Cryptocurrencies have become the major talking point in the financial world today. Retail and institutional traders continue to seek new ways to explore the values in these currencies.
The wide availability of learning tools has made it easy to learn trading in recent years. However, many traders do not have enough time and resources to manage trades.
This is where crypto trading bots come into the picture. The bots are designed to make trading more efficient while saving time. In cryptocurrency trading, the bots may eliminate the need for a trading strategy.
Automated trading dates back to the 1950s as a means of buying and sending funds. Likewise, trading bots have existed since the early 2000s. There are several crypto trading bots available today. It becomes quite challenging for traders to choose the best one to use.
This article outlines 10 of the best crypto trading bots for you to use in 2021. I have examined several factors and selected the most reliable bots to trade with. I’ll provide you with a detailed review of each bot to help you make informed decisions for your trading.
Too lazy to read? Spoiler especially for you. Best crypto trading bots:
- Cryptohopper - Best crypto trading bot right now;
- 3Commas - Best choice for experienced traders;
- TradeSanta - Best choice for beginners;
- Coinrule
- Shrimpy;
- Zignaly;
- Mudrex;
- Quadency;
- Kryll;
- Cryptotrader;
- Pionex.
What is a Crypto Trading Bot?
Crypto trading bots are software programs designed to help you automate your trading. They are a great means to amplify your trading strategy and take advantage of the crypto market.
Unlike stocks and forex markets, the crypto trading market never closes. The market runs 24/7, and you always need to have an eye on your trades. Trading bots provide the necessary help to carry out trading actions even when you are asleep.
The best crypto trading bots leverage machine learning and artificial software to observe the market. They scrutinize price movement in the market. Then, they react based on predefined algorithms to execute trades automatically.
Ideally, the bots are designed to generate higher risk-adjusted profits. Several retail and institutional traders now turn to these bots to get a firm grip on their trading activities. With the crypto trading bots, many traders just sit back and watch their profits grow.
How Do Trading Bots Work?
In basic terms, trading bots communicate directly with exchanges occurring in the crypto market. Then, they automatically place orders on your behalf. The design of the bots allows them to monitor the movement of market prices. This helps them to decide the next actions to take based on preset rules or algorithms.
Crypto trading bots gain access to the market via API keys. The keys tell the exchange that you’ve allowed a bot to access your account and trade for you. A crypto trading bot has three essential parts. They are:
- The Signal Generator. This is the part of the trading bot that makes the predictions. The signal generator has market data fed to either sell or buy emerging signals. Then, the trade signal for buying or selling shows on the other end.
- Risk Allocation. This is the major decision-making part of the bot. Here, the trading bot takes the emerging signal and decides how much to trade. It also determines whether to use your whole capital or a portion of it. This part of the bot is crucial in managing your funds.
- Execution. Crypto trading bot developers put execution into careful planning and consideration. Here’s where the bot goes into the market and gets the best possible price for you. The bot ensures that you do not buy large amounts of cryptocurrencies at unfavorable prices. The algorithm sets this part to decide the best ways of conducting the deal to bring better profits.
Therefore, it is important to ensure that the trading bots you choose will excel in all three parts.
Types of Cryptocurrency Trading Bots
There are six major types of crypto trading bots that you can choose from. They include the following:
- Arbitrage Bots. These types of crypto trading bots are coded to trade with the arbitrage strategy. This bot seeks to exploit how the price of an asset differs between various exchanges or markets. The crypto market is emerging rapidly. It is also a volatile and unpredictable market. Therefore, the spread for different exchanges may vary significantly. The Arbitrage bot is a neutral type. It carries out buying and selling activities on various crypto exchanges. The trading activities occur independently and parallelly. With this type of trading bot, you won’t need to transfer funds between exchanges anymore.
- Technical Trading Bots. The technical bots are the best friends of conservative traders. Most of the popular and widely-used crypto trading bots in the market are technical trading bots. These bots make use of technical signals and indicators to predict the movement of price. They then use the predictions to help you make some profit.
- Market-Making Bots. The market-making bots place several different buy-and-sell orders in the market. The bots do this to net in fast profit. For instance, if crypto A trades at $2, the market making bot creates a buy order at $1.99 and a sell order at $2.01. If you’re lucky to have both orders filled, you will have a profit of $0.02. The principle of the bot’s algorithm is based on the continuous buying ad selling of cryptocurrencies. As the price fluctuates, the bot captures the spread between the prices.
- Portfolio Automation Bots. These types of bots are useful for creating, obtaining, and maintaining your desired portfolio. You won’t need to trade actively. Trading is a repetitive task that may become boring at some point. Many traders use the Portfolio Automation Bots to automate the processes as needed. The best portfolio automation bots come with advanced customization options. They have well-incorporated market indices and tools for more accurate trade executions.
- Mean Reversion Bots. These are bots whose strategy assumes that you can revert the price to its average. For instance, the price of crypto Y reduces to $0.50 from an average of $1.00. The mean reversion bots will perceive the latest price as low and help you buy in large amounts.
- Copy Trading Bots. A copy trading bot allows you to copy trades from other individuals with only a mouse click. Such a bot often works with a leaderboard and a social community. This will allow you to copy trades of experienced traders.
How to build Trading Bot
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When Should You Use Crypto Trading Bots?
As I have mentioned earlier, the cryptocurrency market never closes, and it has very high volatility. You can become very profitable if you trade the cryptos wisely. However, the market’s volatility also increases the risk of losses that you can incur.
The crypto trading bots are available to help mitigate a number of the risk factors. A well-designed trading bot can carry out some essential functions. They include portfolio management, rebalancing, smart order routing, data collection, and more.
First, it is essential to note that you need to first take care of the basics before leaving a bot to complete the work. The trading aspects you should automate are the time-consuming ones. These are repetitive and could be unnecessarily complicated.
The following are aspects you can improve using trading bots:
Repetitive Tasks
Repetitive admin tasks such as setting buy & sell orders, stop losses, and take profits, take a lot of time and effort. Using a trading bot will help you “copy and paste” tasks virtually. That way, you can execute trades efficiently.
For example, a crypto trading bot can be of great help in periodic rebalances. That is when you need to rebalance your portfolio at a specific time interval. You won’t always have to set the alarm now and then to rebalance the portfolio. Instead, the trading bot can be programmed to rebalance your portfolio at any time you want it.
Complicated Strategies
Functions such as smart order routing can be nearly impossible to execute on your own. You need to carefully determine every pair to include in the trade using its timing, asset quantity, and trading price. Then, the trades are routed through numerous pairs. The route needs to end within a given time-limit before there’s a change in market conditions.
While the idea seems straightforward, the execution can be nerve-wracking. Other similar trading strategies are also nearly impossible to execute. Crypto trading bots are the best option to help automate these seemingly impossible strategies. All you’ll need to do is watch your trades play out with ease.
When You Have Other Responsibilities
Some daily responsibilities may not allow us to sit in front of our screens and monitor price movement at all times. Let’s say you have a well thought out portfolio that may also be diversified. The level of research work you may have to do each day may be difficult to handle alone.
Also, as I have already mentioned, the process of trading involves many cumbersome and repetitive tasks. The crypto trading bot will conduct these tasks efficiently throughout the day. That way, the process becomes much simpler for you.
Timing & Accuracy
These two factors are among the most critical aspects of trading. Timing has to work in harmony with a high degree of accuracy to help you achieve your trading’s best results. A trading bot can be programmed to monitor the market and take trades at the correct times with high-level precision.
For example, the price of crypto X is going down, and you’re ready to sell your position the moment X hits the $1500 support line. Without a trading bot, you’ll have to observe the price chart patiently before taking the trade.
Human error or some distractions may prevent you from pulling the trigger at the correct time. The trading bot will eliminate this, and take the right trades on your behalf.
24/7 Trade Execution
There are thousands of crypto exchanges all over the world. These exchanges provide their services 24/7 since the crypto market never shuts down.
This offers a fantastic benefit to traders. However, price tends to change around the clock often. This means that you need to remain awake at all times, reading and monitoring the price charts.
That is the only way you can ensure the best leveraging of your funds. While it is humanly impossible not to get some personal down-time, a trading bot will automate your trades while you sleep.
The 11 Best Crypto Trading Bots
I check the companies again every month and then update my rating. Last update in July 2021
1. Cryptohopper - Best crypto trading bot right now
Cryptohopper is another innovative crypto trading bot. This bot allows efficient automated trading and easy portfolio management for several cryptocurrencies. It is a great tool that helps manage every one of your trades and exchanges from one place.
The expert team at Cryptohopper also provides a trading community for users. There, you can subscribe to signals and buy bot templates. You can also discuss strategies with other experienced traders, helping you trade like an expert.
There are three major trade strategies with this bot. You can use the market-making strategy or arbitrage strategy. Also, there’s an option to backtest or simulate your trading.
Cyptohopper also allows you to design your strategy to meet your unique needs. A significant advantage of the platform is that you do not need any coding skills to use the trading bot.
Many customers who Cryptohopper claim to get up to 100% profits daily. Others recorded steady growth in their accounts from compounded gains.
Pricing
The pricing involves a monthly subscription. The Pioneer package is a free package that allows you to check out this crypto trading bot. You’ll need to have a monthly subscription of $19 for the Explorer package and $49 for the Adventurer package. The Hero package is considered the ‘Pro trader package”, and it comes at $99.
Pros
- Simple-to-use interface;
- Great educational materials;
- Helpful marketplace for new traders;
- A wide range of exchanges and good coin support.
Cons
- Need to pay extra fee for trading signals.
2. 3Commas - Best choice for experienced traders
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This crypto trading bot allows you to make a good profit with little effort. 3Commas is a great bot suitable for crypto traders at any level. The interface is user-friendly, allowing you to create your strategy based on over 20 indicators.
3Commas incorporates a smart trading interface for copy trading and portfolio management. The bot’s dashboard links you to the top crypto exchanges available. You can easily set trailing stops and take profits.
Every one of the algorithmic trading bots is customizable. An example is a long bot designated for the bull markets. There are also composite options for more advanced customization. 3Commas has an active social community and support team to help you have a smooth experience.
Users record up to 21.42% monthly returns from 3Commas. A user uses two bots that take nine trades simultaneously and take 2% profits every time. The customer also says there are safety orders available to prevent losses.
Pricing
The Starter package is priced at $14.50, while the Advance package comes at $24.50. You need to pay $49.50 to enjoy the Pro package. Each of the payments is monthly membership fees. There’s a free trial that you can use at any point on the platform.
Pros
- Scalable and affordable plans for different kinds of traders;
- User-friendly interface with impressive features;
- Comprehensive learning tools;
- Access to major crypto exchanges;
- Responsive support team.
Cons
- Long and overwhelming onboarding processes for beginners.
3. TradeSanta - Best Choice for Beginners
TradeSanta went live in 2018 with the mission to make automated trading accessible to anyone. The company’s distinguishing feature is a simple yet powerful user interface.
The platform now automates trading on six major exchanges, including Binance, Huobi, and HitBTC. Traders can set up bots in just a few steps. If the traders are not sure yet what approach to take, they can also test their strategies with virtual bots. TradeSanta offers a trading terminal for traders to make trades on various exchanges using the same user-friendly interface.
The TradeSanta platform is constantly improving and introducing new features and connecting new exchanges. I would like to mention the ease of use and a large number of ready-to-use templates.
Pricing
There are three different packages in TradeSanta. Trading plans start as low as $14/month. The "Maximum" plan offers Trailing Take Profit, Futures Trading, and an Unlimited amount of bots for $30/month when purchased annually. Plus free trial for 3 days.
Pros
- Grid and DCA trading strategies;
- Stop Loss, Trailing Stop Loss, and Trailing Take Profit to manage risks and take the most out of market volatility;
- Virtual trading to backtest the strategy against real-world market conditions;
- Manual trading on multiple exchanges in one interface;
- Futures trading allowing to set up a bot with leverage;
- Mobile app to set up and manage bots on the go.
Cons
- Just 3 days free trial;
- Users complain about a long response from the support team.
4. Coinrule
Coinrule is one of the best places to start your journey with bot trading. Being one of the newest trading bots on the market, the UK based company focuses on making trade strategy designs highly accessible.
This platform has beginners’ best interests in mind, thanks to the beautiful UI and comprehensive tutorial. Coinrule allows you to develop your trading strategies in the Rule Page section. The platform has a simplified Rule Base interface.
The interface allows you to set the conditions for your trades easily. You don’t need to have a coding background to use the platform. Trade orders taken on this platform are called “Rules” to carry on the spirit in the name.
Coinrule puts you in complete control of your trading bot for smart fund allocation. There are over 150 Rules you can choose from, and you can build your own Rules. You can also use the trading bot on your favorite exchanges such as Binance, Kraken, Coinbase, etc.
Coinrule investors recorded 67% of profits despite the historical market collapse in April 2020.
Pricing
There are four different packages in Coinrule. The first is the ‘Starter’ package, which allows you to try the bot for free. This package features 1 exchange, 2 live Rules and 7 strategies. On the other hand, the ‘Hobbyist’ package comes at $29.90 monthly.
The ‘Trader’ package comes at $59.99 per month, while you’ll need to pay $449.99 monthly for the ‘Pro’ package. Each of the packages has its unique offering, with ‘Pro’ offering the most features.
Pros
- User-friendly interface;
- Free regular emails with trading strategies;
- High-quality security and encryption;
- Fact execution of orders;
- Comprehensive and professional-level trading.
Cons
- Limited technical and fundamental indicators;
- Relatively new platform.
5. Shrimpy
Shrimpy offers a robust platform for experts and beginners to simplify their trades in the easiest ways. This trading bot company provides users with many useful features that make them stand out.
An example is the smart routing for trades that Shrimpy built to give you the best possible trades rate. You won’t have to choose direct trade pairs. Instead, Shrimpy analyses the best rate across various exchanges. That way, you can have a profitable automated trade.
One great advantage of Shrimpy is that it supports a wide range of exchanges, including Binance, Coinbase, Huobi, and others. The platform also seeks to add other reputed crypto exchanges that are popular among traders.
You can access API through Shrimpy.io to view balance and place trades. It is a secure process that disallows the moving of funds out of the exchange. Shrimpy also allows you to build third-party apps with their APIs. Portfolio management and automated training have never been easier.
Customers find it easy to rebalance across coins on Shrimpy and move into a large position. Also, they sweep profits from other different positions in a few easy clicks.
Pricing
The Hodler package allows new users to create their portfolios and connect to exchange accounts free of charge. On the other hand, the Professional package comes at $13 per month. This package comes with all of the best features from Shrimpy. The Enterprise package allows easy customization to suit you.
Pros
- Comprehensive automated portfolio rebalancing;
- User-friendly platform;
- Affordable plans for every trader;
- Social trading;
- Easy backtesting.
Cons
- Slightly limited functionality for API;
- Absence of a mobile app or trading terminal.
6. Zignaly
Here’s another relatively new trading terminal providing robust automated trading opportunities. Zignaly began operations as a top crypto signal provider. However, the company has grown into a reliable trading platform with plenty of tools for users.
This platform offers trading bots, copy trading, and a crypto terminal. This cloud-based software has its team focused on simplifying every process from start to finish.
A fantastic feature of Zignaly is how deep they integrate signals. This platform allows you to bring in signals from your favorite providers and automatically trade on these signals. Zignaly is in partnership with CryptoTrader. Tax to give users automated tax reporting.
Users find the copy trading option on Zignaly very useful. It allows them to copy pro traders and earn profits as they do.
Pricing
It is entirely free to use Zignaly for automated portfolio management and other operations. The free subscription offers you unlimited exchange accounts, coin pairs, and positions. Support is a priority with Zignaly.
Pros
- Multiple signal providers;
- Easy-to-use platform;
- Cloud-based interface for easy accessibility;
- Safe and secure automated management.
Cons
- Need for some trading strategies knowledge.
7. Mudrex
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Crypto investments have become as easy as mutual fund investments, thanks to Mudrex. This y-combinator backed platform offers a wide variety of trading bots to meet your risk appetite. Mudrex is very transparent, and it provides one of the best pricing models available today.
Backed and connected to the top exchanges in the crypto market, Mudrex offers the best functionality. This company created a marketplace that allows pro traders to develop and configure crypto bots.
They make all the information regarding bot performance available publicly. That way, you can easily understand the use and navigation of the bots. The trading strategy builder available at Mudrex is the most advance.
The builder comes with backtesting software. The engine helps you to create and test your strategies before deployment.
Pricing
Pricing is based on the amount each user wishes to invest. That is, there is no fixed fee attached.
Pros
- Simple and intuitive design;
- Better pricing model;
- API-based investing that allows investment and withdrawal at any time;
- Top-notch security.
Cons
- UI can be a bit slow sometimes.
8. Quadency
Quadency throws backtesting up a significant notch. It uses info based on data and numbers for more effective backtesting. Nothing beats knowing the performance of a pair based on historical data.
With this platform, you have a smarter way of trading and managing your crypto portfolio. It also helps you to automate your trading strategies and monitor even your offline wallets. Quadency gives you access to over 3500 pairs and the world’s leading crypto exchanges.
The sophisticated algorithms used for the trading bots are made easy. There are many pre-built strategies to choose from and customize to your taste. You can also easily track the performance of your assets over time.
Pricing
Beginners and passive asset investors will enjoy the free Lite package. The Pro package is an excellent option for active asset traders and portfolio managers. It comes at $39.00 per month. As an advanced trader, quant, or algorithm developers, the $79.00 per month Unlimited package will please you.
Pros
- Integration with top crypto exchanges;
- Chance to have unlimited exchange accounts;
- Advanced order types for higher returns trade;
- Robust portfolio management with the best experience.
Cons
- Small social community;
- No mobile app.
9. Kryll
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Kryll allows you to create your unique trading strategies without having any coding background. This platform runs 24/7, managing your crypto portfolio while you’re asleep. It is integrated with several top exchanges and technical analysis platforms.
Backtesting your strategies is also accessible without any hindrance. There’s no need for API withdrawal rights once connected to your favorite exchanges. You can run your best strategy from any mobile device.
Kryll also allows you to centralize your portfolio and trade without stress. This platform takes the complex idea of automated trading and makes it very easy. It is also one of the best platforms for personalized and unique online trading platforms.
Reviews from Kryll customers show live trading profits of up to 172%. A user on Twitter recorded a profit increase from 11% to 125% without doing a thing.
Pricing
There’s no subscription needed for Kryll. You only need to pay for the time you use on the platform. Backtesting is free and unlimited, with the most accurate data available.
Pros
- Simple and intuitive interface;
- Responsive support team;
- Easy-to-use block system;
- Good pricing model.
Cons
- Relatively new platform.
10. Cryptotrader
Cryptotrader is one of the first original cloud-based bot platforms. You can easily connect to exchanges through API for running automated trading. The details are easy to locate and understand with a range of free automated strategies.
This platform creates a robust marketplace for users to transact using bots created by pro traders. The bot creator puts a price on the bots and detailed notes on the bot’s operation. The details also include the bot’s past performance and suggestion for effective use.
Cryptotrader also allows you to create your trading strategies for sale in the marketplace. There’s no need for software installation; the company rents servers for you. You can backtest your strategies and see how it works in various market conditions.
Pricing
Cryptotrader offers different packages. These are Basic, Regular, Pro, VIP, and Premium packages. Payment is in BTC or LTC, with prices ranging from 0.0009 BTC to 0.0216 BTC monthly. Also, the high-end prices enable more features and no limits on traded amounts.
Pros
- Extensive community of experienced traders;
- Comprehensive portfolio management;
- Plenty of trading options;
- An excellent option for beginners.
Cons
- Affected by market volatility;
- Requires programming knowledge.
11. Pionex
Pionex is one of the first few exchanges with built-in trading bots. This platform takes liquidity from various exchanges and aggregates them. Many traders consider Pionex as one of the biggest brokers for Binance.
Asides from its deep liquidity, Pionex can offer more than ten different trading bots. These bots work 24/7 to automate your trading and manage your portfolio. This platform has the US FinCEN’s MSB License.
One of the most popular bots is the Grid trading bots that allow you to sell or buy at the best prices. The smart trading terminal also enable traders to manage trades with the best-leveraged token.
A trader recorded over 10.56% profits using the Grid trading bot on Pionex. Another user’s bot made 19.56% profits when BTC broke the $20,000 barrier in December 2020.
Pricing
Using Pionex’s bots is free of charge, and the platform only charges 0.05% trading fees.
Pros
- Wide range of automated trading tools in exchange;
- Free bots and cheaper exchange fees;
- Mobile app available;
- Liquidity engine for innovative aggregated Binance and Huobi liquidity.
Cons
- No custom trading support strategies;
- Only custodian solutions.
How Do I Pick the Best Crypto Trading Bot?
Before you can trust a bot with your trading portfolio, you have to ensure that it is designed for your best interest. You should consider the following factors before choosing a crypto trading bot:
- Reliability. Trust is key to success in every business, and cryptocurrency trading is not an exception. The company making the trading bot needs to be a trusted one. You don’t want a bot that suffers from glitches or keeps going offline. A bot that will continue to trade around the clock will ensure that you do not miss out on opportunities. That is why I have provided you with companies that offer advanced trading bots which have been tested and trusted. These companies have been around for some time now with a long list of satisfied clients.
- Security. Most cryptocurrencies are generally secure. However, this does not prevent malicious individuals from trying to hack into accounts and steal. Therefore, it becomes essential to look for a bot with an impressive track record for security. The team behind making the bot must be legitimate with an active community of users.
- Transparency. As a crypto trader, you don’t want to get conned into losing your hard-earned money. Before choosing a trading bot from any company, you must ensure that the company provides intricate details of their business. Having a company that offers free trials will be an added advantage to ensure you’re in safe hands.
- Ease of Use. The aim of using a bot is to make the trading process easier for you. IT experts and programmers are not the only people partaking in crypto trading. If you’re not in this category of people, you need to choose a bot that is easy to use. The bot must have an intuitive interface that is best for your level of expertise. Furthermore, the customer support system is also essential. It will help if you check how updates roll out and the way bugs are solved. The bot must also align with your trading strategies and must be available for customization.
- Profitability. It is not enough for a company to be transparent and trustworthy. Your main reason for trading cryptocurrencies is to make profits. As such, a company that provides you with the best possible returns will make your venture worth the while. The measure of the effectiveness of a trading bot depends on how consistently it achieves profits.
FAQ
Do Trading Bots Work?
Yes. Trading bots ensure that you don’t have to worry about the fluctuations in the crypto market. They make trading more efficient and help you save time. Well-executed trading bots come with advanced software that will help manage your portfolio. They leverage machine learning and artificial software to observe the market. Bots created to meet your unique preferences will offer higher chances of success.
Are Crypto Trading Bots Profitable?
Bots that are appropriately configured can be extremely profitable. However, the bots do not offer guaranteed profitability because they are software. Automated programs also have many risks associated with them. That is why it becomes crucial to choose the best trading bot company. This will ensure reliability, transparency, and ultimately, profitability.
Are Crypto Trading Bots Legal?
Bot trading is entirely legal in the cryptocurrency market. As long as your broker welcomes the use of the trading bots, you are good to go.
How Can You Create a Crypto Trading Bot Yourself?
If no trading bot in the market meets your unique requirements, you can always create your bot. To create an efficient crypto trading bot, you need to have some technical expertise and knowledge of the crypto market.
The first step is to research to understand your bot’s main goal and the platform you’ll use. Then, you can go ahead and code the bot to meet your preferences. You need to ensure that you use accurate data close to the actual trading as required.
The only way to ascertain a bot’s functionality is by testing it. Carry out extensive checks and find out bugs and issues that may prove costly. Once you complete with coding and testing, you design the bot while taking market risk and flaws into account.
Conclusion
Cryptocurrency trading leads the current trend and will do so for the foreseeable future. Over the years, crypto trading bots have become vital tools for traders. Both retail and institutional traders have found them useful for more effective trading.
However, some trading bots can be out there to take your money. That is why it is crucial to carry out the necessary research before you get one for yourself. I have done the legwork for you and selected the best trading bots to choose from. The information in this article will guide you to make the right decision.
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