The Bitcoin Trading Bots Everyone Should Use
Automate your cryptocurrency portfolio in 5 minutes or less!
With the latest resurgence of Bitcoin above the $10,000 price mark (during the last half of June), interest in cryptocurrency trading has once again begun to surge. Like many opportunities available in the crypto world, trading can be a viable option. But, like its analogous forex trading in the fiat world, cryptocurrency trading can be complex and unwieldy due to the nature of this emerging market.
Whether you’re an experienced trader or someone who is experimenting with the idea for the first time, having the knowledge and access to the right tools, makes all the difference. When it comes to cryptocurrency trading there are generally two popular strategies. The first of these strategies is “HODLing”. Famously proclaimed in a drunken ramble on the BitcoinTalk forums, this simple strategy of holding assets regardless of the price movement has taken the world by storm. The second most popular strategy employed by cryptocurrency investors is portfolio rebalancing. Historically executed by large institutions to reduce risk across their portfolio, it has become a staple for every cryptocurrency portfolio due to studies that have shown the long term benefits of this strategy.
If you are someone who likes being proactive with your investments, mitigating risk and adjusting your allocations as the market swings, then the second option may be the strategy for you. However, trading in the cryptocurrency market can feel like bringing a knife to a gunfight. To empower both fresh and experienced cryptocurrency traders, we have compiled a list of 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 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 by rankings, other popular ones include Bittrex, KuCoin, Kraken, and Coinbase. Traders can easily create accounts with these exchanges to start trading quickly.
A major drawback of cryptocurrency trading is the volatility of the market. Since the crypto markets trade 24/7, tracking your portfolio against quickly changing market dynamics can quickly become an impossible task to manage. Most traders wake up to bad news in the morning after finding out that their portfolio has fallen overnight.
This is where automated trading tools and trading bots come in. 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 Tools
1. Shrimpy
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 exchanges 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 their trading strategies, and test their 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 at 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.
Developers can also leverage the Universal Crypto Trading APIs to build personalized Bitcoin trading bots. They provide easy access to your exchange accounts, convenient smart trading features, and extensive market data.
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 but the meat of the service is reserved as for their premium subscribers who pay a reasonable $19 per month for the service.
2. CryptoTrader
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 an 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
3. Haasbot
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 is a bit expensive as they are divided into beginner ₿0.066, simple ₿0.114 and advanced ₿0.187 for different features.
4. 3Commas
3Commas is another popular automated Bitcoin trading tool, which works with many 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 allows users to copy strategies of successful traders.
It allows the ability to create, analyze and back-test a crypto portfolio, enabling the user to copy the best performing portfolio made by other traders.
3Commas is a bit on the pricey side with monthly subscription plans starting from $22/mo, advanced $37/mo and pro $75/mo.
5. CryptoHopper
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 very intuitive allowing full control to the user to monitor his portfolio and set specific triggers and technical indicators.
CryptoHopper pricing is also similarly priced to 3Commas as they offer a free trial with an option to upgrade to Bunny ($19/month), Hare ($49/month) and Kangaroo ($99/month).
6. Gekko
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 easily 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 trading bot.
Gekko is supported on multiple operating systems including Windows, Mac, and Linux. The codebase of Gekko is so small and nimble that it can set up and execute even on a Raspberry Pi.
Unfortunately, over the years, due to a lack of proper maintenance, you should expect Gekko to experience bugs and failures. This has caused many users to abandon the project in search of better alternatives.
Conclusion
As an investment standpoint, cryptocurrency trading is quite different compared to traditional financial markets, HODLing cryptocurrency through a prolonged bear market may not continue to be the best option. Bots can monitor the market every second of every day to automate your bitcoin trading strategy.
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 are a worthwhile tool.
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