Which Is The Best Automated Crypto Trading Bot For Beginners?

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Unlike the stock market, which is closed on weekends, the crypto market never sleeps.

Also, due to the volatility, traders need to make sure that they don't miss any important trades. Therefore, it is imperative to find a way to keep an eye on the market. Since traders cannot react quickly enough to take advantage of price changes that will help them trade optimally, they need help.

To get the best trades, cryptocurrency traders need to be awake all day and ready to trade at all times. Again, due to the slowdown in some trades and transaction times, some traders may miss out on some profitable trades. The solution to this is that traders are now using cryptocurrency trading robots.

This article will help you understand what cryptocurrency trading robots are, their pros and cons, and how they work. It also shows you some of our favorites.

What are crypto trading bots?

Crypto trading bots are automated tools that help you as a crypto trader place your trades and execute trades using certain technical indicators. You can customize your crypto trading bot to execute trades on your behalf according to specific specifications.

For example, you can tell your bot to buy a certain coin for $15 and buy it again when the price drops to $12. Depending on the bot provider you choose, you will find many supported coin and account options there.

Trading bots are a controversial part of the crypto market. Some people think it shouldn't be allowed, while others say it has some advantages. Anyway, these are some of its uses.

  • Bots help automate trading, giving traders time to research, work, trade, or whatever they want to do.
  • Investors use them to take advantage of the cryptocurrency market, which does not stand still all day around the world.
  • Bots react faster to the market and therefore have a significant advantage over manual trading.
  • A type of bot called an arbitrage bot exploits price differences between different exchanges.

How do trading bots work?

While some investors are still wondering if trading bots should be allowed in the crypto world, some traders have started using them. Each bot has different software and hardware requirements. While some bots are free, others require hefty fees to subscribe and use.

Usually, traders download a code from a bot developer after finding out which bot is useful to them. The trader now follows the instructions and configures his bot on the exchange he wants to use.

Even though robots can help traders, you still have to decide when to buy and when to sell. A cryptocurrency trading bot is not a get-rich-quick fix. It is not a tool that will win you all your trades once you get it. You must always commit and invest the time, effort and knowledge necessary to be successful in your trading.

Pros and cons of using a bot

When trading in the cryptocurrency market, you need to put your feelings aside. If you can't do this and find yourself buying and selling on the fly, you might want to consider using a trading robot.

Here are some of the benefits of using a crypto bot. 

  • Automated Trading – A crypto trading bot gives you an automated trading and investing option that can protect you from panic trading. Buying and selling FOMO can also cause a trader to lose money by not using a bot. A trading robot will help you stay away from all those factors that can cause you to lose money.
  • Efficient and Fast - A trading robot ensures that cryptocurrency traders make fast and efficient trades. When trading manually, a single trade can take minutes or even hours to execute. But with a bot, it achieves high speed and can help you spot opportunities faster.
  • More time for you – Since the crypto market is open 24/7, you can't stay up all day and night watching the trades. But a crypto bot can help you trade the crypto market 24/7. So you can spend many hours in the market without being actively present.

While there are advantages to using a trading bot, there are also some disadvantages.Here are a few:

  • Monitoring Required - Many bots can only provide small feedback even when functioning properly. Therefore, you need to monitor it regularly to avoid losing as you are trading in a very volatile market.
  • Unregulated area – So many cryptocurrency trading robots are not well designed and since it is an unregulated area no one checks it.
  • Necessary knowledge: To use a bot effectively, you need a thorough understanding of the cryptocurrency market and a good investment plan. Although some bots come with predefined strategies, templates, and settings, you still need to know how to use them well.

Some traders find that once they have done everything necessary to use a bot, they no longer need the services. However, if you want to automate your trades and be more efficient, here are some bots you can use for your supported trades.

1. 3Commas

3Commas makes it easy to earn money with bots that never sleep. Whether using one of their many proven templates or creating a completely custom bot, 3Commas gives traders the power to capitalize on any market condition.

The wide range of DCA, Grid, Options and HODL robots can trade long and short positions, options and futures using any strategy imaginable. The 3Commas market gives you access to patterns and signals with a transparent performance history so you can choose the one that best suits your goals.

Exchanges: Binance, FTX, KuCoin, Coinbase Pro (GDAX),  BitMEX, Bitfinex, Bitstamp, Bittrex, Bybit, Deribit, FTX US, Gate.io, Gemini, Huobi, Kraken

2. WunderTrading

WunderTrading is a cryptocurrency automation platform with mirror trading and cryptocurrency portfolio management tools. Users can create fully autonomous cryptocurrency trading robots using TradingView PineScript, earn passive cryptocurrency income by following highly skilled traders, or trade manually using the sophisticated trading terminal.

The wide range of trading opportunities that WunderTrading offers sets it apart from its competitors. On the WunderTrading platform, you can use the trailing stop function and even swing trades. You can also use advanced trading features like Stop Loss and Take Profit to enhance your trading strategies. Thanks to the TradingView integration, you can integrate many trading algorithms and technical indicators into your bots. Special built-in terminals can also be used to develop DCA and broadcast tactics.

3. Coinrule

Coinrule offers the widest range of predefined trading strategies, making it one of the most popular robots. Users can customize trading with over 150 trading patterns that are executed automatically when market conditions meet preset parameters. Coinrule regularly introduces new models to its platform, from long-term holding strategies and stop-loss setups to accumulation.

With the free and paid plans, the number of templates you have access to varies depending on the plan you choose. Their paid plan includes advanced charting options, unlimited pattern usage, even one-time trading tutorials and lessons, while the free plan includes 7 additional pattern strategies.

4. Bitsgap

Bitsgap is one of the best bitcoin trading bots that allows you to easily manage your crypto assets and create a bot strategy with just a few clicks.

This tool can examine up to 10,000 cryptocurrency pairs and select the coins with the best potential. Bitsgap allows you to visualize your trade via a chart, test the settings before trading and access it by downloading it.

5. Gunbot

Gunbot is one of the most advanced trading bots on the market.

Since its launch in 2016, years of constant additions and updates have made it a trusted piece of software that fully automates the cryptocurrency trading needs of over 25,000 active users.

Gunbot is easy to use, easy to configure and offers many different customizable strategies for every type of trader/risk profile. You can even find free and profitable “plug and play” strategies on their marketplace, ready to go. Gunbot regularly organizes tournaments and offers its users a chance to win bonuses.

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