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Best crypto trading bots

Automate your trading with the latest generation of trading bots.

Cryptocurrency markets are famous for their volatility, which presents a lot of opportunities for traders. Crypto trading bots are designed to leverage these opportunities better than a human could alone.

Trading bots do this by using software to automate trades based on predefined strategies.

They can operate 24/7, copy other traders' strategies and generally execute trades much faster than a person could.

Choosing the best crypto trading bot for yourself requires careful consideration of various factors, such as the bot's features, strategies, security, ease of use and the reputation of its developer. You should also consider the bot's user community, who are often able to share strategies and help you troubleshoot any issues you run into.

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Despite their advantages, crypto trading bots aren't a set-and-forget tool to get rich quick.

They need to be monitored regularly and require an understanding of financial markets and trading before you get started. You will need to adjust which strategies you apply based on market conditions.

This guide serves as a general overview only and you should familiarise yourself with the risks before choosing a bot.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

The best crypto trading bots

There are 3 main types of trading bots that are covered in this review:

  • Exchange bots. A number of cryptocurrency exchanges now support their own trading bots. These bots are built in to the exchange which makes them easier to get started with than a standalone bot. They typically feature predefined strategies as well as tools for customisation and the ability to copy other traders. They are less advanced than standalone bots.
  • Standalone bots. These bots run using standalone software which connects to your preferred crypto exchange via an API key. They then trade on your behalf. There are pre-programmed strategies as well as the tools to create your own strategies. These bots offer the greatest level of customisation and can get quite advanced.
  • Telegram bots. Telegram trading bots are a new phenomenon, originating in 2022. They run entirely within the Telegram messaging app and specialise in trading on DeFi markets. They greatly simplify on-chain trading but add significant new security risks and should be treated with great caution.

Exchange bots

Binance

Binance Cryptocurrency Trading Bot

Binance is the world's largest exchange by trading volume and now has a number of bots that you can use to automate your trading.

You choose from 8 predefined strategies or search the bot marketplace for custom strategies programmed by other users. You can then copy or modify these to use yourself.

The Bot Marketplace lets you search for strategies based on your desired market pair (e.g. BTC/USDT) and gives you an overview of the bot's features, ROI and how long it has been active for.

There's a Strategy Academy which is a learning hub for all things bot related and a good place for anyone unfamiliar with bots to start learning.

Pionex

Pionex Cryptocurrency Trading Bot

Pionex is unique in that it is an exchange tailored around its 16 built-in trading bots. These are available to all users for free and integrate with each part of the exchange.

You can trade over 370 cryptos with classic strategies, plus a number of advanced grid trading strategies and order types.

The exchange taps into liquidity from Binance and Huobi, which helps ensure your bot will operate smoothly and not compete only against other bots.

Surprisingly, there is no simple marketplace for buying and selling bots. Instead, you can only use a ChatGPT-powered marketplace, which is for customising bots more complicated than marketplaces on other exchanges.

Pionex curates a feed of top-performing bots that you can copy in each market, but there's no way to search for them.

KuCoin

KuCoin Cryptocurrency Trading Bot

KuCoin provides 6 pre-programmed bots for trading on its exchange.

You will find common strategies like grid, rebalancing, dollar-cost averaging (DCA) and martingale. These can be tailored to your liking.

There is a marketplace that lets you view other users strategies and copy or adjust them to suit your own needs.

You can access the trading bots via the smartphone app, as well as the desktop exchange.

Bybit

Bybit Cryptocurrency Trading Bot

Bybit offers 3 trading bots for use on its exchange. There is a spot grid, futures grid and DCA bot.

You can adjust the settings within each of these bots to fine-tune your strategy.

There's also a bot marketplace that lets you copy the settings of other traders.

The marketplace interface is very clean and the easiest to navigate of any exchange bot I've reviewed. You can see how long a bot has been in operation for, how many other traders are copying it and its historic P&L.

OKX

OKX Cryptocurrency Trading Bot

The OKX trading bots are pre-built bots that help you automate your trading on the OKX exchange.

There are 10 trading bots to choose from, including grid, DCA, arbitrage and slicing strategies.

Some of these bots execute one-time orders and are a bit more similar to advanced order types.

The grid trading bots support AI trading strategies which have been backtested on market data. This can be useful for anyone unsure how to program a bot themselves – provided you're willing to trust your funds with the AI.

There is a bot marketplace for you to inspect the strategies of other traders and copy or modify them for your own use.

Copy trading

eToro

eToro Cryptocurrency CopyTrader

As the name suggests, eToro's CopyTrading feature allows you to automatically copy the trades made by other investors.

It's a bit different from what would normally be considered a trading bot, but nevertheless, it automates your trading and deserves a mention.

Simply choose a trader you want to copy and then set your account to follow their trades.

You can stay up to date with what traders are thinking via a social media feed and various social features.

Standalone bots

Cryptohopper

Cryptohopper Cryptocurrency Trading Bot

Cryptohopper is a cloud-based trading platform with a wide range of bots and sophisticated trading tools. Features range from beginner-oriented right up to advanced.

In addition to the usual tools and features you would expect with a trading bot, Cryptohopper comes with some advanced features, including social trading signals, third-party signals and API support, copy trading, backtesting and AI integrations.

It also supports an advanced marketplace where you can buy or sell templates, strategies, signals and bots. There's a mix of free and paid products available.

You can integrate Cryptohopper natively with 19 exchanges including majors like Binance, Kraken, Coinbase Advanced, OKX and Bybit.

There is extensive documentation, a learning academy, video tutorials and a help desk with live customer support via web chat.

Cryptohopper strategies are supported by AI, which can advise you on which strategy to use depending on market conditions.

3Commas

3Commas Cryptocurrency Trading Bot

3Commas is a cloud-based platform that provides 21 pre-programmed trading bots, which can tap into 14 cryptocurrency exchanges. Most of the bots are tailored to specific exchanges, rather than strategies.

There is even support for DeFi on Ethereum, which is a notable difference between it and other bots.

It supports signals from TradingView as well as from third parties which can be purchased on the signals marketplace. These include free and paid options and some are tailored to specific exchanges.

The platform appears best suited to traders who already have an idea of what strategies they want to implement and how they want to program their bot. That is, it's better suited to experienced traders than beginners.

TradeSanta

TradeSanta Cryptocurrency Trading Bot

TradeSanta is a cloud-based platform that you can use to manage trading bots across 9 exchanges. You can manage multiple bots via a single trading terminal.

Pricing tiers are a bit more expensive than some competitors, with key features like TradingView signals being locked behind the medium tier. Without that, there are only 3 signals available – MACD, RSI and Bollinger.

On the upside, you can operate a larger number of bots than some competitors offer, but overall value for money appears to be lacking.

There is a demo mode that gives you access to the entry-level tier.

Like most bots, you can buy and sell strategies on the marketplace, and these are bound to specific exchanges.

The user interface is simplified and easy to navigate.

Telegram trading bots

Telegram trading bots are high-risk trading bots that operate entirely within the Telegram chat app. They automate trading on decentralised exchanges. In particular, they are used to snipe DEX listings and automate certain trading activities faster than a human could.

Both Maestro and Unibot, the two largest Telegram trading bots were recently hacked. For this reason, we have chosen to remove them from our list until they demonstrate they are safe for use.

Why Telegram Trading Bots are crypto's latest obsession.

Risks of Telegram trading bots

Telegram trading bots come with unique risks that other bots may not. They require access to your wallet's private keys which is required for them to rapidly sign transactions on your behalf.

This makes the bot a honeypot for hackers, who would get access to millions of dollars of funds if they successfully hack the platform. It also requires trust in the bot's developers, who are often anonymous.

To mitigate your risks when using a Telegram bot, use a fresh address and only deposit an amount you can afford to lose, with the understanding that all funds could easily be lost.

Any profits should be immediately sent to a separate address that only you know the private keys to.

How cryptocurrency trading bots work

Trading bots are computer programs that log in to cryptocurrency exchanges and automatically make trades on your behalf.

How good they are depends on how they're programmed and how suitable their trading strategy is to current market conditions.

There are many different kinds of bots to suit different market conditions and individual needs.

For example, "scalping" is a strategy for making small but consistent profits in a sideways market. A scalping bot would be designed to automatically place the trades required to shave those profits out of the market. Scalping could be the right strategy for a sideways market, but wouldn't be ideal in a more bullish or bearish situation.

So the first challenge is to know which kind of strategy to use at different times. The second challenge is to find a bot that can effectively execute that strategy based on market activity and signals.

What are signals?

Picture not describedQuestions you might haveIn crypto trading bot terminology, signals are like alarms. For example, someone might craft a signal based on a combination of factors like moving averages, volatility and social media mentions. When those factors move in a way that's believed to indicate a good time to trade, the alarm is triggered.

Trading bots can be programmed to automatically respond in specific ways to these signals. You can create your own signals or use a third party's signals. And just like bots themselves, some signals are more consistently accurate, while others are more error-prone.

How to start using a trading bot

  • Start small. Validate that your strategy and parameters are working as intended before depositing large sums of money.
  • Monitor performance. Regularly monitor your bot's performance and adjust parameters as needed. You will need to adjust your bot accordingly as market conditions change.
  • Manage risk. Utilise risk-management tools like stop-losses to mitigate risk and the downside of failed trades.

Crypto trading bots can be used to implement a wide range of trading strategies. Some of the most commonly used strategies include:

Arbitrage

Plus minus difference vector

Cryptocurrency arbitrage is a strategy that allows you to take advantage of price differences between crypto exchanges. For example, buying Bitcoin on an exchange where the price is low and immediately selling it on an exchange where the price is at a higher level.

Specialist crypto arbitrage bots are designed to track price movements and differences across exchanges and then execute the necessary trades.

Grid trading

Vector of coins being exchanged

Grid trading automates buying and selling of crypto at preset intervals, within preset price ranges. When used on the spot market, its goal is to frequently buy low and sell high by taking advantage of market volatility.

It does this by making a series of small purchases while the market is trending down. It then aims to make a series of small sales if the market rises again.

This is similar to scalping but can be done on longer time horizons and with larger purchases.

Trend trading

Vector of trading chart with upward trend

This strategy involves programming a bot to identify the price trends of specific cryptocurrencies and then execute trades based on those trends. By analysing which way the price of an asset is moving, this strategy is designed to assess when trends are forming and then profit from the resulting price change. In other words, buy when prices are trending upwards and sell when they're heading down.

Mean reversion

Scale balancing vector

The key underlying principle of the mean reversion strategy is that there is a stable trend in the price of a particular cryptocurrency. So while the price may fluctuate in either direction, it will eventually return to its mean.

Based on this assumption, you can program a bot to execute trades depending on where the price of the currency sits in relation to its historical average.

Risks of using crypto trading bots

Bots are not free money machines and they're not without some risks and downsides:

  • Continuous monitoring. There's a common misconception that once set up, a bot can simply be left to do all the hard work for you and make money while you sleep. This isn't the case. Rather than being passive income generators, crypto trading bots need ongoing monitoring and adjusting as market conditions change.
  • Withdrawal access. Don't give your bot withdrawal access. In most cases, there's no need to give a bot permission to withdraw funds from your account, so preventing withdrawal access can be a simple way to protect yourself. In some cases giving access will be unavoidable, such as if you're performing arbitrage trades between exchanges or using a Telegram bot.
  • Don't share your API secret. In order to put your bot to work, you'll need to create an API key and secret on your chosen crypto exchange. API secrets are like crypto wallet private keys. If someone has your API key and secret they can place trades from your account, so never share with anyone.
  • Use 2-factor authentication. Enabling 2-factor authentication on all exchanges, accounts, wallets and crypto programs can provide an extra layer of protection for your funds. As always, make sure you also set strong passwords.
  • Poor-quality software. The quality of software varies from one bot to the next and using a poorly coded bot could cause you to lose money. That's why you need to look for a reputable bot with a proven track record of success.
  • Bad strategies. The crypto market is constantly evolving and trading strategies need to keep adapting to achieve success. If you choose a bot with an outdated or simply inadequate strategy, or match the wrong bot and signals, program it incorrectly or otherwise make mistakes, expect to lose money.
  • Failing to set stop-loss limits. In the event of a "flash crash", where the price of a cryptocurrency plummets rapidly, traders that have not set stop-loss limits could potentially suffer heavy losses.
  • Crypto market complexity. There's only so much that exchange data can tell you about what is happening in the crypto market. From tech developments to the online rumour mill, there are many other factors that can drive price movements.
  • Market volatility. Strategies that are successful one day may be useless the next. This is because market conditions change, which affects the suitability of a given strategy. As such, most bots are not "set and forget" tools for passive income, but rather intended to help make active trading easier.
  • Past performance. Past performance is not an indicator of future success and the same is true for trading bots. Any advertisement of a bot's past ROI is not a guarantee of future performance, as market dynamics can change rapidly and affect a bot's success.
  • Scams. Scams are an ongoing problem in the crypto trading bot space, especially Telegram trading bots. It's essential that you thoroughly research any bot before use to help safeguard your funds against scammers. For example, if you come across a bot that promises "guaranteed" substantial gains, this should sound alarm bells.

Ask the experts: What are the risks of using trading bots?

FAQs

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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