Best Crypto Trading Bots 2024 • Benzinga

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Bots are solving some of the biggest issues with crypto trading, including the emotional element and time-consuming process of opening and closing trades. Crypto trading bots can entirely automate the trading process and find strategies with the most winning trades. Benzinga’s guide for beginners will help you learn more about crypto trading bots and introduce you to a few of the best that are currently available. 

Quick Look: Best Crypto Trading Bots

  • Best for All Skill Levels: 3Commas
  • Best for Advanced Technical Analysis: Learn2Trade
  • Best for High-Volume Investors: Pionex
  • Best for Businesses Wanting Exposure to Cryptocurrency: Iconomi
  • Best for Community: Kryll
  • Best for Copy Trading Investors: Cryptohopper
  • Best for Low Cost: Coinrule
  • Best for Portfolio Automation: Shrimpy
  • Best for Derivatives: Phemex
  • Best for Security: Gunbot

Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

What Is a Crypto Trading Bot?

A crypto trading bot is a computer program that buys and sells cryptocurrency based on a predefined set of parameters. This allows you to take a trading strategy you like and automate the time-consuming act of actually opening and closing the trades manually. 

Most bots allow customization options so you can tailor the trades to your specific investment goals and risk tolerance. Some of the major customization options include stop-loss levels, take-profit levels, maximum amount to invest per trade and which indicators to consider when opening and closing trades. 

How Do Crypto Trading Bots Work?

You give access to the bots to trade your funds. This is usually done through an account on a platform that supports bots or has some of its own. This allows the bot to buy and sell tokens for you based on the specific strategy you want to employ. 

For example, if you open an account with 3Commas, you can fund the account and allow a bot to trade for you. Say you want to trade a strategy that buys a token when the relative strength índice (RSI) is below 30, meaning that it is potentially oversold. Once the RSI goes below 30, the bot will automatically place a buy order for a specified amount of your portfolio, such as 1% of your portfolio. Once the exit parameter is met — the stop-loss or take-profit level — the bot will automatically close the trade. 

10 Best Crypto Trading Bots

Before getting started with a cryptocurrency trading bot, figure out which crypto trading bots are best for you. There are plenty of options currently on the market, so you can find a trading bot that fits your needs best.

1. Best for All Skill Levels: 3Commas

3Commas allows you to connect several exchanges, such as Coinbase and Kraken, to its application programming interface (API), which allows you to view your portfolio and have access to trading bots. This makes it easy for beginners to set up and begin trading. Additionally, it has nearly 3,000 bots to choose from.

  • Connects to some of the most popular brokers
  • Thousands of bots to choose from
  • Simple interface
  • Somewhat high fees for more advanced traders

2. Best for Advanced Technical Analysis: Learn2Trade

Learn2Trade takes into account all market conditions for its advanced crypto trading bot. Using technical analysis and live market sentiment analysis, the algorithm looks for the most profitable trades throughout the day. It also offers signals, copy trading and a variety of other asset classes.

  • Lots of trading features
  • Daily tips and tricks
  • 79% success rate for the algorithm
  • Tedious process to open an account

3. Best for High-Volume Investors: Pionex

Pionex is a cryptocurrency exchange with built-in trading bots. It is one of the most powerful crypto platforms available, offering over 15 unique trading bots. These bots allow you to automate your investing strategy so you don’t need to constantly monitor the market. The bots also allow for lots of customization and have low fees for each trade.

  • Low fees on all trades
  • Unique bots to fit different investment objectives
  • Strong mobile app
  • Bots can be confusing for beginners

4. Best for Businesses Wanting Exposure to Cryptocurrency: Iconomi

Iconmi is a crypto trading platform that offers accounts for both individuals and businesses. It is easy to set up an account, and there are tons of learning resources available on the site. The platform also offers a strong social aspect, allowing users to share strategies and get referral bonuses.

  • Offers business accounts
  • Ability to share information with other users
  • Clearly noted pricing on the site
  • May not suit the investment style of all businesses

Kryll is an intuitive trading platform that allows users to fully customize their bots through a drag-and-drop system. You can also backtest different strategies for free to see which works best for you. Users can publish their strategies on the Marketplace and earn commissions when other users employ the strategy. 

  • Active community
  • Easy to create your own strategy
  • Supports lots of the top brokers
  • It can be expensive to rent a strategy from someone else

6. Best for Copy Trading Investors: Cryptohopper

Cryptohopper emphasizes technology with its platform. It uses cloud computing to allow its bots to run 24/7 and place trades when your device is offline. It also has a Social Trading Platform, which allows users to communicate via an internal chat, receive trading signals and trade bot templates. 

  • 24/7 offline trading
  • Lots of ways to communicate with others
  • The best bots can be expensive

7. Best for Low Cost: Coinrule

Coinrule places an emphasis on its free offerings. Users can backtest strategies, create bots and communicate with others for free. It also has paid plans with a low monthly fee and a small portion of the traded volume. 

  • Low monthly and trading fees
  • One-on-one trading sessions
  • Supports lots of the top brokers
  • Marketplace bots can be low quality

8. Best for Portfolio Automation: Shrimpy

Shrimpy is a portfolio management platform that allows users to automatically rebalance their portfolios. This can help them adjust their portfolios as different risks arise and markets change. It also has a strong interface and educational section. 

  • Great for portfolio rebalancing
  • Social trading features
  • Automated tax reporting
  • Not many trading bot features

9. Best for Derivatives: Phemex

Phemex offers bots that trade futures contracts, which allow traders to gain leverage on their trades. It offers over 600,000 bots from nearly 200,000 bot traders. These bots can be sorted by several parameters to find the one that suits you best. All of the bots are free.

  • Up to 100 times leverage on trades
  • Lots of bots to choose from
  • Bots are free
  • Complex fee structure
  • Minimum withdraw amounts

10. Best for Security: Gunbot

Gunbot is one of the more advanced trading bots on the market, but it can be a powerful tool if used correctly. It has tons of customization options and supports over 100 exchanges. In terms of security, the platform requires users to create their own server to trade, which can help increase security. 

  • 100+ exchanges offered
  • Enhanced security
  • Strong community
  • Technical knowledge required

Advantages of Using Crypto Trading Bots

  • Automated investing: Most traders understand how big of a role emotions play in investing. However, with trading bots, the emotional aspect is completely taken out of the picture and can lead to much better risk management. 
  • Increased efficiency: Trading can be very time-consuming, as it takes hours each day to comb through the markets and look for opportunities. However, the bots allow you to do other things and let the bot take care of the trading.
  • Diversification: Bots can use a variety of strategies and can oftentimes be customized to support different needs. This can help diversify your portfolio and spread out risk. 
  • More time on the market: Unlike the stock market and the bond market, the cryptocurrency market operates 24/7. Crypto trading bots provide you with additional hours of exposure without requiring you to be actively monitoring your positions.

Disadvantages of Using Crypto Trading Bots

  • Prior knowledge: Using bots requires prior knowledge of crypto trading to determine which bots will work best for you. The customization settings can also be very sensitive, which could be an issue for a beginner.
  • Constant monitoring: Because the crypto markets are extremely volatile, you have to continually monitor your bot to make sure that it is not losing money quickly. 
  • Lack of human judgment: While the elimination of human emotion can be a good thing, it also means that bots are unable to interpret the context of a trade, which can lead to poor trading decisions.

Bots for Both Beginners and Advanced Traders

Bots provide a unique opportunity for beginners to learn about markets through paper trading and backtesting, as well as a chance for advanced traders to make the most of their knowledge. This new technology is also continually improving, hoping to bring the most profitable bots to traders around the world. 

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Frequently Asked Questions

A

Different crypto trading bots can be successful based on the strategies they use.

 

A

Some crypto trading bots are free but not all.

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