28 min read

Cryptocurrency has emerged as one of the most sought-after trading markets in recent times, and a pool of new investors is adding crypto to its portfolio every minute. While the prices have grown significantly in the past few years, so has the trading opportunities for many. But the crypto market is highly volatile, witnesses sharp jumps now and then, and is active round the clock. There are a plethora of exchanges, hoards of markets, and countless groups to give you tips and tricks to generate profits. Making consistent returns in such a market with manual trading is extremely difficult. Therefore, many traders are now moving towards cryptocurrency trading bots, which are computer programs built to ease out the trading process for traders.

This article will look at the basics of trading bots, their features & shortcomings, and highlight the top trading bots to look out for in 2022.

CryptoHopper Best Crypto Trading Bot

Time waits for no one and financial markets are no different, especially when it comes to the unpredictable world of cryptocurrency trading, so a carefully calibrated, safe and reliable trading strategy is essential. How can private traders track market fluctuations, diversify risks, reduce errors and maintain trading discipline 24 hours a day, 7 days a week, 365 days a year? This is where bots for automatic cryptocurrency trading come into play.

What is a Crypto Trading Bot

A trading bot is nothing but software that executes a set of instructions on the financial market. In the case of a cryptocurrency trading bot, the bot interacts with the crypto exchange, analyses market data and then places buy/sell orders as per the instructions stored in it. These bots follow these rules to monitor activity in the market and generate returns. While many crypto bots come with pre-defined strategies, some have the option for the user to customise them as per their own preferences.

These crypto trading bots are majorly used in two use cases. First, they make the trading process extremely simplified, and investors can leave out tasks such as portfolio diversification, rebalancing, and much more to the crypto bot. However, one can also use the crypto trading bots to study the market, analyse the trends and consistently make profits. Many bots even bet against the market to build profits. It all depends on the strategy coded into the bot.

Why Should You Use Cryptocurrency Trading Bots?

A well-executed bot can perform a lot of functions, which includes executing trades, portfolio management, data collection, rebalancing, and a lot more. In a market where there are 100s of exchanges, countless currencies, and 24×7 trading opportunities, crypto trading bots are becoming extremely vital. Here’s why you should use cryptocurrency trading bots.

Automating Repetitive Tasks

If you trade regularly, there are certain tasks that take up a lot of time and effort. Using crypto trading bots can help you automate these tasks and save up precious time. One such task is rebalancing your crypto portfolio, and if you want to rebalance it frequently, it takes up precious time to do so. Using a cryptocurrency trading bot can help you rebalance your portfolio automatically, at the frequency you choose. Moreover, it can rebalance your portfolio on its own, even when you are sleeping.

Executing Trades Lightning-Fast

Timing is critical when you are trading cryptocurrency. The price changes every second, and the thin line between profit and loss can be timing. If you do every trade manually, every single trade will take some time and can have a severe impact on your potential profits. The bot, however, can automatically execute the trade as soon as the price threshold is reached and do it in an instant.

Ease Out The Trading Process

There are a lot of profitable trading strategies, but very difficult to execute manually. Moreover, keeping track of prices across exchanges and managing trades keeping all prices in mind is highly complicated. Here, traders can use crypto trading bots to automate these complex strategies and time-consuming tasks with ease and efficiency.


Coinrule Automated Crypto Trading Bot

Types of Crypto Bots

While one can encode numerous strategies into bots, we will look at the four main types of cryptocurrency bots. These are:

  • Arbitrage Crypto Trading Bots

Since there are multiple exchanges on the market, the price of a cryptocurrency can vary across exchanges. While these price differences are usually not significant enough, the difference can be monumental when coupled with a large enough volume. An Arbitrage trading bot profits off this difference, as it purchases an asset for a lower price and sells it higher, both at different exchanges.

  • Market Trend Crypto Bots

These bots predict the market trends and create trades accordingly. These bots take positions, both long and short, and generate returns through multiple market cycles, even if the trend changes. These bots are generally long-term; therefore, many trades also return losses.

  • Market Neutral Cryptocurrency Bots

These bots create buy and sell orders based on short-term price changes and usually do not depend on the market trends. These bots try to generate profits from short-term price rise and fall and are not suitable for long-term returns. While most of their trades might return profits, they’ll be riddled with transaction fees.

  • Portfolio Balancing Crypto Bots

The portfolio balancing cryptocurrency bots don’t actively trade but focus on building the portfolio as desired by the user. Most people use these bots to take care of repetitive tasks by automating them.


Nabots Crypto Trading Bot

Pros And Cons Of Using A Crypto Trading Bot

Much like any other asset to trading, crypto bots are not just a bed of roses. While using the correct cryptocurrency trading bot may bring in consistent and exponential returns, some inevitable snags and risks cloud these bots. Therefore, you should understand both the pros and cons of using a cryptocurrency trading bot.

Pros Of Using A Cryptocurrency Trading Bot

Emotionless Trading: Since the crypto market is highly volatile, price fluctuations are common. However, manual traders sometimes make impulsive trades during market trends based on their emotions. Crypto trading bots, however, eradicate the emotions from trading and execute orders according to the market data and their pre-defined strategy. This removes any feelings that may cloud the trader’s judgment in the case of a market crash or sudden price surges.

Trade 24×7: The cryptocurrency market is active round the clock, and even the most dedicated traders cannot trade all the time manually. These crypto trading bots run 24×7, actively monitoring the market and making trades accordingly, without any intervention required. Therefore, you can sleep even while you trade.

Execute Trades Lightning-Fast: Speed is vital when it comes to trading. Even a delay of a few seconds can be the difference between profits and losses. In manual trading, humans take some time to set up and execute trades, taking a few seconds. However, bots execute trades near instantaneously, taking advantage of price changes as soon as they occur.

High Efficiency: Crypto trading bots are highly efficient in studying different markets and executing the set strategy according to the data available. While humans can only research and learn so much, bots have no limitations. These crypto bots spot opportunities that a human trader might miss, thus, augmenting your profits.

Cons Of Using A Cryptocurrency Trading Bot

Prone To Hacking: While this depends on the bot’s security, they are prone to hacking and may lose funds. This can be done through API or even directly from the exchange if the bots or the accounts are not secured well.

Require Monitoring: Automated cryptocurrency trading bots can indeed function round the clock without any human intervention, you might still need to keep an eye on it to adjust them according to your changing investment strategy or changing markets. While the bot analyses the market, they are not equipped to keep track of all things going outside the crypto market but might affect it a lot. Things like mergers, scams, massy buy/sell announcements can impact the market, but your bot may not know it. In that case, they might not take this into account without human inputs, and trade based on the old strategy.


3commas Best Crypto Trading Bot

What To Consider While Choosing Best Crypto Trading Bot

There are hundreds of crypto trading bots available in the market, and it is essential to choose the right platform for all your investment needs. Therefore, you should really consider these things before investing in any trading bot.

  • Reliability

One of the key features to look for in a bot is its reliability. Now, the reliability of the bot can be checked in two ways. One, in the bot’s technical side. Does the bot suffer from glitches a lot or consistently goes offline? Is the bot not executing trades in a timely fashion, making people lose out on precious profits? These questions can be answered through reviews of other users and should be looked at comprehensively.

On the other hand, the reliability of the platform should also be checked out by looking for answers to questions such as how old is the platform, is it profitable or not, does it have a strong team behind it, are there any reports of scams on it and if it has a good user base? A reliable platform is a must while investing to save yourself from malicious transactions or unworthy bots.

  • Security

The security of a bot is critical, considering it deals with your funds. While most platforms don’t require you to invest directly into their bots and work with an API integration that doesn’t have withdrawal permissions, the bot still trades with your funds. If there is insignificant security on the platform, hackers might target your funds through the API with malicious intents. Therefore, once you choose a bot, make sure it has a proven track record for security. Also, look at the team behind ensuring the security of the bot and their credibility. Most secure platforms actively promote their security team, so that can be a good sign.

  • Easy To Use And Invest

Cryptocurrency trading bots are built to make trading easier for all traders, and that is what you should look for in a bot. If investing in a crypto bot requires you to be on your toes for an extended period of time, it might not even be worth it. Many platforms today help you invest in just a few clicks, with an intuitive UI matching the expertise level of all traders. Moreover, once you invest, you might need the help of customer support. Therefore, make sure the bot has active and reachable support that can solve your problems soon enough.

  • Profitability

Everything that happens in trading is to generate profits. A crypto trading bot is only good if it creates consistent returns for its users. Therefore, before you invest in a bot do backtesting, i.e check out the bot’s past performance and read reviews for the specific bot. However, past performance doesn’t always guarantee future profits, so tread with caution.A bot is only effective if it is consistently achieving profits for its users.

  • Pricing

While some bots are available for free, users have to pay to use some. Usually, paid bots are higher in quality than free bots, but it all depends on the budget you have and if the past profits are even worth the investment. Moreover, some platforms charge an additional subscription fee even to use the platform, and if you are using a bot on these platforms, make sure you factor that cost into the profits as well.


Bitsgap Crypto Trading Bot

Final Thoughts

While a trading bot can never replace a human trader, crypto trading bots have made trading substantially easy for all traders. Using a cryptocurrency trading bot can remove emotions from trading, increase efficiency, and execute strategies that are virtually impossible to execute manually. Not only this, they work round the clock, helping you sleep while you trade. But as we have discussed, not everything that shines is gold, and these crypto trade bots have some shortcomings as well. 

Therefore, before you invest, make sure you do your due diligence in the bot you wish to invest in.


The Best 40 Crypto Trading Bots in 2022 Review

The best crypto trading bots for beginners and advanced traders, allow you to choose an investment strategy and minimize the risks of automated trading of bitcoin and other cryptocurrencies.

The 2022 review will help you learn more about crypto trading bots and introduce you to the best ones.

Read the review.

Top 40 Crypto Trading Software, Automated Trading Platforms, Bots

1

Bitsgap is a Crypto trading Bot, a smart Bitcoin and Altcoin trading platform that automates your trading on all popular cryptocurrency exchanges. The cloud-based software works 24/7, is easy to use, powerful and secure. Try it for 14 days for free!

2

Quadency  is a professional Crypto Trading Platform for automating cryptocurrency trading and strategies with rich portfolio analytics, market research and news; a smarter way to trade and manage cryptocurrency; a secure trading platform, simple automation and a deeper understanding of all your assets, no matter where you store them.

3

Cryptohopper - World class automated crypto trading bot. Copy traders, manage all your exchange accounts, use market-making and exchange/market arbitrage and simulate or backtest your trading. Fast automated trading, and portfolio management for BTC, ETH, LTC and 100+ other crypto on the world’s top crypto exchanges.

4

Coinrule is a Automated Crypto Trading Platform to Send Automated Trades to Exchanges like Binance, Kraken, Coinbase, etc. Coinrule empowers traders to compete with professional algorithmic traders and hedge funds. No coding required. Start for Free.

5

3Commas is a Crypto Trading Bot, Automated Altcoin and Bitcoin Trading Platform; Smart tools for cryptocurrency investors to minimize risks, limit losses, grow profits, and manage their portfolios across multiple exchanges.

6

Hassonline is an advanced bitcoin and crypto trading bots for automating crypto trading strategies on more than 20 exchanges with privacy-oriented trading automation solutions.

7

Shrimpy is a social trading platform for cryptocurrency that simplifies portfolio management by automating a trading strategy for the long term. This allows you to increase productivity and reduce risks. Copy the best traders in the world.

8

Zignaly is a crypto investment platform of crypto trading bots for automatic trading. Invest in cryptography using signals, copying experts, or a fully delegated profit-sharing mode (PAMM). Pay only a part of the profit as a success fee.

9

TradeSanta is a cloud-based software platform that automates crypto trading strategies, which allows you to take advantage of the fluctuations of the crypto market. Bots for round-the-clock cryptocurrency trading are available for Binance, Bittrex, HitBTC, Bitfinex, OKEx, Huobi, Upbit and other exchanges.

10

Botsfolio is a Crypto Trading Bot. Botsfolio will diversify your net investment into a mix of long term & short term strategies based on your financial goals & risk appetite. Botsfolio is optimized so that you can make the best return regardless if its cryptocurrency bull or bear cycle. 

11

NapBots is a trading bot platform that designs profitable trading strategies and makes them available in a unique marketplace. It also provides automated execution for users on major crypto platforms such as Binance Future, BitMEX, Bitfinex, Kraken, Bitstamp, OKEx or Bitpanda Pro through API connection.

12

Botcrypto is Crypto Trading Bot; 1st website that allows you to create your own cryptocurrencies trading bots easily. It's up to you to automatically trade Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and much more.

13

Wunderbit Trading is a platform that allows you to start trading and investing in cryptocurrency seamlessly. Copy trade the best crypto traders with transparent track record, trade yourself using the advanced trading terminal or create fully automated trading bot using TradingView.

14 
4C-Trading is a platform that offers subscriptions to several crypto trading tools. Their approach is a little different than other platforms as you have to start with the Trade Room package before you can add-on bots and signals, but it’s founded in a commitment to creating an educated user base. The Trade Room includes a training module for beginners, a new trading tutorial every day, and access to three Trading Room indicators, a custom built Trend Follower indicator, and the weekly market Diamond Report. 

15

Gunbot is a locally installed software to automatically trade on the most popular exchanges for cryptocurrencies. It runs on Windows, macOS, Linux, and Raspberry Pi. Gunbot is an easy to use, advanced crypto trading bot. You define your trading strategy and watch Gunbot do the trading for you. Enabling you to get up to hundreds of profitable trades per day, 24/7. For security reasons, Gunbot runs on your local computer or your server only. This way your trading API secret stays private, and nobody can influence or monitor your trading.

16

CryptoHero is a cloud-based platform of crypto trading bots with AI that can place trades 24/7 on crypto exchanges. Easy crypto trading for beginners with free, automated and professional bots. Cryptohero provides a balance between security, customizability and ease of use. Supported Exchanges: Binance, Bittrex, FTX, Kraken, Huobi, OKex, KuCoin, Bitfinex, Gate.io, Coinbase Pro.

17

Mudrex is an automated platform for trading cryptocurrencies with the ability to invest in the best crypto trading strategies in order to obtain a stable profit. Mudrex simplifies crypto investing by offering products created by successful traders and experts who will help you start and explore investment options. A wide range of investment options with different risk/reward profiles.

18
CryptoRobotics provides unique products for trading on the cryptocurrency exchange. CryptoRobotics is a terminal compatible with all devices (Windows, Mac OS, Web-version, Mobile-version, Android App). Manage your digital assets on CryptoRobotics platform (trading robots, traders auto-following, smart-orders, summary analytics, trading by signals in one click and much more). CryptoRobotics terminal features: All set of tools for technical analysis, Comfortable trading within one interface, Smart orders (Stop Loss, Take Profit, Trailing Stop), Autofollowing, Algorithmic solutions for trading.

19

RevenueBot - smart cryptocurrency trading bot. Automated bot for smart trading on Binance, Bittrex, Bitfinex, Poloniex, Exmo, FTX, Cex.io, HitBTC, OKex, Bitmax, Kraken, Kucoin, Binance Futures. RevenueBot already has a few top performing robot trading set-ups which are returning amazing profit results. With only a few easy steps. You will get access to the ultimate money-making machine. Platform automatically works for you 24/7. Based on the Martingale betting system - simple strategy relied upon by thousands of traders around the world.

20

Kryll.io is the first intuitive flow-based platform for the definition of automated trading strategies; powerful crypto trading bots for Binance, Kraken, Bittrex, KuCoin, HitBTC, Binance US, Liquid, FTX; automatic trading strategies for the development and increase of investments. Free bot creation and unlimited testing.

21

Pionex is a Crypto Trading Robot, a free automated Crypto trading Bot that automatically trades 24/7 in the cloud. Automatic cryptocurrency trading is available with the help of 12 Free built-in trading bots. Easy to use, powerful and extremely secure. Pionex combines liquidity from Binance and Huobi Global, which allows its users to get the best trading experience with high liquidity.

22
ProfitTrailer is a innovative crypto trading bot; available on Windows, MacOS and Linux. The GUI can be used on all devices connected to internet. It gives you the ability to trade crypto currencies automatically on multiple crypto exchanges. 24 hours a day, 7 days a week. More than 40 built-in indicators and ability to process your TradingView alerts through an addon.

23

TrailingCrypto is a platform offering a trading terminal with more than 25 tools to enhance your trading experience, a crypto trading bot, telegram automation, email signals on leading crypto exchanges. On TrailingCrypto you can trade on most of the popular crypto exchanges Binance, Binance Futures, Bitmex, Bittrex, CEX.IO, Coinex, HitBtc, Huobi Pro, Kucoin, Okex, Poloniex, Kraken, Bitstamp. Support Basic, Advance and Conditional orders types which includes Market, Limit, Trailing Stop, Take Profit, Stop Loss, OCO and OSO. All sensitive date stored after applying 256-Bit encryption which is impossible to break. OAuth2 with 2FA makes TrailingCrypto more secure over tradition login method using Id and Password. Automated Crypto Trading: Connect Trailingcrypto with your preferred signal providers and trade automatically. Trade based on Tradingview triggers. Extensive documentation.

24

Coinigy is a Professional Bitcoin & Cryptocurrency Trading Platform; the easiest way to manage your exchanges and wallets automatically across all your devices. Coinigy offers access to more than 45 exchanges in real time to price data, full-featured spot trading, an arbitrage matrix and portfolio management/aggregation tools. Monitoring of the portfolio of currencies and wallets 24/7-SMS and email price and trade alerts. You can control all your exchanges and wallets in one place. No trading restrictions: No additional exchange fees are charged when trading through Coinigy. Coinigy is the most complete tool available for trading bitcoins and cryptocurrencies and a portfolio. Thanks to extensive charting tools and real-time market data, no other cryptocurrency application can compare with Coinigy in terms of its scale, detail and performance.

25

Yanda - Automated Cryptocurrency Trading. Build crypto trading bots that buy & sell Crypto automatically. Yanda allows you to increase profits and reduce risks thanks to smart investment tools. Build & Manage Your Portfolio Keep control of your funds with an easy to use interface. Browse hundreds of cryptocurrencies, like Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and many more Altcoins to invest in.

26

Jet-Bot is an official broker of the Binance crypto exchange; a matching platform where investors and traders can find each other. Jet-Bot offers: for investors - a cryptocurrency copy trading bots platform; for traders - a cloud-based crypto trading software to create your own bots with your custom strategy Investors can earn by copying professional traders and traders can earn a share of profit made by investors who are copying them. It allows users to automate crypto trading and optimize trading process in time and focus on the more important things in your life.

27

Moonfox is a unique platform that allows you to automate your cryptocurrency trading. With the combination of winning strategies and technology, Moonfox has created the perfect solution for every type of trader. Automated cryptocurrency Trading. Create your own Bot. 

28

Bottrex is a trading robot for bitcoins and cryptocurrencies, as well as an online platform that automates your operations for buying and selling bitcoins and other cryptocurrencies on exchanges, with your specific settings and strategies. Configure Bottrex to work on Binance, Bittrex, Huobi, HitBTC, Kucoin, Bitfinex, OKEX, BitcoinTrade, NovaDAX and FTX. The robot works with more than 900 cryptocurrencies at the same time.

29

Nexfolio is an automated crypto trading bot that utilizes Artificial Intelligence to help traders gain maximum profits. Customize the bot according to your specifications and let it trade for you round the clock. Minimize the risks and efforts, and trade with live signals and profitable trading strategies.

30

Stacked is an automated cryptocurrency investment platform. It enables everyone to invest in crypto indices, access trading bots, and automate portfolio management. Stacked is a software that connects to your existing exchange account(s). The Stacked Strategy Marketplace is a collection of live tested trading strategies from numerous authors. Get verified performance data of live trades from every bot. Stacked is the easiest way to run a trading strategy without any technical experience. Stacked: Smart  crypto investing - manage your assets & instantly invest in pre-built portfolios and strategies from leading hedge funds and traders.

31
Altrady is a All-In-One Multi-Exchange Cryptocurrency Trading Platform and Crypto Trading Software. Its flagship product is the Altrady cryptocurrency trading platform, a subscription-based software where users can trade and manage assets on multiple crypto exchanges using only a single screen. Altrady Trading Features. User-Friendly Interface: Multiple Exchange Trading, Dark or Light Theme, Personalized Layouts & Moveable Widgets, Easy Navigation, Multiple Market Tabs, High-Definition Interactive Charting. Asset Tracking Solutions: Break-Even Calculator, Automatic Portfolio ManagerMarket Monitoring & Trading Evaluation Made Easy: Crypto Base Scanner, Quick Scanner, Multiple Charts, Trade Analytics, Real-Time Alerts. Trading Solutions: Bot Integration, Different Order Types, Smart Trading Automation, Multi-Exchange Trading Terminal. Trading on different exchanges can be super easy with the help of Altrady’s multi-exchange trading terminal. You have to integrate your exchange account to Altrady to trade from different exchanges using only your Altrady app. Among the exchanges supported are Binance, Binance US, Binance Futures, Bittrex, BitMEX, Coinbase Pro, KuCoin, Kraken, OKEx, Poloniex, Huobi, and HitBTC. Trading Bot Integration: Among the trading bots that can be integrated into Altrady are ApexTrader, Nefertiti, Zignaly, and CryptoPHP. Using these bots along with Altrady’s signals can help you experience super easy trading anytime.
32

CryptoTrader is a non-custodial algorithmic trading platform for Bitcoin and other cryptocurrencies. Our goal is to provide traders with cloud-based automated trading solutions powered by cutting-edge technology. Automated trading bots in scalable cloud. Strategy Marketplace. Backtesting trading strategies. Instant Email alerts & SMS notifications.

33

AstreoBot is a crypto trading bot. Supported exchanges are Binance, Bitffinex, Bittrex, HitBTC, KuCoin, Poloniex.

34

Hyndor offers innovative solutions and tools for automated trading in cryptocurrency; create and manage your own trades with enhanced features, copy signals through Hyndor signalers or use automated trading bots. Daily maintenance is no longer needed with HODL 2.0.

35

CryptoBot (Gunbot) is a Trading automation software for crypto-currencies, also known as a crypto trading bot. Gunbot works with the following markets: Bitmex, Poloniex, Bittrex, Cex.io, Binance, Coinbase Pro, Kraken, Bitfinex, Kucoin, Huobi + another 130 exchanges. Set your Tradin Strategy and Indicator Settings and let Gunbot do the trading for you! One time payment with a life-time of software upgrades, premium human support and community special perks.

36

Trade-mate.io - multifunctional cross-exchange platform for smart trading. Trade on Binance, Poloniex and Bitmex. Use Trailings, set Take Profits up to 5 steps. Edit and make averaging of active orders. Copy the best traders or become one on the top line of our leaderboard.

37

ExchangeValet - Exchange Valet - Easier crypto trading for Binance / Bittrex. Crypto trading bot. Simple automation for easy stop-loss and take-profit orders.