The cryptocurrency market is becoming increasingly popular, attracting many newcomers who are unfamiliar with financial markets and trading. As a result, most of these individuals suffer losses instead of making profits, causing them to leave the trading market and invest in cryptocurrencies for the long term. This is due to their need for experience and knowledge of financial tools, such as indicators and chart patterns.

However, there is a solution to this problem – the use of trading robots. These bots can be programmed to make logical decisions and execute trades to achieve profits. This is one of the best solutions, but the market is flooded with companies trying to take advantage of it. As a result, there are many different crypto trading bots available, making it difficult to determine which ones are legitimate and effective.

What are Crypto Trading Robots

First, let’s understand what trading bots are and how they work. Automated bots are programs and AIs that make calculated decisions and trade on your behalf. There are various types of bots, each serving a different purpose and goal. It’s important to choose the one that you feel most comfortable with.

Some simple crypto trading bots follow scripts and open positions when specific patterns emerge. These bots are best suited for traders who are familiar with crypto trading but need more free time to do it themselves. Using these bots, they can automate the process without needing to keep an eye on the market all the time.

On the other hand, there are trading bots that can do everything for those with zero trading experience. All they need to do is indicate a few parameters, such as their risk tolerance, choose a strategy, and let the bot do the rest. However, it still needs to be more risky to rely on these bots fully. It’s best to use them as an extra tool while manually trading, which can help you understand how trading works much faster and gain knowledge about financial markets.

Let’s explore the benefits of using automated crypto trading bots.

Bitsgap

Bitsgap is a popular platform that offers a reliable automated trading bot for cryptocurrencies. In addition to automated trading, Bitsgap provides portfolio management tools and a free demo version to test the bot before subscribing.

One of Bitsgap’s most sought-after trading bots is the Grid trading bot, which trades within a grid set by the trader and opens and closes positions based on certain price increments. Many traders prefer this strategy, which is used by automated bots. Additionally, Bitsgap offers a DCA trading bot that can use various strategies like MACD + RSI, simple DCA, customizable DCA, and Stochastic + Chanel.

For those interested in high-risk, high-reward trading, Bitsgap also offers a futures trading bot that can trade both long and short positions.

The only downside is that Bitsgap doesn’t have a free version. However, they offer a 7-day free trial, after which you need to choose a plan to use their bots. The Basic plan costs $29 per month and comes with 2 GRID bots and 10 DCA bots. On the other hand, the Pro plan costs $149 per month and comes with 25 GRID bots, 250 DCA bots, futures bots, and other useful tools.

3Commas

3Commas is an excellent crypto trading platform that offers various trading bots, portfolio management tools, educational materials, and other essential resources to help crypto traders succeed.

There are five different trading bots available on 3Commas, designed for both beginners and experienced traders. One such bot is the Dollar Cost Average bot, or DCA, which spreads investments over a specific period and protects traders from significant losses in case the price falls. Another bot available is the GRID bot, which is ideal for traders interested in trading within a specified grid. For those interested in long-term investment, the HODL bot is a more advanced DCA bot. Additionally, there is a bot dedicated to trading with options and a beginner-friendly Smart Bot for easy use.

Compared to other trading bots, 3Commas has an advantage as it offers free versions of its best crypto training bots. However, the free version has limited options. Three paid plans are available, starting at $29 per month, $49 per month, and $99 per month, and each plan offers an increasing number of bots and tools.

Cryptohopper

Cryptohopper is a comprehensive crypto trading platform that offers automated trading bots, social trading, paper trading, backtesting, and other useful tools for every trader.

Cryptohopper is a platform that offers automated trading. It allows you to select a trading strategy and set a few parameters, and the bot will take care of the rest. For those who need clarification on managing the bot or trading themselves, Cryptohopper has a social trading platform where professionals can handle the work. Cryptohopper provides users with a high-quality and optimized DCA trading bot, just like any other top crypto trading bot.

Cryptohopper is an automated trading platform that offers some advanced tools. What sets it apart from other platforms is that experienced traders can create their trading strategies and integrate them with Cryptohopper bots. They can also backtest their strategies. In addition, there is a leverage trading automation option and AI trading, where the bot learns your preferences and trades independently. However, it’s important to note that AI trading is a very risky approach.

Cryptohopper offers a free version of their trading bot with a wide range of tools, which is impressive compared to other free trading bots. Additionally, their paid plans are really affordable, starting at $19 and going up to $99. The $99 plan is particularly noteworthy for its exceptional set of tools, which surpasses those offered by most other trading bots.

Should you use trading bots to trade crypto?

The decision to use automated trading tools in your crypto trading journey ultimately depends on your personal preference since there is no definitive answer. If you are an inexperienced trader and don’t plan on pursuing a career or dedicating your life to crypto trading, using these bots may be a viable option. With the help of these trading bots, you can avoid the hassle of learning how crypto trading works, and you don’t have to monitor the market constantly.

If you’re interested in crypto trading, there are two options available for you. You can start using automated trading tools, but it’s recommended that you use them as a protection tool and trade normally. This will help you learn how these bots operate and understand the reasoning behind their actions. However, if you want to learn more thoroughly, it’s recommended that you depend on something other than trading bots and trade on your own. Although you may experience some losses at the beginning, the knowledge you gain from doing so will help you become a successful trader and make profits without relying on bots.

Experienced traders view automated trading bots differently. They don’t rely on bots to make trading decisions, but they can still benefit from them. Experienced traders best use these bots to automate some basic parts of a big trading system, saving them time. Since experienced traders often trade multiple assets simultaneously and implement different strategies in one big trading system, managing it all can become overwhelming. Trading bots are great tools for making this process easier.

FAQs on best crypto trading bots

Are automated crypto trading bots profitable?

Automated trading robots are not a reliable source of profits. They are best utilized for controlling damage and preventing significant losses. However, if you configure these bots correctly and monitor their trading activities regularly, making profits using them is not impossible.

Can trading bots make losses?

Automated trading bots are software programs that execute trading orders automatically based on a set of predefined rules. Although these bots can be helpful in limiting losses, it is important to note that they are not immune to making losses. The cryptocurrency market is highly volatile and unpredictable, and sudden market shifts can confuse the bot, resulting in poor trading decisions and potential losses. It is also worth noting that trading bots are not primarily designed to make significant profits but rather to minimize risks and losses.