As you know, the bullish season of 2021 attracted many crypto newbies, who think they are late to the game and jump to any means promising faster wealth generation. Trading requires prior experience and knowledge especially when it comes to using bots. Changing configurations without proper experience may lead to losses and hence, trade bots may not always be helpful for beginners. A successful trade is highly time-dependent, no matter the market. A virtual private server provides the security and low latency traders require. Botcrypto is a free bot trading platform that gives you 24 hours support with a visual editor.

Crypto bot trading strategies

Algorithmic trading style makes a perfect combination with the cryptocurrency markets, which provide several advantages for algorithmic traders. First of all – volatility, cryptocurrency markets typically have much higher volatility than traditional markets, creating bigger swings in prices and opportunities for traders. Secondly, round the clock trading session as cryptocurrency markets are open for business 24/7.

Botsfolio Pricing

Otherwise, our customers won’t be able to test their bots without risking losing their funds. It’s impossible to build a bitcoin trading bot and not give the user some levers to set up its behavior. Every single autonomous crypto trading tool of the dozen I’ve reviewed offers at least a couple of parameters to tinker with. Arbitrage is again one of the best trading bot strategies in both markets.

Crypto bot trading strategies

Standard crypto trading bots focus on making trades at specific times of the day, or copy the trading moves that other traders are making. However, the grid trading strategy has proven to be the most effective. Because of the volatility of cryptocurrency prices, setting a price range for buy and sell orders can help maximize profits.


This trading strategy uses a clear level that many traders also use to get a higher chance of a big continuation and a good entry. It takes advantage of a coin’s momentum and is fairly simple to understand. First, traders need to identify support and resistance levels and then place their sell or buy orders accordingly.

  • At the same time, the crypto DCA bot lowers the take profit target proportionally.
  • Sit back, relax, and let Gunbot take care of the repetitive work while you focus on how to get as much profit as possible from the markets.
  • So, finally, the question is whether or not to use automated crypto trading bots?
  • Any trades you perform can be replicated across every account of yours with the click of a button.
  • This is more than enough time to assess whether or not you want to commit to the $15.99 monthly subscription.

A crypto arbitrage bot automates this process by handling your assets on multiple exchanges at once. Arbitrage bots survey the market, detect price discrepancies and act immediately upon them. To achieve this, the arbitrage bot needs a certain amount of capital present on multiple exchanges at once. In practice, however, crypto arbitrage trading is very difficult to pull off.

Popular Crypto Trading Strategies

Using a crypto grid trading bot has numerous advantages for any crypto trader, involving everything from a high level of automation to the ability to increase risk management. Arbitrage is the purchase and sale of an asset in order to profit from a difference in the asset’s price between markets. Therefore this strategy takes advantage in the price difference of the same asset on different exchanges. The trader buys digital assets from one market and then sells them in another, earning a profit in the process.

Arbitrage is the technical trading style to leverage on price inconsistencies. In other words, you buy an asset on one market for a specific price and sell the same asset immediately somewhere else for a higher price. Even though the price moves are fairly small most of the time, traders use bots to operate on scale and do it as fast as possible. As a result, some algorithmic traders yield high returns using arbitrage strategies. Backtesting is the process of testing a bot strategy taking various types of data like analysis and historical data into account.

Crypto bot trading strategies

The best crypto trading bot allows top traders to profit from highly volatile crypto markets based on timing and access to proper trade strategies with automated trading. Many crypto trading bots offer features that help experienced traders develop and refine their trading strategies. There are paid and free cryptocurrency trading bots available in the market, each having a huge advantage over the other.

If you are a casual and conservative crypto trader who prefers the buy and hold strategy , crypto trading bots may not provide you with a good return on investment. CryptoHero is a cloud-based crypto trading bot platform, which places trades 24/7 on crypto exchanges. Furthermore, CryptoHero bots are simple and intuitive for crypto beginners to set up and run. TradeSanta is a relatively unique trading bot that’s entirely cloud-based, intended to reduce the amount of time it takes to perform trades. The bots are easy to create, and can be used on many different crypto exchanges.

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Now that you know what are crypto trading bots, let’s explore how trading bots work and answer the million-dollar question “do crypto bots actually work? Execution is simply the buying and selling of cryptocurrency on different platforms. The bots are triggered to execute trades when specified market conditions exist. The trading bots are limited to doing technical tasks based on information gathered from the market environment. They do not monitor Elon Musk’s tweets, Discord forum discussions, or get ‘feelings’ about the best time to buy and redeem cryptocurrency.

Moreover, Hopper is an AI bot for your strategy, meaning you can add trends, and signal strategies to this algorithm, and it will get you the best result. Cryptohopper provides an Arbitrage tool that functions without having users transfer funds between exchanges. It has a dynamic trading terminal, an interface that allows the management of multiple exchanges.

We also like the compatibility with smartphones and tablets, meaning that you can monitor your automated bot’s trading endeavours while on the move. The only slight ‘chink in the armour’ is that you will be required to fuel your trading bot with the platform’s native KRL tokens. The more KRL tokens that you hold at the platform, the more features you will get with your bot.

Crypto trading bots are software designed to analyze the crypto market and place trade orders on behalf of traders. It is an automated crypto trading bot that involves portfolio management and technical analysis. It uses algorithmic cryptocurrency trading strategies to execute them at the ideal time to capture fluctuation profit. Cryptohopper hosts trading services for both novice and advanced traders using cloud-based storage. It offers an intuitive and easy set-up process without requiring any credit card information. This best AI crypto trading bot integrates a trader’s social sentiments with other investors, enhancing the trading experience and refining trade strategies.

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It must also use the technical data and any other information that may assist in making decisions about trades. Bots can be used to instill a level of discipline in trading operations. Technical trading bots are perhaps the most popular and widely-used bot. These bots use indicators and signals to predict price movements, allowing the user to automatically enter the market before a price increase. You do not necessarily need a bot, but lots of traders leverage automated trading because robots are effective and easy-to-use.

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Your maximum order size will be the amount of your capital divided by the number of grid lines. Highest grid level – is the price resistance which will act as the top of the grid. Reliable signals that can execute thousands of orders instantaneously and follow your personalized setup to the letter. However, keep in mind that the number of grid lines depends on a combination of the size of your capital and your order size.

After adding your exchange accounts through API, you’ll be able to replicate trades across all accounts with a single click. The platform provides detailed statistics that are calculated and shown on the Dashboard so traders can keep track of gains and trade more effectively. Last but not least there is 3Commas which some of you might have read about in the Coin Bureau article abouttop crypto research tools. In the article, 3commas was chosen because of their good platform for paper trading, which I strongly suggest for those wanting to try out their strategies. However, 3Commas offers much more than just paper trading which is why it’s included in this list too. Once you have your exchange connected, you can build a crypto trading bot yourself.

It allows a 3-day free trial of the maximum package and a Minimum plan that is free of charge and covers two DCA bots. Moreover, Cornix has its mobile application and telegram bot to serve the purpose. All you have to do is download and connect Cornix toTelegram crypto signals channels, and its bot makes trade from your account.

For many users, adding their crypto exchange API is a massive blocker. Allowing them to paper-trade using your demo account seems like a good idea to keep them exploring the software. We might also make use of ccxt — a popular crypto trading library. It’s open source and works with JavaScript and Python, allowing smartbot trading-bot developers to bootstrap connections to popular exchanges like Kraken, Binance, etc. Needless to say, advertising and a fixed price would not be the best monetization options for a trading bot. Ads will ruin the entire user experience, and the fixed-price approach would cause issues with upgrades.

Yes, you can short any asset at any supported exchange by using the Smart Order Bot. Backtests are a way to simulate a strategy’s performance using historical data before committing real funds to a bot for live trading. Backtesting seeks to estimate the performance of a strategy during a past period and assumes that if the strategy worked previously, it has a good chance of working again.

Trading Rules

If your trading budget is less than $200, you can use their trading bots for free. After the first $200, your fee will be $2 a month for every $100 in trades, with a maximum monthly fee of $500. Crypto grid trading bots are easy to use and highly customizable.