Top 5 Crypto Trading Bots for 2023: Review
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In a short review, U.Today will reveal the most common myths about the use of crypto trading robots. We explain how to choose a right crypto trading bot in 2023 and what features you should look for while choosing trading bots.
Best Crypto Trading Robots in 2023: Fast Facts
Since the bullish rally of 2017, crypto trading robots have evolved into a common instrument for high-frequency trading on centralized cryptocurrency exchanges. As the number of robots on the market increases, there are a number of tips that beginners should be aware of.
- Crypto trading bots are software designed to automate the process of placing and closing offers on a cryptocurrency exchange;
- Crypto trading bots remove the necessity for a trader to monitor the price fluctuations of this or that asset;
- Instead, the user can set up a range for the robot’s operations (eg between $1.5 and $1.7 for a particular coin) and the details of its strategy (the conditions the price must meet to open or close the offer);
- Crypto trading bots can be integrated with large centralized exchanges through API tools, and a single bot can support different exchanges and currencies;
- New generation cryptocurrency trading bot Bitsgap is among the most impressive services on the market; 3 comma, Zignaly and Cryptohopper are the options.
When choosing a robot for cryptocurrency trading, users should care most about the following features: the range of exchanges supported, the number of currencies available for automated trading, UX/UI specifications, prices, the availability of a demo version and the reputation of service.
Crypto users should also be very careful about the security and integrity of their trading bot service: if API keys are leaked, hackers can drain all the money from an account even if it has been inactive for months.
What is a crypto trading bot?
Crypto trading bots are software developed to streamline and optimize cryptocurrency trading in an automated way. Crypto trading bots remove the necessity of human intervention while opening and closing positions on cryptocurrency exchanges.
With crypto trading robots, people can set up their preferred strategy, conditions to place/cancel orders, deposit money and enjoy the profits. No interaction is required while the bot is active. Usually, bots charge their users with periodic fees, while some of them also offer free demo versions.
Crypto trading bots are linked to cryptocurrency exchanges, so to use one, you need an account.
How to choose a crypto trading bot?
When choosing a cryptocurrency trading robot, users should consider several features to avoid losses and hacks and make the trading experience comfortable regardless of one’s crypto expertise.
As such, here are some aspects that should not be overlooked when choosing a bot to use:
- Number of exchanges supported. The best crypto trading robots work with multiple exchanges;
- Number of available currencies. The ability to trade various cryptos with a single bot makes the process easier for pros and newcomers alike;
- The reputation of the bot. Before starting to use a crypto trading bot, users should check out the track record of the team, the date of launch, the statistics of hacks and data leaks and so on.
Legit bots also offers its customers the opportunity to stress test the performance of the bots without paying fees in demo mode with limited functionality.
Top 5 Crypto Trading Robots in 2023
Here are some trading robots you might be interested in trying this year. They combine ease of use, security and feature-rich toolsets and are suitable for both newcomers and experienced traders.
Bit gap
Introduced in Q2, 2022, Bit gap trading bot is incorporated in Estonia. It is the largest fintech hub in the EU and one of the most influential jurisdictions for crypto. Bitsgap offers an ecosystem of crypto trading bots that include grid trading bots, DCA trading bots, futures trading bots and so on.
The Grid trading bot by Bitsgap is a classic solution: it allows users to set up a price range and have the bot “buy low, sell high” within that range. Bitsgap bots can also buy Bitcoin (BTC) on every dip or take small US Dollar Tether (USDT) profits on price swings in either direction.
Picture of Bit gap
Bitsgap’s DCA trading bot module utilizes the “holy grail” of investing in crypto, stock, currency and commodity markets, i.e. the “dollar cost averaging” strategy. With this strategy, a trader uses a predetermined amount of fiat money per time period to buy a preferred asset. For example, Alice spends $1000 on Bitcoin (BTC) on the first day of every month regardless of the price, while Bob buys Ethereum (ETH) for $500 once a fortnight.
Picture of Bit gap
Meanwhile, Bit gap is among the first crypto trading robots to add advanced versions of this strategy: in addition to the “Pure DCA” and “Custom DCA” options, it has the ability to enhance DCA purchases using MACD+RSI and Stochastic+Channel, two reliable indicators for technical analysis.
Last but not least, the Futures trading bot by Bitsgap can automate the processes of entering short and long orders on derivatives exchanges.
Picture of Bit gap
As of March 2023, Bitsgap supports the largest number of exchanges: it interacts with 15 CEXs, including all heavyweights: Binance, Bybit, Huobi, Kraken and so on. With Bitsgap, users can trade Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Shiba Inu Coin (SHIB) and all major altcoins and stablecoins.
3 Сommas
Veteran crypto trading bot platform 3 Commas launched in Q4, 2017. Not unlike Bitsgap, it offers a large toolkit of trading bots: DCA Bot, Grid Bot, Options Bot and so on. 3 Commas works with a wide range of centralized exchanges. It also offers a number of unusual features including automatic portfolio rebalancing, risk-free paper trading, signal alerts and so on.
Unfortunately, in Q4, 2023, 3 Comma’s bot was targeted by an attack on API keys that resulted in money lost by Binance (BNB) traders.
Signaly
Launched in 2018, the Zignaly bot ecosystem pioneered the “profit sharing” model: it allows novice traders to copy the trading strategies of professionals who share some profits with the “masters”. From the pure “trading bots” model, it moved to “coinvesting” and “revenue sharing” stories.
With Zignaly, newcomers can advance their trading skills, while experienced traders can benefit from demonstrating their trades to followers.
Crypto Jump
Launched in late Q4, 2018, Cryptohoppers is known for its stack of turnkey solutions for automated trading. The bots are powered by AI and ML instruments. Users can buy fully pre-configured trading robots on a marketplace. DCA, short selling and “Triggers” strategies are also available.
Cryptohopper has a free “Pioneer” tariff for newcomers, while paid tariff plans start from $16.58 per month.
Pionex
Pionex is a centralized cryptocurrency trading platform with 16 built-in trading robots. Over 370 cryptocurrencies are available to their traders with only 0.05% trading fees. Pionex works in over 100 countries, with a monthly trading volume of over $5 billion. Users can trade with bots in both the spot and derivatives segments.
Besides manual trading and bot trading, Pionex offers its users the opportunity to buy crypto, participate in the staking of PoS and DPoS coins and join savings programs.
Final thoughts
Crypto trading bots are AI-powered systems that allow users to automate their trading. Without the need for human intervention, they streamline the process of placing and removing orders. In addition, they can perform basic investment strategies, such as “Dollar-Cost-Averaging” and so on.
Common crypto trading robots are available for free or for paid subscription. They are integrated with centralized exchanges through API instruments.
Bit gap is one of the most technically advanced trading robots that works with 15 CEXs and almost all mainstream cryptocurrencies. The intuitive interface and feature-rich toolset make it the product of choice for professionals and newcomers alike.
