Best Crypto Trading Bots: 2022 Reviews & Comparisons

Updated: Jun 18th, 2022
James Hendy
James Hendy
Best Crypto Trading Bots: 2022 Reviews & Comparisons

With high volatility and an abundance of digital assets to follow on 24-hour markets, tracking and executing crypto trading strategies can prove to be difficult. For this reason, trading bots are becoming exceedingly popular and have proved to be a solution for many crypto traders.

With thousands of crypto trading bots available within the market, we will review and compare the best cryptocurrency trading bot platforms to use. In addition, explain what a crypto trading bot is, outline the different types, and describe what to look out for when choosing your own.

The Best Crypto Trading Bots

Based on our reviews of numerous crypto trading bots available to investors and traders worldwide, we have narrowed down the options. These are our picks of the best trading bots for crypto traders.

  1. Pionex (best free crypto trading bots)
  2. 3commas (best crypto bot for margin and options trading)
  3. Bitsgap (best crypto trading bot platform for safety)
  4. Coinrule (best for making crypto trading bots)
  5. Shrimpy (best bot for portfolio rebalancing)
  6. HaasOnline (best bot for traders)

List of the Best Crypto Trading Bots: 2022 Reviews

1. Pionex - Best Free Crypto Trading Bot

Pionex is first and foremost a top-rated cryptocurrency exchange. However, alongside the ability to trade the crypto markets, Pionex also offers traders the ability to utilize crypto trading bots. The exchange was first launched in 2019 and has always focused on providing the best crypto trading and tools for users. Now marketed as the 'pioneer exchange with leading crypto trading bots’, bots have become a distinguishing feature and help to set the exchange apart from its competitors.

Pionex websitePionex website

There are 16 free trading bots that Pionex traders can utilize to tackle the cryptocurrency markets. Each one implements a slightly different strategy and is applicable to different types of cryptocurrency traders and investors. A short description of all Pionex bots can be found below:

  • Grid Trading - Grid Trading bots are defined by upper and lower price limits. Within those price limits, grid bots will aim to firstly buy cryptos low and then sell those cryptos as high as possible.
  • Martingale Bot - The Martingale Bot uses a dollar-cost-averaging (DCA) strategy to purchase cryptos. All cryptos will then be sold if prices reach a predefined price limit.
  • Spot-Futures Arbitrage Bot - The Spot-Futures Arbitrage Bot has been designed to take advantage of the price differences between the crypto spot and futures markets.
  • Rebalancing - The Rebalancing Bot can be used to build an index of different cryptocurrencies. Each crypto carries a set weighting within the index. If a single crypto increases above its set weighting, the portfolio is rebalanced.
  • Time Weight Average Price (TWAP) - The TWAP bot is another DCA strategy that is designed for large buyers or sellers to spread volume over several transactions and, therefore, avoid impacting the market.
  • Stop Limit - The Stop Limit bot triggers buy and sell orders at predefined price levels.
  • Smart Trade - The Smart Trade Bot is designed for trending markets. In up-trending markets, the Smart Trade bot will try to maximize profits while capping losses to the downside.
  • Trailing Buy & Sell - These bots are trailing bots that ensure traders take profits after large price movements either to the upside (Sell) or downside (Buy).
  • Margin Grid - The Margin Grid allows users to lock away crypto funds as collateral so that markets can be traded with leverage.
  • Infinity Grid - As a variation of the Grid Trading Bot, the Infinity Grid implements a grid trading strategy without price limits. The bot was designed for long-term holders.
  • Leveraged Grid - A Leveraged Grid Bot allows users to borrow money to amplify the rewards of the standard Grid Trading Bot. However, the risk of loss is also amplified.
  • Reverse Grid - In comparison to the Grid Trading Bot, the Reverse Grid firstly sells what crypto a user has and then tries to buy at a lower price.
  • Leveraged Reverse Grid - The Leveraged Reverse Grid is the same as the Reverse Grid but traders can borrow money to amplify the risk and reward.
  • BTC & ETH Moon - BTC & ETH Moon bots are another type of Grid Trading Bot that allows for exceptionally wide price parameters. As a result, BTC & ETH Moon bots are suited to long-term investors that might be searching for a set-it-and-forget-it strategy.
Pionex trading platform and in-built botsPionex trading platform and in-built botsPionex trading platform and in-built bots.

A key advantage of Pionex’s crypto trading bots is that all have been developed to harmonize with the Pionex crypto trading exchange. As a result, Pionex offers free crypto trading bots. There is no need to establish confusing API connections and there is very little risk of a trade not being executed due to poor connectivity. Traders can buy and sell over 346 different cryptos on the spot market and also a vast range of leveraged tokens. In addition to a competitive range, spot trading fees start from a competitive 0.05%, while leveraged trading fees start from 0.1%.

In addition to the ease of use and low trading fees, another great feature of Pionex bots is that they can be accessed from both the Pionex website and mobile applications. Although trading bots are designed to be automated, the ability to manage bots using a crypto app is a useful perk. In particular during times of extreme market volatility.

Although the internal flexibility of Pionex bots is good, there are also a few downsides that prospective users should be aware of. Unfortunately, there is no option to create a strategy from scratch, which means traders must work within the realms of predefined strategies. Furthermore, as native exchange bots, trading is restricted to the crypto pairs, liquidity, and trading volume offered by Pionex.

While the range of cryptos is good and the exchange claims to manage over $5 billion worth of trades per month, larger exchanges, such as Binance, offer access to many more cryptos and frequently manage $5 billion worth of trades in a single day. Lower liquidity means that traders utilizing Pionex should be aware that the risk of slippage could be high.

Pionex supported trading pairsPionex supported trading pairsPionex supported trading pairs.

Once signed in to Pionex cryptocurrencies can be deposited for free or purchased with a credit card using the exchange’s ‘Buy Crypto’ option. However, all crypto withdrawals do incur a flat rate charge which varies with each crypto. There are also daily limits in place depending on a user’s Know-Your-Customer (KYC) tier level.

To provide a level of comfort for users, Pionex has become one of the first cryptocurrency exchanges with built-in trading bots to gain a Money Services Business license from the US body, FinCEN. All users that wish to access Pionex's free crypto trading bots must therefore adhere to strict KYC policies.

As cryptocurrencies used with Pionex trading bots are stored on the Pionex platform, the exchange implements exchange-grade security measures such as Two-Factor Authentication (2FA) and biometric log-ins. Unfortunately, it is unclear how Pionex manages assets that are stored on the exchange. For more information, read our review on Pionex.

2. 3Commas - Best Crypto Bot For Margin Trading

3Commas is a smart trading platform that was designed to offer users easy-to-understand and easy-to-implement crypto trading bots. To accompany crypto trading bots, 3commas users can also manually manage trades from a single dashboard and copy signals from more experienced traders through the platform’s native Signal Marketplace. All features have been designed to maximize a trader’s profit potential.

3Commas website3Commas website

Split between manual and automated tools, all of 3comma’s trading bots fall under the automated tab of the platform. The crypto trading bots available can connect to 18 different cryptocurrency exchanges. These include some of the best crypto margin platforms such as Binance, Bittrex, Bitfinex, FTX, Bybit and KuCoin. With a vast range of connections, most traders should be able to connect 3comma’s trading bots with a preferred cryptocurrency exchange. In addition to strong connectivity, there is also a vast range of crypto trading bots to choose from and can be modified depending on a trader’s preferences.

All bots fall within one of four categories, which are outlined below.

  • GRID Bots - The GRID trading bots are optimal in sideways trending markets. These trading bots will aim to maximize profits between two predefined price levels by buying and selling cryptos at set intervals.
  • DCA Bots - DCA Bots optimize crypto purchases over set time periods.
  • Options Bots - Options Bots seek to simplify and automate the process of buying and selling options. Options traders can automate common option strategies, such as Straddles.
  • HODL Bots - HODL Bots automate crypto purchases at the best entry price with the aim of building a long-term portfolio for an investor.
3Commas grid trading bot3Commas grid trading bot3Commas grid trading bot.

While Grid, DCA, and HODL bots are similar to those offered by other platforms, one distinguishing feature of 3commas is the wide range and flexibility of bots for margin and futures markets. Trading futures and options contracts can be an extremely confusing process, particularly for new crypto traders. 3commas Options Bots were designed to help traders navigate that complexity by automatically implementing set options strategies. The highly-visual guides and simple user interface make it much easier to take advantage of an otherwise complex trading derivative.

Another advantage of 3commas is that several features of the platform can be accessed entirely for free, which means that inexperienced users can test and become familiar with the platform without committing to a monthly charge. With 3comma’s free forever trial, traders can utilize 1 grid bot, 1 options bot, 1 DCA bot, 1 Active SmartTrade, and unlimited use of the native Scalper Terminal. All of 3comma’s bots can be managed from a single dashboard, which includes compatibility with TradingView. This is one of the best charting software for crypto that includes all the tools and indicators for traders.

3Commas crypto bot pricing plans3Commas crypto bot pricing plans3Commas bot pricing plans.

For more advanced traders that are looking to implement a higher number of strategies, a monthly subscription is required. The higher the monthly subscription, the more crypto trading bots and more features that can be used. Traders have 3 subscriptions to choose from:

  • Starter - $29/month
  • Advanced - $49/month
  • Pro - $99/month

When committing to an annual membership, monthly prices can be halved to $14.50, $24.50, and $49.50. In comparison to other crypto trading bot platforms, 3comma’s pricing is very reasonable.

To start using the platform, a trader must connect 3comma’s to a chosen exchange by generating an exchange API key. Although withdrawal access is never requested, API keys are still a target for malicious parties, which is why 3commas implements security features such as 2FA and notification alerts. Unfortunately, there is currently no mobile app to allow for management on the go which is a disadvantage.

3. Bitsgap - Best Trading Bot Platform For Safety

Bitsgap was first launched in 2016 and was created as a platform to manage manual trades on multiple exchanges. However, the platform has since evolved to include a range of popular crypto trading bots. Moreover, it offers the flexibility for users to automate their own crypto strategies. Based out of crypto-friendly Estonia, the platform has now launched over 3.7 million different versions of its crypto trading bots and has helped to execute over 100 million trades.

Bitsgap websiteBitsgap website

The range of bots offered by Bitsgap can be grouped into 3 categories: (1) GRID Trading Bots, (2) DCA Trading Bots, and (3) Futures Trading Bots. The features of each bot are outlined below.

  • GRID Trading Bots - The GRID trading bots offered by Bitsgap work between 2 predefined price intervals to buy low and sell high. The price range between the 2 intervals is divided up and used to create a grid of buy and sell orders. Strategies include ‘buy the dip’, ‘flat’, and ‘custom grid’.
  • DCA Trading Bots - DCA trading bots consistently purchase cryptos at optimal price levels depending on a set of chosen technical analysis indicators.
  • Futures Trading Bots - Futures trading bots allow traders to automate futures trading strategies and take advantage of the leverage for high risk/high reward trades.
Bitsgap grid trading crypto botBitsgap grid trading crypto botBitsgap grid trading crypto bot.

All Bitsgap trading bots can be connected with over 20 of the top cryptocurrency exchanges such as Binance, Coinbase and Kraken, this makes the platform one of the most compatible within the industry. It also means that its bots can be used with over 7,000 different cryptocurrency pairs.

Although the connectivity and range of supported cryptocurrencies are good, one of the best aspects of Bitsgap is its user-friendly design, which will help even the most inexperienced traders become familiar with using crypto bots for trading. If traders do run into trouble, the platform also boasts a detailed ‘Knowledge Base’ and ‘Blog’ which should help to answer most queries.

Bitsgap trading bot pricing plansBitsgap trading bot pricing plansBitsgap trading bot pricing plans.

One of the only downsides of Bitsgap is that there is no free subscription tier. While the platform does offer a 7-day free trial, all subscription tiers require a monthly payment. Subscription tiers are:

  • Basic - $29/month
  • Advanced - $69/month
  • Pro - $149/month

The Basic tier allows for 2 active GRID bots, 10 active DCA bots and unlimited smart orders. The higher tiers then increase the number of active GRID and DCA bots as well as allow access to Futures bots.

Unfortunately, Bitsgap doesn’t support a mobile application, which means the management of portfolios and crypto trading bots must be completed using the online web browser.

Bitsgap claims to implement security procedures that are ‘up to twice as secure as many internet-based banks’. These procedures include a 2048-bit standard protocol encryption of all user data, the option to enable email notifications, 2FA, and the utilization of hardware security keys. To ensure a user’s funds are never moved from a trading account, a Bitsgap API key can also never be generated with withdrawal permissions.

4. Coinrule - Best For Creating Crypto Trading Bots

Coinrule is a crypto trading bot platform that was founded in the UK. It was developed with the intention of bringing user-friendly design to the cryptocurrency trading industry. According to the platform’s website, Coinrule aims to bridge the gap between crypto traders and professional algorithmic traders. As a result, Coinrule offers a toolbox for the easy creation and implementation of automated crypto trading strategies.

Coinrule websiteCoinrule website

One of the main advantages of Coinrule is that it offers exceptional levels of flexibility and choice, which allows for a wide range of trading strategies to be implemented, including fail-safes such as the prevention of overtrading and FOMO.

Coinrule allows traders to choose from a range of crypto bot trading templates or create their own using over 150 “If-This-Then-That” programming principles. The programming principles were designed so that traders can make a crypto trading bot without needing to understand complex programming language. Once created, all trading strategies can be tested within the native ‘Demo Exchange’ to check expected profitability by paper trading without real money.

Related: Best crypto demo trading platforms.

Although advanced traders may enjoy the optionality of Coinrule, some may be disappointed that the platform only supports 10 different cryptocurrency exchanges, which is slightly less than competitors. However, supported exchanges do include many favorites including Binance, Coinbase, and Kraken.

Like 3commas, a limited number of Coinrule trading bots can be developed for free, which allows traders to test out the platform. The free Starter subscription tier allows for 2 live rules, 2 demo rules, 7 template strategies, 1 connected exchange, and up to $3K in trading volume.

coinrule auto bot pricing and planscoinrule auto bot pricing and plansCoinrule auto bot pricing and plans.

Unfortunately, to access a greater range of functions a monthly subscription tier will need to be selected. Coinrule tier options include:

  • Hobbyist - $29.99/month
  • Trader - $59.99/month
  • Pro - $449.99/month

While the lower tier prices are comparable with other crypto bot platforms, the Pro tier is considerably higher than competitors and would likely only be applicable for institutional traders. All subscriptions can be paid in cryptocurrencies and Coinrule also offers an online calculator that estimates the optimal subscription tier based on a user’s estimated monthly trade volume.

Like other platforms, the connection between Coinrule trading bots and cryptocurrency exchanges is facilitated via API keys. However, unlike other platforms, Coinrule is very detailed on the security measures it implements to keep those API keys safe. All API keys are stored with encryption technology and are linked to associated private keys. All private keys are then stored offline to avoid malicious breaches.

5. Shrimpy - Best For Automatic Portfolio Rebalancing

Shrimpy was launched in 2018 and is purpose-designed to track portfolios across a vast range of cryptocurrency exchanges. From a simple crypto portfolio tracking application, Shrimpy has continued to expand and now offers a range of enhanced trading features, including automated trading strategies and copy trading solutions. All of Shrimpy’s features can be managed from a single dashboard which facilitates connections to a range of cryptocurrency wallets and exchanges.

shrimpy websiteshrimpy website

Shrimpy’s crypto trading bots are accessed through the Automation tab of the Shrimpy dashboard. Unlike other crypto trading bot exchanges that offer a variety of trading strategies, Shrimpy primarily stands out for its ability to automate diversification and then continually rebalancing a portfolio. While options might be limited, this makes Shrimpy ideal for cryptocurrency traders looking to simply diversify an existing portfolio.

A Shrimpy index can be created by choosing from a range of supported cryptocurrencies. Each cryptocurrency is then assigned a percentage weighting. Shrimpy then uses those portfolio weightings to constantly rebalance assets to ensure that the correct risk profile is maintained. Portfolio rebalancing can occur every hour, day, week, or month.

Shrimpy bot to rebalance portfolioShrimpy bot to rebalance portfolioShrimpy bot to rebalance portfolio.

Even if cryptocurrencies are stored within cold storage, Shrimpy can account for that extra asset allocation and adjust a portfolio accordingly. All of the indexes created on Shrimpy can be connected with over 16 different cryptocurrency exchanges, which places the platform in the mid-range when it comes to connectivity.

Similar to crypto platforms such as eToro and BingX that include a copy-trade feature, Shrimpy users can copy the world’s best crypto traders and imitate the portfolios of investment funds like Coinbase Ventures, Blockchain Capital, or Binance Labs.

Access to all of Shrimpy’s features requires a paid subscription which is the only negative. Subscription tiers start with the $19/month Starter tier, which includes 5 cryptocurrency exchange connections, 5 portfolios per exchange account, and a 15 min refresh time. Alternatively, traders that require more exchange connections can opt for a $79/month Professional tier or a $299/month Enterprise tier. However, the Enterprise tier is more applicable to company-level portfolio management. The price of all tiers can be lowered when committing to a 6-month subscription.

Shrimpy bot pricingShrimpy bot pricingShrimpy crypto bot pricing.

Although there are no free tiers on Shrimpy, users can get a feel for the platform by utilizing the free demo account. From the demo tab, traders can access a copy of the internal Shrimpy dashboard and use fake funds to establish a Shrimpy Index of crypto assets. The application also hosts a shrewd backtesting calculator that shows over the last 8 months the difference in profits between hodling and utilizing an automatically rebalanced Shrimpy index.

Like competitors, all API keys are restricted to read and trade entry only. Shrimpy then secures all API key data using FIPS 140-2 security modules and encourages the use of 2FA for log in to the official dashboard.

6. HaasOnline - Best Crypto Bot For Advanced Traders

HaasOnline, or Haas, is an advanced trading bot platform developed to automate and democratize the algorithm crypto trading process. Launched in 2014, it is one of the oldest crypto trading bot applications on the market. HaasBots have supported a range of crypto traders including both retail and institutional clients.

Haasonline websiteHaasonline website

Unlike other top trading bot platforms for crypto, HaasOnline was not developed as a web-based system. Instead, the connection to cryptocurrency exchanges is facilitated through HaasOnline’s proprietary desktop application called the HaasBot TradeServer. For many years the desktop application was the only option that HaasOnline offered, however, the company is in the process of releasing the Haas TradeServer Cloud to accompany the desktop application.

The desktop TradeServer is a distinguishing feature of HaasOnline as it enables all trading data and API keys to be stored locally on a device. This can significantly enhance the privacy and security for traders. However, downloading and configuring the TradeServer software is not as straightforward as the ‘click-and-trade’ options offered by other competitors. To overcome this, HaasOnline provides numerous user-friendly guides to help new traders learn about using crypto bots.

HaasOnline trading bots for cryptoHaasOnline trading bots for cryptoHaasOnline trading bots for crypto.

Through the HaasBot TradeServer, traders can choose from a range of ready-made crypto bots or design their own using a proprietary HaasScript programming language. All bots can be connected to 1 of 21 different cryptocurrency exchanges including Binance, Coinbase, Kraken, and OkEX. A few examples of ready-made HaasOnline crypto bots can be found in the table below:

  • Accumulation Bot - The Accumulation bot can be used to automatically increase or decrease a crypto position size using a dollar-cost-averaging strategy.
  • Advanced Index Bot - The Advanced Index Bot will rebalance a portfolio each time a crypto within that portfolio rises or falls in value. The rebalancing is dependent on a set of predefined weightings.
  • Email Bot - The Email Bot works in conjunction with email notifications or alerts from TradingView. Innovatively, the bot will only trade once an email notification has been received.
  • MadHatter Bot - Working on a 5-minute time interval, the MadHatter Bot implements a scalping trading strategy. The bot utilizes a combination of Bollinger Bands, MACD, and RSI to determine entry points.
  • Order Bot - The Order Bot allows traders to select predefined entry points and a sequence for entry into a particular market. The Order Bot will then execute those trades when the target price is reached.

If a trader is not happy with the ready-made templates at HaasOnline, this is when they can turn to the powerful HaasScript that the platform is recognized for. With over 500 different commands, traders can generate a range of different trading strategies to suit individual needs. Although a slightly more advanced option, the HaasScript can still be applicable for new traders that are willing to learn from accompanying documentation. To help less advanced traders, HaasOnline also offers a Visual Editor tool that can be used to drag and drop commands into a workflow.

Haasonline visual editor toolHaasonline visual editor toolHaasonline visual editor tool.

Unfortunately, all of this advanced functionality comes at a price. One of the key downsides to HaasOnline is that there are no free trials or free subscription tiers. All active traders must start paying from day one. However, all payments are quoted and paid in BTC, which means that the dollar value for subscriptions changes quite rapidly.

At the time of writing, the Beginner tier starts at 0.005 BTC, which is equivalent to approx. $95. However, at Bitcoin’s peak in November 2021, this was equivalent to $275. Simple and Advanced subscription tiers are then 0.007 BTC and 0.012 BTC respectively. There are no restrictions on trade volume for any tier but only Simple and Advanced tiers gain access to the HaasScript and accompanying Visual Editor.

Haasonline bot pricing planHaasonline bot pricing planHaasonline bot pricing plan.

The HaasBot Trading Server can be downloaded for free and used with a Public Demo Server. This allows traders to backtest crypto trading bots before committing to a subscription. Even if a user is not sure about the platform, HaasOnline also offers a reduced 14-day trial license to test the system with real connections to exchanges.

Like all other trading platforms with bots, security for HaasOnline is key. While the TradeServer application offers security for trade data and API keys, all data transfers are also encrypted. In addition to the security benefits offered by the software, 2FA can also be enabled which should help to prevent unauthorized log ins.

Best Crypto Trading Bots Compared

Automated crypto bots can be a useful tool for beginners and experienced traders to gain an advantage in the markets. The table below has rated and compared our list of the top crypto bot platforms.

Trading BotBest ForSupported exchangesFree TrialPricingRating
PionexFree crypto trading botsN/A (In-built bots)Yes (unlimited)Free4.1/5
3CommasAutomated bots for Options trading18Yes (unlimited)From $29.00 per month4/5
BitsgapEase of use and security20NoFrom $29.00 per month3.9/5
CoinruleMake crypto bots10Yes (unlimited)From $29.99 per month3.9/5
ShrimpyPortfolio rebalancing bot30+NoFrom $19 per month3.8/5
HaasOnlineAdvanced trading bots21NoFrom 0.04BTC per month3.6/5

What Is A Crypto Trading Bot?

A crypto trading bot is a pre-programmed set of instructions that automates the process of buying and selling cryptocurrencies. Bots can be as simple as predefining a level that a buy or sell order should be placed, but can also be extremely complex and rely on several different technical indicators. Importantly, crypto bots allow positions to be entered without a trader needing to continually track and follow prices.

Each crypto trading bot can be tailored to an individual trader's needs. While some are predefined by crypto-bot trading platforms, others can be created from scratch. Most crypto trading bot platforms charge a monthly fee for the services provided. The range of exchanges, cryptocurrencies, and trading bot options will vary from platform to platform.

Are Crypto Trading Bots Worth It?

Crypto trading bots are useful for traders that don’t have the time to dedicate to checking the markets and trades every single day. As the process is automated, traders can implement crypto robots to capitalize on trading opportunities while away from the screens.

Trading bots also remove all emotions from trading. One of the factors that make trading so difficult is the human emotions associated with winning and losing money. A crypto trading bot removes this emotion which means that there is no hesitancy over entering and exiting positions.

How Do Crypto Trading Bots Work?

Automated crypto bots use common trading rules and pre-defined criteria to execute a set of instructions in the market. Most crypto bots use a combination of technical analysis tools and algorithmic trading rules to enter and exit positions.

A crypto trading bot will analyze market price data, determine risk, and then buy and sell cryptocurrency assets accordingly. The conditions of trade entry are determined by the set of technical analysis tools and the algorithmic trading rules fed into the bot. If all conditions are met, a bot will enter a trade. The bot will then look for the optimum time to sell for profit or the optimum time to sell to minimize any loss.

Unless native to a cryptocurrency exchange, bots connect to a trader’s exchange account by using an Application Programming Interface (API). An API allows an exchange to open up its functionality to a third-party application, such as a trading bot and defines the permissions a bot has within a trading account.

Types of Crypto Trading Bots

While crypto bots can be built from scratch and customized to individual needs, there are several types of crypto bots that are common across most platforms. Here is a list of the best crypto robots that are commonly used.

1. Grid Trading Bots

A grid trading bot places a grid of buy and sell orders between two predefined price levels. Due to the predefined price levels, grid bots work well when markets are trending sideways.

For example, if the price of BTC was $30,000. A grid trading bot could be set with price parameters of $27,000 and $33,000. As prices move up and down between the two price parameters, the grid bot will buy BTC if prices fall and will sell BTC if prices climb higher. The buying and selling take place at designated intervals as defined by the bot. There are several other cryptocurrency bots that use a variation of this standard grid trading system.

2. Dollar-Cost-Averaging Bots

All Dollar-Cost-Averaging (DCA) bots use a DCA strategy. DCA is a strategy used by investors that want to remove both market volatility and emotion from trading. The strategy involves buying a predefined amount of one cryptocurrency at frequent intervals, such as on a weekly or monthly basis.

DCA bots automate this process and allows investors to accumulate crypto regardless of what happens to the price. DCA bots can also be programmed to sell holdings once the price reaches a pre-defined level.

3. Rebalancing Bots

Rebalancing bots allows investors to build their own cryptocurrency index. Investors can pick and choose cryptos they would like to include within a diversified portfolio. Each cryptocurrency is then assigned a portfolio weighting.

For example, an index may include 40% BTC, 30% ETH, 10% SOL, 5% BNB, and 5% DOT. A rebalancing bot will balance the index each time one of the cryptocurrencies within the index breaches its predefined weighting. In the example above, if BNB increased in value and, as a result, increased its percentage weighting to 6%, a rebalancing bot would sell BNB and reallocate profits to cryptos that are not performing as strongly.

What To Look For In A Crypto Trading Bot

Crypto bots involve placing hard-earned money on the line. This is why the process of choosing a suitable trading bot is so important. Here are a few factors to consider when choosing an automated bot:

  • Ease of use. One of the biggest benefits of using bots is to make trading easier. Therefore, a bot in crypto needs to be easy to understand and easy to implement. Even though a trader may not be entering positions, every trader needs to understand exactly how those positions are being entered.
  • Trustworthy. Building trust is crucial within any industry, but even more so when it comes to trading bots for cryptocurrency. There are hundreds of scam bots in the market which means it is important to pick a trustworthy company. The best crypto trade bot platforms are open about development and are happy to share who the supporting team is composed of, and where the company is located. If that information is not readily provided, you have to ask why?
  • Reliability. Crypto bots can suffer from connectivity issues which may result in opportunities being missed. It can be a good idea to check the reviews for the top crypto trading bots to see which platforms maintain strong connections to exchanges at all times.
  • Security. While most auto bot platforms do not require cryptocurrencies to be stored with them, the security of the platform should still be paramount. Crypto bots are granted read and trade access to an exchange account. Even though withdrawal permissions are never required, malicious parties can still damage a trading account if they gain access to a user’s API keys.
  • Profitability. If all other factors are equal, profitability could be the deciding factor between two crypto bots. The best crypto trading bots generate the most profit, which is the intention of all traders.

Frequently Asked Questions

Crypto trading bots are designed to make cryptocurrency trading more efficient. Bots can be utilized by traders who don’t find they have the time to monitor prices all day and can be useful for traders that are struggling to trade without emotion. Trading bots also allow for different trading strategies to be executed on different cryptocurrency exchanges simultaneously. Automated bots are well-suited for those using crypto day trading platforms to execute trades frequently.

Many crypto bots can return a high number of successful trades. However, past performance is never a guarantee of future results, which should always be considered before investing in a trading bot. The cryptocurrency markets are one of the most volatile. If market conditions change, a crypto trading bot that was once profitable may lose profitability.

Yes, crypto bots automatically buy and sell cryptocurrencies on the user's behalf. As a result, all profits associated with a trading account must still be recorded and filed with the correct tax authorities.

Yes, trading bots are implemented across all financial markets including stocks, forex, and commodities, and have been for many years. The majority of institutional investing and trading is now completed automatically using complex algorithms. Anyone is able to legally create a crypto trading bot to try to generate more profits from the market.

Yes, KuCoin offers in-built crypto bots that are free to use. The selection of automated bots includes Futures Grid, Smart Rebalance, DCA and Infinity Grid. The crypto bots can be used on the spot and margin exchange to buy and sell crypto. For more information, read our review on the KuCoin platform.

Using a crypto trading bot can potentially increase the profits of a trader by removing emotional-based trading mistakes. This does depend on whether the bot has been programmed to follow a profitable strategy with an edge in the market.

Conclusion

Crypto trading bots are an excellent option for traders that have a good trading strategy and are short on time. Strategies can be implemented on a 24/7 basis without a trader needing to monitor price data and watch for opportunities. Bots can also be extremely efficient and can help to remove the emotion that frequently plagues short-term traders.

With more than 38% of traders using bots, it's no surprise individuals are looking for the best crypto bot platforms to use. To pick the best bot, remember to check reliability, ease of use, transparency, security, and profitability. Due to the high price of some services, if possible, use a free trial to backtest different trading bots or a paper trading platform to determine which crypto bot is right for you before committing.

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James HendyJames HendyJames Hendy

James has been involved in the cryptocurrency markets since 2018. He is a sought-after crypto writer that has published works for many cryptocurrency exchanges, fintech platforms, financial publications and investment disruptors worldwide. James work has been featured on the comparison website Finder and Real Vision covering topics in finance, business and the global economy.

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