Best crypto trading bots
A cryptocurrency trading bot is a great tool for improving the quantity and the quality of your trades. By definition, crypto trading bots are designed on a set of trading signals and indicators - such as Cup & Handle, Stochastic and Linear Regression Channel - which help determine the price direction of the digital asset.
Arguably the greatest advantage of trading bots over humans is the non-existence of the psychological aspect of the trading process. Crypto trading bots are based on algorithms, with most of them designed to recognise a specific chart pattern and open/close the trade on behalf of a trader.
Another advantage of crypto trading bots is the pace and precision of the execution. Unlike humans, algorithms require milliseconds to execute a trade. For this reason, many investors, including the richest financial institutions in the world, compete to create a sophisticated trading bot.
Of course, any crypto trader can try to build their own trading bot. The charting tool on Sparkdex allows you to browse through a large number of indicators and patterns and identify the best possible strategy that suits your trading style. Here, we present a brief overview of four popular crypto trading bots.
DEXBot - the BitShares automated bot trader
Created and funded by the BitShares community, DEXBot is an open source crypto trading bot. The market making software allows crypto traders to auto trade any assets available on the Bitshares blockchain which means DEXBot works on Sparkdex or any of the other decentralised exchanges built on BitShares. The crypto trading bot is free to us and can be installed for Windows, OSX and Linux.
Different crypto trading strategies can be applied to bootstrap new markets or increase liquidity of a crypto asset with the aim of making a profit.
The Relative Orders strategy is a market making tactic that requires active monitoring and tweaking at times. It is mostly used in sideways markets or arbitrage enabling between stable or otherwise equivalent assets.
If you want a “set and forget” crypto trading strategy, Staggered Orders thrive in uncertain market before price discovery. This is a long term trading strategy that only pays off after a long tie, provided the crypto bot is left untouched.
DEXBot has a wide range of features and list of strategies available for crypto traders interested in market making and finding unique trading opportunities. However, this does require a solid understanding of crypto trading backed by experience.
Cryptohopper - trading bot with a social aspect
Designed by two brothers, with one of them being a trader, Cryptohopper is one of the most commonly used crypto trading bots. Cryptohopper is a web-based platform, so accessibility is a great asset. Similar to other top crypto trading bots, it offers a wide range of services: signals, backtesting, wide range of indicators, charting tools, in addition to its core function - automatic trading.
For it to trade automatically, a trader must create the trading strategy in the first place. One of the greatest advantages of Cryptohopper is the social aspect of the platform. When creating a trading strategy, a trader may also rely upon “signals” - inputs created by other respectable traders.
Cryptohopper is integrated in the biggest crypto exchanges in the world. On the other hand, its business model is based on three options for payments: Starter, Medium and Pro. The packages can be bought both on a monthly and annual basis.
Overall, Cryptohopper is a popular pick among traders who are looking for automated crypto trading, with a great cloud-based design and interesting social trading options.
Gekko - crypto trading bot for Bitcoin
Its greatest advantage is the simplicity and optimisation, although functionality is limited. Another great advantage of Gekko is that is completely free and runs perfectly on all major operating systems. The software is also integrated with apps such as IRC, Telegram, and email platforms so it will keep you updated wherever you are.
It’s quite limited with what has to offer to crypto traders, but extremely reliable and easily accessible on the other hand.
GunBot - advanced but user-friendly
Another great crypto trading bot for those traders who look for more advanced features from a trading bot is GunBot. The main advantage is a deep list of strategies available for traders, although in that case a more advanced level of crypto trading knowledge and experience is required.
Despite the fact that it offers some very basic strategies, the majority of options are highly configurable. As is the case with other top crypto trading bots, Gunbot is integrated with almost all major exchanges, and it has to be downloaded and installed.
Unlike Cryptohopper, Gunbot is available through a one-time payment, hence no monthly subscription is required. The price ranges from 0.03 BTC to 0.4 BTC, depending on the level of access and services required (from Standard to Ultimate packages).
Although designed for more advanced traders, Gunbot’s interface is very user-friendly, which allows beginners to efficiently use it as well.
Crypto trading bots are on the rise
Automated crypto trading bots execute trades just as humans do. Their rise in popularity is evident as many traders look to transfer some of the workload associated with trading to robots. Furthermore, the removal of psychological aspect from the trading process is arguably the greatest advantage that trading bots offer.
Although there are hundreds of crypto trading bots available today, we briefly presented four interesting trading options, with each one of them being different.
DEXBot is the native open source BitShares crypto trading bot, designed, funded, and developed by the community. Its advanced features are great for market making trading strategies. Cryptohopper is an interesting option for traders looking for more fun trading bots as it is very well integrated with the social aspect of trading. Additional advantage is that it operates as a cloud-based platform, although the pricing is not very competitive in today’s market.
Gekko is very much designed for beginners and traders looking for straightforwardness from the crypto trading bot, hence advanced options are quite limited. Opposite to Gekko, Gunbot is one of the most advanced trading bots out there. Its wide range of options, availability through a one-time payment and user-friendly interface present its greatest advantages.
It is of the utmost importance to remember that trading bots are not humans, and therefore, the risk is quite high, especially in the very volatile cryptocurrency market. In the end, each trader should select options that best fit their trading style and is within their understanding of crypto trading.