Top 10 Best Crypto Bots 2021 – Automated Crypto Trading Guide

PUBLISHED: Feb 08 2021 @ 06:27 | Comments (0) |

Crypto bots are automated trading software developed to trade specifically in cryptocurrencies. Such a robot can perform various tasks, including portfolio management, simplifying complications, rebalancing, and more. With the growing interest in trading, the market is getting dense by many robots each day, where selecting the right one can be tricky.

Advantages of crypto robots

Crypto markets are open 24/7, which may be problematic for some as they cannot consistently sit on the trading screen. Considering the volatility of these assets, keeping their positions up leaves traders vulnerable to risk. A robot can present a solution to this problem and more, as discussed below:

Time-saving. Many traders are exhausted while sitting at the desk each day, waiting for the right setup to come. Crypto bots help traders save time by offering efficient and goal-driven trading that results in profits.
Staying online 24/7, crypto bots can scan and execute positions in the volatile markets based on the coded parameters. This automated trading software exploits even a little change in market conditions or even a single candlestick.
Passive income. Crypto assets are similar to commodities from an investment perspective as they do not pay dividends. The robots that trade such markets can provide a passive income by executing positions on these cryptocurrencies. It may not be as reliable as compounding dividends; nonetheless, it is an excellent option for investors who like to hold their assets for the long term. They are also beneficial in copy trading platforms where they can mirror pre-set algorithmic strategies.
Trading without emotions. The volatility associated with trading cryptos can cause a rollercoaster of emotions for traders. Being in the financial industry demands a lot from a psychological perspective. Miscalculations and weak conclusions are a result of a bad mindset. A crypto bot can make essential decisions on a trader’s behalf, positively impacting his performance.

How do crypto trading bots work?

The following four steps are necessary to make a crypto bot work perfectly:

Strategy Implementation: You can predetermine your robot’s trading strategy by coding the algorithm so that it knows what to trade.
Backtesting: Backtesting will give you an idea about your robot’s future performance. Carry out this test using high-quality historical data and tweak various vital factors such as latency slippage and spread so that you know how your EA will perform under different conditions.
Execution: Once you have completed your robot’s backtesting, it’s time to put it to work in the real markets. The decisions made by the bot will be converted into API requests that your broker can understand. Sometimes it may also be possible to test your EA with a paper trading account.
Job scheduler: Automate the process by using a job scheduler that does everything automatically.

Types of crypto bots

Crypto bots have four major types as follows:

Arbitrage. As the name indicates, these bots utilize the arbitrage strategy that exploits the difference in an asset price between two separate exchanges. No fund transfer is necessary, and the buy and sell executions take place at the same time. The coding process is demanding in the initial stages; however, the bot is free to use once it is done.
Technical trading. These bots trade using technical terms such as indicators and signals. The strategies utilized by this automated software also differ technically, and they do not require any download.
Market-making. Market-making bots make quick gains by placing different long and short orders at a single time. For example, to realize a profit of 0.02, the bot will create a buy for 1.99$ and sell for 2.01$. The robot can boast various trading options like running multiple orders in parallel, accessing different indicators, and implementing numerous trading strategies.
Profile automation. The primary purpose of these crypto bots is to automate your portfolio. Rebalancing, cost averaging, auto-tracking, trade execution, etc., are some of the services under highlight. “Set it and forget it” is the motto of such automated software.

How can you choose the best crypto bot?

Keep the following points in mind before choosing a crypto bot:

The team’s credibility. The team behind the development of a bot or a company must be credible. The top firms are usually featured on the top websites such as Forbes and Bloomberg, to name a few. Checking out the robot’s history and the qualification of the people behind the idea is necessary.
Robots Strategy. Your automated trading software should complement your trading style. Before buying, make sure you go to the review website and check whether it has any useful feedback.
An excellent support team will ensure that all of your questions and inquiries are answered carefully and in time. Checking out if the company has an active community and a good conversation between its team members will help you decide. Regular updates should also be made available thoroughly by the developers.
While a paid robot will offer better service, it is useful to consider all the pros and cons before buying one. These robots can range from anywhere between 10 to 1,000$ a month.
Performance under various market conditions. Markets are a game of probabilities, and each new day will be different from the preceding one. Your automated trading software should perform at least okay, if not good, in bad conditions as it makes consistent gains when the time is right.
Ease of use. Make sure that your bot is beginner friendly or matches your experience level in trading. Using anything more complicated than your expertise may prove to be harmful to your consistency in markets.

Top 10 best crypto trading bots 2021

RoFx

Since its foundation in 2009, ROFX has provided exceptional services to its customers through its automatic trading software. There are no risks involved in investing alongside the EA as the company covered all the losses. With their packages, you can get nearly 10% a month on your initial investment value or more than 100% ROI within a year. Bitcoin is available as a funding option where the minimum cash-in value is at 0.05. The whole process is automatic, as the robot, developers, and their team handle everything. Through the artificial neural network, ROFX learns as it trades.

Quadency

Quadency has about 12 crypto bots that can be tweaked according to your liking. Simple automated trading software is only available with the free account, while you can get more if you purchase one of their pro or unlimited plans starting from as low as 39.00$ a month.

Cryptohopper

The easy, efficient, and innovative bots by Cryptohopper allow you to automate your trading via market making, mirror, and social automated software. You can use expert tools for coding without any prior knowledge.

3Commas

The web-based trading platform has support for a large number of crypto exchanges. You can develop algorithms for cryptos exchange or employ the ones made by others through Binance and 3Commas. Backtesting features are also available.

Bitsgap

Beats cap supports more than 25 cryptocurrency exchanges, including the top ones, i.e., Binance, Kraken Bitfinex, etc. The safe and secure platform supports Tradingview charts, strategy design, ready to go strategies, and more.

Zenbot

Zenbot uses Node.js and Mongo.DB as its base architecture featuring backtesting, technical analysis, plugin architecture, demo trading, and Configurable orders. It also supports many crypto exchanges, including Binance, Bitfinex, Kraken, Poloniex, Bittrex, Bitstamp, HitBTC, CEX.IO, GDAX, Gemini, QuadrigaCX, and TheRockTrading.

Coinrule

With Coinrule, you can choose among 150 trading strategies to compliment you in trading. There is no need to write a single line of code, and a variety of learning sources are available on their website.

Stacked Invest

Pre-built indices, diversified crypto baskets, total asset management, and automatic rebalancing are a few useful features available with Stacked Invest. Everything is safe and secure, and you can analyze the performance of each bot.

Shrimpy

Shrimpy handles a total volume of 1 billion US dollars and more than 120K executions each day. Keeping customers’ security in mind, it offers automated strategies, copy trading platforms, and portfolio management.

Hassonline

Path online features crypto trading bots, exchange integrations, demo trading, backtesting, and HaasScript editors. The port offers complete privacy, no trade fees or volume restrictions, and the ability to be installed within seconds.

End of the line

Crypto trading boards can be very successful in generating good profits from your investments. You may also let go of your repetitive boredom and spread, which comes with trading manually. However, not everything is perfect, and these automated creating software do have drawbacks. By researching and filtering all the pros and cons, you can find a robot that fills in most of your requirements.

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