The 3 Best Free Crypto Trading Bots (2022)
People have become tired of subscriptions. When the month ends and you have to pay your Netflix, Amazon Prime, Disney+, and everything else, you can’t fathom adding another payment to the list. It all piles up quickly — even if you’re a crypto trader.
But traders still need additional tools to compete and trade profitably — tools like crypto trading bots. If you want to explore automated trading without paying for a subscription, you can still do so with the help of free crypto trading bots.
In this post, I’m explaining what trading bots are and how they work. You’ll also discover how to choose the best crypto trading bot and read about the 3 best bots that come with a free version.
What are Crypto Trading Bots?
Crypto trading bots are special tools traders use to deploy and execute automated trading strategies. Automation in financial markets is needed due to the increasing volatility and competition. Bots grant the edge needed to trade profitably, and that’s exactly why they’re in high demand.
Trading bots save time, execute trades faster than ordinary market participants, and trade much more precisely. Being the only 24/7 market, cryptocurrency trading benefits a lot from trade automation.
Skilled developers can use their coding knowledge to develop their own crypto trading bot. Retail users who don’t have the required technical knowledge are forced to rely on 3rd-party software.
Many trading bots require a monthly or annual subscription. You might have access to a demo to try out the platform, but you won’t be able to test the platform long enough to see if you like it. However, some crypto trading bots are free — although they come with very limited features.
Do Free Crypto Trading Bots Work?
Yes, crypto trading bots work and do their job as intended. But keep in mind that their success rate is severely limited by market conditions and your own trading skills.
A trading bot, like any other algorithm, only does what it is told to do. There’s no crazy magic behind bots that makes them better than manual trading. But the minimum guaranteed return you’ll receive is saving time.
It’s important to keep in mind that as automated as they are, crypto bots still require some degree of management. You can’t simply have your trading strategy run without monitoring or making adjustments. You need to be proactive to remain profitable.
Automation can only go so far. Confirm that your strategies are actually profitable before commiting to a free crypto trading bot.
How to Choose the Best Crypto Trading Bot
You should keep certain metrics and features in mind when choosing a good crypto trading bot — the first one being security.
Is the bot secure? Is it developed by a reputable and trusted company? Has the platform ever experienced an exploit? These are just some of the questions you should ask yourself when examining a bot.
Next, you have to think about the trading bot software itself. Scour social media pages for reports of outages and server downtime. If the bot isn’t stable, you might as well drop it. What’s the purpose of a 24/7 trading automation software that can’t run 24/7?
Connectivity is another concern. Make sure that the bot supports your exchange. This shouldn’t be a big worry as most bots feature integrations with most high-liquidity exchanges. You’re unlikely to run into trouble with connectivity — unless you’re trading on a b-tier exchange.
Last but not least, search for bots with free trials. It’s important to try out a bot before you commit to paying for one. A lot of bots allow you to try them out for free, which is a great thing!
What is the Best Free Crypto Trading Bot?
Now is finally the time to check out the best crypto trading bots in 2022 and see what makes them so special. The bots reviewed in this article include: Gekko, Quadency, and Shrimpy.
Keep in mind that the bots are not ranked in any particular order.
The trading bot features pre-made trading strategies that you can use to trade Bitcoin. These strategies are based on technical indicators and include:
- +130 more indicators
If you have the required technical knowledge and trading experience, you can code your own bot via Gekko. You can also create a strategy that utilizes multiple indicators.
Gekko also enables you to paper trade using your strategy using real-time trading data — but with fake money.
According to the creator, Gekko is not built for higher timeframe (HTF) trading nor high-frequency trading. Here is what the creator says:
Gekko is a free and open-source tool designed as a starters kit for automated trading on crypto markets. Gekko aims to have a low barrier entry to writing your own strategies.
The best thing about Gekko is its extensive documentation and active community. However, while you can still use Gekko, the problem is that the author has abandoned the bot in order to work on other projects. Gekko has not been updated by the author since 2020.
- Easy to set up
- Minimalistic UI
- Features prebuilt trading strategies
- All aspects of the bot are neatly documented
- Requires some scripting and coding knowledge to use
- It is not in active development anymore
- Does not provide enough backtesting information
Quadency represents one of the most reputable crypto trading bots on the market. Quadency is a trading platform designed for investors of all skill levels. It lets you connect your exchange accounts to the app in only a few clicks, after which you can explore and use dozens of bots and trading automation features.
Quadency provides you with access to more than 1500 cryptocurrencies that you can manage from an easy-to-use dashboard. It’s also worth mentioning that the exchange is partnered with many high-volume exchanges such as Binance, OKX, and Kucoin. This means that you’ll never encounter any liquidity issues.
The bot features a number of indicator-based trading automations. Some of the most popular bots include:
- Multi-level RSI
- Bollinger Bands
- Mean Reversion
Additionally, Quadency features both a website platform and a mobile app. The mobile app comes with support for iOS and Android. You can connect exchanges like Binance, Bittrex, Kraken, Kucoin, Binance US, Bitfinex, HitbBTC, and Poloniex.
Not to forget, you can try out Quadency for free. Explore their bot selection and find out how Quadency makes cryptocurrency trading a seamless experience.
Shrimpy is an automated portfolio management platform that specializes in portfolio rebalancing. Rebalancing is an act in which investors sell and buy assets in order to return their allocations to their original value.
The strategy enables investors to take profits on assets that have performed well and reinvest the capital into existing assets. The goal is to sell high and buy low. It also enables one to efficiently manage risk by lowering exposure to risky assets.
Besides rebalancing, Shrimpy offers the following features
- Dollar-cost averaging
- Portfolio automation
- Portfolio stop loss
- Copy trading
- Custom index funds
- Multi-exchange managment
Shrimpy is well-known for its extensive connectivity with all kinds of crypto exchanges and crypto wallets. The bot features support for more than 30 exchanges and non-custodial wallets. This makes Shrimpy a great option for those who wish to manage multiple portfolios all from one place.
You can try out Shrimpy by testing their free demo. The demo allows you to test out all of the aforementioned features.
- Greatly simplifies portfolio management .
- Allows you to copy trade portfolios of major investment funds.
- Lets you connect both cold and hot wallets.
- Features highly efficient rebalancing bot
- No trading terminal.
- Does not currently offer a mobile app
Conclusion: Are Crypto Bots Worth the Money?
Crypto trading bots offer a simple and easy way to manage your portfolio and trade cryptocurrencies with automated trading strategies. They assist with accurately executing trades, trading while you’re offline, and saving time by completing redundant tasks.
A trading bot is not a magical tool that improves your profitability simply through automation. Whether you’re trading manually or automatically, the prerequisite to trading profitably is a good trading strategy. Without one, you’re doomed to suffer losses.
Crypto bots are worth the money if you have the technical knowledge and trading experience needed to trade profitably. You have to monitor your bot’s performance and make adjustments in order to stay competitive with other market participants.
The greatest feature that bots offer is backtesting. You can backtest a strategy before deploying it on the market with real capital. Backtesting allows you to analyze your strategy before using it and avoid unnecessary losses.
If you want to save time, execute precise trades, and trade crypto 24/7, crypto trading bots are the best tools for you. But remember: you can’t use bots without a profitable strategy.
Shrimpy is an automated portfolio management platform that helps cryptocurrency investors manage their capital through the use of a simple and intuitive app that saves time and money with the power of automation.
To find out more about our platform and discover how it can jumpstart your crypto journey, feel free to visit our main website.