Automated Crypto Trading Bots
Trading in crypto changes due to several market conditions, making it difficult for a trader to find the right opportunities. Intelligent traders are those who combine their knowledge with technology and use automated crypto trading to make maximum money.
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Automated cryptocurrency trading uses technology such as computers, robots and artificial intelligence to find trading opportunities and execute the trades.
Pionex, 3Commas, Coinrule, Cryptohopper, Bitsgap, Shrimpy and Trality are some of the best-automated crypto trading platforms.
- Continuous Monitoring
- Backtesting
- Unaffected by human emotions
- Risk Management
- Network errors
- Require technical knowledge
- Rigid
- Expensive
What is Automated Crypto Trading?
Automated cryptocurrency trading uses computers, robots and artificial intelligence to find trading opportunities and execute the trades.
In simple words, software and computer programs execute the buy or sell of crypto on behalf of traders. This software analyzes the market and identifies trading opportunities based on predefined algorithms.
Best Automated crypto trading platforms
Automated crypto trading bots are tools designed based on predefined strategies and algorithms for buying and selling cryptocurrencies automatically.
There are several paid and free crypto trading bots available in the market. We have prepared a list of top trading bots based on their features and services to help Auto crypto traders select the best platform.
Pionex - Best for free auto trading
Pionex is one of the most popular and reliable Automated crypto platforms, especially for US clients. It not only offers the best auto trading strategies to facilitate trade, but it also allows traders to set important information manually.
You can download the app on your mobile phone to use this automated bot 24/7. It also provides access to exchange digital currencies directly on its platform.
Pros
- Low trading commissions
- Offers more than 15 free trading bots
- Offers great Leverage
Cons
- US Clients can’t use leverage and margin tokens.
3Commas: Best for advanced traders
3 Commas is another popular platform for automated crypto trading for beginners and advanced traders. The platform offers various computerized tools and facilities to customize them.
The platform also offers crypto educational courses to help traders in learning AI software. The tools allow the traders to manage overall risk and maximize profit.
The best part about the platform is that it offers quality services at a reasonable price. You can create as well as use bots strategies based on your needs.
Pros
- Customizable Bots.
- Great customer service.
- It provides Educational tools.
Cons
- Users formulate most bots, and it is difficult to predict profitability.
Coinrule: Best to get a wide range of bots
Coinrule is a popular crypto trading platform globally that offers trading in Coinbase, Binance, Kraken, and other crypto consultants or exchanges. The platform is famous for providing its customer with higher returns on investment.
Multiple trading templates are available on the platform based on predetermined strategies; you can choose the best that suits your needs.
The automated trading tools also define the stop loss and take profit strategies to traders to manage risk efficiently. Coinrule also has a team of experts who provide trade guidance to clients.
Pros
- It offers over 150 trading platforms.
- 24/7 customer support.
- Best for backtesting
- Offers advanced trading indicators
Cons
- High subscription fees for advanced services.
Cryptohopper: Best for a variety of bots
Cryptohopper has unique AI bots and tools that gradually remove the need for manual trading and provide traders with maximum returns on the trade.
These robots are formulated based on predefined algorithms; you can customize the strategies as per your requirements. After you set up the software, it places the trade automatically.
The best part about the platform is apart from the charts and technical analysis indicators; it also considers human sentiments to identify trading opportunities and execute the trade.
Pros
- Easy to use.
- Offer Great ROI.
- Customizable bots and services.
- There is no need for unnecessary downloads and installations.
Cons
- Dependency on API connections.
- Success depends on market conditions.
Bitsgap: Best to get technical indicators
Bitsgap is amongst the best-automated crypto trading platforms that place the trader on behalf of traders and helps them create the most reliable strategy.
The platform offers over 10,000 technical indicators and chart analysis to help the trader make the most effective decision.
It offers trading in different types of bots, including trailing, take profit, Grid and futures bots. The best part about the platform is you can also test the strategies and analyze the success rate.
Pros
- Offer services of more than 10,000 crypto pairs.
- Free trials.
- User-friendly interface.
- It provides detailed charts and other technical analysis indicators.
Cons
- Expensive price structure.
- Security issues.
Shrimpy: Best for a detailed market overview
Shrimpy is another popular platform for automated strategies and portfolio management, monitoring the market conditions and executing the trade on behalf of traders.
The platform also allows traders to copy the trades of advanced and expert traders. It also provides the live price movements of the asset on its dashboard, which help the trader identify the trade opportunity.
The best part about the platform is it has specially designed subscription plans for all levels of traders. It also allows its clients to test its automated tools and analyze their success rate.
Pros
- Demo Account facility.
- Live market price.
- Easy to understand and use.
Cons
- Complex pricing structure.
Trality: Best for social trading
Trality is a large group of social trading consisting of bot makers and traders who collaborate to maximize the overall profits and use the technology accordingly.
Traders can create bots by analyzing market conditions and sharing them with others on the platform. It also offers margin trading and backtesting services for the best results.
The best part of the platform is that it offers a wide variety of services at a very competitive price. It is a popular automated crypto trading platform for beginners and advanced traders.
Pros
- Best to develop your own bots.
- Backtesting services.
Cons
- Not suitable for users with a lack of coding knowledge.
- It only supports algorithmic trading strategies coded in Python.
Advantages of Automated crypto trading
Continuous Monitoring:
Human has certain limitations. They cannot monitor the market conditions 24/7 hours. There are more than 22000 cryptocurrencies. It is not possible for humans to watch all the currencies.
Automated crypto trading platforms study all the market conditions 24/7. It alerts the traders when they find positive trading opportunities or, in some cases, executes the trade on behalf of traders.
Backtesting:
Even with automated trading bots, profit is not guaranteed. However, as strategies are system generated, the success rate is much higher.
And the best part is some automated trading platforms also offer the facility of a demo account. So a trader can test the strategies and analyze the overall success rate of the software.
Unaffected by human emotions:
Even the decisions of the most advanced and experienced traders are affected by emotions such as instinct, fear and greed, which may have adverse results.
But with automated software, the trade decision is based on technical indicators, historical price movements, algorithms and predetermined strategies.
Risk Management:
These automated trading bots provide traders with tools to manage risk and minimize losses. These bots monitor different crypto & forex market pairs and invest in a variety of assets on traders’ behalf at a time.
So, even if you have suffered a loss from one trade, you can adjust your losses from the other. Diversifying investment is complex with manual trading.
Disadvantages of Automated crypto trading
Network errors:
Crypto automation is based on algorithms, computer systems and artificial intelligence; the trading can be affected by network issues, power outages, data errors, coding errors and bugs.
These errors may affect your trading strategies and overall results. For example, an order may be placed inaccurately, and you may suffer loss.
Require technical knowledge:
Developing trading algorithms and automated trading strategies is not easy as it looks. It requires technological and coding knowledge.
Also, even using this automated software requires technological knowledge. One mistake affects the overall results and turns your profit into a loss.
Rigid:
Automated trading software execute the trade based on predetermined algorithms and strategies. It means they are pretty rigorous and consider technical analysis.
Crypto market changes due to various fundamental analysis factors such as news, economic reports and political status. In such cases, automated systems are comparatively less flexible.
Expensive:
Using the best and most up-to-date automated system can be comparatively more costly than manual trading. Some platform charges a whopping subscription amount for bot tools.
Also, using these tools requires the best internet connectivity, software updates and other costs.
Conclusion
Automated crypto trading has both advantages and disadvantages. It depends on you how you use it. There are many traders present in the market.
In order to stand out from the crowd and maximize profit, it is essential to collaborate your knowledge with such extraordinary tools. Using this trading boot will save you time and energy.
Also, it provides you with the best trading opportunity. If you are a part-time trader, it will also execute the trade on your behalf and close it at a profitable state.