As the crypto industry has grown in popularity, the use of crypto trading bots also increased. In this article, we discuss the best crypto trading bots in 2021. But for those who are asking “What is a crypto trading bot?”, these are software programs that engage with crypto exchanges to analyze trading data. These use the information to place buy or sell orders on behalf of the user.
The bots act on a predetermined and pre-programmed series of rules. To monitor activity in the markets. In addition, bots may come with trading strategies. But the users can also customize the bot according to their priorities.
There are presently many crypto trading bots available. Some for free and some in exchange for a subscription charge. In this article, we introduce 10 of the best crypto trading bots in 2021. But before we proceed to that, let us first delve deeper into the topic “What is a crypto trading bot?”
Table of contents
- What is a Crypto Trading Bot?
- History of Crypto Trading Bots
- When to Use a Crypto Trading Bot?
- Why Consider Using Crypto Trading Bots?
- 10 Best Crypto Trading Bots 2021
- Pros and Cons of Using a Crypto Trading Bot
What is a Crypto Trading Bot?
As stated above, for those who want to know “What is a crypto trading bot?”, these bots are automated software that help buy and sell digital currencies at the correct time. The main goal of the software is to reduce losses and risks.
Normally, the bot tries to interpret market data, scrutinize price movements, and react based on rules. Added to this, millions of people use trading bots to retain a firm grip over their trading activities.
Now that you are familiar with what is a crypto trading bot, let’s see the history of crypto trading bots.
History of Crypto Trading Bots
Back in 1949, nobody knew what is a crypto trading bot. Heck, the hard concept of cryptocurrency did not even exist back then. However, Richard Donchian thought of the concept of an automated trading system. Specifically, he came up with a set of rules to buy and sell funds.
Eventually, famous traders like John Henry started adopting the idea of “rule-based trading” in the 1980s.
Since then, trading bots have become famous in the crypto market. However, these were normally a little expensive. Also, these were not available to average investors. In addition, over the years, cryptocurrency bots have continued to evolve in functionality and sophistication.
Some of the advanced trading bots are cloud-based and operate 24/7. With this, traders do not need to keep their computer turned on every time. This is because the bot is cloud-based and would work for users throughout the day.
When to Use a Crypto Trading Bot?
There are many functions that a well-established bot can perform. Specifically, the functions include rebalancing, data collection, portfolio management, smart order routing, etc. More so, repetitive admin tasks consume a lot of time and effort. Fortunately, a trading bot will allow virtually copy-and-paste-specific tasks to conduct trades with ease.
Trading also needs users to have good timing and a high degree of accuracy. Every single trade that users make can have an enormous impact on their potential earnings. In addition, the crypto trading bot can be easily programmed to monitor the market.
Sometimes, users need to be awake all the time, carefully reading the price charts. Since that’s humanly impossible, they can use trading bots instead.
Things to Consider When Choosing a Crypto Trading Bot
Reliability is an important factor to consider when selecting a crypto trading bot. Users need to pay for a crypto exchange which users can rely on. Moreover, the bot should be effective in scanning the cryptocurrency market all the time. And also identifying high probability opportunities capable of generating optimum returns.
In addition, the crypto trading bot should get rid of any downtime, as exchange opportunities can crop up at any time. Similarly, the bot should be up and running as long as the market is open.
While there is no sure way to know if a bot is reliable, you can check feedback from other users. Specifically, you can find feedback on whether the bot keeps going offline or suffers from other glitches, etc.
Hackers may target crypto trading bots and exchanges. That is why it’s crucial to ensure that the bot is secure. Look for one that has a good track record for security. Also, check that the team behind the bot is credible and legitimate. Additionally, make sure that there is an active community of satisfied users.
While choosing a bot, users need to go with one that does not get full access to users’ money or account. This way, users will be able to limit the damage, in case something goes wrong while trading.
Ease of Use
Most users need a crypto bot that will make trading easier for them. Look for one with an intuitive interface that suits the user’s level of expertise. Also, users should check the level of customer support.
Make sure to check how updates are rolled out as well — whether bugs are solved in an efficient and timely manner. It is also important to find a bot that best aligns with the user’s trading strategy. Check also how much customization will be required.
Cost is of the utmost importance when choosing a crypto trading bot. A good bot should have balance when it comes to the cost charged to identify and execute trades on behalf of clients. Moreover, going with a cheap crypto bot might not cut it.
Likewise, an expensive bot might not guarantee the best returns. Any top Bitcoin bot must have its interests in the form of costs aligned with its success rates. In this case, the bot should be ready to cut fees in case of losing trades. Likewise, it should not be biased in charging over the top of winning trades.
Users like to trade with a crypto trading bot that has well-defined exchange processes. Moreover, the algorithms used to generate high probability trading opportunities need to be readily available to all users.
Likewise, the crypto trading bot should make it easy to understand how it identifies exchange opportunities and makes profits. Furthermore, by checking reviews online, users can determine the transparency level of any top crypto trading in the market.
Exchange strategies that a crypto trading bot deploys should ideally align with the user’s trading goals. If you are a long term trader, then the bot should be able to deploy long term strategies such as position trading.
Similarly, if you are a short term trader, the crypto trading bot should be effective in scalping or swing trading.
Why Consider Using Crypto Trading Bots?
The cryptocurrency market is known for being highly volatile. It also never closes. However, this can make Bitcoin and other cryptocurrencies very profitable when traded wisely. But this also increases the risk of significant losses.
A crypto trading bot can help to mitigate some of these risk factors. Unlike humans, bots will only make trades based on the data and trends available. Moreover, emotions and impulses are eliminated from the decision-making process.
Bots can also operate around the clock. This way, the user can continue trading even while they are asleep or otherwise occupied. More so, trading bots also have the advantage of being able to work faster and more efficiently than human trading manually.
Even more, these bots can analyze data and execute trades across multiple exchanges and cryptocurrencies.
10 Best Crypto Trading Bots 2021
Pionex is one of the world’s first exchanges with 12 free crypto trading bots. These bots include Grid Trading Bot, Leveraged Grid Bot, Margin Grid Bot, Infinity Grid Bot, Reverse Grid Bot, Leveraged Reverse Grid Bot, Dollar-Cost Averaging Bot, TWAP Bot, Trailing Take Profit Bot, and Spot-Futures Arbitrage Bot.
- Provides 12 free crypto trading bots for retail investors
- Lowest trading fee compared with other exchanges (the trading fee is 0.05% for maker and taker)
- Grid Trading Bot allows users to purchase at low prices and sell high in a specific price range
- Leveraged Grid Bot provides up to 5x leverage
- Spot-Futures Arbitrage Bot helps investors make passive income with low risk
- Smart Trade terminal allows traders to set the stop-loss, and take profit
- US FinCEN’s Money Services Business (MSB) license approved
Exchanges: Binance, Huobi Global, Pionex
Quadency is a crypto asset management application that provides an automated trading solution for both retail and institutional traders. It offers a huge number of features including pre-configured trading bots, advanced charting, market statistics, and portfolio analytics.
- Helps users customize bots with ease
- Provides a set of automated tools and advanced TradingView charting
- Users can receive a good level of customer support
- Allows users to trade on Bittrex, Binance, and Kucoin
- Offers different types of trading bots that can be customized with ease
- Supports automated trading
Exchanges: Coinbase, Poloniex, Kraken, Bitfinex, Bittrex, Binance, KuCoin, OKEX Liquid, and Gemini
Bitsgap is also one of the best crypto trading bots in the world. It enables managing crypto assets with ease. Also, the application can check over 10,000 crypto pairs. Moreover, it enables users to create their bot strategy with only a few steps.
- A fully automated bot that works 24/7 hours
- Users can test settings before investing
- Can be accessed without downloading it
- Funds are kept on the exchange balance for security purposes
- Its BTC trading software helps to gain more profit
Exchanges: Binance, OKEX, Bitfinex, HitBTC, Bittrex, Huobi, Exmo, Kucoin, CEX.IO, Kraken, Poloniex, Livecoin, Coinbene, Coinex, Gate.io, Bitstamp, Liquid, Gemini, Bit-Z, Yobit, DDEX, Bithump, Bibox, BigOne
Mudrex is one of the famous crypto trading bots that enable users to build a strategy with ease. In fact, it allows users to check for good and bad investments. This helps users to choose between rewards and risks that suit their needs.
- Offers historical data to test strategy
- Offers an intuitive interface
- Helps users to maximize ROI
Exchanges: Binance, Coinbase Pro, OKEX BitMEX, Deribit, Bybit
Coinrule is an automated trading platform. It enables users to trade for Binance, Kraken, Coinbase Pro, and more exchanges. In addition, the platform allows different trading strategies including stop loss and take profit, and integrates the main technical indicators.
- Offers real-time customer service
- Allows users to test rule performance on past data
- Sets custom rules for trading
- Has a market indicator that helps users to allocate funds with ease
- Provides military-grade encryption
- Enables 24/7 trading
Exchanges: Bitfinex, Liquid, HitBTC, Binance, BitMEX, Bitpanda Pro, Binance, Bitstamp, Coinbase Pro, Bittrex, Kraken, Poloniex
3Commas is one of the best crypto trading bots that enables users to increase revenue. In addition, this application allows users to get profit with minimal effort. Moreover, it enables users to create a strategy based on 20+ trading indicators.
- Users can sell and buy coins in a single window
- Enables users to trade 24-hours a day
- Users can copy the setting of other bots
- Allows users to balance portfolios by maintaining coin ratios
- Supports backtesting, dollar-cost averaging, signals, custom TradingView signals, etc.
Exchanges: Binance DEX, Binance, Bitfinex, BitMEX, Bittrex, Bybit, Bitstamp, Coinbase Pro, Gate.io, Cex.io, Exam, Huobi Global, KuCoin, HitBTC, Kraken, Poloniex, OKEx, YoBit
Haasonline is one of the best crypto trading platforms that enable users to trade on over 16 bots. It offers 50+ technical indicators, insurances, and safeties that can be used to create complex strategies.
- It offers programmable script bots.
- Users can integrate backtesting with Discord (VoIP) and Telegram applications.
- This application offers a customizable dashboard.
- Offers a tutorial to make users understand the platform.
Price: 0.015 bitcoin for three months
Exchange: Bitfinex, BitMEX, Bitstamp, CCEx, Bittrex, Binance, Deribit, Gemini, Huobi, Kraken, Coinbase Pro, HitBTC, CEX.io
Shrimpy is a free crypto trading bot. Nevertheless, this application has automated trading strategies that help users to improve performance and reduce risk. Furthermore, it helps users to build portfolio strategy, track performance, and monitor the market.
- The API key is securely encrypted and stored using Federal Information Processing Standards (FIPS)
- Simplifies users’ portfolio management
- Allows users to view the live market price
- Offers a dashboard that includes statistics about each asset and performance metrics of a portfolio
Exchanges: Coinbase, Poloniex, Kraken, Bitfinex, Bittrex, Binance, KuCoin, OkEX Liquid, and Gemini
Cryptohopper is one of the best and free crypto trading bots. It helps users to manage all crypto exchange accounts in one place. Moreover, it allows users to trade Bitcoin, Litecoin, Ethereum, and more.
- Allows users to create their own technical analysis
- Enables users to easily get strategies and bot templates
- Protects your account by secure protocols
- Keeps users’ data private
- Offers a user-friendly interface
- Provides real-time performance reports
Exchanges: Binance, Bitfinex, Binance.us, Coinbase Pro, Bittrex, HitBTC, Bitvavo, Kraken, Huobi, OKEx, KuCoin, Poloniex
TradeSanta is one of the best and free crypto trading bots that enables users to manage their risk with ease. This application also allows users to choose the strategy that suits their trading style. Even more, it enables users to set their target profit amount and close the deal at the right moment.
- Users can launch trading bots with a short and long strategy with ease
- Provides 24/7 supports
- Allows users to buy or sell a large volume of crypto without any hassle
- Offers a wide range of pre-set templates
- Users can track the bot in real-time
Exchanges: Bitttrex, Binance, HitBTC, Bitfinex, Upbit, Huobi
Pros and Cons of Using a Crypto Trading Bot
Here are the pros of using trading bots:
Efficiency: Bots can check market conditions in more than one cryptocurrency. This is not possible for people who are poor at multitasking.
Increased speed: Trading bots helps users to place the order quickly. Furthermore, the delay in the digital currency may lead to a loss in its value. Therefore, bots are more effective than humans.
Running period: It is not possible to always stay in front of the PC and examine investments. Trading bots, in this case, work 24/7 and therefore do not miss opportunities.
Here are the cons of using trading bots:
Not for inexperienced traders: Cryptocurrency trading needs proper knowledge in using the bots. However, changing the configuration of these bots can lead to huge losses.
Requires monitoring: Cryptocurrency trading bots are not useful on high volatility periods. Even more, it is because they are not attached to the money, and hence it may lead to a massive loss.
Security concerns: Crypto bots execute trades via integration with API. Nevertheless, the nature of exchanges and bots can pose some unwanted risks. So, traders need to be very careful while trading digital currency.