dynamic cryptocurrency market. This results in low to no profits, which calls for professional help. This is often realized in the form of best crypto trading bots.
Cryptocurrency Trading Bot: What is it?
A trading bot is essentially a software that analyses the cryptocurrency market’s trade data on your behalf. Signing up for one can help you make big money. The advantage of trading bots are multifold, the main one being that it never sleeps, which implies 24×7 connectivity to a market that is ever changing. In addition, you can change the bot’s factors of analysis to what you deem appropriate, basing it on your preferences.
In addition to this, the bot can make trades on your behalf based on all the analysis, making sure you don’t lose out on a trade opportunity just because you were not poring over data charts at the exact moment the market conditions were favorable. This makes you more profits, and a trade done at a right time could also make losses a bare minimum.
With a number of trading bots in the market, it is normal for users to be at crossroads, confused as to which one to choose. This guide goes through a few options, and compares the best of the best crypto bots.
Types of Crypto Trading Bots
There are a number of things to keep in mind while choosing the best crypto trading bot to carry out your trades. There are different types of trading bots, using different algorithms to analyze trade data.
Although this is a relatively old method, some bots still continue to use this strategy. It essentially involves a trader using the price differential between two cryptocurrency exchanges, buying a digital asset on one exchange, and selling on another.
2. Market Making
This comprises of continuously buying and selling a wide variety of spot digital currencies, in order to capture the spread between the buy and sell price.
3. Trend Trading
The best bitcoin trading bots in question can be trained to identify and utilize the trends of digital assets and perform trades accordingly.
While these are the primary types, there are other types emerging, with various combinations of strategy, and constant improvement always being done.
How to Choose a trading bot?
Trust forms the foundation of the entire cryptocurrency trading market, and with most online businesses. The best crypto trading bots should be chosen based on the reliability of the parent company, as this company should be trusted globally. This includes trying out different strategies and testing the bot, which has to be done by the company. A long list of satisfied clients also boasts reliability, so does a long history in the industry, as this proves that the company has been around long enough to be trusted with the nuances of the market.
All the bots reviewed here are open about how the business is run, providing their customers with all the details necessary. This is important, even if you do not know how to analyse the information, as it proves that the company is not disreputable, and there is not a chance of you being conned out of your hard earned money.
Some of these bot services offer you a free trial, so that you can utilise the bot to understand the working, and figure out if it is indeed the right fit for your needs. This also ensures that you do not spend money, just to realize that your choice is a bad fit. This also enhances your knowledge before you are willing to take a big leap of faith.
Another important factor is the company’s profitability, as the whole point of investments is to gain maximum profits. It is necessary to ensure that investing with a particular company is bound to make you profits, and although the Bitcoin market has been relatively stable over the years, it is necessary to ensure the best strategies in order to maximize your gains. This can be double checked by checking the reviews of users. The bot should not make you shy away from all opportunities that come your way, neither should it take unruly risks, I.e, it should tread the fine line, and work to your benefit.
4. Overall Experience
It is also a good idea to check out all the other features and strategies provided by the bot, as well as the indicators each bot uses, just to make sure which one fits the user.The user should be comfortable using the platform, while also properly guided. The features should give them an edge over the market, and make the most of the user’s investment.
5. Ease of Use
While most people assume that a good bot can only be utilized by programming experts, this is not the case. Those unfamiliar with the programming and IT aspect, but still interested in making a wise investment should still be able to find an easy to use bot that can understand their needs, without bringing in a sense of inadequacy on the part of the user. All the listed bots do not require much of programming background and are especially popular due to the ease of use.
The bots should be able to ensure user security, even though Bitcoin itself is a secure cryptocurrency. All companies listed here have placed utmost importance on user security. This prevents these trades from being misused, as well as any tech-based attacks on the users.
Bitcoin Trading Bots: How do They Work?
The bots in question are fed a number of parameters and indicators, along with the relationships between them, and when they come together in such a way as preferred by the user, the bot makes a trade or exchange. This tuning can be done by you, by making use of the different strategies you think are optimal for profit making in the market.
In addition, it can also depend on external signals. If the bot supports that option, making use of external instincts and knowledge to make profits for yourself. With the creator having certain knowledge on how this works, the user would be making profit from the creator’s educated guess as to how the market would function.
The best bitcoin trading bot is constantly in touch with the cryptocurrency market, making sure that trades occur seamlessly so that the user does not have to miss out on opportunities that could make a huge profit.
Top 15 Best Crypto Trading Bots 2020
Cryptohopper is a relatively new player in the trading bot sphere but is it picking up quite fast, because of its unique cloud-based functioning. This ensures connectivity to the market, even when the system is off.
This bot also allows users to gain insights from external signalers, which is a boon to newcomers, who do not have the time to pick up the entire market scene before making trades. This also allows the users to leap into the market without too much fear, as their trades will be based on signals coming from a wide range of sources, depending on a lot of indicators. Not only this, experienced traders can customize their strategies to the required indicators, tuning it to their instincts.
In addition, Cryptohopper gives users the chance to back test, paper trade etc, which is based on practicing on real data, to make sure your strategy is the best it can be. It supports multiple exchanges, which makes for great user experience.
With a free one month trial, and reasonable prices, users can upgrade to Bunny, Hare and Kangaroo, priced at $19 pm, $49 pm and $99pm, as they see fit.
Offering an edge, 3Commas provides a trading bot which can meet the demands of the volatile cryptocurrency market, which is something that was deemed impossible. Users have maintained that this bot has helped to make money, even with the bearish trend in the market, which has been particularly hard to make money in.
The bot supports around 13 different crypto exchanges, which is great for users, allowing them to play around with their resources. 3Commas bot provides users with a unique advantage, a feature called trailing losses and trailing profit. Rather than setting a hard limit for when to stop and perform trades, the 3Commas bot allows your coins to be sold at a point of maximum user profit.
This makes the bot easily adapt to changing market conditions, making it a perfect fit for the current condition of the cryptocurrency market. In addition to this very important feature, 3Commas also provides the usual features available with all bots, like stop loss, automatic trade and take profit.
The bot makes sure it is always available, with the help of its online connectivity, so that you are always in touch with your account. It provides a number of management tools, giving you a great amount of control, and it works in conjunction with a large variety of devices and exchanges.
It boasts over 33000 users who trade using the bot, and the multi-exchange support helps users to stay tuned to the different orders on various exchanges. This helps the users develop well-informed decisions about their trading behavior.
In addition, it provides users with 4 different types of bots: Short, Simple, Composite and Composite short. 2 factor security is optional, and other security features are not made very clear on the website.
It also provides a trader’s diary feature that helps users keep track of their trading practices, as well as profits and losses, for future purposes.
Gunbot has won over a lot of hearts with its innovative features, and multiple readily available strategies, which include Bollinger Band, which has raked in the best reviews so far, Ping Pong, and Step Gain. The bot has varying plans of three ranges, going from 0.1 Bitcoins to 0.3 Bitcoins, and it supports many exchanges, like Poloniex, Kraken and Bittrex, among others.
The only disadvantage is that the bot requires human monitoring, as when the volatility spikes in the market occur, users are required to turn the bot off.
This is a deal breaker for many, as it puts undue pressure on users to constantly monitor the bot, beating the whole purpose.
Zignaly, a recent development in the trading bot arena, is a crypto currency trading bot based in Spain. With its unlimited coins, and cloud based system, it is considered to be safe and secure by its users, although it is still in the beta phase of development.
It allows users to trade using external crypto signals, allowing users to make use of external instincts to make trades. In addition, it allows connectivity with TradingView. This is a huge plus for users, since it makes sure they can use preferred indicators, and a trading terminal that is equipped to build a full blown trading strategy from scratch, that can be customized to suit your demand.
It has gained the trust of its users, and has an expanding band of users. It does not make tall claims, and has built up quite a good reputation.
The cloud based bot solution makes sure that the user need not bother about updating softwares, or face any issues with respect to accessibility. The system works 24×7, and you can check into your account, anywhere, anytime.
Zignaly also puts together trailing stop loss, and this ensures that you gain maximum profits, and minimum losses, while investing in crypto currency.
There is also provision to trade any currency pairs, making it truly a worthy choice.
You can either project your signals, or use reputable third party signals, ensuring that you have multiple sources of information. With all this, Zignaly promises a safe and secure environment.With a beta mode still in progress, the membership is priced at a nominal $9 for early adopters. The Zignaly bandwagon is worth jumping into early on, as it is bound to prove to be useful in the long run.
In addition, Zignaly boasts full transparency, with the site providing all relevant information on the team and founders, so that users can connect directly with the concerned people.
The support system is a huge plus for ZIgnaly, as direct developer interaction makes for a responsible team. In addition, Zignaly’s Binance platform is soon to expand to include Bittrex, Poloniex and others in the future.
The educational library that Zignaly provides also enables newcomers to familiarise themselves with the market, makes them fit to create their own account, custom provider, integrate with platforms like TradeView and MiningHamster, and also configure their profile settings. The FAQ session also covers a lot of ground, making Zignaly very appealing to users.
One of the very few free to use trading bots, Gekko is an open source node.js based software, that allows users to tweak it to their convenience. It is based on the local systems, and all it requires are API keys for starting up the system. It involves market analysis and trades when conditions are favorable, but it requires some amount of knowledge about the market and its analysis.
Although built in strategies are available, it is advised that users customize them for good results. With Gekko, updates, software issues, and hardware issues are the users’ liability, and the Gekko bot clearly does not allow media to influence its decisions. This is a let down, as media is a factor in influencing trades, and this might have proved to be valuable to users.
However, the Gekko bot does keep users in the loop via social media plugins to message them about trades and current conditions, for example, via Telegram.In addition, it provides a great visual appeal, so that users can visualise the trades, profits and losses, which is an attractive feature.
With it supporting most major operating systems like MacOS, Linux, and Windows, it does have a reasonable user base, but it does not perform high-frequency trades, and it cannot execute arbitrage trades. While the software itself is easy to use and setup, it is continuously being updated by a large online community, and newcomers might find it hard to keep up.
With a very easy to use user interface consisting mostly of drag and drop blocks, Kryll makes it very easy for newcomers to take the first step into the world of cryptocurrency trading. These can form strategies ranging from the most basic to the highly complex, depending on the user. It is entirely aimed at those who do not have programming experience, and it is a constantly evolving platform, with new functionalities on the way. Testing is made very simple, by using data from 4 years to a minute back.
Referral programs and publisher modes make the user eager to expand this platform, and the low fees is a definite bonus.
Zenbot is based on an open source system, and its main definition is as an online natural language processing (NLP) service. It is free to use, and calls for its online developer community to modify and update the code as per their requirements. It is well known for its NLP interface, and allows for multi-currency support. With an artificial intelligence history, Zenbot is free to use, like Gekko, but has the added advantage of being able to do high-frequency arbitrage trades, with the help of large scale market analysis. In addition, it supports multiple cryptocurrency trades simultaneously, which is a huge bonus.
With its Node.js and MongoDB platforms, it also supports exchange programs like Gemini, Quadriga, Bittrex, Kraken, Poloniex, and GDAX.
While this is an all in one bot framework, it also doubles as a natural language engine, which does not require a server or database for interaction with other bots. It has a highly developed analytics feature, with statistics being stores in any of the major analytics tools like Google Analytics, Mixpanel, Botanalytics etc. In addition, it is connected to a variety of messengers, keeping users in the loop via Facebook messenger, skype, slack and so on. In addition, Zenbot bases its trades on pattern matching, rather than the widely used machine learning algorithms.
The only cons arise from the low frequency of updates, and entirely console based structure and functionality of Zenbot, which might be a bummer for certain users. Accessing new information is very difficult, as Zenbot does not update as frequently as its competitors. This makes users stand far behind in making profits.
A very old name in bitcoin trading, HaasBot was developed by HaasOnline in 2014. The bot supports a number of exchanges, like Bitfinex, Poloniex, BTCC, Huobi, Kraken, Gemini and GDAX. While it does a good job at market analysis, user input is required to take any further action based on these insights. The prediction part is taken care of by Haasbot, and it is priced at 0.32 Bitcoins for every 3 months of use.
9. BTC Robot
One of the trendsetters of the automatic trading craze, BTC Robot is a bitcoin trading bot, which can run on most major operating systems, with different plans for each platform. However, users have found that the platform is a bit challenging to use, although it offers a great 60 day refund policy, with a trial period.
10. Crypto Trader
One of the most popular bots for trading, this part cloud-based solution does not require a local system to run, and can be tuned by the user for his profit. With algorithms that can be made in a few minutes, it is especially preferred by newcomers, due to the presence of testing features like back testing. The strategy market feature is a huge plus, allowing users to trade not only cryptocurrency, but also your strategies.
With zero software installation, and major Bitcoin exchanges all being supported, it is a quick solution to the cryptocurrency market.
With a constantly changing feature set, Leonardo is a new bot that is supported by exchanges like Huobi, OKCoin, Fitfinex and Bittrex.Equipped with two trading strategies, namely Margin Maker and Ping Pong, is is a fully customizable, well designed platform, with amazing graphical displays. The bot is available with a lifetime license, for $129
Boasting an impressive title of the world’s first decentralized AI Trading platform, Autonio uses the wealth of knowledge it has gained from Wall Street traders, with a single goal of “disrupting the status quo”.
With multiple indicators like Relative Strength Index, Bollinger Bands, Ultimate Oscillator, and EMA crossovers ebing analysed, the bot creates signals for buy or sell, followed by actual trades being made.
Users can link the app to their preferred exchange by way of APIs and the bot is priced at a monthly subscription fee of $50, in addition to a registration fee. Users can decide the frequency of trades, personalize their trading strategies as they see fit, and share AI optimisations through NIO coins. All these are protected by smart contracts. It also encourages innovation among traders by showcasing the “Official NIO Trading Championship Leaderboard” for the best optimisations.
In addition, it supports features like back testing, to allow users to see how their strategies would fare in the live market.
The main aim of Autonio is to bring mediocre traders into the mainstream, giving them the confidence to trade alongside professionals.Users can even sell their consultation time, and Autonio is available for a number of OS’s and an android application for a wide reach. The user control is a huge win, as it makes uses a part of the decision making process, without putting undue pressure on them, allowing them to learn a their own pace, and gain confidence in how the trade works, and how the market evolves.
CoinBot is an autotrader with tall claims of 30-50% return to investor on a daily basis. Built entirely on open source code, it is widely used and its referral program has ensured a widespread. This cloud-based platform allows 24×7 connectivity, and users can tweak the program to meet their demands, choosing between aggressive, balanced and conservative strategies to make trades.
CoinBot also gives users the option to purchase 3 add ons, Telegram Assistant, Arbitration bot and Social Analyzer.
However, it is wise to proceed with caution, as a number of users have raised concerns about CoinBot being untrustworthy. In fact, some have even called it a scam, claiming to have lost money with the trading platform.
Margin.de replaced Leonardo trading bot after the shutdown of BTC-E exchange in 2018. This ensured a smooth transition for users from the interface of LeonArdo, making for a seamless experience, adding more features to make sure that the users were comfortable in using its effective clean layout, newer strategies, and better security systems.
With three major packages being offered by Margin, the starter pack for $89, Standard pack for $169, and Professional Pack for $1999, you can choose your pick easily based on your demands. With a basic pack supporting single exchange, to maxed out pack offering support for all exchanges with unlimited balance, users are free to pick and choose.
Offering great visual trading, and drag and drop facility to make trades and handle strategies, Margin offers users a delightful spread.
APIs stored on the servers are encrypted, and only part of the whole deal, making it virtually impossible for hackers to compromise your security. Funds are not stored on servers in order to prevent any misuse in case of a security breach.
The easy customization provide a refreshing terminal for users, that is made according to their preferences and visual appeal.
15. Crypto World Evolution
Usually referred to as one of the best designed high-performance bots, CWE is highly profitable, and well liked. It removes money from exchanges and accounts on its own, using API keys, but this feature can be stopped by users in case of any security concerns. The number of trades is also controlled by the user, and trades can be done automatically in accordance with your algorithm, or manually. On average, the bot provides a 2% profite per day, which is reasonable high.
16. USI Tech (SCAM ALERT)
This platform is often reported as a scam, and users must beware of carrying out trades using this bot, as it seems like a typical Ponzi scheme.
Go With the Best
A large number of people were initially hesitant about cryptocurrency and its trading, but now there is a gradual shift. There are a lot of firms and individuals willing to adapt to this, and invest in cryptocurrency, as they see a big future in the cryptocurrency market.
We have to get used to the fact that the cryptocurrency wave is here to stay, and adapt to the needs of the future. Anyone with a reasonable amount of interest can engage in Bitcoin trading, and the initial wave of apprehension for newcomers will die down once they take the leap of faith.
With such a wide number of resources available, it would be a shame if one was not up to the mark in following these resources and figuring out all the factors that make the market tick. Even if one does not know that, it is imperative that people know at least the basics of this growing field. One can only learn by doing, and it is important to start somewhere. With so many options, it is not even necessary that one have a very good knowledge before making your investments. A good portfolio can go a long way.
With such a large number of trading bots and options available, it is highly important to take your pick and jump right in. While reviews and research is important, it is only when you go all in and try your luck that you find what is right for you.
Advantages of Crypto Trading Bot
One may very well ask why to invest in automatic trading when users can make trades manually. Well, here are a few advantages of using trading bots.
The use of trading bots takes out the chance of human error, which in turn, increases profits and gives greater accuracy as far as visible results are concerned. The continuous market interaction that these bots facilitate allows users to go about their day without worry, making sure they can carry out daily activities, and have the bot do all the hard work for you. This makes it a truly passive source of income, and gives you enough control to make decisions based on different assets in different markets.
The large number of mechanisms and strategies made available make it a process that covers a lot of bases, making sure that you have the opportunity to find the most efficient solution, among different indicators, algorithms, and cryptocurrencies and exchanges as well. This also allows for larger number of right trades, thereby improving the efficiency of trading, as well as your portfolio.
With faster calculation,the bot can save a lot of time. A human user would have to spend a lot of time going through graphs, charts and so on, processing the information, take breaks, do complex calculations, and then come to a conclusion. A bot does not face these challenges, and can often take better decisions in nanoseconds. In addition, bots can respond immediately to any changes, especially when prices are fluctuating very frequently.
They also eliminate tiredness after doing major work, and can work at the same speed at the end of the day as they were at the start of the day. With dynamic conditions of the market, quick response can build or break portfolios, and this is a race a human can never win against a bot.
3. Emotions and Instincts
The trading bots base their trades purely on logic and algorithms. They do not base their trades on “feel-good” instincts, or emotions, which can often cloud the judgement of a human trader.This makes it easier to stick to the algorithms and plans, as the decisions are directly based on orders that come after passing the existing indicators through a thought out algorithm. The bots do not get tired, or frustrated, neither do they second guess themselves before taking a major decision, which saves a lot of time and effort. This maintains a great deal of discipline, ensuring that the portfolio of the user has the best possible returns.
Many bots allow users to do backtesting and paper trading, which gives the users a feel of the market, and different strategies before they go all in. This minimizes risk, and makes for good trading practices.
Diversity in trading can be ensured by use of multiple exchanges and currencies, which handle variety of strategies, indicators, and algorithms.
Disadvantages of Crypto Trading Bots
While the advantages associated with them are numerous, there are risks associated with using trading bots, and it is vital that users identify these problems, and find adequate solutions for these inconveniences to have a god trading experience that makes great profits, and learning the ways of the crypto market.
1. Not Beginner Friendly
Newcomers Might face major issues while using trading bots. While people say that it is safer for newcomers to start out with automated bots, it also takes away the opportunity to learn new tips and tricks about the market, which only the traditional methods of manual trading can provide.
Since novices using automated bots tend to leave the trades to the bot, they tend to not make major mistakes, thereby not learning trading as a whole.
2. Considerable Capital Required
These bots tend to be expensive if one wishes to opt for a long term use. This might put a number of people off trading bots.
3. Prone to Software Bugs
Since there is always a risk of failures of many kind, both hardware and software in nature, as well as faults at the hosting end, there is always a need for human monitoring in practicality. Ideally, it is an entirely automated system, but running it often requires human help, which could lose orders, ruin trades and so on, with just a poor internet connectivity.
4. Security of Funds
Security is always a concern, as bots could be hacked, and information and personal details might be compromised and sold to third parties, which could compromise individual and financial security of both the users, and the parent company. Most bots do not make compulsory 2 factor authentication, and many do not make their security measures clear, leading to major doubts about the whole security aspect of these trading bots.
5. Over Automization
Over optimization, or over fitting, with the perfect plan, may prove to be disastrous in a real trading scenario, which could cause huge losses.Traders must realize that a 100% perfect strategy will never work in live markets, and this curve fitting process would prove to have very bad consequences for your portfolio.
Comparison of the Best Crypto Trading Bots
All that being said, it is up to you to form a list of your needs, and thereby make sure that you choose the best bitcoin trading bot. It would be wise to make use of the free trial to figure out the best for your needs, and then come to the right conclusion, to make an informed decision. Happy Trading!