Top 5 Crypto Bots for Automated Trading
Learn what cryptocurrency trading bots are and how they can positively impact your trading results. Seamoncoin experts have compiled a list of the nine best crypto bots to work with in 2022. We’ve ranked them based on metrics such as cost, ease of use, number of coins available, how easy it is to integrate into an exchange platform, as well as additional features, deep customization options, etc.
Table of Contents
Learn what cryptocurrency trading bots are and how they can positively impact your trading results. Seamoncoin experts have compiled a list of the nine best crypto bots to work with in 2022. We’ve ranked them based on metrics such as cost, ease of use, number of coins available, how easy it is to integrate into an exchange platform, as well as additional features, deep customization options, etc.
What is a bot for cryptocurrency trading?
A cryptocurrency trading bot is a computer program that buys and sells digital assets, either according to the algorithm of the program itself or with the participation of the trader. All bots are based on various signals, algorithms, patterns and trader’s settings. One way or another, at the heart of any bot is a diverse list of triggers. For most traders, especially if you trade intraday, a cryptocurrency bot can be an important assistant and significantly reduce the time for analyzing markets and filtering signals.
Pros of bots for cryptocurrency trading
Let’s look at the other pros and cons of cryptocurrency bots so that you can put together a more complete picture:
- Absence of the human emotions factor. Traders, especially beginners, are subject to emotional stress – usually as a result of increased volatility due to some political or economic news. Bots are controlled by algorithms, which evaluate only market movements and will not buy/sell in a panic.
- Bots for cryptocurrency trading make trading more efficient because they can multitask, analyze multiple cryptocurrencies, make trades, scan the market, etc. There is no chance that your bot will miss an opportunity like a human would.
- The bot’s reaction to an important signal will be faster than a human’s.
Cons of bots for cryptocurrency trading
There are also some disadvantages of using bots to trade cryptocurrency:
- An important prerequisite for the correct operation of trading robots is a good computer with an uninterrupted connection to the Internet;
- Although cryptocurrency trading bots can save you a lot of time, they still need to be controlled. This is especially true for bots that are not yet well “tested” enough.
- Bots can have security risks. Since many bots trade through APIs, these channels can be vulnerable.
- Setting up bots requires experience and knowledge of trading. As a rule, ready-to-use bots without tuning are less effective.
Top 5 best crypto bots
Seamoncoin experts prepared the top 9 cryptocurrency bots available on the market in 2022. The experts used such criteria as analytical tools, ease of use for beginners and experienced traders, ability to trade altcoins, subscription price, available exchanges, etc. to compile the rating. Below we will take a closer look at the following bots:
- 3commas
- CryptoHopper;
- Coinrule;
- Shrimpy;
- Quadency;
3Commas – the best cryptobot in 2023
3Commas is a sophisticated cryptocurrency trading bot that provides a wealth of features designed to improve your trading performance. It offers automated trading with SmartTrade, where you can set Stop Loss and Take Profit orders at the same time, a first for crypto bots. 3Commas also provides Portfolio Balancing, which periodically rebalances your portfolio for optimal performance, and supports a multitude of exchanges.
The pros of 3Commas include a comprehensive and user-friendly interface that caters to both novices and experts. Its advanced automation tools allow for intricate strategy implementation, while support for numerous exchanges enhances its versatility. Users appreciate its backtesting feature, which allows testing of strategies using historical data. 3Commas also provides excellent customer support and educational materials for learning.
However, 3Commas is not without cons. Its wealth of features can be overwhelming for beginners, presenting a steep learning curve. Its services come with a relatively high cost, and while you get what you pay for, it may be too expensive for casual or budget-conscious traders. Lastly, like all bots, it does not guarantee profits. Market volatility can lead to losses, so it’s critical that users have a solid understanding of cryptocurrency trading and risk management.
CryptoHopper
CryptoHopper is a bot builder for cryptocurrency trading. It is currently the best tool for automated crypto-trading and intraday trading. CryptoHopper currently supports 9 cryptocurrency exchanges for integration. The current subscription price ranges from $19 to $99 per month.
Using CryptoHopper has several benefits, including the ability to trade 24/7, cloud-based storage and hosting, no downtime, a simple setup process, and no need to install the platform.
Coinrule – the best cryptobot for implementing strategies
Coinrule is best suited for creating and implementing crypto-trading strategies. Coinrule currently supports integration with 10 cryptocurrency exchanges. The current subscription price is $29.99 per month. There is also a free trial version.
There are several benefits of working with Coinrule, including over 150 customizable trading templates with predefined parameters, multiple stop loss and position holding strategies, and different pricing packages to fit your budget.
Shrimpy – the best choice of crypto exchanges
Shrimpy is suitable for use on multiple cryptocurrency exchanges, which can be useful for more advanced cryptotraders using more than one exchange. Shrimpy currently supports integration with 18 cryptocurrency exchanges. The current subscription price ranges from $19 to $299 per month.
The advantages of Shrimpy are the many cryptocurrency exchanges to integrate, the many supported wallets, the variety of subscription plans, the possibility of social trading, and the relative ease of use.
Quadency is the best cryptobot in terms of usability
Quadency is a trading strategy and crypto-bot builder. This crypto tool is best suited for beginners, as the user interface is very simple and user-friendly. Quadency currently supports integration with 13 cryptocurrency exchanges. There are free subscription options.
Using Quadency has several advantages, including the ability to build and customize a top-notch trading strategy, improved charts, built-in market screeners, and many other features.
Are cryptobots effective?
Yes, cryptocurrency trading bots can be very effective for both passive and active cryptocurrency traders. However, don’t count on super profits. You are unlikely to find such an effective tool in the public domain. Automated tools can be useful for making small to medium-sized profits over a long period of time.
The amount of profit you make from bots can vary depending on the bot you choose and how you set it up. The overall market environment can also affect the result. As a general rule, it is always easier to make money during a bullish trend than during a sideways or bearish trend.
Also take into account that no bot guarantees profit. A lot will depend on the settings, commissions and market conditions.
5 tips for using bots
Do you want to use cryptobots, but need help getting started? Here are some basic tips and tricks:
- Do your own research. All of the bots mentioned in this guide are excellent choices for beginners and experienced users alike. However, we also recommend deepening your knowledge of the topic and studying additional articles on setting up bots.
- Don’t forget about your bot. When using a new bot for the first time, you should monitor the trades it makes. If a mistake is made somewhere and you don’t notice it in time, it can be costly.
- We do not recommend granting your bot withdrawal access.
- Be sure to save your API key and keep it safe. Do not give anyone access to your API key.
- Always test. Story testing and live testing ensure that your bot works well.
Conclusion
A cryptocurrency trading bot is a computer program that automatically or partially automatically buys and sells various types of cryptocurrencies at a certain time, either at the initiative of the trader or according to the algorithm of the program itself, in order to make a profit. These bots can be integrated into an exchange platform and execute trades while the real trader is sleeping, busy, etc.
Using bots for cryptocurrency trading has many advantages. In particular, they eliminate the emotional aspect of trading, which can lead to mistakes, speed up trading, and make more informed decisions.
