Today there are many paid and free crypto trading bots for crypto trading. For a crypto trader like you and me, it is hard to choose between these services. Therefore, in this article, we will help you choose the best bots for crypto trading.
What is a crypto trading bot?
A crypto trading bot is software that helps you automate your trading strategies. In other words, crypto trading bots automatically execute orders based on your trading strategy on your crypto exchange without your manual intervention. This reduces risk and gives you an added advantage over manual traders.
In the days of Mt.Gox, bitcoin traders wrote scripts to buy and sell bitcoins for profit. Over time, these crypto bots became more sophisticated. Today you can trade any altcoin like Ethereum, Dogecoin, Litecoin etc. using these trading robots.
Over 90% of crypto trading today is done through these bots.
Exchanges are now entering the trading robot market and launching Grid and DCA robots to give their clients better trading tools and increase trading volume to earn more commissions. For example, KuCoin, Gate.io and Huob also have built-in trading bots.
So if you are trying to maximize your returns, you should consider using these tools.
However, it can be confusing and overwhelming to start using a crypto trading bot. That’s why we’ve selected the best and easiest-to-use trading bots for you. Some of the best crypto trading bots listed below are free and open source software.
If you are a beginner, I recommend starting with pre-built trading strategy templates to reduce the risk of mistakes when automating your own strategy.
Do trading robots work?
Trading robots do work, it’s always your strategy that causes problems for you. The trading bot’s job is to execute the order based on your specifications. So if your configuration or trading strategy is good, you are unstoppable.
Are crypto trading bots profitable?
Your trading strategy makes profits for you, not for the trading bot. In some cases, such as grid trading bots, they will still make profits if you use them long enough on the sidemarket. So where do you think the crypto trading bots are worth it? Then start with the free one, Pionex.
How to choose Crypto Trading Bot software?
There are some important things you should consider when choosing a trading bot.
Mobile app/mobile view – On mobile, you can easily monitor your trading bot. Therefore, you should always choose a trading bot with proper mobile support.
Ease of use – For beginners, a trading robot should be easy to use. For example, I always prefer a drag & drop builder instead of coding the trading bot myself.
Support and documentation – When there is money at stake, support is important. That’s why I always prefer software with good support and proper documentation.
Trading tools – I often use Bitsgap smart trader, which automatically creates an exit and stop-loss trigger when I create an order based on the risk and reward percentage I choose. These tools are also useful for manual trading and enhance my overall trading experience. Therefore, look for trading tools in bots that will improve your trading skills and experience.
Team, company and history – Finally, check the company background as this is important as you are giving the program access to your stock trading account. Therefore, find out if the software has ever been hacked and find out the background of the founders and how the company has been known.
Price – I believe that you should always look for the best trading tool and not worry if it is a bit expensive because traders pay for the tool automatically.