Cryptocurrency traders use crypto trading bots to automate their portfolios with the aim to maximize their profits while trading. When crypto bots are used with other risk management strategies, a crypto trading bot can help take some of the human emotion out of your trading, enabling traders to place and execute trades based on data and trends rather than a gut feeling.
One question we get asked a lot is what are the advantages and disadvantages of using these bots to enhance your trading — and are bots really profitable? Well, you can read this article in this link where we discuss all the pros and cons of trading bots.
This guide for beginners will help you learn more about crypto trading bots and introduce you to a few of our favourite trading bots currently listed on our website for you to take advantage of in 2023.
What is a Crypto Bot?
A cryptocurrency trading bot is a computer program or application that buys and sells crypto markets according to predefined specifications that you set. Most crypto trading apps and platforms work in a similar way — you authorize the bot to buy or sell an asset and when it reaches a price defined in your bot settings your bot will then execute your orders. This allows the trader not to have to monitor the charts from a trading view and screen all day to find the best trading entry and exit points.
You can customize your crypto bot to execute orders based on your trading strategy. There are many strategies out there and you may have to try a couple to find the one you are happy with. But you should really learn one strategy at a time until you have mastered it and can honestly say… I did not take any shortcuts!
An example of a trading strategy might instruct your bot to sell a coin at a price of $100 and then buy a coin back if the price falls to $90. Most cryptocurrency bot platforms charge a monthly or annual fee to use the bots, however, there are some that have a free option.
It is also good to point out that crypto bots do not work with every crypto exchange. This is because the company has to code in APIs from the exchange so that the two applications can work simultaneously together. For instance, one bot service may only provide Binance as an option to trade, however, another platform may other 10 or more exchanges such as Binance, OKEx, FTX, ByBit, Poloniex, Bitmart etc.
Most cryptocurrency trading exchanges are very different when it comes to trading. Some only offer spot trading, some will offer leverage trading, options and futures trading and even farming or pooling.
Best Crypto Bots Right Now
The cryptocurrency markets have been gaining more and more attention in 2023, and it’s now easier than ever to get started with a bot to maximize your crypto investment strategy. There are a lot of crypto bots online now and we aim to list as many of them as possible in 2023 along with reviews to help you make a choice of the best crypto bot. Let’s take a look at a few of our favourite crypto trading bots that we have listed now.
Jet-Bot Crypto Trader
Jet-Bot is an official broker of the Binance crypto exchange. Jet-Bot is a matching platform where investors and traders can find each other.
This product is designed both for professional traders and investors:
Traders use Jet-Bot as a trading automation software for Binance with features like automated trading signals, automated take profit, stop loss, DCA, martingale and other features which allow traders to trade more profitable, efficiently and less risky.
Investors use Jet-Bot as a copy trading platform. Investors can choose the best traders at Jet-Bot and start to copy all their trades in a fully automated way 24/7. Users don’t even need to deposit funds to the platform directly. You store your assets on your personal Binance account and provide trade access to your account via an API connection. When you do Jet Bots are allowed to trade funds on your account, but nobody can withdraw it from your account, so your funds are completely safe and secure within your Binance account.
Kryll Powerful Crypto Trading Tools
Kryll (KRL) is a community of crypto traders and an automated trading strategies-building platform. The platform is a user-generated trading strategies marketplace. Interestingly, Kryll aims to provide intuitive ways for cryptocurrency traders to create trading strategies that can be set to execute automatically.
Interestingly, Kryll aims to provide intuitive ways for cryptocurrency traders to create trading strategies that can be set to execute automatically. As per the Whitepaper, Traders can rent out their winning strategies to help fellow traders succeed on the platform. Traders are rewarded with passive income for sharing their strategies. The platform offers professional trading tools to everyone by providing a drag-and-drop strategy builder, which creates endless strategies and tests them for free.
TradeSanta Crypto Trading Platform
TradeSanta is a cloud cryptocurrency trading software that lets you take advantage of crypto market fluctuations. Connect TradeSanta to your exchange and trade 24/7 without making it a full-time job.
Tools like TradeSanta are useful when you want to start trading cryptocurrencies but don’t have enough time to submit each trade by yourself. Hence, TradeSanta’s crypto trading bot executes trades on your behalf by following the preferred settings you have chosen when creating your crypto trading bot. In short, TradeSanta eliminates the need to perform trades manually and automates them instead. You can create as many separate trading bots as you want to scale your trading.
TradeSanta is simple to use, supporting most major centralized crypto exchanges. Each bot executes a single strategy plugged into a chosen cryptocurrency exchange by trading preset currency pairs.
Wunderbit Crypto Trading
Wunder Trading is a platform that allows you to start trading and investing in cryptocurrency seamlessly. You can copy-trade the best crypto traders on the platform with a transparent track record, and you can trade yourself using the advanced trading terminal or create a fully automated trading bot using Trading View.
Wunder Trading is a fintech company that provides cryptocurrency services and applications to drive the real-use adoption of cryptocurrency. The company is a licensed, accredited and regulated financial institution that allows its clients to buy and sell Bitcoin safely and securely.
Wunder Trading actually offers several products that include a fiat-to-crypto exchange, Over Counter (OTC) services, an advanced trading terminal, automated crypto strategies, trading bots and a social trading platform.
- Wunder Trading Exchange is a cryptocurrency service that allows individuals around the globe to buy Bitcoin & Ethereum with VISA and MasterCard. The exchange prides itself on providing the best exchange rates and low commission fees.
- Wunder Trading Commerce is a payment service provider that allows merchants to start accepting Bitcoin payments using their website, in person or even by email.
- Wunder Trading is a multiple exchange crypto trading terminal that includes copy trading and automatic trading bots.
Wunder Trading trading exchange is an innovative platform that connects several of the best cryptocurrency trading exchanges in the world. Users are equipped with advanced tools to trade and invest in cryptocurrency seamlessly from a single trading terminal.
Wunderbit’s social trading platform provides insight into the strategies of the best crypto traders with full transparency and trade history to copy for yourself or create a fully automated copy trading bot using TradingView. Creating an automatic strategy allows you to set a take-profit and stop-loss order on every exchange connected to the platform.
Do Crypto Bots Actually Work?
Many crypto trading bots claim that they have a high level of successful trades. Some are real, I have used bots like Yanda that had a 97% trading success rate. However, remember that the cryptocurrency market constantly changes and price trends always fluctuate.
You need to have an understanding of the markets and how trading works. You will want to use different strategies for both bear markets and bull markets. If you want a completely hands-off approach when you trade you may not see the same type of results that you would actively manage your trading bot and reacting to different market conditions.
Are Crypto Trading Bots Profitable?
Crypto trading bots can help you make more educated trades and remove some not all of the emotions from the trade that might lead to poor decisions and big losses. It is important to remember that crypto trading bots are simply pieces of software. They cannot and should not guarantee a profit for any investor and they may quickly become less useful during periods of high market volatility.
That being said, Crypto bots are a great tool when used properly. It is always good to join their communities, ask questions, read all documentation and take in all their video tutorials. You want to be a master of the platform before you even place your first trade.
Advantages of Crypto Bots
If you’re the type of trader who tends to make market movements driven more by your emotions than your trading strategy, a crypto trading bot might be able to help you enhance your trades. Some of the advantages that come with using a crypto trading bot include:
- Automated investing options: From panic selling to fear-of-missing-out buying, there are countless reasons why a person might choose to execute a trade that causes them to lose money. When you rely on an automated investing bot, none of these factors will come into play.
- Faster speeds and more efficiency: It can take individual traders minutes or even hours to fully scan the entire cryptocurrency market searching for opportunities. By the time you spot a potential opportunity, the market could shift in the opposite direction.
Crypto trading bots offer more efficiency, scanning entire sections of the cryptocurrency market in as little as a fraction of a second. Your crypto bot can also enter and execute orders faster than you can enter the same orders manually. If you’re looking to add another layer of speed and efficiency to your trading, employing a crypto trading bot might be the right move for you.
- More time on the market: Unlike the stock market and the forex market, the cryptocurrency market operates 24 hours a day, 7 days a week. It’s not feasible for investors to spend 24 hours trading. Crypto trading bots provide you with additional hours of exposure without requiring you to actively monitor your positions.
Disadvantages of Crypto Bots
Cryptocurrency trading bots aren’t for everyone. Some of the disadvantages that come with using these features include:
- Prior knowledge: Though many cryptocurrency trading bots come with predefined settings and templates, you’ll need to know how to set these templates and when each template will be executed. If this is your first time trading cryptocurrencies, changing the settings on your trading bot can result in fast losses.
- Requires monitoring: Trading bots aren’t a “set-it-and-forget-it” solution to cryptocurrency trading. The cryptocurrency market is volatile, and trading bots can result in losses during periods of high volatility. If you don’t have the skills or knowledge to monitor the market, a trading bot may not be the best choice for you.
Invest in a Crypto Trading Bot
If you are still not sure cryptocurrency trading is right for you or that using automated bots is not right for you at this time, you might want to take some time to learn more about the market by monitoring price changes and volatility. You can track how some of the largest cryptocurrencies move each day like Bitcoin, Ethereum, Polkadot, Polygon and even Dogecoin. Yes, you can trade Dogecoin with bots.
Also, practising with a paper trading account which is a demo account can help you learn the space much faster and give you the confidence that you are putting incorrect trades.
We hope that you enjoyed this crypto content on Automated Crypto Trading. If you have a crypto bot that you like to use that we have not listed on the site, please let us know in the comment and we will get them listed.
This content should not be interpreted as investment advice. Cryptocurrency is a volatile market, do your independent research and only invest what you can afford to lose.
