Crypto Trading Bot Review

11 min readNov 3, 2020

Whether the cryptocurrency industry dynamics are excellent or poor, you will still find opportunities to make some extra money by investing. If the market is bearish, buying dips and selling highs will make you different.

However, to do this daily, you would need to track business dynamics like a hawk. A human being can not do this. However, this can be achieved by a trading bot instead. In this Gekko trading bot summary, we’ll take a look at some of the features of this trading bot that makes it stand out from all the other trading bots out there.

What is Trading Bot

Trading bots are programs that are capable of operating in compliance with the parameters set. They consist of signs and some algorithms that are designed to recognize patterns and to run trades automatically.

Trade bots have been popular in numerous mainstream financial markets for several years. Traditionally, however, trading bots were not open to the regular trader as they cost a large sum of capital.

With many people buying bitcoin passively and therefore unable to devote vast quantities of time to market research, the hope is that bitcoin bots would enable users to indulge in more effective trading without ever needing to stay on top of the market.

Types of Trading Bot

1. Analytic

They shall gather the details and provide an overview of the data collected. Their great asset is the ability to continue with a large volume of knowledge within a brief period.

2. Assistant

They help trade-in set equations and can be helpful with their metrics based on rumors on different sites. And you will be asked to make a relevant decision.

3. Trader

They automatically conduct trading within the configured parameters by using an integration among scientific, trading, and adjunct bot.

4. Data

You may call them crypto signals since they are designed to track market dynamics and price fluctuations. One of the strong points about them is that they are generally available in messengers like Telegram, which operate 24/7.

How Does Trading Bot Work

Trade bots may help traders ensure that they are still communicating with the market, mainly though they are physically unable to do so. They will help relieve any of the tension and feelings present in every financial trading market, not least the cryptocurrency market.

However, the trading of bots is not for everybody, nor does everyone require one. Casual investors are not the prime focus of trading bots, and if your goal is to buy and keep bitcoin, then a trading bot is not the best investment for you.

Also, if you are not a professional programmer or acquainted with the production of financial strategies, trading bots may not be for you either. However, if you have the expertise and skill to resolve these challenges, a trading bot may be a powerful method for tracking and making profits from the Bitcoin market.

Benefits of Using Trading Bot

We can have a better trading result with less work & time used. Many of the tasks that a well-executed bot will perform for you are rebalancing, fund management, data processing, smart order routing, etc.

1. Endurance

Crypto trading bot will process hundreds of gigabytes of data per second and spit out trading suggestions on all of it. Humans take a lot of time to slug through numbers and can’t handle the same amount of data that the crypto bot can do in the same timeframe. The trading bot can quickly automate these complicated and almost tricky tactics.

2. Speed

Bots can run much better than humans can do. Bots will do hundreds or thousands of trades in a fraction of the time it takes a person to do one. Only think of the terminator unceasingly pursuing Sarah Connor with the productivity of a futuristic computer. That’s like your well-built crypto trading bot chasing profits. There’s no way to catch up.

3. Timing

Speed and Timing are major critical success in your trading. Any single trade you make will have a significant effect on your future earnings. Let’s take an example of that. Suppose the price of Bitcoin is going down, and you want to sell your stake as soon as BTC crosses the $8,750 support line. If you had to do this manually, you might have to follow the price map slowly and cautiously, and even then, you would not be able to pull the trigger at the right time. The bot can be conveniently programmed to track the demand and sell at the right time.

4. Emotion

Unlike humans, crypto trading bots are not motivated by hunger or rage or paranoia or greed. They behave exactly as they were programmed, no matter the circumstances, unlike people who may be motivated by their feelings and make significant mistakes because of them.

How to Use Trading Bot

Okay, so now that you’ve had a short crash course in crypto trading bots, we’re going to run over all the steps you’re taking to launch your bot from the ground up. Don’t worry If encoding sounds overwhelming, you can buy or find open source software that deals with hard encoding while still allowing you to monitor your bot. Now here’s how to set up your trading bot:

1. Create an Account

Making accounts is an effortless job to do. But keep in mind that each exchange has various conditions for the development of new versions. Some exchanges are rigorous and need a lot of paperwork and authentication to allow you to sell. Sending these papers can be a tiresome and stressful process. Factor in the time it can take to search all the markets you wish to trade on. And when you’re lost with paperwork and identity papers, don’t complain I didn’t warn you!

2. Get the API Key

You need to know what API you’re working with before you can even start creating your crypto trading bot. An API ( Application Programming Interface) helps your bot to access crypto exchanges and trading for you. Many of the exchanges provide this method of accessing your account.

Be sure that the exchange is supported by the open-source that you have selected as the API: s of different exchanges are not necessarily the same and require other implementations. You’re going to have more chances if you’re in one of the largest markets, for example. Binance is supported by most open source and hosted bots.

3. Choose a Program Language

Second, you need to determine what programming language your bot is going to use. Python, Javascript, and C++ are the most common languages for crypto trading. If scripting is not your thing, you can either find a decent open-source bot or pay for one that is compliant with the exchange you want to link to.

4. Choose a Trading Model of Your Trading Bot

In this step, you will need to select the trading model that your bot will use for you. There is a range to pick from, including arbitration, pattern follow-up, and market-making. The clearer the model, the quicker a trading bot can be set up. Although more complicated models could seem potentially enticing, there is no reason why a more straightforward bot can’t outperform a fancier algorithm. It all depends on what’s going on in the market.

5. Choose Your Trading Bot’s Architecture

Your crypto trading bot architecture is super important. It will assess how well your bot is running. The design of your bot is just a fancy way to say its code or, more precisely, its algorithm — a component that tells it what to do on the basis of a series of parameters. The mathematical model underpinning your algorithm must be robust. If you don’t, you risk the bot becoming unstable or worse — losing your money.

6. Combine All Functions Together

Now that all the arrangements for your bot are in order, it’s time to bring all the pieces together.

Code your algorithm, plug in your API, hammer out any kinks on your device, and get your bot set up and ready to exchange.

7. Test Your Trading Bot

Testing is relevant for two reasons. Second, it guarantees that your bot is running as you intended and capable of managing the types of data that will be feeding into it. At this point, you can evaluate the modeling errors (for example, overfitting) and make sure your bot is running smoothly.

The second explanation that testing is relevant is that it helps you to fine-tune your bot. Research helps you to refine your bot to get it done the way you want it to.

8. Turn On Your Trading Bot Live

Finally, after all the steps you’ve done, it’s time to turn on your trading bot live. Yet, they still need more time to be perfect. Ensure you keep track of your bot and make sure it works properly when you first set it up. As it continues to demonstrate its durability, you will be more assured that you will encourage it to do its business without standing over it.

Best Crypto Trading Bot in 2020

1. Cryptohopper — World-class Crypto Trading Bot

Cryptohopper is a paying crypto trader. But before you leap into a paying subscription, you have a free trial in Cryptohopper for seven days.

One of Cryptohopper’s well-known trading bots is the market-making bot. It’s similar to the Grid Bot in Pionex, but it’s more based on benefit spreads in the order book.

Cryptohopper ‘s tagline is very eye-catching to me: the world-class advanced crypto trading bot

2. 3Commas — Smart Trading Auto Trading Bot

3Commas is one of the most popular crypto trading firms. I listed it on the # 6 list because the UI is more like a seasoned trader. When their customers grow more and more skilled, they turn their apps to pro users.

So if you’re a professional bot dealer, you can try 3Commas.

It has two tiers of subscription — Basic and Pro. The necessary amount is $25 / month, while the latter is $84 / month and has many features.

The 3Commas Crypto Trading Bot will execute several strategies dependent on technical indicators.

The group is excellent, and you can buy some online courses to use the 3Commas Bitcoin trading bot.

3. Coin Rule — Let Them Work While You’re Sleeping

Coinrule is the perfect forum for newcomers to exchange crypto. The “if-then-then-that” logic of the law helps even less experienced traders to develop their trading plan in a minute. The user-friendly GUI directs users to step-by-step construction of the trading bot.

The template library contains over 150 pre-set rules that help beginners run a trading system that meets their needs. The platform allows for a range of trading techniques, including stop loss, take advantage, and incorporates critical technical indicators. The list of trading techniques that Coinrule requires is endless, and the company periodically publishes new ideas in the Knowledge Base of the website.

The built-in Demo Exchange is another fascinating aspect. Traders can test their trading programs in a stable environment with virtual currency allocation. The Demo rules refer to rates that come directly from Binance, without risk.

4. HaasOnline — Superb Crypto Trading Bot

HaasOnline is a paying crypto trading site that is distinctive from the other. Similar to the other trade bots listed above, they deliver your regular pre-built trading bots for techniques such as arbitration and market-making, and other resources.

However, with the release of HaasScript, their scripting language, you can create too complicated trading bots using a drag-and-drop designer or a smart editor. You will have the option to back-test or sell the plans on paper before making live trades on more than 25 markets.

Their current offering is a locally hosted non-custodial trade server that provides full discretion and anonymity, keeping your eyes out of your company details and strategies. They’re also going to launch a cloud edition for stores. There is no free trial, but they do offer a reduced 14-day trial license.

5. Shrimpy — Social Trading Crypto Trading Bot

Shrimpy is a paying Crypto Trading Bot rebalancing tool. This is also a feature that makes it distinct from other bitcoin bot trading services. It lets you simplify your portfolio and rebalance it to a particular ratio.

Shrimpy is specially built for fund management, indexing, rebalancing, and competitive back-testing.

The most significant part of it is to rebalance your portfolio while you keep the coins. It supports more than ten crypto exchanges. For Shrimpy, he’s just making a few trades every day. It’s easier for the HODLER.

6. Portfolio — Efficient-Approach Crypto Trading Bot

A portfolio takes a risk appraisal questionnaire and then suggests the right crypto investing plan you can automate. Company bots are pre-built, and programs are advised depending on the strategic targets, risk appetite, and financial situation. This makes it possible for the customer to exchange crypto without coding or trading skills.

They have bots for five different investing styles: Value Investment b) Hedged Trading c) Futures Trading d) Index Drink e) Fixed Income. They also automated various investing styles used by experienced hedge funds and investment banks.

The Hedged trading bot is the most popular because it offers aggressive trading while reducing hedge losses. Setup is effortless because you only need to connect your Binance account, and the rest is handled automatically by portfolio.

7. Murex: Auto-Pilot Crypto Investment

Murex makes trading in crypto bots as simple as investing in a mutual fund. They are very open about their details, they have a wide range of bots focused on our risk appetite, and they have a pricing model that is by far the best we’ve seen. Backed by the Y-combinator, Mudrex outshines everybody else on the list!

Murex has more than 7000 customers, and more than USD 400 million has been traded. They are funded by well-known VCs and angel investors and have a very active and dedicated network. They are connected to 8 of the biggest exchanges, and some of the very few on this list are worthy of serving US customers.

Murex does not develop its bot but instead has a curated bot marketplace built by pro traders. The best feature of the app is that all knowledge about the bot’s success is public and convenient for users to understand.

Conclusion

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