Best Crypto Trading Bots 2024 • Benzinga

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: Best Crypto Trading Bots

Best for All Skill Levels: 3CommasBest for Advanced Technical Analysis: Learn2TradeBest for High-Volume Investors: PionexBest for Businesses Wanting Cryptocurrency Exposure: IconomiBest for Community: KryllBest for Copy Trading Investors: CryptohopperBest for Low-Cost: CoinruleBest for PortfolioBest for Portfolio: PhemexBest for Security: Gunbot

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.

10 Best Crypto Trading Bots

Before starting a cryptocurrency trading bot, you need to find out which crypto trading bots are best for you. There are many options on the market right now, so you can find a trading bot that best suits your needs.

1. Best for all skill levels: 3 commas

3Commas allows you to connect various exchanges, such as Coinbase and Kraken, to its application programming interface (API), which allows 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.

2. Best for Advanced Technical Analysis: Learn2Trade

Learn2Trade takes all market conditions into account 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.

4. Best for businesses wanting cryptocurrency exposure: Iconomi

Iconmi 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.

Kryll is an intuitive trading platform that allows users to fully customize their bots through a drag-and-drop system. You can also backtest different strategies for free to see which ones work best for you. Users can publish their strategies on the Marketplace and earn commissions when other users use the strategy.

6. 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.

7. Best for low cost: Coinrule

Coinrule 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.

8. Best for Portfolio Automation: Shrimpy

Shrimpy is a portfolio management platform that allows users to automatically rebalance their portfolios. This can help them adjust their portfolios as different risks arise and markets change. It also has a strong interface and educational section.

9. Best for Derivatives: Phemex

Phemex offers bots that trade futures, allowing 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.

10. Best for Security: Gunbot

Gunbot is one of the more advanced trading bots on the market, but it can be a powerful tool if used correctly. It has tons of customization options and supports more than 100 exchanges. In terms of security, the platform requires users to create their own server to trade, which can help increase security.

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.

Frequently Asked Questions