According to Merriam-Webster, “Cryptocurrency is any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions.”
There had been attempts at creating online currencies since the late 1990s, with ledgers secured by encryption. Examples of such cryptocurrencies were B-Money and Bit Gold, which were formulated but not completely developed. However, Bitcoin was introduced and became the first established and longest surviving cryptocurrency till date.
In the year 2008, a paper called Bitcoin – A Peer to Peer Electronic Cash System was posted to a mailing list discussion on cryptography by someone who called himself or themselves Satoshi Nakamoto (a pseudonym). The real identity of the person or group remains a mystery to this day. The Bitcoin software was made accessible to the public for the first time and mining – the process through which new Bitcoins are produced and transactions are recorded and verified on the blockchain – began almost after a decade. In 2010, for the first time in history, someone decided to sell them.
There are over 2,000 tokens and currencies based on distributed, cryptographical technology. Collectively they are known as cryptocoins or cryptocurrency. Cryptocurrency’s’ beginning was shaky but now it has even made its way into the lives of people who used to be skeptical about investing in it. Today almost everyone is thinking about investing in it. If you are thinking about doing it too, and want to know more about – what you are investing in and which bot to choose, then you have come to the right page.
It matters less because in which cryptocurrency you trade, you can make a substantial amount of extra money out of it. The only problem is that you are new to the world of cryptocurrency systems, and do not know how to analyse the trading market and make profits from trading in cryptocurrencies. Well that is not much of a problem now if you are here because we will guide you by providing the necessary things you should know at the beginning of your journey.
So just shed your worries and grab the knowledge that, if understood and used correctly, it can make you potentially richer than you currently are, even while you are at the learning stage. You can get an extra income from cryptocurrency trading using a piece of software known as crypto trading bot.
Crypto trading bots are automated computer programs that buy and sell cryptocurrencies at the correct time, when most profit can be made. They are designed to analyze the cryptocurrency market trading data. The prior objective of these bots is to generate as much profit as they possibly can for their users. They do this by incessantly monitoring the market and responding according to a set of predetermined rules. If put simply, the idea behind trading bots is to help users make money in the markets, while not wasting a lot of their time.
After you get yourself a crypto trading bot, it has to be customized according to your desired preferences. Afterward, on your behalf, the software will analyze the market and do the trade automatically. In this piece, we are going to talk about some of the best crypto trading bots available.
It can be a real difficult task for a person who is new to the industry to find the best cryptocurrency trading bot, and as it is crucial to be aware about them we have brought to you some of the key factors you need to weigh before choosing the right bot for yourself.
What do you need to consider while choosing a cryptocurrency trading bot?
Reliability of a crypto trading bot is the most important aspect to consider. This is because with every online business, the key element is trust as it plays a vital role in the success of every business. No one would want to lose money and opportunities just because some software or bot went offline for a time period or even stopped working altogether. So, a company should be picked to serve you which can be trusted and is reliable. There can be arguments on if one can be sure about complete reliability of some particular cryptocurrency trading bot or not. However, you can always choose the best trading bot by knowing about its performance from the people who have actually used it. Our list includes such trading bot companies which have satisfactory reviews from their clients. Most of them have been in the market for a long time, providing advanced tried and tested crypto trading bots strategies.
One of the reasons why cryptocurrency is preferred is that it is a completely transparent network and thus it cancels out the possibility of any foul play. So the trading bot company in which you decide to invest should also be the same. It is not wise to throw away your hard earned money by investing in a shady trading bot company and as you cannot take the risk of getting conned by companies, we have listed for you the companies which are widely known for their work and have good reputation in the market. These companies also provide you with the intricate details about how they run their business, which helps in building trust. This transparency also provides the investor with details about whom to contact, making the business more effective and smooth. They help you learn about trading strategies and Bitcoin bots. Some companies even offer free trials of their services and spending your money, before you subscribe to their services.
Other than reliability and transparency, you should also ask about the company’s profitability. There is no point in investing in a Bitcoin trading robot that is trustworthy and expert in trading but does not provide you with the maximum possible returns. So before investing both – your money and your time in a trading bot, you should find out about if it is profitable or not and get in business with a trading bot company which promises to provide you with the best strategies and bitcoin trading bots.
4) Ease of Use
If you are new to Bitcoin trading then this is probably on your mind. You would want to get yourself a trading bot that is easy to use and can be controlled by just a few clicks of the mouse. The bots which have a simple and easy to handle interface are the most popular among not even the newbies but also among the skilled persons in IT. The list in this piece includes the companies which provide you with trading robots that are easy to use.
In the history of cryptocurrency, there have been many incidents where people have been hacked using various creative methods. When you use a crypto trading bot, you have to give it access to your funds and indeed it is risky. This is why you have to look for a company that provides high levels of security to their clients. So considering this factor we have chosen the companies for you which provides secure functioning of the trading bots.
Top 10 Best Cryptocurrency Trading Bots 2020
Even though Cryptohopper is a newcomer, it has made its name in the crypto market pretty quickly. It is a web-based tool which automatically executes trades by using technical indicators. The growth in its popularity occurred due to the wide array of features that the bot provides. One of the most significant features is that it is a cloud-based cryptocurrency trading bot and unlike most trading bots it does not run on a user’s local machine. This means that these bots do not run only when your PC is on but also continue trading when it is not. So basically, due to its use of cloud technology, Cryptohopper works 24×7; and so there is very little to no chance that you miss even one opportunity.
The other feature that can be counted as it’s reason for fame is its ease of usage, especially for the ones who are new. These trading bots have integrated external signalers, which let inexperienced traders use them by running them on autopilot. More experienced traders can manually configure trading signals and sales based on multiple technical indicators. So we can say that these bots satisfy the needs of both – the new traders as well as of the well-experienced ones, all you have to do is subscribe to external signals that are posted by technical analysts.
Apart from these features, Cryptohopper trading bots are also equipped with features such as backtesting, trailing stop loss (including features to let your bot only sell with profit), technical analysis and templates. Technical analysis allows the trader to configure and customize his own settings. Templates help to configure a new setting for the trading bot quickly. With a pleasant user interface, these bots also have the ability to trade using multiple exchanges integrations.
Cryptohopper trading bot on popular exchanges such as Binance, Huboi, Kucoin, Bittrex, Coinbase, Poloniex, Kraken, Cryptopia, and Bitfinex. Cryptohopper requires no coding and it offers a free trial for a month. Then you get the options to upgrade to Bunny ($19 p/m), Hare ($49 p/m) and Kangaroo ($99 p/m). After you subscribe to any of the aforementioned plans, you can start using your If you are willing to spend some extra bucks on a good crypto trading bot that can provide results, then Cryptohopper is a great choice.
3Commas trading bot is a smart crypto trading bot which adapts to the changing market conditions. It is very new but has become pretty famous due to its ability to trail any volatile crypto market and provide its user gains. The unique feature of this trading bot that makes it stand out is called the trailing loss and trailing profit. With other trading, when you set stop losses in order to avoid overall and take profit to secure the profit that you made, you cannot reopen the trade once the limit is reached even if the coin performs better after your position is sold by the bot. Unlike those trading bots, 3Commas trailing feature allows it to sell the coin at the most profitable position, making sure to make the maximum profit. It does this by analysing the market conditions and ensures that you get the maximum return. This feature helps greatly during the crypto bull run.
In addition to this special feature of the bot, it also allows users to trade multiple cryptocurrencies simultaneously, so that you do not miss any good trading opportunity. This trading bot is accessible through your account on the website and is hosted online on the cloud and thus it also runs 24×7. 3Commas trading bot provides all the features that a normal trading bot does, such as stop loss, take profit, automatic trade, etc.
The trading bot can be paired and configured with 13 of the most popular crypto exchanges including Binance, Kucoin, Bittrex, etc; exchanges such as BitFinex, Poloniex, KuCoin, etc will also be included soon.
This bot company offers three different packages – the cheapest one will cost you $22 per month and the most expensive package will set you back by $82 per month. However, the services of these bots can be used for free if you have an account on Huboi exchange. If you want to give bot trading a go, you can try 3Commas and see if it makes you profits even in a bear market.
Kryll.io is a new-age trading bot that has become popular among traders due to its features which facilitates a smooth automated trading. It was launched in the year 2018 by a team comprising of Luca Benevelo, Paul Collorafi and Philippe Longere. It can be said that strategies is the core of this crypto trading bot, you have to create your strategies with some of the most advanced features that this bot provides. These bots are appropriate for beginners as they are easy to use and control, with a platform which can be easily understood and provides you simple yet powerful tools through which you can be as creative as you want. However, you might need to refer to the tutorials to get better knowledge and clarity. If creating your own strategies doesn’t interest you, then you can go to the marketplace, and connect with creators and other users of the platform, and follow other successful strategies. Since like in cryptocurrency market volatilities are also involved in strategies, so to be sure about those there is also the option of backtesting a strategy, on 4 years of cryptocurrency history, before choosing it from the marketplace.
With a very flexible editor, Kryll.io trading bots offer drag and drop condition or indicator blocks, you can connect them and build up basic to advanced automated strategies. Not even a single code line is needed to do this. There are several blocks provided by the trading bot that can be linked. These are – market indicators, logical operators, improved technical analyses, value triggers, information and notification blocks. There is Visual Strategy Editor, so you do not need to learn coding. The editor also includes TradingView Charts with all available technical tools. New functions are likely to be added as the platform evolves and excels. The future blocks may be based on Artificial Intelligence or AI and might include Sentiment Analysis and Deep Learning (for trend prediction).
No deposit or withdrawal permissions are needed by the API keys. With its Publisher mode traders can also get passive revenues by publishing their strategies on Kryll marketplace.
The fee is low with 1% a month of strategy initial capital, and in addition Holding program which can reduce cost up to 95% and provide some additional benefits. There is no subscription fee to use the platform as it works on the principle ‘pay as peruse’. Kryll has its own token and all the fee is paid with KRL token. Users can also refer friends to earn a maximum of 45% commission on platform-related fees. The platform is promising and worth giving a try.
Zignaly is another famous trading bot but it is still in its development stages. However, the beta version of the app can still be used for free. The complete version will be available to the public but not for free. Though this bot is new to the trading bot industry, it has managed to attract a lot of attention from crypto traders. The main reason for this fame is that unlike other trading bots, this bot provides transparency. The users can know about the team being Signal through the website and their social.media profiles, and also communicate with the developers easily and the company is proud about their this characteristic. They take suggestions and complaints from the users. All of this helps them establish trust between user and developer.
Zignaly applies the TradingView API for chart analysis. It also allows users to create and apply their own strategies. This trading bot is compatible with Binance exchange for now. Since the sthit is still in development, there is a limit to how many exchanges it operates with. The development team has promised to add KuCoin, Coinbase Pro, Bittrexand Poloniex to the platform in its full version. Its platform is easy to use and can give you real benefits.
Gunbot, with more 6,000 traders using it on a daily basis, is a well-known crypto trading bot which can run on Windows, Linux and Mac on the local PC. It offers a lot of in-build strategies, including Bollinger Band, Step Gain and Ping Pong, and the strategies are customizable. According to many users, Bollinger Band is best for making profits. The bot operates on Bittrex, Poloniex, Cex.io, Binance, GDAX, Bitfinex, Kraken and Cryptopia exchanges. Since the bot is built for the volatilities in the market, it is advised that proper attention should be paid, while using it, to the trade. It should be turned off to avoid losses.
The price of this trading bot ranges from 0.04 BTS for Starter plan to 0.3 BTC for Ultimate Edition. Its users can also buy lifetime license for an additional fee. The features included in different plans also changed with the plan you choose. The Gunbot Lite version that is included in the Starter pack of Gunbot can be used to experiment around with less payment and limited features. The customer support service of Gunbot is really good as customers’ issues are resolved within a day.
It has gotten numerous positive reviews from its users and is one of the best Bitcoin trading bot in the market.
Gekko can be considered as one of the most versatile Bitcoin trading bots you can find in the trading bot industry. It is an open-source trading bot that is available to the public for free and can be found on the GitHub platform. Gekko is free of almost all bugs and is being improved constantly by developers. It is a fully automated and relatively straightforward backtesting platform that uses a web interface and can run on Windows, Linux and Mac on the PC. Gekko trading app is an easy to use platform that supports 18 different But coin exchanges, including Bitfinex, Bitstamp and Poloniex.
The Gekko is not counted as a high-frequency trading bot, this means that it can make a couple of trades per week according to its configuration. Also, it does not allow you to exploit arbitrage opportunities. It is a good choice if you are new to the cryptocurrency market as it offers basic strategies and also allows you to configure them. You can also avail other trading strategies online to make profits. You can start with using the bot on autopilot after you install and configure it with an exchange. It has numerous plugins available which allow you to be updated no matter what connectivity level you have.
Gekko trading bot will send you notification through Telegram, e-mail and other social platforms to keep you updated whenever it executes some trade. This is how you can also know about how well the bot is performing. Some users may find it difficult to set-up the bot, but there are guides available on the internet to help you with the process.
Zenbot trading bot is a free bitcoin trading bot that is quite similar to Gekko, or we can consider it as a more advanced version of Gekko. Zenbot software can be downloaded from Github to your local PC with Windows, Linux or Mac operating system. The trading bot comes with a pre-configured trading strategy. Since it is created using Artificial Intelligence, so unlike Gekko, this bot offers high-frequency trading and allows you to exploit arbitrage opportunities.
Zenbot is also an open-source trading bot, so its code can be modified by users according to their necessity. The bot is supported by all popular bitcoin exchanges such as Bitfinex, Poloniex, Bittrex, Kraken, Gemini, Quadriga and GDAX. The bot also supports multiple cryptocurrency trades simultaneously.
Zenbot’s setup process is easy and even a newbie can handle that, this makes it more user-friendly than many other free trading bots in the market. As it is an open-source project, there is a high chance that it is free of a number of bugs. Developers have been updating Zenbot and constantly working to improve it even further. The list of exchanges it supports is likely to be updated as new exchanges will be added. It keeps it’s users updated by sending them updates on Telegram, Slack and other social platforms.
Haasbot has been in the trading bot market since the beginning of 2014. It is an outgrowth of HaasOnline software, started in the 1990s, by Stephen de Haas. It was created by Haasonline, initially to only analyse the market conditions but now trades can be automated with it. The bot trades Bitcoin and various other altcoins. Haasbot runs on Windows, Linux and Mac operating systems on PC and provides choice to users from more than ten different bots. It is compatible with Bittrex, Hindi, GDAX, Gemini, Kraken, Poloniex and BTCC exchanges.
Haasbot is a cloud-based trading bot and thus it does not let you miss out on any trading opportunity, this also means that you don’t need to keep your PC system’s power on in order to use the software. The bot comes with pretty good pre-configured strategies and it also allows the users to customize it with their own trading strategies.
The bot has an easy to use interface, and is equipped with many amazing features. It also has some technical indicator tools, which help predict trend patterns to give maximum returns. It is correct to say that Haasbot is probably a versatile and most complete trading bot in the trading bots ecosystem as it does much of the labour work with relatively minimal input from its user. You can acquire the services of Haasbot by subscribing to its 3, 6 or 12 months’ Beginner (for newbies), Simple or Advanced (for experienced traders) plan. They range from 0.04 BTC per month to 0.32 BTC per year. You get access to more bots if you spend more. If you are willing to spend on the bot then you should do research to get some knowledge about trading market conditions and also what to expect from the platform. This is important because this bot acts upon the input from the user.
CryptoTrader is one of the most popular trading bots among traders. It’s widespread popularity is because it was the first crypto trading bot to run on cloud technology and thus be available to users round the clock. It does not require installation on your computer because it is completely web-based. CryptoTrader trading bot provides its users with automated trading solutions, and is easy to configure and modify to get ample and rewarding results. Modifications in algorithmic trading are simple to apply and can be made to the bot within just a few minutes. CryptoTrader can easily be used by a new trader with a little guidance.
CryptoTrader comes with a strategies marketplace feature that allows the trader to interact with other traders and also trade strategies. There are a lot of free as well as paid strategies available for inexperienced traders. The trading bot is also supported by most exchanges, such as Bitstamp, BTCC and Coinbasefor backtesting and live trading.
CryptoTrader offers several subscription plans and the only method of payment is through Bitcoin. The price ranges from 0.003 BTC per month for basic plan to 0.087 BTC per month for premium plan. The separate packages include a number of differences, including the number of bots operating on the user’s behalf, trading limit and availability of features. CryptoTrader also provides services such as email and text notifications to alert users about important market events or changes in trends.
10. BTC Robot
BTC Robot is the puneet of bitcoin trading bots. This bot was designed to trade on bitcoins but later on it was configured to trade other cryptocurrencies as well. These include Ethereum and Litecoin. The bot can run on Windows, Linux and Mac operating systems on your PC and the price of the software varies according to the operation system it is bright for. This also means that the software rhna on the local computer system and it works as long as the PC is on. The bot can be easily installed and also used. It works smoothly with various cryptocurrency exchanges.
The price of BTC Robot ranges from $19.99 per month from its Basic plan to $399 aa one time fee for the Platinum plan which includes access to all its features. BTC Robot offers its users a trial period with a 60-day money back guarantee. Along with reviews from most of its users, its own profit making abilities are evidence that this bot is a great choice.
Best Bitcoin Trading Bots – Conclusion
It has been more than a decade since cryptocurrency came into being and available to the masses. The cryptocurrency market has been successful in attracting traders and investors. It will not be far-fetched to say that it is a thing of the future as well, and it is going to grow more than it has in the previous years. Almost everyone has heard of cryptocurrency and many of them have considered getting into the market as well. The bitcoin or cryptocurrency trading bots are in the market to help the newcomers make their way into the overgrowing market of cryptocurrencies. These bots are also being used by the experienced financers to make passive income and profits. So, when these trading bots we have chosen for you are in the market to make your job easier and smooth, now is the time to invest and gain experience in and along with some extra bucks from the crypto market.
Types of Trading Bot Strategies
The crypto market is rather new than other financial markets but it has never slowed down, in terms of providing the investors the best possible solutions, since its beginning. Bitcoin trading bots services is one such example. Through crypto trading bots the traders are given access to numerous trading strategies to make income, some of the most popular strategies are discussed below:
Arbitrage is one of the primary strategies that traders use to make profits. When the profit is earned by buying assets in one market and simultaneously selling them in another for a higher price, that is called arbitrage. Due to the decentralization of crypto exchange the differences in the prices offered on different exchanges used to be large but now they are small, but they still appear not as often though. The trading hota help us make the most of these spreads between exchange
The bots do this either by finding price mismatches through different trading pairs on one exchange, or by finding differences across multiple exchanges.
These cryptocurrency exchanges were decentralized, there were often large differentials between prices offered on various exchanges, meaning that profits could be made through arbitrage.
2) Market Making
Cryptocurrency trading bots can also provide their users with market making strategies. This strategy allows the financer to place buy and sell orders simultaneously, to get profit from bid-ask spread. However, this strategy is less effective in low liquidity environments
3) Technical Trading
The trading bots which offer technical trading trade on signals and indications. Predictions of future price movements are made and those predictions are then used by the bot to make profit. This is one of the most preferred and widely used strategies by crypto traders.
Factors to Consider
- Minimum Deposit
Some minimum amount of capital is required by every strategy so that it could be successfully deployed, and as it is not difficult to guess higher frequency strategies always require more capital. Check the trading bot you have more than the recommended minimum amount, otherwise, you may not be able to perfectly execute your strategy and it will result in the loss of your money.
- Cost & Hidden Fees
A subscription fee for a monthly or annually pass is charged by crypto trading. There are also other fees such as transaction fees that are determined on a per exchange basis.
Binance and Kucoin are the exchanges that have lower trading fees of 0.1%, and they make higher frequency strategies more possible. However, exchanges like Kraken, Bittrex have a higher trading fees of 0.25%. Every little bit may count, depending on the strategy you choose.
You should also keep an eye out for trading pairs that have low liquidity. Trading pairs which have low trading volume have higher slippage and bid-ask spreads. Slippage is the price difference between what a trader wanted to execute the trade at, and what the price actually filled at.
Before you buy or use a bitcoin trading bot, it is always advised that you should first check out the community to see what others users have to say about the bot, by reading their reviews and also checking the ratings.
Advantages of Using a Crypto Trading Bots
- The trading bots assist the traders who are new to the cryptocurrency ecosystem. The newbies can learn by observing the functionality of the bots and researching on their own, along with making some profits.
- The trading bots are more efficient than human beings as the bots are fast and effective at making decisions and working without losing productivity and focus. Automated trading bots can analyse the market conditions of a number of cryptocurrencies simultaneously. They can place orders whenever there is a chance of profitable trade and not miss opportunities.
- The trading bots are time-efficient and do the tiresome work, which would take us humans much longer, for us and more quickly. They place the orders more faster than the humans can. Also, unlike humans, bots can keep track of the changes in the crypto market 24/7.
- When the prices fluctuates in the market, emotions can get the better of the traders as they are humans. Trading bot, on the other hand, is an emotionless machine that has no interest in money and is also better at analysis, so it does not get manipulated as easily as humans do by the big whales of the cryptocurrency market.
Disadvantages of Using a Crypto Trading Bot
- Trading bots are not suitable for the traders who are new and have no prior knowledge about how the market works and how the bots work. Such traders will not be able to setup the bots and use it effectively. Some amount of prior research and knowledge is must before you start with the trading bots.
- Trading bots are machines and they need to be constantly monitored. The proper functioning of the bot should be ensured as they execute the strategies and make trades. They should also be checked for bugs and technical problems.
- Be careful who you give the API key to. There are many hackers who provide free Bitcoin trading robots and softwares, which are only used to hack into your computer and use the API key to gain access to your bitcoins and cryptocurrency data. This is why a reliable and trustworthy company should be picked to buy the trading bot from.
- Most of the trading bots are available in English language and this can be a problem for the traders who are not fluent in the language.
Summary Table of 5 Best Cryptocurrency Trading Bots
Trading Bot Features
CryptoHooper: Runs 24×7 on the cloud
Compatible with several exchange platforms
Technical trading bot
Cheap plans with free trial for 1 month
3Commas: Runs round the clock on cloud
Trails crypto market
Technical trading bot
Kryll.io: Works on pay per use principle
Provides seamless automated trading
Can be cheap
Easy to use interface
Zignaly: Wide range of features
Beta version is free
Transparency with the customer
Good customer support
Runs on local PC
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