As the bitcoin market has grown in popularity, so has the use of bitcoin trading bots. These are computer programs that interact with bitcoin exchanges to analyze transaction data and then use this information to place buy or sell orders on behalf of the user.
Bots act on a set of pre-programmed and predetermined rules to monitor market activity. The bots can come with the trading strategies already installed, but the user can also customize the bot according to their preferences. There are currently many bitcoin trading bots available, some for free and some for a subscription fee.
In this article, we have rounded up 10 of the best bitcoin trading bots.
We also discuss some of the advantages and disadvantages of using a bot and explain what to look for when choosing a certain type of program.
The cryptocurrency market is known to be highly volatile. Also, it never closes. This can make Bitcoin and other cryptocurrencies very profitable when traded wisely, but it also increases the risk of significant losses.
11 Best Bots For Trading Cryptocurrencies Free and Paid
A bitcoin trading bot can help mitigate some of these risk factors. Unlike humans, bots will only do operations based on available data and trends, so emotions and impulses are removed from the decision-making process.
The bots can also operate 24 hours a day, so the user can continue to trade even while asleep or otherwise busy. Trading bots also have the advantage of being able to work faster and more efficiently than a person trading manually. When properly established they can analyze data and execute trades on multiple exchanges and multiple cryptocurrencies.
- Rate: Starting at $ 19.99 per month
Bitsgap is a cloud-based platform that is capable of coordinating and executing numerous operations on various trading accounts under a single ecosystem.
Some of the standout features of its trading bots include support for over 30 cryptocurrency exchanges through its native API, allowing users with multiple trading accounts to trade over 10,000 cryptocurrency pairs within a single platform. , and much more.
Bitsgap can profit from multiple strategies simultaneously, including but not limited to price movement, arbitrage, portfolio management, open position tracking, and smart trading.
Beginners can learn through demo mode without risking their assets.
The platform is categorized into three plans, each of which is unique with its advantages, features, and performance.
- Fee: Free with a starter account or from $ 29.99 per month
With its simple and intuitive design, Coinrule is a good choice for those who are new to bitcoin trading, as well as more advanced traders.
Users do not need to know any code to set their trading rules
Coinrule is web-based and works with various cryptocurrencies, as well as being compatible with some of the most widely used exchanges, such as BitMex and Coinbase Pro.
- Fee: A free plan offers access to portfolio monitoring features. Professional plans start at $ 13 per month.
Shrimpy was created for traders who cannot afford the most expensive bots, so it aims to offer a good range of free services.
The main feature is the automatic trading algorithm built into Shrimpy.
Other tools include backtesting to compare your strategy with historical results and social trading, which allows the user to follow and copy other traders on the platform.
The bot is compatible with some of the major exchanges, including Kraken and Binance.
- Rate: Starting at $ 22 per month
This cloud-based bot has an intuitive interface and a wide range of tools.
Its main feature is the ability to test strategies on the portfolios of other traders. This allows you to learn from the successes of the best traders on the platform and incorporate their approach into your own strategy.
3Commas works on a range of exchanges, including Bittrex, KuCoin, and Binance, and can trade multiple cryptocurrencies simultaneously.
- Rate: Starting at $ 14 per month
TradeSanta is a cryptocurrency trading automation software that works completely in the cloud and is very suitable for beginners and professionals. Without making trading your full-time job, you can take advantage of the fluctuations of the cryptocurrency market 24 hours a day, 7 days a week.
The platform supports 7 major exchanges today and continues to grow.
TradeSanta’s distinctive feature is a simple but powerful user interface. Their goal is to make automated trading accessible to anyone.
Its user-friendly interface makes automated trading as intuitive as it gets.
- Rate: Starting at $ 19.99 per month
Like another cloud-based bot, Cryptohopper is easy to set up and start trading on a wide range of cryptocurrencies.
One notable feature is the ability to interact with professional traders and to trade their trading signals online.
More experienced users can program the bot according to their own strategy.
Cryptohopper works with most of the popular exchanges.
- Fee: $ 15.99 per month
This is another cloud-based trading bot and a relatively new one on the market. With no limits on the cryptocurrencies you can trade, Zignaly offers a high level of freedom.
Another attractive feature is the ability to follow professional traders and integrate their analysis of market fluctuations. The bot only supports Binance and KuCoin at present, but the developers promise that other exchanges will follow soon.
Zignaly prides itself on its transparency and users can easily communicate with developers, as well as taking advantage of a 30-day free trial.
- Fees: Tokens can be used to pay bots operating fees
Kryll is a cloud-based platform that has a host of features for less tech-savvy traders. You can implement any strategy in your trading bots with its Drag’n Drop tool, which mitigates the technical coding skills learning requirements.
Kryll’s cloud-based platform runs 24 hours a day, 7 days a week, with little to no downtime; allows users to freely test their strategies as many times as they want without extra charges.
It also offers a marketplace where strategies can be rated, reviewed, and tested.
- Fee: Starting at 0.01 BTC for a lifetime license
Gunbot is downloaded onto the user’s machine and comes with several built-in strategies. These can also be customized according to the user’s operating preferences.
Gunbot is known as a very flexible and efficient trading bot, offering good value for money.
It can be used to trade a variety of cryptocurrencies and is compatible with most of the major exchanges, including KuCan, Kraken, and Bitfinex.
Its use is relatively complex, so it is best for those with some experience in trading bots.
- Fee: Starting at 0.073 BTC for three months
Haasbot runs in the cloud, so like other cloud-based bots, it can continue to function even when the user’s computer is turned off.It comes with a pre-configured strategy but it can also be customized.
One of its key features is the ability to access a series of bots that can trade with different currencies and on different exchanges at the same time.
This bot requires a higher degree of operator interaction than some of the others on the market, making it more suitable for those with a good understanding of the bitcoin market.
- Fee: Free
Zenbot is an open source trading bot, so the code is available for traders to download and modify for free.
Lacking a user interface, it requires technical knowledge, but provides access to ready-made strategies, as well as features such as paper trading, a simulated trading that allows users to test strategies in real time.
Zenbot can handle high frequency trading and supports various cryptocurrencies alongside bitcoin.
What are the pros and cons of using a bitcoin trading bot?
It is important to remember that a trading bot is not a magic bullet .
The right bot used effectively can help increase your profits, but there are also several drawbacks and risks to consider before deciding to use a Bitcoin trading bot.
- They eliminate emotion. The huge price fluctuations in the bitcoin market can lead people to make erratic and impulsive transactions. Trading bots eliminate this risk by placing orders only according to available data and its default set of parameters.
- They are highly efficient. While people can only study one cryptocurrency market at a time, bots can scan and analyze multiple markets simultaneously, spotting opportunities that a trader might otherwise miss.
- They are fast. Speed is essential in the fast-paced world of cryptocurrencies. It may take time for a person to complete a trade, and at the same time the trade may be losing its value. But bots can place orders instantly, taking advantage of opportunities as soon as they arise.
- They run 24 hours a day. Even the most dedicated bitcoin trader cannot sit in front of his computer all day and all night. A bot will continue to monitor the market and place orders in your absence, so they never have to stop trading.
- They need to be monitored. You cannot start a bot and forget about it, you will have to monitor its performance and make the necessary adjustments. In addition, a bot will not take into account external factors that can affect the market, such as world events or breaking news, so it can make bad trades without the supervision of a person.
- They require some experience and knowledge. Although bots can come pre-set with trading strategies, most of them work best when reconfigured to user specifications. Therefore, the user will need to understand how the market works and the technical aspects of trading with a bot.
- They can present a security risk. Bitcoin trading bots communicate with exchanges through Application Programming Interfaces (APIs), which means that two machines work together without human intervention. The centralized nature of bots and exchanges can make them vulnerable to hackers, so you will have to take steps such as keeping the API key secret and disabling automatic withdrawals. You should also check the security log of any bot you are considering.
Things to consider when choosing a bitcoin trading bot
One of the main attractions of a bot is its ability to continue trading 24 hours a day.
If your bot stays offline or suffers from other problems, you will miss out on opportunities.
Check its reliability by reading the comments of other users.
As mentioned above, hackers often target trading and exchange bots, so it’s crucial to make sure your bot is as secure as possible.
Look for one with a good safety record.
Check that the team behind the bot is credible and legitimate and that there is an active community of satisfied users.
Easy to use
Most users want a bot that makes it easy for them to trade, so look for one with an intuitive interface that suits your level of experience.
You should also check the level of customer support, how updates are implemented and if bugs are resolved in an efficient and timely manner.
It is also important to find the bot that best suits your trading strategy and see how much customization will be required.
A bot is only effective if it consistently achieves profit for its users.
Before investing in a bot, you should read the reviews to assess its success rate.
Some bots are available for free, while others come at a significant price.
Generally speaking, a paid bot offers superior features and a higher level of service, but you need to weigh what you get for your money and whether it is worth the investment before making a decision.