With the latest resurgence of bitcoin above the $10,000 price mark, bitcoin newcomers are starting to once again jump into the world of crypto trading. Like many opportunities in the crypto world, trading is still a key strategy many people use to accumulate assets.
Whether you are an experienced trader or someone who has just started, having the knowledge and access to the right tools, makes all the difference. When it comes to cryptocurrency trading you will be putting yourself up against automated trading bots, trained on sophisticated AI algorithms – likely, always one step ahead of you in terms of gauging the market and executing buy/sell orders.
In order to fight back, we must equip ourselves with equivalent tools that can automate our trading strategy, monitor the market 24/7, and simplify that way we interact with cryptocurrency exchanges.
In cryptocurrency markets, trading without automated tools is like bringing a knife to a gunfight. To empower both fresh and experienced cryptocurrency traders, we have compiled a list of the best tools for Bitcoin trading, where we discuss the concept of automated bitcoin trading, and how trading bots can help you optimize your cryptocurrency portfolio.
How to Start Trading Bitcoin
When it comes to the best Bitcoin trading platforms, there are a lot of exchanges out there, some of the most popular Bitcoin exchanges include: Binance, which is the biggest crypto exchange, other popular ones are Bittrex, KuCoin, Kraken, Coinbase, Poloniex, etc. Traders can quickly sign up for these exchanges and start trading.
A major concern for many cryptocurrency traders is the quickly changing markets. Especially since trading occurs 24/7, it’s nearly impossible to always be on top of the market. It’s every trader’s nightmare to wake up in the morning to find their portfolio has crashed while they were sleeping.
This is where automated trading tools and trading bots come in, unlike in fiat markets where the trade book is kept exclusively to brokers, the decentralized nature of cryptocurrency trading makes analyzing different aspects of the market easier and openly accessible.
Since trading bots have direct access to the crypto exchanges they can execute buy/sell orders on behalf of the trader. They do this by analyzing different price movements of the market and determine additional factors like volume, orders, and timing. Traders can also set specific factors for the bot to monitor in order to make decisions according to the trader’s strategy.
Automated Bitcoin trading is quite popular in the cryptocurrency trading world today, and traders have a lot of options when it comes to choosing the best cryptocurrency trading bot. Below, we compare some of the best tools out there for automated Bitcoin trading.
Best Bitcoin Trading Bots
Shrimpy is a promising portfolio automation and cryptocurrency trading bot that has a lot of great features for new and experienced traders. Shrimpy supports the best Bitcoin trading platforms like Binance, Bittrex, KuCoin, Kraken, Coinbase Pro, etc. so users can easily integrate their exchanges with Shrimpy which is a fairly straightforward task.
Shrimpy’s trading bot has a lot of cool features, users can automate and test their trading strategies through backtesting which gives 5 years of historical data, users are also able to track their performance in a consolidated way across all their exchange accounts, hardware wallets or cold storage solutions in one place.
Shrimpy also offers a unique feature of rebalancing portfolios which is a great strategy to have for HODLers. Users can simply schedule the Shrimpy trading bot to automatically execute buy/sell orders on user-specified criteria allowing them to buy low and sell high.
Shrimpy manages a vibrant community for users, where they can engage, share strategies and research more about optimizing their portfolio performance. Shrimpy offers a lot of great value for free leaving only some of the advanced features for a premium subscription which is valued at a decent $8.99 per month.
CryptoTrader is a cloud-based automated cryptocurrency trading bot. It supports all major Bitcoin exchanges with support for backtesting and live trading, with backtesting feature it allows users to review how a strategy would work under different market conditions.
CryptoTrader also offers a Strategies Marketplace allowing users to purchase a strategy or sell their own proven strategies. It also offers SMS and Email notification to users on alerting them on important market changes and trends.
CryptoTrader offers 5 different pricing plans starting from basic at 0.0015 ₿ /month to Premium 0.0178 ₿ /month
Trality is the platform for anyone to create and invest through automated crypto trading bots. Check this article to learn everything there is to know about crypto trading bots and why they are considered to be the future of trading.
Founded in Vienna in 2019 by Moritz Putzhammer and Christopher Helf, Trality brings advanced automated trading from the terminals of Wall Street to everyone who wants it.
The cryptocurrency market can be highly volatile but big institutions don’t worry about that thanks to their cutting edge technologies. That’s why we are democratizing the trading world and bringing these technologies to all traders of all experience levels.
Python developers can use the world’s first browser-based code editor to develop intricate and innovative new trading strategies while non-coders can use our Rule Builder—a simplistic, modular interface that lets you build your own bot using an intuitive drag-and-drop interface. Both of these tools allow you to run historical backtests to rigorously validate your algorithm.
Haasbot is a self-hosted automated bitcoin trading bot solution that has a lot of great features under its belt. With support to more than 20 exchanges, it makes automated trading easy for traders. The Haasbot platform operates on Windows, Mac, and Linux offering the users to choose from more than 16 trading bots, each with its own unique features and trading strategies.
Their pricing structure includes a monthly payment subscription divided into Beginner ₿0.066, Simple ₿0.114, and Advanced ₿0.187 for different features.
3Commas is another famous automated Bitcoin trading tool, which works with most major exchanges out there. 3Commas has a web-based interface accessible with any device offering 24/7 monitoring and automated trading facility to users.
3Commas offers a lot of great features like the ability to set stop-loss and take-profit targets. It also offers social trading which lets users copy strategies of successful traders.
It allows the ability to create, analyze, and backtest crypto portfolios, providing a way to copy the best portfolio which performed well historically.
3Commas is free to try but for premium features, there is a monthly subscription plan, Starting from $22/mo, Advanced $37/mo, and Pro $75/mo.
Among the open source and freely available Bitcoin trading bots, Gekko is a familiar name. It can be easily downloaded from Github, supports 16 exchanges, and can be configured according to user specifications. Gekko offers multiple features to users and can be used to run strategies, run simulated backtests, paper trading, and automatically execute orders via their trading bot.
Gekko is supported on multiple operating systems including Windows, Mac, and Linux. The codebase of Gekko is so small and nibble that can set up and execute even on a Raspberry Pi.
CryptoHopper is a cloud-based automated Bitcoin trading tool. It is a well known and established player in the automated trading sphere for several reasons. They offer an easy setup which is straightforward and hardly takes 5 mins. Their dashboard is intuitive allowing full control for the user to monitor his portfolio and set specific triggers and technical indicators.
CryptoHopper’s pricing model is straightforward. They offer a free trial with an option to upgrade to Bunny ($19/month), Hare ($49/month) and Kangaroo ($99/month).
Serving Its Purpose
As an investment standpoint, cryptocurrency trading is quite different compared to traditional financial markets, HODLing cryptocurrency through a prolonged bear market can result in significant losses.
This is where bots come in, instead of monitoring markets 24/7 a trading bot can do that work for you. Bots help reduce the stress involved in cryptocurrency trading and remove the element of surprise when your portfolio turns negative in a bearish down cycle.
With that said, automated bitcoin trading and cryptocurrency trading bots are not for everyone. These bots require some level of prerequisite trading knowledge and financial strategy know-how. For someone with a knack for learning and drive to perform well in cryptocurrency markets, automated cryptocurrency bots might be the perfect solution for you.