The Guide to the Best Crypto Trading Bots

Whether you are a newcomer to the crypto market, or an experienced crypto trader, it is likely that you have heard of crypto trading bots. While you might assume that these types of cryptocurrency trading strategies are reserved for advanced traders, automated crypto trading can be done by even novice traders. Regardless of your trading experience you will want to pick the best crypto trading bot.

But what is the best crypto bot? There are both free cryptocurrency trading bots and paid services, each coming with their own benefits. Whether you are looking for a Bitcoin trading bot, or an Ethereum trading bot, our definitive guide will walk you through the best crypto trading bots in the industry and help you decide which crypto trading bot is right for you.

What is a Trading Bot?

A crypto trading bot is a piece of software that is designed to analyze cryptocurrency markets and to place buy and sell orders on the trader’s behalf. It is an automated crypto trading strategy that involves technical analysis and utilizes algorithmic trading rules to execute trades at an ideal moment in order to generate profit for the user.

Cryptocurrency trading bots act based on preprogrammed and algorithmic trading rules. Their decision making is hinged on the price fluctuations in the market, they analyze market conditions such as price, volume, time, and orders. The best crypto trading bots are often fine-tuned by their users to meet their own trading preferences. Left to their own devices even the best crypto bot can create losses for their users so despite automated bots doing the work for you, they need to be monitored and maintained.

What to Look for When Choosing a Bot

There are a quite few things you need to look for when choosing the best crypto trading bot, especially when you consider the financial impact choosing a bad one could have on your portfolio. Things to look for in order to be considered one of the best crypto bots are:

Reliability

This is an obvious one, since crypto markets never stop if your bot suddenly went offline you could miss out on a big live trading opportunity. Therefore it is important to pick a bot that has a good track record and is run by a reliable company. This can be accomplished by reading user reviews and testimonies.

Security

Another obvious one. Your bot has access to your funds, and often your exchange account as it has to use a trading platform in order to execute the cryptocurrency trading strategies that you have programmed. Picking an unreliable or shady trading bot could easily result in losing a lot of funds. As with reliability, the best crypto trading bots will have track records of security.

Ease of Use

While the best trading bot does not have to be easy to use, it is certainly something that is appreciated by both novice and advanced traders. After all, the whole point of using a crypto trading bot is to make your trading easier. Try and find a bot with an intuitive interface and simple control settings.

Profitability

The whole point of using a bot is to automate trading to generate a profit, so this is another important factor. The best crypto trading bots generate the best profits for users. Do some research into the profitability of a bot before using it. Reliable companies provide information on their bot’s profitability.

Transparency

The best crypto trading bot also has a transparent and often open source development process and support team. By choosing a bot with a reputable developer and trustworthy company history you can not only make extra profit but also get help if you need it. Knowing how the bot company operates is important information, make sure you do not choose a bot before looking into its founders and team.

Why You Might Want to Use a Trading Bot

There are a few reasons you might want to use a trading bot rather than executing trades yourself, the one caveat to using a bot being that you will still have to monitor what it is doing to an extent. Here are a few reasons you might want to use a trading bot:

Multi-tasking/Efficiency/Speed:

Trading bots can analyze market conditions in multiple cryptocurrencies, simultaneously, and execute trades whenever there is room for making a profit. Whereas humans can only analyze cryptocurrencies and market conditions by going through them one by one. You can miss out on many profitable trades because you are looking at another crypto asset. Bots can do it all and more efficiently.

They can also conduct repetitive tasks such as periodic rebalances for you at a much faster rate. Not only that but they can execute trades instantaneously making their trades more effective than if you were to be sitting there executing trades manually.

Automated Functioning

With the price fluctuations commonly seen in cryptocurrency markets, human emotion can affect trade decisions negatively. But with an automated bot, it is pre-programmed and thus unaffected by emotion. Therefore, it will still follow its rules regardless of wild market changes.

Always Running

The crypto markets never stop, neither does trading. However, you cannot always stay in front of your computer executing trades. By having a bot running you can take advantage of trade opportunities 24/7 instead of just when you have time. This increased ability to take opportunity results in higher profitability.

Crypto Trading Strategy

There are a few different trading strategies you can use your bot for, and many bots come programmed with one of these strategies in mind. We will take a quick look at a few of them:

Mean Reversion

This strategy is built on the assumption that if a price on a coin deviates from its average, it is destined to revert back to its average. Essentially this is a buy low, sell high strategy. If the price drops down below a market average, the bot will begin buying, if it goes up high, it will begin selling.

Momentum Trading

For this strategy, the investor holds short-term positions and sells at the peak of the wave before it crashes. This strategy is based on the belief that prices will continue to rise above expected averages and inevitably fall. This means that entry timing (when a trader buys into a market) and exit timing (when a trader sells out of a market) is vital. A bot can analyze data and determine when to sell a position before everyone else tries to do the same.

Arbitrage

Arbitrage strategy makes a profit by buying and selling on exchanges simultaneously to make a profit on the spread. Unlike momentum trading, this strategy is independent of market performance and is fairly low risk. It simply requires speedy buys and sells in order to exploit price differences before they close up. This is where the bot comes into play as it can make these trades simultaneously. The best crypto arbitrage bots will be able to execute trades with lightning-fast speed.

What Are The Best Crypto Trading Bots?

Here’s a quick rundown of the some of the most popular trading bots currently on the market. Please keep in mind that utilizing a trading bot always has some inherent risk and nothing offers guaranteed profit. You should never risk more than you’re willing to lose. With that in mind here are some of the most reputable trading bot companies currently in operation.

GTAI Trading Bot

Galaxy Trading Artificial Intelligence (GTAI) is a world-class AI trading plus arbitrage system designed to help crypto traders maximize trading profits while minimizing risks and losses. Galaxy Trading Analytics (GTA), the leading regulated Fintech company founded in 2022 by a team of AI and Deep Learning experts that created the Bot. They have constructed a clear and transparent system that conducts trading transactions according to the parameters set, and  have connected investment tools and financial protection algorithms to it. There are currently 4 proprietary trading and arbitrage strategies implemented, with more trading strategies that are currently being developed and will be added to GTAI once more stringent tests are being done.

Traders can choose between two Packages, A or B in their user-friendly App, where in Package A, the only thing traders need to do is set perimeters of the AI Bot and let the Bot do its work, while traders control 100% of their funds in their crypto exchange accounts. GTA claims that traders’ monthly estimated gains could be between 2% to 8% depending on crypto market conditions.

Traders can also go for Package B, where traders will get access to a dedicated team to monitor their trading on their behalf, deploying the right strategies according to the market movement. There will also be active risk management in place, 24 hours a day. Package B also grants access to higher leverage using liquidity pools, which means higher and more consistent profits by more powerful AI bot, going between 3% to 36% monthly gains. Both options can be selected at the same time, they are suitable for beginners, advanced or expert traders, and participation start from as low as $100.

Trality

What sets Trality apart is its powerful Python API, which lets traders use this familiar language and libraries to develop bots. Its in-browser coding features include intelligent autocomplete and backtesting, debugging, and soon, rebalancing. This bot has been slower than some others to introduce new features and exchanges, but its easy-to-use Python integration and detailed documentation make complex bot building more transparent.

Coinrule

Coinrule is an emerging, easy to use automated trading solution aiming to be used by both technical and non-technical traders. The platform allows anyone to choose from a number of set strategies which can be back tested before being deployed. More experienced traders can construct their own unique strategies, and as a result, traders of all levels can actively engage in the always open crypto market and trade 24/7. 

For more information, visit their website to find out more about their services and capabilities.

GTAI Trading Bot: www.gtatrade.com

Trality: www.trality.com

Coinrule: coinrule.com