Crypto Trading Bots: How to Use Robots to Trade More Efficiently

What Are Crypto Trading Bots?

Why Humans Need Bots?

How Crypto Trading Bots Work

How to Set Up a Crypto Trading Bot 🛠️

  1. Create an account on an automated trading platform of your choice.
  2. Add a new trading bot and give it a name. A beginner can use a template if there are any.
  3. On your exchange, go to your Account Settings and look for an API tab there. Generate a new API, checking all the options but Withdraw. The system will send you an email to confirm the permission to place and cancel orders. After it, you will get your API keys.
  4. On your automated trading platform, copy-paste your new API keys in a corresponding field. Then, configure your bot. The settings include Order type, Trading pairs, Amount, Max open positions, Strategy, etc.
  5. Enable the bot.

Strategies and Backtesting

How to Pick Out a Crypto Trading Bot

  • Functionality: your bot should meet your needs and be easy to use. For instance, you may want to monitor all your holdings across many platforms using one interface. Or you need a bot you can easily access from a mobile device, and so on.
  • Supported exchanges: check the list of the exchanges on the website. Does it include the platform/s you have an account on?
  • Developer’s reputation: the company behind the bot must be trustworthy and transparent. If the guys prefer to keep low-profile and don’t share important details about their software, ignore their product.
  • Performance: search for user reviews and expert opinions to understand if the bot is reliable. Any malfunction due to a software fault can lead to missing a good trading opportunity.
  • Pricing: normally, platforms for automated trading come with several subscription plans. Compare the prices across several major services. Check what their packages include, and if a free trial version is available.

Extra Features Trading Bot Platforms May Offer

Things You Should Know Before Starting to Use a Bot

  • Bots are not money-printers. whatever an ad may be promising you, trading software doesn’t do magic. If it did, the developers would run these programs for themselves instead of selling subscriptions.
  • There are no guarantees: unfortunately, bots may fail because of a software fault. Also, it cannot guarantee you any solid profits.
  • A bot is unable to replace you completely: it’s not a smart sleepless trader who does all the hard work while you are relaxing on a beach. Neither it’s a set-and-forget trading tool. Humans should monitor the performance of their bots on the moody crypto market and be ready to re-adjust the parameters of their strategy when necessary.
  • Using a bot means you keep your funds on the exchange all the time: yes, some exchanges are very secure, but anyway — they are less secure than a good hardware wallet. Centralized storages are the jackpots hackers would love to steal.
  • Some ready-made bots are a scam: bad guys design their own “bots” to steal your data and funds. To persuade you to use their product, they make unrealistic promises, and inexperienced users often take the bait.

5 Top Trading Bots

  1. Cryptohopper: a crypto trading bot for more or less advanced traders. Supports 14 exchanges, including all the major ones. Free for Pioneers, $83.25/month for Heros.
  2. Shrimpy: a beginner-friendly platform for automated trading. Supports 16 exchanges. The prices range between $0/month (Hodler package) and $19/month (Pro package).
  3. GunBot: one of the oldest bots on the market, offering beginner-friendly interface and lifelong access. One-time payment of 0.02 BTC (GunBot Starter) or 0.125 BTC (Gunbot Ultimate). Supports 100+ exchanges.
  4. TradeSanta: crypto trading software, supporting 8 popular exchanges. Suitable for both beginners and experts, TradeSanta offers many useful tutorials. Prices start with $14 (Basic package).

Is it Time to Adopt a Robot? 🤖

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