Bitcoin trading tools allow a trader, even without being at the computer, to profit from trading operations on crypto-exchanges. The software allows you to create your own strategies or use existing ones. There are a lot of robots in the industry today, each with its own characteristics. The Btcnewsweb.com editorial team will tell you about the best bots for bitcoin trading today.
What are bots and how do they function
A cryptocurrency bot can be considered any automated tool that trades on your behalf based on signals in accordance with predefined rules. There are robots for trading on spot, margin, OTC accounts. The system can be downloaded to a computer, run as a centralized service, or via the cloud.
The strategies implemented by bots are based on algorithms created by the application developer; also many systems allow you to create custom trading strategies. Cryptocurrency trading bots work by gaining access to the exchange through an open and private API key – this allows the exchange to make sure that you have allowed the program to work on your behalf – to monitor the market situation, the balance and create buy or sell orders. As a rule, a bot cannot withdraw funds. If you come across software with such a function, think about it.
There are two key purposes of Bitcoin trading bots:
- automate too complex actions;
- automate routine actions that take a lot of time.
A properly configured bot helps the user implement a portfolio management strategy of any complexity, saving a lot of time for manually placing trades. Bots collect and analyze data much faster than humans. However, they still need control, and no one gives guarantees of profit.
Research on bots at the end of 2020
Adam Cochran, partner at Cinneamhain Ventures, surveyed more than 10,000 traders from around the world and compiled detailed statistics on the use of cryptocurrency bots and the attitudes of users towards them. What the analytics showed:
- 38% of traders have ever tried using a robot, even a trial version. In this case, only active traders were taken into account, that is, those who make at least 3 transactions every month for 6 months.
- Bot users note that 50% to 75% of their assets are traded using these automated programs.
- 94% of clients usually use bots for spot trading. 65% have tried them in margin trading, less than 4% in futures.
- 83% of cryptobots support Binance exchange, 66% – Coinbase, 58% – Bitfinex, Kraken, Poloniex.
- Only 7.5% of users subsequently abandon the bot (reasons such as technical problems with the bot or lack of functionality were not considered).
- The most popular cryptobots among foreign traders are Haas Online Trade Server (the choice of 62% of users using bots), CryptoHopper (34%), CryptoTrader (21%).
The main criteria for choosing a bot for trading bitcoin, users call a good reputation, the presence of built-in scripts, a marketplace for exchanging strategies with other users, a free trial period, an index system, support for a large number of exchanges, Copy Trader support (copying strategies of successful traders), etc.
Bitcoin trading bots
Let’s take a look at a few of the most popular Bitcoin trading bots.
A bot with flexible configuration and no monthly fee – RevenueBot takes 20% of the income from the user. Accordingly, in the absence of income, you will not have to pay anything. The commission is deducted from the balance within the system. Using a robot, you can trade in spot or futures.
The platform supports a smart grid of orders based on price and volume. To determine the volume of orders in the grid, the martingale method is used, and the distribution of prices can be linear or logarithmic. You can create lists of cryptocurrencies so that the trading pair switches automatically if the current one does not meet the requirements for profitable trading. Supported exchanges: Binance, Exmo, Binance Futures, Livecoin, Cex.io, Bittrex, Bitfinex, Poloniex, HitBTC, OKex, Bitmax, Kraken, Kucoin.
2. Stratum Bot
The Stratum Bot software is designed to work with the YoBit and Binance exchanges. In the first case, using the robot is completely free, but the functionality is much narrower. The Binance version costs $ 13 per month (if you buy for 6 months) and allows you to use Scapling, Classic Long, Classic Short strategies, 22 indicators and filters, launching up to twenty streams simultaneously.
The bot allows you to use various trading tools (trailing profit, front-running, reinvestment, reverse trailing, trading within a spread, etc.). The main feature of the program, the developers position the instant configuration in one click. Automatic selection of parameters helps to determine the ideal strategy for any trading pair at the moment.
3. 3Commas bot
Working with the 3Commas bot will cost at least $ 14.5 when purchased for a year. There is a 3-day trial period for the most expensive plan. The platform allows you to manage a single portfolio by combining the balances of all connected exchanges. Supported are spot and futures trading terminals, Take Profit and Stop Loss, TradingView personal signals, short and long algorithms, as well as GRID and option bots.
Within 3Commas, you can view and copy other people’s strategies, as well as analyze the investment portfolios of other users. There is a portfolio auto-balancing function to maintain the optimal ratio of coins in it. The number of coins and tokens held is unlimited. You can connect notifications about important events, including via Telegram. Exchanges supported: Binance, FTX, Bybit, Bitmex, Deribit, Bittrex, Binance Dex, Binance Futures, Yobit, Bitfinex, Cex, EXMO, Huobi, Okex, Poloniex.
4. Cryptorg bot
The minimum Cryptorg tariff costs $ 15 per month, it is provided to new users for free for two weeks. The platform allows you to run up to 500 trading bots simultaneously, including 250 futures. There is a web terminal for performing manual trading operations. Holders of PRO and Business tariffs get the right to individual technical support.
Cryptorg also has a Cryptorg.Exchange cryptocurrency exchange. Of course, the bot is suitable for trading on it, and users receive a number of privileges – an expanded number of spot and futures bots. There is an opportunity to receive CTG tokens by conducting trade transactions using bots on the Cryptorg platform.
5. Haas Online Trade Server Bot
Haas is a local automation server that allows you to create advanced Bitcoin trading bots. It differs in that trade data and API keys are stored on the user’s equipment, not in the cloud, and are protected from viewing by third parties. The initial license cost is 0.026 BTC per month, subject to purchase for a year.
Additional levels of risk management allow you to protect positions from volatility or, in some cases, take advantage of price fluctuations to your advantage. Synthetic order types, market scanner, portfolio management functionality, a wide range of ready-made templates. Exchanges supported: Binance, FTX, Binance Futures, Bybit, Bitmex, Deribit, Cex.io and others.
6. CryptoTrader Bot
CryptoTrader.org cloud bot for Bitcoin trading, which is very popular among Western traders. There is a marketplace for buying or selling strategies. You can test your own or someone else’s strategy using backtesting (based on historical data) in a variety of market conditions.
There is a free trial for 7 days, then the payment is $ 8 per month; more advanced plans cost up to $ 200 per month. Connection of notifications via SMS or e-mail is possible. Supports margin trading, short positions. Initial tariff plans have restrictions on the amount of funds on a trading account, and they also do not have priority support. Exchanges supported: Huobi, Bitfinex, Poloniex, Binance, Kraken, Coinbase, Kucoin, Bitstamp.
7. CryptoHopper bot
CryptoHopper offers an expert suite of tools for 13 cryptocurrency exchanges. All exchange accounts can be managed through one account, controlling your funds. There is a social platform for sharing opinions, strategies and templates. It is possible to create markets and arbitrage with minimal effort and no specialized skills.
The Strategy Builder allows you to manage your own technical analysis using popular indicators and candlestick patterns: Parabolic Sar, RSI, EMA, Hanged Man, etc. CryptoHopper offers a free plan, the functionality of which is limited to creating no more than 20 positions, as well as portfolio management and manual trading. There is also a 7-day trial for the next plan, which will then cost $ 19 per month.
Advantages and Disadvantages
✅ Instant analysis of any changes in the market.
✅ Lack of emotion, which often forces traders to make unprofitable decisions.
✅ Eliminate routine – no need to manually create many orders, which takes both time and effort.
✅ The bot works even when you are sleeping or absent.
❌ Weaknesses in the security system are possible.
❌ Bots are not completely independent, they still need surveillance.
❌ There is no guaranteed return.
Crypto exchanges, unlike stock trading platforms, operate 24/7. This creates certain difficulties in trading – you can easily miss the moment to make a profitable deal. And there can be many such moments, due to the volatility of the cryptocurrency, even in one day. These factors make crypto traders increasingly resort to using bots to trade bitcoin.
With the help of these automated robots, a trader can get excellent results, especially if they figure out how to properly configure the program according to their preferences. When choosing a particular bot, you should pay attention to the reviews, the development team and the relationship between price and functionality.