Which Are The Best Crypto Trading Bots For Increasing Profits

With the increase in popularity, the crypto market is getting filled with many newcomers who are not too familiar with financial markets and don’t know how trading works. What this means is that most of these people suffer losses instead of making profits. This angers most of these newcomers and a good number of them leave the trading market and simply start investing in cryptocurrencies for the long term.

This is caused by inexperience and lack of knowledge of financial tools such as indicators, chart patterns, and so on. But there is one solution to this problem and it is the use of trading robots. These trading bots can be programmed to make logical decisions and open and close trades with the goal of making profits.

This, being one of the best solutions, means that there are many different companies trying to take a share of this market, and because of this, there are many crypto trading bots available for traders to use. But which of these robots should be avoided and which should we use?

What are Crypto Trading Robots

Before we take a look at the best trading bots, first we need to know exactly what these bots are and how they work. Put simply, automated bots are automated programs and AIs that make calculated decisions and trade on your behalf. There are many types of bots, each for a different purpose and goal, and you should always use the one you feel most comfortable with.

There are many simple crypto trading bots that follow scripts, opening positions when certain patterns emerge. Essentially you tell the bot exactly what to do, at what price it should buy the crypto, at what price it should sell, and so on. These robots are more aimed at traders who are somewhat familiar with crypto trading but don’t have enough free time to do it themselves. Using these bots they can automate this process without needing to keep an eye on the market all the time.

But, for those who have zero experience with trading, there are trading bots that can do everything for you too. You simply need to indicate a few parameters, such as your risk tolerance, then choose which strategy the bot should use and let it loose. While this is a fully automated process and traders don’t need to do anything, it is still risky to fully depend on these bots, and the best usage for them is to manually trade and use them as an extra tool. With this, you will be able to learn how trading works much faster and understand important details of financial markets.

Now, let’s take a look at the best-automated crypto trading bots, and why we should use them.

Bitsgap

Probably the best-automated trading bot for cryptocurrencies out there is Bitsgap. On top of providing automated trading, Bitsgap also has portfolio management tools and offers a free demo version for users to test out the bot before committing.

One of the most popular trading bots offered by Bitsgap is their Grid trading bot. This bot trades within a grid set by the trader and opens and closes positions when the price moves in certain increments. This is one of the most popular trading strategies to use when trading with automated bots. Bitsgap also has a DCA trading bot that can use strategies and indicators such as MACD + RSI, simple DCA, customizable DCA, and Stochastic + Chanel.

Lastly, Bitsgap offers a futures trading bot for those that are wanting to get into high-risk high reward trading, and it can of course trade both long and short positions.

One downside that Bitsgap has is that it has no free versions. They offer a 7-day free trial, but after that, you will need to pay to use their bots. The cheapest is their Basic plan which costs $29/mo and comes with 2 GRID bots and 10 DCA bots, while their most expensive, Pro plan costs $149/mo and comes with 25 GRID bots, 250 DCA bots, futures bots, and some other beneficial tools.

3Commas

Another great crypto trading robot that makes our list is 3Commas. This platform offers a wide range of trading bots, portfolio management tools, educational material, and other necessary tools for succeeding in crypto trading.

3Commas offers 5 different trading bots that are aimed at both beginners and experienced traders. They have a Dollar Cost Average bot, or DCA for short, that distributes investment across certain timeframes and protects traders from losing most of the investment if the price falls. They also have a GRID bot for those that want to trade in the specified grids. For those that are interested in investing, they have a HODL bot, which is a more advanced DCA bot aimed at long-term investment. For those interested in trading with options, there is a specific bot for that too and for those looking for the easiest bot to use, 3Commas has a Smart Bot, which is a bot dedicated to beginner traders.

The advantage of 3Commas when compared to some other trading bots is that they offer a free version of their best crypto training bots. Of course, when using a free version you are limited to a small selection of bots to use. When it comes to paid plans, 3Commas has 3 options, $29/mo, $49/mo, and $99/mo with an increasing number of bots and tools at your disposal.

Cryptohopper

Cryptohopper is another great crypto trading automation platform that will benefit every trader. On top of offering automated trading bots, Cryptohopper also has social trading and other very useful tools, such as paper trading, backtesting, and so on.

Cryptohopper offers automated trading, where you can simply select the strategy you wish to follow, set a few parameters and let the bot do the rest of the work. Cryptohopper also has a very nice social trading platform for those who are uncertain about their ability to maintain the bot or trade themselves and would prefer to let professionals do the work. Just like any other best bot for crypto trading, Cryptohopper provides users with a high-quality and well-optimized DCA trading bot.

What makes Cryptohopper stand out from the rest of the automated trading platforms is its advanced tools. On their platform experienced traders can create their own trading strategies and integrate them with Cryptohopper bots as well as backtest their strategies. There is also a leverage trading automation option and AI trading where the bot learns your preferences and then trades fully independently, but it is a very risky approach to take.

When it comes to pricing, Cryptohopper has a free version with a relatively high number of available tools compared to other free trading bots. When it comes to a paid version, prices start at $19 and go all the way up to $99, making it a really affordable trading bot to use. Their $99 plan has one of the best available tools out of all trading bots on the market.

Should you use trading bots to trade crypto?

There is no correct answer to whether you should or should not use automated trading tools in your crypto trading journey and it comes down to personal preference. If you are an inexperienced trader and don’t really see yourself becoming a professional or dedicating your life to crypto trading, using these bots can be a good option. With the help of these trading bots, you can save yourself the hassle of learning how crypto trading works and you don’t have to keep an eye on the market all the time.

But if you are someone who is interested in crypto trading, then there are two options for you. You can start using these automated trading tools, but you should trade normally, using this bot as a simple protection tool, and try to learn from it. You can check how these bots operate and learn why they are doing what they do. If you want to learn really thoroughly though, we would recommend not being dependent on trading bots and trading yourself. Yes, you will suffer some losses at the beginning, but the amount of knowledge that you will gain from it will give you everything you need to eventually become a successful trader and make profits without relying on any bots.

For those that are experienced traders, using automated trading bots has a completely different meaning. Experienced traders should not be dependent on bots for making their trading decisions, but they can still benefit from them. The best usage of these automated bots for experienced traders is to automate some basic parts of a big trading system and save themselves time. Since experienced traders are more likely to trade a few different assets at the same time and implement different strategies in one big trading system, managing it might become stressful and trading bots are great tools for making it much easier.

FAQs on best crypto trading bots

Are automated crypto trading bots profitable?

In general, automated trading robots are not looked at as something to depend on to make you profits. These bots are best for damage control and to not suffer big losses. But of course, if you set up a trading bot in a correct manner and keep an eye on how it is trading on a constant basis, then making profits using them should not be impossible.

Can trading bots make losses?

Of course, trading bots can make losses. Automated trading bots are following certain rules set up by traders and considering that the crypto market is really volatile, there is always a possibility of the market shifting so sharply that it will confuse the bot and it might make a very bad trade and you could suffer losses as a result. But generally speaking, trading bots are more designed for limiting these losses, than making big profits.