Crypto Trading Bot — Best AI Crypto Trading Bots 2022
Trading cryptocurrencies is hard. Because the markets are open 24/7 it is necessary for traders to monitor the charts most of the time not to miss out a good chance for a trade. Therefore, in the last couple of years, it became common to use cryptocurrency trading bots that automate the trading strategies the trader provides.
Most cryptocurrency bot providers offer manual bot setup with conventional strategies so far. But this places the effort, burden and risk of finding a profitable setup on the user. In fact, the majority of traders never succeeds to find a long-term strategy that is not loosing money.
Recently, AI trading bots can achieve a higher level of performance. Also, the user doesn’t have to study and try different strategies and parameters. SmithBot, b-cube.ai, and Napbots are examples of innovative trading bot providers using AI (Artificial Intelligence) and big data analysis. They enable even non-professional traders to use highly profitable strategies.
Despite having no or at least not many manual settings, they offer an easy and safe trading experience.
An increasing number of Crypto enthusiasts use AI crypto trading bots to automate investments and maximize profits during trading. But what are the features, or how can you find the top AI Crypto trading bots in 2022?
Top AI Crypto Trading Bots in 2022
1. SmithBot
SmithBot is the latest service on the market and was launched in June 2021. They are dedicated to make advanced methods of cryptocurrency trading accessible to less experienced traders. Therefore, they use state-of-the-art and proprietary AI based on novel adaptive algorithms instead of merely optimizing known approaches. SmithBot offers currently 102 pre-trained and tested trading bots for their cloud-based automatic trading platform. And their responsive web application makes it easy to choose the best bots in any modern browser on desktop and mobile platforms.
The SmithBot trade engine operates on the spot market and achieves a high-performance without leveraging such reducing the risk profile. Moreover, SmithBot currently supports some of the leading exchanges including Binance, Bitfinex, Bitstamp and Kraken.
User Experience
SmithBot offers many AI cryptocurrency trading bots which are trained and tested by their research team. That means, there are no parameters or strategy options the user has to choose. This makes it easy for novice traders to pick a successful bot without having to spent time on studying and testing different setups.
The web application works flawlessly in all modern web browsers. It has two main screens which are arranged in tabs. First, the dashboard collects all personal information such as your subscribed bots, the balance on your connected exchanges and the orders placed by your bots. There, each of your bots is displayed with the real performance based on the order data from the exchange.
Second, the ‘Bot Hall of Fame’ provides various ranking and plotting functions to make it easy to choose the best performing bots. An interesting feature is the ranking by and plotting of the performance in base symbol in addition to the common performance measure computed in quoted symbol. Then you can directly subscribe bots from this tab.
Overall, the user interface is easy to use and makes a lean impression, only providing the functions needed.
Trading Strategies
SmithBot’s algorithms are basically sophisticated quantitative strategies. These are based on flexible and adaptive AI models that can mimic proven strategies, combinations of strategies or learn completely novel approaches.
That means, users don’t need to pick the right parameters or strategies. The SmithBot experts trained all bots from large amounts of historical data already to achieve optimal results. In addition, they consider all relevant real-world effects such as spread, trading fees, slippage and communication delays.
Transparency
SmithBot’s cloud application shows the historical performance of all bots. The performance displayed is also corrected for different trading fees and is computed for the base and quoted symbols. Interestingly, the base symbol performance is a unique feature to measure by how much a bot outperformed the market.
Due to the nature of how SmithBot works, there is no need for a paper trading mode. There are no user settings and all bots run live all the time. E.g., if you want to know the live performance within the next month, just plot the performance a month later.
Additionally, the SmithBot user interface shows all orders that were placed by any bot including such information as timestamp and reference price.
Security
SmithBot is a non-custodial service. The user’s funds stay on his exchange and the provider doesn’t have access for withdrawal.
The platform runs in the cloud with state-of-the-art security and encryption. Because it is running on the servers of a major cloud provider with a high level of redundancy, uptime should not be an issue.
Pricing
SmithBot offers a free DEMO account which provides all the visualization functions to explore the AI trading bots. It also offers real trading with small amounts of up to a total of $200 managed funds.
For trading larger amounts, you need one of the currently two paid subscription levels offered. The BASIC subscription plan is starting at $14.99 if you pay upfront for a 24-month period ($24.99 paying monthly), while the PRO plan is offered from $44.99 per month. There is no difference in functions between the different subscription types. While the BASIC account offers you up to $20,000 combined trading limit, the PRO account offers $100,000. This ‘combined trading limit’ is kind of a smart limit for all subscribed bots. If the sum of their next orders exceeds this limit, then buy orders are capped. So, the bots still trade profitably even when the limit is reached.
SmithBot doesn’t restrict the number of exchanges and bots that a user can subscribe to. In other words, users can subscribe to all of the currently 102 bots at the same time with no additional costs.
2. b-cube.ai
b-cube.ai started in November 2020 as a provider of automatic cryptocurrency trading bots running on AI and quantitative analysis. It offers strategies developed in-house and a marketplace for user provided bots and trading signals. Moreover, it allows traders to connect their preferred exchanges and then begin trading on auto-pilot.
Also, they created their own BCUBE token which can be traded in for services such as trading signal subscription or educational courses on their platform.
The b-cube.ai platform has integrated some leading exchanges like Binance, FTX, BitMex, Kucoin, and Binance Futures to place long and short trades.
User Experience
The provider offers bots trained and configured by their expert team and ready-to-use. You can choose trading bots with different strategies, but they don’t have any user-configurable parameters. This makes it easy for beginners, because they can choose the bots by looking at the historical performance only. Therefore, the user makes no manual decisions or iterative and lengthy back-testing simulations.
After choosing a bot, you connect your exchange and the bot starts trading automatically without further manual action required.
On the other hand, some bots trade on the futures market which might not be easy to understand for novice traders.
Trading Strategies
The platform generates trading signals in real-time via an AI/ML Engine. It uses sentiment and technical analysis with quantitative approaches.
Moreover, the models dynamically adapt to continuously changing market conditions. Overall, the strategy aims at delivering trades with a greater win rate.
Transparency
The platform provides a high level of transparency. Users can view the trade history and historical performance of all bots. Also, he can details such as timestamps of trades after creating a free account.
Same as SmithBot, because all bots of this provider are already set up and there is no need for a live trading simulation mode.
Security
b-cube.ai is also a non-custodial service which doesn’t manage the user’s funds. These stay on an exchange and the provider cannot access them.
The platform runs in the cloud and is secured with state-of-the-art security and encryption.
Pricing
Signing up for b-cube.ai’s platform is free of charge. Then, you can explore all of their bot’s historical performance.
b-cube.ai has prices for its service according to the trading bot the user wants to use. But any service or bot’s price depends on its historical trading gains and is paid separately. Users can start real trading with b-cube.ai’s marketplace for €20 monthly or starting from €49/month for one of their original bots.
3. Napbots
Napbots is an automated crypto trading bot platform launched in 2017. They offer a variety of classical trend-following and mean-reversal strategies based on technical indicators and 3 quantitative AI bots.
The supported exchanges are Binance, Bitfinex, Bitstamp, Bitmex, Kraken, Phemex, FTX, Bitpanda and OkEx. However, the exchanges available for the AI strategies are just Binance, Bitfinex, Bitmex and FTX. It trades with and without margin up to 1.5x. They currently provide a web application that is optimized for desktop platforms only.
User Experience
The user can easily pick his preferred bots from a list that can be ranked by 1-year quoted symbol performance, max. drawdown and turnover ratio. Various filters help to narrow down the results. Clicking at a bot entry displays additional details.
After choosing the bots, the trader assigns the exchange and trading amount and decides the leverage multiplier. Then the bot starts trading, it’s quite straight forward and even suitable for beginners.
Later, the user can check the accumulated profits and losses on a dashboard. It is clear and easy to use, but has very few functionality.
Trading Strategies
The AI bots use a deep learning model based on neural networks and attention mechanism. The inputs are prices, some statistical indicators derived from prices and some alternative data extracted from social networks.
Transparency
Napbots shows the historical performance and exposures of all their bots. The stated profits also consider execution costs such as fees and slippage. They display also statistical data with each bot such as the maximum drawdown.
Security
Napbots, too, provides a non-custodial service which doesn’t hold the user’s funds. They always stay on the user’s cryptocurrency exchange and cannot be accessed.
The platform runs in the cloud with state-of-the-art security and encryption.
Pricing
As for the Napbot pricing, they offer 3 different plans. A free plan is not available, but all paid subscriptions come with a 1-week trial period.
The SILVER plan starts at 19 Euro per month and allows up to 1,000 Euro managed capital. The GOLD plan is available from 49 Euro per month and includes 3,000 Euro trading budget. Only the PREMIUM plan supports the AI strategies and costs 99 Euro a month. It imposes a 5,000 Euro trading limit, but can be upgraded for additional costs if you want to trade more. For example, the price for a 20,000 Euro trading budget is 474 Euro/month. The trading limits work similar as the ‘combined trading limit’ in case of SmithBot described above.
Napbot’s subscription tiers also differ in what strategies and other features such as leverage are available.
Conclusion
Cryptocurrency trading bots based on AI strategies are slowly making their way from institutional trading to retail traders. They promise greater ease-of-use and potentially higher profits. There aren’t many providers on the market yet that seem to have a professional approach to AI trading. Some use AI simply as a marketing term without any actual substance behind it.
We compared 3 providers of AI-powered trading bots for cryptocurrencies: SmithBot, b-cube.ai and Napbots. Out of these, the first two seem to have an AI approach for all of their trading bots. The latter utilizes AI only for 3 of their bots. Otherwise, it is still using variants of traditional strategies.
All reviewed crypto trading bot providers are suitable for less experienced traders. As all bots are trading non-custodial, meaning they are not holding your money, the safety of your funds is ensured.
AI based cryptocurrency trading bots are set to revolutionize trading and vastly outperform classical approaches based on technical indicators. The development has started now and will certainly even see accelerated progress in the future. SmithBot, Napbots and b-cubes.ai are the pioneers making this innovative technology available for everyone.
This article is an updated version of Crypto Trading Bot — Best AI Crypto Trading Bots 2021.
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