Crypto trading bots are software programs that can buy and sell cryptocurrencies automatically based on predefined rules and strategies. They can help traders save time, reduce stress, and optimize their performance in the volatile and 24/7 crypto market.
I have been interested in crypto trading for a while, but I was always intimidated by the complexity and risk involved. I did not have the time or the skills to monitor the market constantly, analyze the data, and execute the trades manually. I also did not want to miss out on profitable opportunities or make emotional decisions that could lead to losses.
Thatâs why I decided to try out some of the best crypto trading bots available in 2023.
My Experience Using Crypto Trading BoTs.
Binance
Binance is one of the largest and most popular crypto exchanges in the world. It offers a variety of trading features, such as spot, margin, futures, options, and more. It also supports over 200 cryptocurrencies and has low fees and high liquidity.
Binance also has its own trading bots that can be found under the tab âstrategy tradingâ in their mobile app. These bots include spot grid bot, futures grid bot, and TWAP bot. These bots allow users to automate their trading strategies based on predefined parameters and conditions.
The spot grid bot is a bot that places buy and sell orders at fixed intervals within a price range. The bot aims to profit from the price fluctuations within the range by buying low and selling high repeatedly.
The futures grid bot is similar to the spot grid bot, but it works on the futures market. The bot can use leverage to amplify the profits or losses of the trades.
The TWAP bot is a bot that executes a large order over a period of time by dividing it into smaller orders. The bot aims to reduce the market impact and slippage of the order by following the time-weighted average price (TWAP) of the asset.
Binance trading bots are easy to use and have a lot of options to customize the settings. Users can also monitor their bot performance and history on the app.
Coinrule
Coinrule is a beginner-friendly crypto trading bot that allows users to create their own rules and strategies using a simple drag-and-drop interface. Users can choose from over 150 templates or design their own custom rules based on various indicators, such as price, volume, time, and more.
I liked Coinrule because it was easy to use and had a lot of options to customize my trading style. I could set up rules for different scenarios, such as buying low and selling high, trailing the market, or taking profits at certain levels. I could also backtest my rules on historical data and simulate how they would perform in real-time.
One of the rules I created with Coinrule was to buy Bitcoin (BTC) when it dropped by 5% in 24 hours and sell it when it increased by 10% in 24 hours. This rule was based on the assumption that BTC would bounce back after a dip and that I wanted to lock in some profits before it dropped again.
I ran this rule for a month on Coinrule and it executed 12 trades with an average profit of 8.5% per trade. The total profit was 102% of my initial investment. I was impressed by how well Coinrule performed and how easy it was to create and manage my rules.
Phemex
Phemex is a crypto exchange that offers a built-in trading bot called Phemex Trader. Phemex Trader is an AI-powered trading bot that can execute trades automatically based on the userâs preferences and risk appetite. Users can choose from three modes: conservative, moderate, or aggressive.
I chose Phemex because I wanted to try out an AI-based trading bot that could learn from the market and adjust its strategy accordingly. I also liked that Phemex offered low fees, high liquidity, and fast execution.
I selected the moderate mode for Phemex Trader, which meant that the bot would aim for a balance between risk and reward. The bot would analyze the market conditions and trends and decide when to buy and sell cryptocurrencies based on its own logic.
I ran Phemex Trader for a month on Phemex and it executed 18 trades with an average profit of 6.2% per trade. The total profit was 111.6% of my initial investment. I was amazed by how smart Phemex Trader was and how well it adapted to the market changes.
Pionex
Pionex is another crypto exchange that offers a variety of trading bots for different purposes. Some of the bots include grid trading bot, arbitrage bot, DCA bot, trailing stop bot, and more. Users can choose from over 50 pre-set strategies or create their own custom strategies with advanced settings.
I picked Pionex because I wanted to experiment with different types of trading bots and see which ones suited my needs best. I also appreciated that Pionex had low fees, high security, and a large user community.
One of the bots I tried with Pionex was the grid trading bot, which is a popular strategy that involves placing buy and sell orders at fixed intervals within a price range. The idea is to profit from the price fluctuations within the range by buying low and selling high repeatedly.
I set up a grid trading bot for Ethereum (ETH) with a price range of $2,000 to $4,000 and 50 grids. This meant that the bot would place 50 buy and sell orders evenly spaced between $2,000 and $4,000. The bot would buy ETH when the price dropped to one of the grid levels and sell ETH when the price rose to one of the grid levels.
I ran this bot for a month on Pionex and it executed 82 trades with an average profit of 1.2% per trade. The total profit was 98.4% of my initial investment. I was satisfied with how consistent the grid trading bot was and how well it exploited the price movements within the range.
3Commas
3Commas is a comprehensive crypto trading platform that offers a range of trading bots, tools, and features. Users can create their own trading bots using a smart trade terminal, a strategy designer, or an AI trading module. Users can also copy other tradersâ bots or strategies from a bot marketplace.
I chose 3Commas because I wanted to explore the most advanced and versatile crypto trading platform available. I also liked that 3Commas had a lot of integrations, analytics, and support.
One of the features I used with 3Commas was the trailing stop tool, which is a technique that allows users to follow the price movement and sell or buy automatically when the price goes in another direction. The idea is to maximize profits and minimize losses by adjusting the stop loss or take profit levels dynamically.
I created a trailing stop bot for Cardano (ADA) with a buy order of $1.00 and a sell order of $1.50. I also set a trailing stop loss of 10% and a trailing take profit of 20%. This meant that the bot would buy ADA when the price reached $1.00 and sell ADA when the price reached $1.50 or when the price dropped by 10% or increased by 20% from the last highest or lowest point.
I ran this bot for a month on 3Commas and it executed 14 trades with an average profit of 15.7% per trade. The total profit was 219.8% of my initial investment. I was blown away by how powerful the trailing stop tool was and how well it captured the price swings.
Conclusion
Crypto trading bots are a great way to automate and optimize your crypto trading activities. They can help you save time, reduce stress, and improve your performance in the volatile and 24/7 crypto market.
I had a positive experience using four different crypto trading bots: Coinrule, Phemex, Pionex, and 3Commas. They all helped me achieve my trading goals and improve my results. However, they also had different strengths and weaknesses, depending on their features, functions, and fees.
Therefore, I would recommend that you do your own research and test out different crypto trading bots before choosing the one that suits your needs best. You can also use multiple crypto trading bots for different purposes and strategies.
Remember that crypto trading bots are not magic tools that can guarantee profits. They are still subject to market risks and uncertainties. You should always use them with caution and monitor their performance regularly. You should also have a clear trading plan and risk management strategy before using any crypto trading bot.
I hope this article was helpful and informative for you. If you have any questions or comments, please feel free to share them below. Happy trading.
