In this guide, we have identified the top three most popular crypto trading bots for automated trading, as well as some background and suggestions on how to use them.
In its most basic form, trading is purchasing an asset at a low price and selling it at a higher price. However, trading has evolved to the point that it is no longer just a question of purchasing low and selling high.
Consider the practice of margin trading, for instance. When traders use asset derivatives like futures, they are betting on the underlying asset price rising or falling. Trading has grown increasingly complex, and derivatives are only one illustration of how the premise of trading has changed.
Nowadays, trading bots have become an important tool for experienced traders in a market packed with hundreds of assets, some of which have many derivatives and very high price volatility.
Why people use crypto trading bots
Essentially, computer programs that generate and submit buy and sell orders to cryptocurrency exchanges following the rules of a pre-defined trading strategy are known as crypto trading bots. For instance, when the price of Bitcoin (BTC) crosses a particular level, a very basic trading bot may be designed to sell BTC.
Some of the benefits of using crypto trading bots are as follows:
- Allow traders to make trades based on facts and trends rather than hunches or emotions,
- Increase earnings;
- Reduce risks and losses are limited by using this strategy;
- Generate passive revenue at any time of the day or night;
- Whether you’re sleeping, playing sports, or at the office, you might be making money from automatic transactions while you’re doing something else.
Please note: Trading software aids in the automation of implementing trading strategies, while the trader is still responsible for doing research and conducting analysis. To know more about how to choose the right automated software for your trades be sure to read our Choosing the Best Crypto Trading Bot guide.
Using trading bots on Binance and Coinbase Pro
Coinbase cryptocurrency exchange prioritizes security and simplicity above everything else. The platform facilitates the buying and selling of cryptocurrencies while providing consumers with great security and transparency.
By the same token, its Coinbase Pro platform is more advanced and enables customers to employ trading bots to improve their trades on top of offering several API affixing techniques to the speculator engine.
Instead of being glued to a computer all day, traders may increase the value of their portfolio by enhancing their trading abilities and using trading bot technology to get an advantage.
Binance provides advanced charting tools with complicated indicators and overlays. However, it is very risky to leave an order hanging on Binance while you are not present due to the high volatility. Thus, trading bots are the best option since they can automatically generate an infinite number of orders and execute them immediately.
By processing an infinite number of orders quickly, minimizing human error, and eliminating emotion, resulting in increased profit, trading bots enable users to utilize techniques they couldn’t use manually. Trading bots may also monitor several cryptocurrencies at once, with over 500 coins and transaction types to select on Binance; it is an advantage.
Best Crypto Trading Bots
Coinrule has been in operation since 2018 and is by far the most advanced and simple to use crypto trading bot. It enables its users to build trading strategies (rules) that monitor the market for trading opportunities and execute them fully automated.
According to its co-founders Gabriele Musella (CEO) and Oleg Giberstein (COO), Coinrule aims to democratize trading by providing professional-grade tools to both experts and novices.
The co-founder of Coinrule, Musella, said in an exclusive interview with Finbold that the company’s goal is to provide “beginners access to advanced trading tools in a fun, simple, and educational interface.” Therefore, the platform is intended to function as a “Lego tool-box” for developing trading strategies, putting them into action, and monitoring their success in real-time while using an interface that is straightforward to use.
Additionally, since its inception, Coinrule has maintained a clear four-tier membership plan, including a free option to assist new users in getting up and running.
Concerning registration, the business is registered in the United Kingdom and its headquarters are located in London. The bot’s servers, on the other hand, are located in Europe.
Watch the video: What is Coinrule?
How Coinrule Trading bots work
Trading bots are programs that enable the execution of trading instructions on an exchange account on the user’s behalf. They can accomplish this by using the API (application programming interface) provided by an exchange.
The most basic definition of an API is that it serves as a connection point between two or more computer-based interfaces (in this instance, web apps), enabling them to interact with one another and execute the user’s instructions.
Consider the case of Binance, one of the most active cryptocurrency trading platforms in terms of daily traded volume. Binance provides its users with access to an API.
Users may conduct transactions and withdraw their money without logging onto their Binance accounts by using the API provided by the exchange. Coinrule, as an example trading bot, would approach the client and ask for permission to make such trades on their behalf.
In contrast to the majority of automated trading systems on the market, Coinrule makes use of conditional statements based on the IFTTT model. IFTTT (If This Then That) is a paradigm that enables users to provide a series of actions that should be carried out if a specific condition is fulfilled.
For instance, Coinrule gives its customers the ability to define circumstances that will cause an action to be taken on their trading accounts. If the stated condition is fulfilled, the Coinrule bot will continue to carry out a predefined action. The opposite is also true – if the condition is not fulfilled, the bot will not execute the action.
Coinrule security & features
Despite the fact that it has only been in operation for a short period, the crypto trading bot service already provides a plethora of features that are on par with, if not better than, those offered by most other established competitors.
Due to the site’s simple appearance, it may not be immediately apparent that Coinrule has managed to pack a significant amount of functionality into its service. The following are some of the noteworthy characteristics:
Secure login and authentication – Coinrule utilizes Ukey1’s secure login service to store and verify user login information. UKey1 hashes passwords and encrypts personal data using sophisticated security methods.
DDoS-proof- Attackers that employ an army of hijacked computers to overload a targeted website’s servers with resource requests are known as DDoS (distributed denial-of-service) attackers. This frequently causes a website to go down. A partnership with Cloudflare’s (CDN) service has been formed to mitigate the risk of such an attack occurring.
Management of API keys – Coinrule does not support API keys with withdrawal authorization activated. API and secret keys are protected using 256-bit AES and TLS 1.2 (and higher) encryption standards.
Payment processing – additional care is taken while processing clients’ package subscriptions. The service accepts payments through Stripe rather than directly. To avoid collecting personally identifying information from customers, Stripe marks transactions as Merchant-Initiated Transactions (MITs).
Interface and user experience
Aside from security, the user interface is another area where Coinrule excels. It has one of the most user-friendly user interfaces of any automated trading system. As soon as a user logs into the online interface, they are presented with the most important components of the crypto trading bot service.
Three main options may be accessed via the left-hand navigation when signed in:
Rules – When you first log in to the service, this is the page that appears. You will be able to see all of the IFTTT rules that you have set to automate your trading activity in this section. As well as the performance of each rule, you will be able to stop or unpause rules as needed;
Exchanges – Your Coinrule account balances, as well as the balances of your exchange accounts, are shown on this page. You may also add other accounts in this section;
Settings – This page provides access to preferences that have been specified by the user.
To enable users to try out their rules before putting them into live real money trading, Coinrule offers an easy-to-use ‘paper trading’ platform. It makes use of real-time data from the Binance paper trading interface, which supports all of the trade pairs that are offered on the exchange.
The Binance paper-trading platform is accessible to Coinrule users via a more user-friendly automated trading interface, as a result of this integration. Each new account is initially credited with 10 BTC and 100 ETH coins.
Utilizing a demo exchange enables users to experiment with different trading strategies (rules). Likewise, if it produces the desired result, the user may then utilize it in real trading to make money.
In this regard, it should be noted that Coinrule does not directly enable backtesting on the platform. Essentially, this implies that the sample account is running on real-time price action data supplied by Binance itself.
As a result, time and patience will be required in order to determine the effectiveness of a strategy.
Watch the video: Paper trading on the demo exchange
The supply of trading tools, like technical indicators, is something that every trader uses, but it is not yet accessible on Coinrule. Because of this, traders must rely on third-party services, such as Tradingview, to perform technical analysis (TA).
Trade ideas and tactics are shared on Coinrule’s Tradingview profile, which promotes the usage of Tradingview.
It distributes different scripts from time to time, which may be implemented straight to the market via backtesting on Tradingview, which is free to use. Once a script has been successfully tested, it may be converted into a rule and deployed on Coinrule.
Connect an exchange account
Note: Following the completion of the registration process (see ‘Sign up‘ part in our Coinrule review), the following step is to connect an exchange account. Check out our guide to the five most trusted cryptocurrency exchanges to determine which one is the best match for you. Interestingly, Coinrule offers support for three of the five trading platforms we reviewed in that guide. Binance, Coinbase Pro, and Kraken are the three exchanges in question.
The Knowledge Base part of the website has a wealth of information on anything from creating rules and trading strategies to using the demo exchange.
You may also subscribe to news feeds and trading tips and techniques through the blog as well as follow Coinrule on Facebook, Telegram, and Twitter.
Pricing and packages
Coinrule provides its clients with a choice of four subscription options including : Starter, Hobbyist, Trader, and Professional. Moreover, when trading instructions are sent to exchanges via the service, there are no transaction fees charged.
Starter package – this is the cheapest plan for new users. The bundle is free but only connects to one exchange. A maximum of two rules may be active at the same time, and no more than $3,000 in volume can be traded each month.
Hobbyist package – $29.99/month ($359/year). It includes one additional exchange connection than the Starter package, seven simultaneous demo and live rules, 40 template strategies, and trading volume up to $300,000 per month. Subscribers also receive access to the trading community and live customer assistance through Telegram and email.
Trader package – $59.99/month ($719/year). Includes 3 exchange connections, 15 live and demo rules, limitless template strategies, and a $3 million trading volume. This plan also includes free access to the trader community, one-on-one training sessions with the Coinrule team, Telegram live support and advanced indicators and operators.
The Pro package – $449.99/month (billed annually at $5,399). Unlimited exchange connections and template strategies; 50 live and demo rules; an unlimited weekly trading volume. A dedicated server, one-on-one training, lightning-fast execution, and leverage techniques are all included.
Pros and Cons of using Coinrule
- No coding required;
- Connect multiple exchanges;
- Trade with 14 rules simultaneously;
- Access 150+ template strategies;
- Enjoy tens of video tutorials and ease of use.
- No mobile trading app;
- No backtesting of the strategies.
Coinrule, one of the most technologically sophisticated and reliable tools available on the market, is an automated cryptocurrency trading platform that allows users to compete with experienced algorithmic traders and hedge fund managers. Users may sign up for a free account and begin utilizing the platform’s trading features in a couple of minutes.
If you want to learn more about how to set up an account and a trading bot on Coinrule, as well as about the other choices accessible while using the trading bot, we suggest that you read our in-depth guide.
After launching in 2019, Pionex has evolved into a global platform for the trade of cryptocurrencies with built-in automated trading bots.
Customers may utilize the 16 free trading bots provided by the cryptocurrency exchange headquartered in Singapore to automate their trading. The bots are available for no extra charge and allow traders to take advantage of the tools to optimize their trading.
Due to the fact that all of the built-in bots are cloud-based, customers do not need to keep their computers on at all hours of the day. Furthermore, Pionex is conveniently accessible from any computer, laptop, or mobile device, allowing you to manually or automatically trade major currency listings from Binance and Huobi.
The ability to delegate the trading aspect to one of over 16 different cryptocurrency bots, which will take responsibility for executing buy and sell orders without the need for the operator’s intervention when precise, pre-defined market conditions are met, can be beneficial to investors with limited trading time.
Watch this video: Pionex cryptocurrency exchange with free trading bots
16 Trading Bots
- Smart Trade Bot – Uses fixed or trailing stops to take advantage of market moves while minimizing account risk.
- Margin Grid Bot – Profits without using cryptocurrencies by lending them to other Pionex users and amassing more funds for trading.
- Leveraged Grid Bot — Leverages margin loans to magnify the outcomes of the conventional Grid Bot it is available with leverage ratios of 1:1.2, 1:1.5, 1:2, and 1:3.
- Trailing Buy Bot – Increases the size of a stake when the asset’s value declines. When the price reverses, buying stops.
- Trailing Sell Bot – Places trailing stop orders, mitigating possible losses in the event of abrupt market moves.
- Grid Trading Bot – Places buy and sell orders within defined price ranges, ensuring modest and consistent gains from typical volatility. Ideal for novices or those unfamiliar with automation
- Reverse Grid Bot – Increases your holdings when the value of your coins declines. Designed to facilitate the sale of coins when their values exceed predefined higher and lower boundaries.
- Leveraged Reverse Grid Bot – Enhances the standard reverse grid bot’s performance and earning potential by adding leverage. Available leverage ratios were 1:1.2, 1:1.5, 1:2, and 1:3
- Infinity Grid Bot – Has a more sophisticated profit distribution approach comparable to the grid bot that utilizes percentages and has no upper range restriction. Ideal for those who anticipate the market will continue to climb.
- Time-Weighted Average Price (TWAP) Bot – Purchases and sells huge quantities of cryptocurrency in tiny increments over a predetermined time period, resulting in an average asset price.
- Dollar-Cost Averaging (DCA) Bot – Schedules repeated purchases at predetermined intervals in order to mitigate the impact of volatility.
- Spot Futures Arbitrage Bot – A futures trading bot that profits from price differentials between futures and spot prices. APR returns of 15% to 50% are targeted.
- Arbitrage bot – This bot lets you benefit from price differences between the current spot price of a crypto asset and the present price in the futures market. It promises a “return of 15-50 % APR with extremely low risk” for a $50 investment.
- Rebalancing bot – With this bot, you can ‘HODL’ your crypto more effectively.
- Dual Investment – This bot is a structured saving instrument with a floating income that is not covered by the principle.
- Spot futures arbitrage bot – Using the spot future arbitrage bot, you may profit from price disparities between the current spot price of a crypto asset and the current price of that cryptocurrency in the futures market.
The regulated cryptocurrency exchange with over 100,000 monthly users has no cost to sign up, thus traders may begin using the service whenever they decide.
Pionex charges a maker and a taker fee of 0.05% trade value. Upon completion of your transaction, your charge is withdrawn from your account’s remaining balance. The maker-taker pricing structure ensures that no matter how much you trade, you will only pay 0.05% in fees.
The exchange charges a fee for transactions that ‘make‘ liquidity on the market and those that ‘take‘ liquidity away.
The maker fee is imposed for every transaction that is not quickly matched with an order on the books. If you place a trade order that is quickly matched, you will be charged the taker fee.
Since its inception in 2019, Pionex has gone over 980 days without a security breach.
- Fully licensed: In terms of security, Pionex has been issued by the U.S. FinCEN’s MSB (Money Services Business) License (MSB Registration Number: 31000188348895).
- Backed: Pionex has received investments from Gaorong Capital, Shunwei Capital, and ZhenFund totaling more than $10 million.
- Aggregated liquidity: Pionex aggregates the liquidity from cryptocurrency exchanges Binance and Huobi around the ticker price of the underlying asset.
There are many ways to contact Pionex’s customer service team.
Email: For further information, email Pionex at [email protected]
By live chat: Go to Pionex’s home page and choose “Support” from the menu. Then, click the “Live Chat” button on the screen. To live chat with someone, a pop-up window will appear on your screen.
To learn more about Pionex, visit their social media pages:
Pros and cons of using Pionex
- A total of 16 built-in trading bots are included;
- All of the bots are hosted on the cloud;
- On all transactions, the cost is 0.05%;
- In order to ensure the protection of its customers’ crypto assets, Pionex employs a wide range of security procedures;
- Easy-to-understand instructions on how to use each trading bot;
- Customer service by phone and email;
- More than 120 cryptocurrencies may be used.
- You cannot use a demo account to practice trading;
- Currently, there are no ways to withdraw fiat currency;
- There is no phone number listed.
All in all, Pionex provides its users with a number of benefits, including low fees, access to 16 free trading bots, and a mobile app that enables investors to trade while on the go while still taking advantage of the exchange’s unique features.
Furthermore, Pionex’s MSB license with FinCEN in the United States, ensures that clients may feel safe utilizing the platform.
As a result, customers may take advantage of a simple user interface (UI), competitive rates, and a variety of free crypto bots to make transactions go more efficiently.
Bitsgap is an automated cryptocurrency trading platform headquartered in Tallinn,
Estonia allows you to perform anything from trading to portfolio management, access to trading bots, producing signals, on top of a whole host of other features.
The most cutting-edge cryptocurrency trading bots, smart algorithmic orders, portfolio, and demo trading are all available in a single interface, allowing you to conveniently manage your assets.
Finally, the fully automated crypto trading bots work 24/7 with backtested-ready-to-go strategies to help profit from movements in the market.
Watch the video: How does Bitsgap crypto trading bot work?
Arbitrage – is a trading strategy in which traders attempt to maximize the price difference between two or more exchanges.
Automatic trading bots – Bitsgap offers pre-configured trading bots that have been refined with the use of machine learning algorithms.
Futures Trading Bots – Bitsgap is among the few trading platforms that enable you to create futures trading bots.
Signals – Allows users to keep an eye out for any market irregularities that may help you make the best trades.
Portfolio Tracking – Market participants will have access to a live-generated portfolio, which will allow them to keep track of their funds and profits over time.
Crypto trading bot key features
The Bitsgap Bot is efficient in a volatile market since, as the price fluctuates, the algorithm will automatically place Buy and Sell orders at the times when there is the high chance of executing a profitable trade.
Users can connect to their exchanges and then sit back and let the system take care of the rest. Before making any serious trading decisions, evaluate the performance of your bot in Demo mode or by doing a free backtest.
Intelligent strategy design – With only a few clicks, create your bot trading strategy.
Test before investing – Prior to investing, do a backtest to see how your settings would react to profit and loss.
Ready-to-use strategies – Choose from a library of prepared strategies based on successful backtesting.
Safe and secure – At all times, your funds are held in the exchange balance.
TradingView charts – Visualize the performance of your bot with the lightning-fast TradingView charts.
No downloads required – Cloud-based online service ensures that the platform is constantly up-to-date.
There are no fees associated with trades; instead, customers pay a monthly membership fee in exchange for access to efficient tools that make trading and monitoring cryptocurrency more effective.
Bitsgap also has the option to start to try the platform and the crypto trading bots with a 7-day free trial today.
The site platform offers three distinct price structures, each of which allows users to access cryptocurrency trading bots.
Basic: The basic edition costs $29 per month, but customers may save 17% by paying in advance for six months for $24. This version of the platform has the following features:
– Two active trading bots;
– Grid bots;
– Unlimited smart orders.
Advanced: The advanced version is available for $69 per month or for $57 for six months. The following features are included in this version of the platform:
– Five active trading bots;
– Grid bots;
– Unlimited smart orders;
– Futures bots;
– Trailing Up and Down for bots.
Pro: The Pro version is available for $149 per month or for $123 for a six-month subscription period. This platform version includes the following features, which are detailed below:
– Twenty active trading bots;
– Grid bots;
– Futures bots;
– Trailing Up and Down for bots;
– Take Profit for bots.
No deposits are ever performed on the Bitsgap platform itself; instead, customers link their exchange accounts to the platform using API keys provided by the exchanges.
Bitsgap will never have access to a customer’s funds; it will only perform trades on the user’s behalf.
In order to provide even more security, Bitsgap encrypts all orders placed via the API using high-end 2048-bit encryption.
Email and Live-chat support is available across all of the supported plans.
Pros and cons of using Bitsgap
- Bitsgap offers pre-configured trading bots for cryptocurrency trading;
- Simplified trading tools easy to anyone to use;
- Over 25 major exchanges are incorporated into the platform;
- A free trial is available for all verisons of the trading platform;
- The pro version gives access to up 20 active trading bots;
- No deposits are kept on Bitsgap which also encrypts all orders placed via the API using high-end 2048-bit encryption.
- Trading bots are not suitable for all market conditions.
All in all, user can depend on Bitsgap’s automatic trading bots to assist in trading. With that being said the bot is most effective if used in a swing or neutral market.
Furthermore, useful trading tools such as stop-loss, take-profit, exit strategies, and following up help to protect your safety while maximizing your return on investment (ROI).
Does a trading bot automate buying and selling crypto?
Yes, if you want to utilize an automated cryptocurrency trading platform, you must first create an online account with a trading bot and then choose a trading strategy to employ. Following your selection of an automatic trading bot, the software will purchase and sell your crypto for you according to the settings you choose.
Are bots effective crypto trading tools?
For traders, the employment of bots allows them to profit from 24-hour crypto markets. Since investing takes time, most people don’t have the time or resources to ensure they are getting the best deal possible on every transaction. Also, bots have a distinct edge over investors in that they can respond much faster.
Are crypto trading bots legal?
Trading using bots on the crypto and stock markets is legal, although they are only available on certain platforms and exchanges.
Do crypto trading bots generate passive income?
Crypto trading bots offer numerous advantages, but you should only use them to avoid tiresome and time-consuming repetitive tasks, increase your accuracy, and have a tool that can watch the market 24/7. There is no assurance using a crypto trading bot will produce earnings. If you want your chosen bot to perform as you want, you’ll have to put in some effort to fine-tune it. The best trader is still you, so don’t think of them as “a set it and forget” solution.