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Crypto Trading Bot -- 21 Best FREE Crypto Trading bots.

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Crypto Trading Bot -- 21 Best FREE Crypto Trading bots.
What are the best crypto Trading bots for Binance, Kucoin, and other bitcoin exchanges? Nowadays, lots of teams provide paid and free crypto Trading bots for Bitcoin and other cryptocurrencies. It's a hassle for a crypto trader like you and me to choose between these services.
A Crypto trading bot is software that helps you automate your trading strategies. In other words, crypto Trading bots automatically execute orders based on your trading strategy at your crypto exchange without your manual intervention. This reduces risks and gives you an extra edge over manual traders.
In the days of Mt.Gox, Bitcoin traders wrote scripts to buy and sell bitcoin to make profits. Over time these crypto bots became more sophisticated. Today you can trade any altcoin such as Ethereum, Dogecoin, Litecoin, etc using these <a href=""; target="_blank" rel="noopener">Trading bots</a>.
More than 90% of crypto trading, now happens through these bots today. So if you are not using one of these software, you might be at a huge disadvantage competing against these trading robots.
However, getting started with a crypto trading bot might be confusing and overwhelming. Therefore we have picked the best and easy-to-use Trading bots for you. Some of the Trading bots listed below are free and open-source software.
If you are a beginner, I would recommend starting with pre-building ready-to-use trading strategies templates, reducing the risk of error when automating your own strategy.
Note: I have added some discounts at the bottom, check them out.
Discounts 🔥
Diversify your funds and lower your risk by using multiple excahnges and read our blog on crypto copy trading . Use referral code rJ45SVB for Kucoin and get off on Trading Fees. Use Referral code ( Coinmonks ) for FTX and get 5% Off on Trading Fees. Use Referral code UARTH1S1 for Binance. Join our Telegram channel to get free crypto trading analysis, crypto signals and other news.
The Best Crypto Trading bots (Free & Paid) in 2022.
I tried my best to keep things short, but as it is said by Kofi Annan, "Knowledge is Power. Information is liberating." I tried to provide you with all the features of the crypto Trading bots in this article. However, if you don't wanna do a deep dive, the below table is for you!
1. Pionex -- FREE Crypto Trading Bot for Bitcoin [ Join Pionex ]
Don't need to hassle with the API Keys while using Pionex . So far, there are 16 free cryptocurrency bots on Pionex: Pionex Grid Trading Bot, Pionex Leveraged Grid Bot, Pionex Margin Grid Bot, Pionex Infinity Grid Bot, Reverse Grid Bot, Leveraged Reverse Grid Bot, Dollar-Cost Averaging Bot, TWAP Bot, Trailing Take Profit Bot, BTC Moon , ETH Moon , and Spot-Futures Arbitrage Bot (Click here).
Pionex is the exchange with the in-built crypto trading robot. It's one of the best free trading bot platforms for cryptocurrency I've ever seen since 2017. (the year I start buying crypto :P) It aggregates the liquidity from exchange and Huobi and provides a free trading bot upon it.
Pionex exchange recently came out with its Spot-Futures crypto arbitrage bot and hence provides an alternative to traditional crypto arbitrage bots. Moreover, the Pionex trading bot is easy to use. Therefore, I prefer trading bitcoin with this trading bot. Bitcoin has a higher market cap, and it's the center of the whole cryptocurrency IMO.
Pionex is safe and has been granted the MAS and MBS licenses from Singapore, and U.S. Pionex is the first crypto trading bot on my list and the best free bot out there.
To learn more read our Pionex Review .
2. Bitsgap -- Grid Trading Bot for Binance [ Join Bitsgap ]
Bitsgap bot is best known for its unique automated trading bot. Thousands of crypto traders with different experience and skill sets are using Bitsgap on a daily basis to maximize returns by automating their trading.
The algorithm implemented by Bitsgap trading bot is based on a simple and effective technique, called GRID. It distributes investment proportionally within a trading range predefined by a crypto trader. Further, the Bitsgap login process is quite simple and can be completed within minutes.
Each time the buy limit order is filled, a new sell order is placed by the bot right above that price. And vice versa, a new buy order is placed below any filled sell order. As long as the price stays within the borders of the trading range, the bot will be trading non-stop.
Furthermore, Bitsgap recently rolled out its Bitsgap Futures trading bot which opens and closes hundreds of small positions in a day. Therefore taking smaller returns and minimizing risks. You can download the Bitsgap app and have a user friendly crypto trading experience.
Bitsgap algorithm is designed to maximize profit from buying low and selling high each time the price swings. Automated bots have all the risk-control features like Stop-loss, Trailing UP, Take profit, and several exit strategies. Moreover, the Bitsgap trading terminal offers you with some top-notch tools.
A cloud-based solution, so you don't need to download anything Trade bots are based on a transparent and efficient logic Risk-free bot trading simulator in DEMO mode Free crypto signals to subscribers Backtested Strategies for a quick bot start 14-Day Free Trial.
To learn more read our Bitsgap Review .
3. Cryptohopper --<a href=""; target="_blank" rel="noopener">Trading bots</a> for Kucoin and Binance [ Signup Link ]
Cryptohopper is a paid crypto trading bot for bitcoin and other cryptocurrencies. But before jumping into the paid membership, you have a free trial for 7 days in Cryptohopper.
One of the well-known Trading bots on Cryptohopper is the market-making bot. It's similar to the Grid Bot in Pionex, but it's more focused on profit from the spread on the order book. CryptoHopper telegram bot would help you automate your crypto trading signals.
CryptoHopper bot also provides a Marketplace where you can vouch for any third-party service such as crypto signals, trading strategies, apps, and templates. Moreover, the bot offers a demo trading account, strategy designer, social trading platform, paper trading mode and market arbitrage tool.
The tagline of Cryptohopper exchange is quite eye-catching to me: World-class automated crypto trading bot ;)
4. Coinrule -- You can make your own Coinbase Trading Bot! [ Join Here ]
Coinrule is next level bot for beginners. The "if-this-then-that" rule allows even less advanced crypto traders to build their cryptocurrency trading strategy in a minute. The user-friendly interface guides users in building the trading bot step-by-step.
The template library includes over 150 pre-set rules that help beginners running the trading system that suits their needs. The platform allows various cryptocurrency trading strategies, including stop loss, take profit, and integrates the main technical indicators. The list of trading strategies that Coinrule allows is limitless and the company posts regularly new ideas in the Knowledge Base of the platform.
Another interesting feature is the built-in Demo exchange. Cryptocurrency traders can test their trading systems in a safe environment with a virtual allocation of coins. The Demo rules run on prices that come directly from Binance, hence risk-free. Hence, the platform is perfect to create your own Coinbase bot.
5. 3Commas -- Providing Crypto bots and Crypto Signals [ Join 3commas ]
3Commas is one of the most famous crypto <a href=""; target="_blank" rel="noopener">Trading bots</a>. I put it on #7 of the list because the UI is more for a professional trader. As their users become more and more professional, they turn their product development to pro users.
So if you're a professional bot trader already, then you should try 3Commas.
It has two subscription levels -- Basic and Pro. The basic level bot price is $25/month, while the latter costs $84/month and has a lot more features. The cryptocurrency trading bot on 3Commas can implement multiple bitcoin trading strategies based on technical indicators and enable trading bitcoin for profit. The community is good, and you can buy some online courses for using the 3Commas Bitcoin trading bot. Furthermore, the platform also offers third-party crypto signals Marketplace.
6. Mudrex -- Is it the Best Copy Trading System? [ Join Mudrex ]
Mudrex makes investing in crypto bots as simple as investing in a mutual fund. They are very transparent about their info, have a wide variety of bitcoin bots based on your risk appetite, and a pricing model that is by far the best we have seen. Y-combinator-backed Mudrex outshines everyone else on the list!
Mudrex has over 7000 users and over 400 Mn USD traded on it. They are backed by well-known VCs and angel investors and have a very active and engaged community. They are connected with 8 of the top exchanges and are some of the very few on this list who are able to support US customers as well.
Mudrex does not build its own cryptocurrency bot but instead has a curated marketplace of automated bots created by pro crypto traders. The best part about the platform is that all info regarding the performance of a cryptocurrency bot is public and easy for users to understand. Additonally, Mudrex Protect feature, you can get your money back if your investment does not give you returns.
If you were looking for a platform using which you can invest your crypto, then Mudrex might just be it!
To learn more, you can also read an in-depth Mudrex review .
7. Quadency -- Is it the Best Bittrex Trading Bot? [ Join Qaudency ]
The best part of Quadency trading bot is the backtesting feature, which allows you to backtest your strategies based on data and numbers instead of shooting them in the dark. It's also the most important feature for a crypto bot; it's always nice to know the performance of historical data before using your money with the crypto trading bot. Furthermore, the platform provides a range of features and comes out as one of the best Bittrex bots.
8. Napbots -- Automated Crypto Trading [ Join Napbots ]
NapBots trading bot seeks to democratize quantitative trading giving direct access to professional algorithmic crypto trading strategies in a plug n' play style, so their users don't have to worry about having any type of skills to be able to use this platform.
Based on the trading frequency(weekly, daily & hourly) users can choose from a variety of in-house made crypto trading strategies to automate their trading and allocate their funds. Many NapBots customers choose to diversify between multiple strategies to reduce risk, others prefer to stick to one crypto strategy. Easy to take in hand, NapBots is addictive. You are investing and having fun!
NapBots crypto trading bot makes you trade cryptocurrency like a pro and give you instant access to professional crypto trading strategies in 3 simple steps:
Connect your crypto exchange. Select the crypto strategies of your preference. Relax, and let the bot do the hard work.
NapBots is part of the Napoleon Group which is a French group of companies founded by former multi-billion asset managers at Tier 1 banks, who have designed, created, and run high-performance Trading bots for the past ten years.
9. TradeSanta -- Automated Crypto Trading Software [ Sign up Here ]
TradeSanta trading bot works on eight main exchanges, Binance, Bittrex, HitBTC, Bitfinex to help you crypto trade simultaneously on them.
It is a cloud-based crypto Trading bots platform that has been on the market since 2018. It has already helped hundreds of thousands of users in simplifying their daily trading: there are already over 210,000 registered users and over 22 million transactions completed.
You'll need to pay from $14 to $70 per month according to your package.
Main Features.
TradeSanta bots can trade on both futures and spot markets. TradeSanta offers a variety of signals, like TradingView custom signals, as well as pre-built signals based on TradingView Screener, and technical indicators like Bollinger Bands, MACD, RSI, etc. Stop loss, trailing stop loss, trailing take profit and other risk management tools. DCA and grid strategies. Demo trading allows you to test your strategy against the real market conditions without putting in any real money. Telegram notifications and real-time tracking so you can always check what your bots are doing. TradeSanta also has a nice feature that allows you to quickly close all positions and transfer all your assets into USDT or BTC. It can be quite helpful in case you need to do it quickly when, for example, the market starts to crash or you just want to fix your earnings.
TradeSanta is particularly popular among newcomers due to its user-friendly interface and 24/7 customer service, which is available for any questions you may have before jumping into the crypto trading world. TradeSanta also has a YouTube channel with various training videos and rich documentation to help with automated trading onboarding. All of this makes it an excellent choice for people who have never used Trading bots but want to start now.
To learn more read our TradeSanta Review .
10. HaasOnline -- The most advanced Algo Trading Software[ Join Here ]
HaasOnline is a paid cryptocurrency trading software that is unlike any other. Similar to the other trade bot mentioned, they offer your standard pre-built Trading bots for strategies like arbitrage and market-making, and other tools.
However, with the release of HaasScript, their scripting language, you can develop highly complex Trading bots using a drag-and-drop designer or intelli-sense editor. Hence it provides one of the best-automated trading software out there. You also have the ability to backtest or paper trade your strategies before executing live trades on over 25 exchanges.
Their current bitcoin trading software is a locally hosted non-custodial trade server, which offers complete discretion and privacy, keeping prying eyes away from your trade data and strategies. They also plan to launch a cloud version for retail traders. There's no free trial, but they do offer a discounted 14-day trial license.
11. Shrimpy -- The social trading platform for Bitcoin [ Join Shrimpy ]
Shrimpy bot is a paid crypto trading bot service for rebalancing. Furthermore, it is the feature that makes it different from other bitcoin trading bot services. It helps you to automate your portfolio and rebalance it to a specific ratio.
For sure, Shrimpy trading bot is one of the excellent cryptocurrency Trading bots in 2020, and that's why I am listing it here. But it is a bot especially designed for portfolio management, indexing, rebalancing, and strategic backtesting.
The best part of it is to rebalance your portfolio when you are hodling the coins. It supports 10+ crypto exchanges.
For Shrimpy crypto trading bot, it only executes a few trades every day. So it's better for a HODLER.
Shrimpy also released a copy trading feature, using which you can follow other crypto traders.
12. CryptoHero -- Crypto Trading Robots Powered By AI [ Sign up now ]
CryptoHero allows you to automate trades right from your phone easily for free. No coding skills are needed. You can trade popular cryptocurrencies such as Bitcoin, Ethereum with bots based on technical indicators 24/7.
CryptoHero supports multiple exchanges, allows you to t rack all your crypto trading performance individually or aggregation across exchanges through one app.
Bots can be configured with technical indicators. Enter trade with one, exit with another, all without writing a single line of code. Besides, CryptoHero offers preset for popular technical indicators and allows multiple rules and triggers to work together.
You can also backtest your bots with historical data before deploying. And, get an indicative performance of your trading bot based on actual data with different trading frequencies, against different time periods of up to a year.
13. Botsfolio -- Automate your Trading strategies [ Join Botsfolio ]
Botsfolio takes a risk assessment quiz and then recommends the best crypto investment strategy that you can automate. The Trading bots are pre-built and strategies are recommended based on your financial goals, risk appetite & financial condition. This makes it easy for the user to trade cryptocurrency without any coding or trading skills.
They have bots for 5 different investment styles: Value investing b) Hedged Trading c) Futures Trading d) Index SIP e) Fixed Income. They have automated different investment styles that are used by professional hedge funds and investment banks.
The Hedged trading bot is the most famous as it provides active trading while reducing loss using a hedge.
The setup is very easy because you just have to link your Binance account and the rest is automatically done by Botsfolio.
You get a 1-month free trial and the cost for bots ranges from $1 to $85 per month.
To learn more read our Botsfolio review . Also, get 25% off on Botsfolio using this link.
14. Botcrypto --Simple Bitcoin Trading Bot [Link]
Botcrypto is a very interesting platform if you want to personalize <a href=""; target="_blank" rel="noopener">Trading bots</a>. They developed a drag and drop interface where you can combine more than 20 technical indicators (RSI, MACD, Moving Averages, Ichimoku Clouds, ...) to build your strategy. So you don't need to code! Stop losses, take profits and notifications are also available.
Backtests and real-time simulations are free. When you're ready to go, subscriptions start at 12$/month.
15. Trality -- Create Trading bots in Python [ Join Now ]
I discovered Trality last year in 2020 and despite still being a young company, it is in our rankings for its great focus on the bot-creation process and the professional nature of the platform. It distinguishes itself from the majority of other solutions in that it does not provide ready-to-go, black box bots right away but gives you absolutely everything you might need to develop a professional-level algorithm on your own.
Trality's killer feature is its one-of-a-kind, in-browser Code Editor, which allows even the most intricate and creative strategies to be written in Python with loads of unique order types. If you are neither a professional trader nor a Python developer, that is not a problem at all. Trality has another product, what it calls its 'Rule Builder' to help you build your bot with zero programming skills required. Just put your trading logic all together using simple drag and drop UI and it's ready to go.
The platform is also equipped with a quick and competent backtesting tool to help fine-tune the parameters and validate your ideas. Once the bot is ready, it can be set up to live-trade crypto on popular exchanges like Binance app, Coinbase Pro, Kraken, and Bitpanda.
The last thing to note is that the platform has a fair pricing model that is designed for users of all experience levels. Moreover, the starting plan is absolutely free and timeless, so you can use and test the basic capacity as long as you want.
To learn more read our Trality Review .
16. Wunderbit -- Automate Bitcoin robots [Link]
Wunderbit facilitates the buying and selling of crypto assets directly using a credit card i.e., you can buy bitcoin with a credit card. Furthermore, the platform provides crypto Trading bots that can help you automate your trades.
You can also use Wunderbit's crypto trading signal Marketplace or the copy trading platform to follow the best traders and completely automate your trades. Furthermore, the copy trader can select from a list of top traders and bots. First, however, the copy trader has to pay a commission from his/ her gains to the experienced trader.
In addition to all of the features, the platform also provides DCA bot, Spread trading, Smart trading, crypto portfolio tracker, multiple account management, etc. The platform uses API keys. Hence, all of your funds are secure at your respective exchanges.
Wunderbit trading even has its own in-house crypto exchange platform, allowing you to use the Trading bots with zero fees. You can directly deposit funds in your Wunderbit account and begin your automated trading. The platform is also coming out with its GRID and Arbitrage trading bot.
17. Superalgos -- Free and Open-Source Crypto Trading bots [Link]
If you are a trader or developer looking to build sophisticated crypto Trading bots with your own strategies, look no further than Superalgos. It provides free cryptocurrency Trading bots and is one of the most powerful, flexible, and extensible platforms out there. Furthermore, the open source crypto trading bot is available on Github, and on contributing to the project, you earn Superalgos (SA) tokens.
The ai crypto Trading bots by Superalgos prevent you from wasting time on infrastructure issues and helps you focus on building intelligence. Superalgos is created to own power; the free trading software can handle coordinated deployments of data and trading tasks across multiple machines in networks!
Take for example raw market data downloads from exchanges, local processing of data into standard and custom indicators, the visualization of data over the built-in charting system, the visual design of strategies following a professional framework, the different kinds of trading sessions including backtesting, paper trading, forward testing, and live trading, each of them producing visual simulations over the charts that you may debug right then and there, on a visual environment.
Even though Superalgos is a free bitcoin bot, not everyone can simply install it and begin using it in a day or two. It'll take time to master the software; however, the tutorials and documentation will help you get started. The software unleashes power, and to optimize such a thing to its fullest potential; you'll have to master it over time.
Furthermore, using Superalgos as a free bitcoin trading bot, there also comes additional perks. For example, on contributing to the project, you get a chance to earn free bitcoin.
18. SmithBot -- AI Crypto <a href=""; target="_blank" rel="noopener">Trading bots</a>.
SmithBot develops the next generation of cryptocurrency <a href=""; target="_blank" rel="noopener">Trading bots</a>. Its flexible algorithms autonomously learn an optimal strategy from massive amounts of data that is tuned to deliver the best possible results. Intensive testing ensures high stability and robustness under real conditions considering trading fees, spread, slippage, communication delays, and other real-world effects. No need for manual setups and time-consuming iterative testing and tuning cycles.
SmithBot is a SaaS platform accessible from any modern web browser on almost any device. Its intuitive user interface makes it easy to compare, plot, and rank the different bots and to select the ones that suit you most. Connect one of the supported cryptocurrency exchanges and the bots will start trading autonomously. The funds stay on the exchange at all times and SmithBot does not have access to them.
SmithBot offers advanced AI crypto Trading bots for everyone, no matter whether you are a newbie or an experienced trader. A free account and two paid subscription tiers starting from $14.99/month are available. Get a free demo account and find out more about this powerful solution.
19. is a powerful crypto trading bot that was launched in 2014. The platform offers all its services through an application that can be downloaded. By using this application, the users can set up different strategies to buy or sell cryptocurrencies. Further, the platform offers its users a graphic user interface (GUI) that provides several features like detailed charts along with drag and drop options to edit the strategies. supported cryptocurrency exchanges includes Binance, Bitfinex, CEX, Bitstamp, Kraken, Kucoin, OKEx and many others. Moreover, when talking about the pricing plan, the platform is built on a one-time license fee inclusive of the starter, standard and professional plans which cost $129, $259 and $2,999 respectively.
You can get 15% on Margin de by using our coupon code.
Coupon code- COINMONKS.
20. KuCoin.
KuCoin is an easy-to-use and safe cryptocurrency trading bot that is based in Seychelles and whose founding members are experienced in running projects such as Ant Financial and iBox PAY . Further, KuCoin's interface has a contemporary design where traders can enjoy the fun of robust trading. The KuCoin trading bot is accessible via the platform's mobile app. At present, the trading bot covers two techniques in general. The first is DCA and the second is traditional GRID . In addition, the KuCoin trading bot allows you to enjoy free trading strategies .
What is a Crypto Trading Bot?
A crypto trading bot automates your trading strategy. Therefore, reducing the risks and giving an edge over manual traders. These Trading bots automatically execute orders based on your configured strategy, allows you to trade 24*7 without your involvement.
Which is the Best Bitcoin Growth Bot?
Below is the list of best bitcoin growth bots in the market:
What are the best Binance <a href=""; target="_blank" rel="noopener">Trading bots</a>?
If you're Looking for the best Binance Trading bots as a beginner, you can start by using CryptoHopper, Bitsgap, 3Commas, etc. Furthermore, if you like having complete control over your <a href=""; target="_blank" rel="noopener">Trading bots</a>, Quadency or HaasOnline can be a perfect choice. However, you should only use HaasOnline when you have a basic idea of using HassScript, their coding language, to configure the automated bot.
What are the best KuCoin <a href=""; target="_blank" rel="noopener">Trading bots</a>?
KuCoin, one of the best crypto exchange platforms provides in-house KuCoin bots. You do not need a third party trading robot provider that needs API keys and a montly subscription. Furthermore, this KuCoin bot is entirely free to use for traders. You also do not have any KuCoin fees on the automated GRID bot. You can read our article to learn more about KuCoin trading bot.
What are the best Coinbase <a href=""; target="_blank" rel="noopener">Trading bots</a>?
You're a resident of the USA and wondering how to use a trading bot on Coinbase? Well, there are various crypto bots providers that can be of help to you in that case. From my personal experience, I'd suggest you to go with Bitsgap or 3Commas as they are the best Coinbase Pro Trading bots available in the market. Alternatively, if you don't want to pay extra for a monthly subscription you can choose Pionex.
What are the best Bittrex <a href=""; target="_blank" rel="noopener">Trading bots</a>?
The best Bittrex Trading bots include 3Commas, CryptoHopper, Bitsgap, etc. Further, you can also automate your crypto trading free bots, one of them is SuperAlgos. However, SuperAlgos is pretty complex for beginners; hence, you can instead use one of the 16 free Trading bots of Pionex.
What are the best Trading bots for Beginners?
If you are beginner then, you should prefer using Shrimpy, Cryptohopper and Coinrule. These Trading bots are quite easy to use and will lessen the complexities.
Which are the Best Free Cryptocurrency <a href=""; target="_blank" rel="noopener">Trading bots</a>?
Here is my pick of the Best Free Crypto <a href=""; target="_blank" rel="noopener">Trading bots</a>:


🏅 How do I pick the best crypto trading bot?
Here are some key points when trying to choose a new crypto trading bot.
Non-custodial -- The safety of your cryptocurrencies should always be the first priority, so always choose software that doesn't ask you to deposit your crypto on their platform. In our list, only Pionex needs that, which I use daily. Pionex uses Binance and Huobi on the backend to safeguard your crypto. Pre-build Templates -- When I ran my first trading bot, it was an overwhelming experience. I made some mistakes, trial and error, before able to get my trading strategy automated. However, today many trading bot platforms provide you pre-build, well-tested trading bot templates which you can start with. Check out Cryptohopper for that. Drag and Drop or Coding Script -- There are two ways to implement your trading strategy, either you write a code for that or use drag and drop tools, such as provided by Mudrex. There are limitations to drag and drop tools, but if you are a beginner and don't have coding knowledge, I recommend you stick to drag and drop tools. Social Trading or Copy Trading -- Many pro traders share their trading strategy, which you can copy using the social trading platform. I have written a separate article on the best copy trading platforms, and you can also read my experience of copy trading. Backtesting -- Make sure you always backtest your trading strategy before making it live. While backtesting, you will need historical bitcoin and other crypto pricing data, therefore choose a platform that has sufficient pricing history. Indicators -- You might need advanced trading indicators when automating your strategy; therefore, make sure the platform supports the trading indicators you are looking for. Additionally, many social and on-chain data indicators are beneficial, so also look for them. Indices Providers -- Many platforms such as Mudrex and Napbots provides pre-build indices, meaning they have created a bucket of tokens, and you can simply invest any bucket of your choice. However, this is more of investing than trading. Signals -- Crypto Trading signals are a new way of automating trades. Here a team of experienced traders provides signals on Telegram or Discord, which can be automated by integrating with Trading bots like Cornix. Cloud-Based or Self-hosted -- Seft hosted solution is good for security but it suits people with resources. I recommend you go with a cloud-based solution to get the best experience. Trading Communities -- In today's world where information is money, trading communities help you get updated with the latest news, new trading trends, and a lot more. A beginner can learn a lot in these communities. If you wish, you can join the Coinmonks community. Support and Tutorial -- Trading platforms develop many blogs and videos for their users to help educate them about their platform. It is super helpful for beginners. It ain't a good product if it doesn't provide good documentation of its product or customer support. Especially where money is involved. Integration with Crypto Tax software -- First time I ran the Grid trading bot, it made more than 900 trades in 45 minutes, I made some quick bucks, but I was worried all my profits will go to my accountant/CPA. At that time, I realized why Trading bots must integrate with tax software. Therefore, make sure to choose a trading bot that provides an integration of tax software. I also wrote a guide comparing the best crypto tax software; you might want to check it out too.
When should you use a Crypto trading bot?
Many functions that a well-executed bot can conduct for you are rebalancing, portfolio management, data collection, smart order routing, etc.
What exactly can you improve with <a href=""; target="_blank" rel="noopener">Trading bots</a>? Let's take a look.
#1 Repetitive Tasks.
Repetitive tasks consume a lot of time and effort. A crypto trading robot will allow you to virtually "copy and paste" specific tasks to conduct trades with ease. One of the best ways where bots can help with repetition is in periodic rebalances. If you want to conduct hourly rebalances, then you'll need to, as the name suggests, rebalance your portfolio every hour. So, you have two options:
Set the alarm every hour to rebalance the portfolio and lose your sanity in the process. Create a trading bot and program it to rebalance your portfolio every hour till the end of time.
#2 Timing.
Timing and achieving a high degree of accuracy in your trading is essential for trading. Every single crypto trade that you make can have an enormous impact on your potential earnings. Let's take an example. Suppose the price of Bitcoin is going down, and you want to sell your position the moment BTC hits the $59,000 support line. If you were to do this manually, you'd have to patiently and carefully observe the price chart, and even then, you may not pull the trigger at the right time. The trading bot can be easily programmed to monitor the market and execute a trade at the correct times.
#3 Complications can be simplified.
Consider the example of "smart order routing."
The idea is to route trades through numerous trading pairs. Every single trading pair needs to be carefully determined as per its timing, asset quantity, and trading price. This entire route needs to be finished within a specific time limit before the market conditions change.
It seems pretty easy to understand, right? However, the execution of this trade could be nearly impossible. This is just one of the many examples of the several complexities that should be factored in while training. Some strategies could be almost impossible to implement.
Trade bots could be used to automate these complicated and seemingly impossible strategies with ease.
✅ Do Trading bots really work?
Trading bots work, it will always be your strategy that will create problems for you 😃. The trading bot's job is to execute the order based on your configuration. So if your configuration aka trading strategy is good, you will be unstoppable.
❓Are crypto Trading bots profitable?
It's your trading strategy that yields profits for you, not the trading bot. However in some cases like Grid <a href=""; target="_blank" rel="noopener">Trading bots</a>, if you run them long enough in a sideways market, they will yield profits.
🚤 Are crypto Trading bots legal?
As I mentioned at the start more than 90% of the trading happened through automated software, therefore everyone from the top to bottom is using them, especially the big players. So crypto Trading bots are completely legal.
🖥 Different Types of Cryptocurrency <a href=""; target="_blank" rel="noopener">Trading bots</a>.
There are different types of crypto <a href=""; target="_blank" rel="noopener">Trading bots</a>, let's see some major categories.
Custom Trading Strategy -- You work with technical indicators or invest long term using dollar-cost averaging or implementing moment trading or mean reversal strategy. You can automate any custom trading strategy through <a href=""; target="_blank" rel="noopener">Trading bots</a>. Many of the above <a href=""; target="_blank" rel="noopener">Trading bots</a>, such as Trality and Haasbots, allow you to write code on their platform, using which you can automate any complex trading method. : Arbitrage means buying from one place at lower price selling into another place at a higher price. There are many different ways to do arbitrage in crypto. However, if you want risk-free arbitrage, check out Pionex's spot futures arbitrage bot. : Here the main concept is to copy another's trader strategy, you don't need to do anything, the platform copies trades for you. Here your main task is to select a good trader whom you want to copy. Grid Bots : Grid bots enable you to perform high-frequency trading. Grid bots do a low of traders at very close price ranges and try to create profit for you. Of course, you choose the price range and grid configurations. Market-Making Bots : Market-Making bots mainly create liquidity, they are similar to Grid bots. However, they perform near the market price by creating orders at both sides of the order book and making small profits.
🏛 How do you file taxes for crypto bot trading?
Trading bots execute trades on your crypto exchange. Therefore you just need to integrate your exchange with tax softwares in order to export your trades. Once exported the software automatically calculates your profit and losses and provides you which a tax calculation report.
How can you create a crypto trading bot yourself?
There are multiple types of <a href=""; target="_blank" rel="noopener">Trading bots</a>, and getting started with each of them is different. However, in almost all cases, you need to integrate your crypto exchange with the trading bot.
However, creating an API key on an exchange like Binance or others, only provides necessary permissions related to trading. For example, do not provide wallet withdrawal permissions.
Most trading bot platforms allows you to test your trading strategy with fake money.
Trading Strategy Automation.
If you want to automate your trading strategy, you should use the following steps before starting the bot.
Implementation -- First, you need to implement the strategy by drag and drop or coding it. This will create your strategy on the platform so you can backtest it. Backtesting -- It is the most essential step when working with a trading strategy. The trading bot platform runs your strategy on historical data and provides you valuable insights. Make sure your backtest must be realistic to understand the role of variables like trading fees, slippage, and latency. According to the performance result, you can fine-tune your strategy. Execution -- In this phase, you need to make your strategy live.
Grid Trading.
With crypto grid bots, backtesting is the only step. Because on the part of the implementation, you just need to select the trading range and configure the grid details. I would highly recommend beginners to try our Grid trading.
Copy Trading or Social Trading.
In this case, the most critical part is to research the trader you want to simulate. Therefore, check trader's past performance, ROI, investment size, asset selection, risk management, and other parameters. To learn more, read my experience with copy trading.
💥 How to select a Crypto Trading Bot Software?
There are some key things you should consider while selecting a trading bot.
Mobile App/ Mobile View -- On mobile, you can monitor your trading bot easily. Therefore, always choose a trading bot with proper mobile support. I recommend Pionex; they have the best mobile app for crypto trading.
Easy to use -- For beginners, the trading bot must be easy to use. For example, I always prefer a drag & drop builder over coding the trading bot yourself.
Support and documentation -- When money is involved, support becomes vital. Therefore always prefer the software with great support and proper documentation.
Trading Tools -- I often use Bitsgap smart trader, which automatically create an exit and stop-loss trigger when I create an order based on the percentage of risk and reward I select. These tools are also helpful for manual trading and make my overall trading experience much better. Therefore look for trading tools in the bots that elevate your trading skill and experience.
Team, Company & History -- Finally, check out companies background because it is essential because you will be giving access to your exchange trading account to the software. So search for if the software has ever been hacked, the founders' background, and the company's history.
Price -- I believe you should always look for the best trading tool and not worry about if it's a little expensive because your trades will automatically pay for the tool.
⭐️ Pros and Cons of using <a href=""; target="_blank" rel="noopener">Trading bots</a>.
Let's see some benefits of using <a href=""; target="_blank" rel="noopener">Trading bots</a>:
Automation -- Trading bots enables you to automate your trading strategy. Therefore, if your strategy is sound, bots will help you earn money 24*7.
Analyze and Fine-tune -- Trading bots provide a lot of information on how your strategy is performing. You can analyze this information fine-tune your strategy.
Execution -- A trading robot can do much more efficient execution of trades than a human. This provides you an extra edge by avoiding latency and emotions.
Let's also look at some of the disadvantages of <a href=""; target="_blank" rel="noopener">Trading bots</a>:
Beginners should avoid it -- Other than Grid trading and maybe copy trading, beginners should avoid custom coding trading strategies. If you just sign up on Binance and trying to get a Binance trading bot, you are most probably trying to rekt yourself.
Monitoring -- Crypto market is highly volatile. Therefore, you should constantly monitor your bots. Sometimes it might give you sleepless nights.
Security -- Crypto bots have access to your exchange trading account. Therefore while creating exchange API keys of integrating with exchanges, make sure you provide only needed permissions and profile the history of the trading bot and the team.
💲 Tips for Crypto Trading.
I am in crypto for the last 3 years, and here are some pro tips for you.
Only provide necessary permissions. This is a primary security measure that you should apply in crypto or dealing with software in general. Only use reputed exchanges like Binance, Coinbase, Gemini, Kraken, etc. Check out our list of best crypto exchanges. Whitelabel your IP address if possible to restrict the access to your account by specific IPs; however, this is only suggested for experienced people. Some <a href=""; target="_blank" rel="noopener">Trading bots</a>, such as the Kucoin crypto trading bot, allows you that. Use your mobile to monitor your <a href=""; target="_blank" rel="noopener">Trading bots</a>. Try crypto signals, which can also be automated through Trading bots like Cornix. And always remember, not your keys, not your crypto. So slowly try to buy a cryptocurrency hardware wallet and take up custody of your assets.
If you want to dig deeper, read our guide on crypto investing.
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