Take your crypto trading to the next level with the help of these highly efficient and reliable crypto trading bots.
The crypto market is constantly changing with new digital currencies and price fluctuations every day. To stay ahead and make informed trading decisions, many investors are turning to crypto trading bots. These bots solve some of the biggest problems with crypto trading, including the emotional element and time-consuming process of opening and closing trades. Crypto trading bots can completely automate the trading process and find strategies with the best trades.
Benzinga’s guide for beginners will help you learn more about crypto trading bots and introduce you to some of the best out there right now.
Quick Look: The Best Crypto Trading Bots
What is a Crypto Trading Bot?
A crypto trading bot is a computer program that buys and sells cryptocurrency based on a predetermined set of parameters. It allows you to take a trading strategy you like and automate the time-consuming act of manually opening and closing the trades.
Most bots allow customization options so you can tailor the trades to your specific investment goals and risk tolerance. Some of the main customization options include stop loss levels, take profit levels, maximum amount to invest per trade and which indicators to consider when opening and closing trades.
How do Crypto Trading Bots work?
You give access to the bots to trade your funds. This is usually done through an account on a platform that supports bots or has some of its own. This allows the bot to buy and sell tokens for you based on the specific strategy you want to use.
For example, if you open an account with 3Commas, you can fund the account and allow a bot to trade for you. Say you want to trade a strategy that buys a signal when the relative strength index (RSI) is below 30, which means it may be oversold. Once the RSI goes below 30, the bot will automatically place a buy order for a specified amount of your portfolio, such as 1% of your portfolio. Once the exit parameter is met – the stop-loss or take-profit level – the bot will automatically close the trade.
7 Best Crypto Trading Bots
Before you get started, it’s important to do your research and find out which bot is best for crypto trading. There are many options on the market right now, find a crypto trading bot that matches your goals and risk tolerance. Here are our top picks for the best crypto trading bots in 2024.
1. Best for all skill levels: 3 commas
3Commas is a crypto trading platform that provides tools for both beginners and experts to become profitable traders. It offers educational resources, a dashboard to track exchanges and a library of bots and algorithms. 3Commas allows you to connect various cryptocurrency exchanges, such as Coinbase and Kraken, to its application programming interface (API), allowing you to view your portfolio and access trading bots. This makes it easy for beginners to set up and start trading. Moreover, it has almost 3000 bots to choose from. The platform has affordable plans and an intuitively designed interface to set up and adjust trading parameters.
2. Best for Advanced Technical Analysis: Learn2Trade
Learn2Trade is a valuable platform for anyone who wants to learn how to trade cryptocurrencies. With its educational resources, trading signals and community support, Learn2Trade can help you navigate the complexities of the crypto market and start making profitable trades. Moreover, Learn2Trade considers all market conditions for its advanced crypto trading bot. Using technical analysis and live market sentiment analysis, the algorithm searches for the most profitable trades throughout the day. It also offers signals, copy trading and a variety of other asset classes.
3. Best for High Volume Investors: Pionex
Pionex is a cryptocurrency exchange with built-in trading bots. It is one of the most powerful crypto platforms available, offering more than 15 unique trading bots. These bots allow you to automate your investment strategy so you don’t have to constantly monitor the market. The bots also allow for a lot of customization and have low fees for each trade. In addition to trading bots, Pionex also offers a wide range of cryptocurrencies for users to trade, including popular options such as Bitcoin, Ethereum and Litecoin, as well as lesser-known altcoins. The platform also supports a variety of trading pairs, allowing users to easily trade between different cryptocurrencies.
4. Best for businesses wanting cryptocurrency exposure: Iconomi
Iconomi is a crypto trading platform that offers accounts for both individuals and businesses. Setting up an account is easy, and there are tons of learning resources available on the site. The platform also offers a strong social aspect, allowing users to share strategies and get referral bonuses. With its diverse range of assets, expertly managed DAAs and emphasis on security, Iconomi is a great option for those looking to get started in the world of digital assets.
5. Best for Copy Trading Investors: Cryptohopper
Cryptohopper emphasizes technology with its platform. It uses cloud computing to allow its bots to run 24/7 and place trades when your device is offline. It also has a social trading platform, which allows users to communicate via an internal chat, receive trading signals and trade bot templates. This can be a great way for novice traders to learn from more experienced traders and potentially improve their trading results.
6. Best for low cost: Coinrule
Coinrule is a cutting-edge platform that allows users to create automated cryptocurrency trading strategies. It puts the emphasis on its free offers. Users can backtest strategies, create bots and interact with others for free. It also has paid plans with a low monthly fee and a small portion of the traded volume. Coinrule’s user-friendly interface makes it accessible to both experienced traders and beginners. The platform offers a range of pre-set templates for those new to algorithmic trading, as well as advanced customization options for more experienced traders.
7. Best for Derivatives: Phemex
Founded in 2019, Phemex offers a variety of trading options for users looking to buy, sell or trade cryptocurrencies. Phemex has AI bots for futures trading, which allows traders to gain leverage on their trades. It offers over 600,000 bots from nearly 200,000 bot traders. These bots can be sorted by various parameters to find the one that suits you best. All the bots are free.
Benefits of Using Crypto Trading Bots
Automated investing: Most traders understand how big of a role emotions play in investing. However, with trading bots, the emotional aspect is completely taken out of the picture and can lead to much better risk management. Increased efficiency: Trading can be very time consuming as it takes hours every day to comb through the markets and look for opportunities. However, the bots allow you to do other things and let the bot take care of the trading. Diversification: Bots can use a variety of strategies and can often be customized to support different needs. This can help diversify your portfolio and spread risk. More time on the market: Unlike the stock market and the bond market, the cryptocurrency market operates 24/7. Crypto trading bots give you additional hours of exposure without having to actively monitor your positions.
Disadvantages of Using Crypto Trading Bots
Prior knowledge: Using bots requires prior knowledge of crypto trading to determine which bots will work best for you. The adjustment settings can also be very sensitive, which can be a problem for a beginner. Constant monitoring: Because the crypto markets are extremely volatile, you need to constantly monitor your bot to make sure it doesn’t lose money quickly. Lack of human judgment: While eliminating human emotion can be a good thing, it also means that bots cannot interpret the context of a trade, which can lead to poor trading decisions.
Bots for both beginners and advanced traders
Bots offer a unique opportunity for beginners to learn about markets through paper trading and backtesting, as well as a chance for advanced traders to make the most of their knowledge. This new technology is also constantly improving, hoping to bring the most profitable bots to traders around the world.
Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across various Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the sign-up fee), rewards from Coinbase Card and wagering rewards. ³Crypto Rewards is an optional Coinbase offering. Upon purchasing USDC, you will be automatically enrolled in rewards. If you want to opt out or learn more about rewards, you can click here. The reward rate is subject to change and may vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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Frequently Asked Questions
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Different crypto trading bots can be successful based on the strategies they use.
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Some crypto trading bots are free, but not all.
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The best AI crypto trading bot for beginners will be one that is user-friendly, has a good track record of accuracy and profitability, and offers features such as demo trading modes and customer support. Some popular options for beginners include 3Commas and Cryptohopper. As recommended by a Reddit user, “to find the best AI crypto trading bots, it’s important to research and compare multiple options.”
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The safety of a crypto bot depends on several factors such as the security measures implemented by the bot developers, the user’s own security practices and the potential risks associated with the particular cryptocurrency market. It is important to thoroughly research and choose a reliable and secure crypto bot provider to reduce the risk of any potential security breaches.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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