The best trading bots of 2022

We rank websites and software that can automatically implement your trading strategies

A robot interacting with a price graph                                 
Grid bots are automatic algorithms that place buy and sell orders at predetermined levels – Photo: Shutterstock
                                

Contents

Day trading is an exhausting strategy that involves constant monitoring of the cryptocurrency market and the relevant indicators. Trading bots have become an alternative for investors to buy low and sell high, without the same requirement of constant monitoring.

There are many things to consider before launching a trading bot to trade on your behalf, including the type of strategy and the amount of available funds. Investors are lucky as there are plenty of blossoming platforms to choose from. So, how do trading bots work and which ones are dominating the market?

What are trading bots?

The defining feature of any trading bot is automation. As a technologically focused industry, it is no surprise automation has made its way into crypto trading. This comes with its advantages. A trading bot is not motivated by fear or greed and can keep to the planned strategy.

These strategies can be fed to the bots, programming them with different methods to take advantage of the market. As cryptocurrency trading has taken off, these available strategies for bots have become more sophisticated. They can range from buying at dips to making trades based on the relative strength index (RSI).

However, like any type of cryptocurrency investment, trading bots come with their own risks. For example, if an investor programmes a bot to automatically purchase a cryptocurrency that is depreciating in value, their investment will also depreciate.

This has not stopped some investors from choosing automatic strategies and plenty of platforms have launched that give them a place to do so.

Pionex

Pionex is one of the highest rated trading bot platforms, as it combines an effective user interface with some advanced investing options. Users can set up a range of different bots on its easy-to-use app or its accessible website.

These different bots include a simple grid AI which buys a cryptocurrency at a low price and then sells higher. Meanwhile, a leverage bot will utilise borrowed funds to increase profits and a trailing bot will purchase an asset when it reaches a predetermined low.

As well as choosing a type of bot, investors can opt between utilising the AI strategy or inputting their own strategy. Customizable options include choosing the price range the bot will be active for and how many times it should trade.

One important thing to note is Pionex charges a small trader fee of 0.05% for every trade its bots make. This will reduce the potential profits.

Coinrule

A bot that allows for more customisation is provided by Coinrule. The platform directs the bots using “rules”. These are algorithms that creates certain conditions. For example, a trader could create a rule that buys bitcoin every time it dips by 2%.

However, if investors are looking for less hassle, Coinrule has a library of more than 150 different predetermined rules to choose from. These include advanced options such as selling depreciating coins for better performing cryptocurrencies, or scalping strategies such as purchasing a coin every time the 50 moving average (MA) crosses the 200 MA.

A drawback with Coinrule is its pricing. There are four different packages for investors to chose from, with its prices ranging from free to $449 a month. The main difference between the packages is,, the higher the trading volume and active rules, the more expensive the package.

In a review, TheCollegeInvestor said: “Coinrule can provide a service to cryptocurrency traders that simply don’t have the time or energy to develop and implement strategies.

“But the costs of Coinrule's paid plans can add up quickly. And, remember, you may still be paying fees to your exchange for every trade that Coinrule executes on your behalf.”

Cryptohopper’s trading bots explained

An even more technologically advanced trading bot is provided by Cryptohopper. It offers a range of automatic purchasing bots, similar to Coinrule, that can be based on a specific strategy, such as the MA crossover.

But what makes its crypto trading bots unique is its AI technology. Its website wrote: “AI analyses all the strategies you feed it, and can decide on its own which one it should use.”

For investors to use AI technology, they must first import a variety of strategies to their trading bots. These are ranked by the AI, which then enters trades depending on the best strategy for the current market.

This is allowing traders to combine hundreds of strategies and utilise different indicators with automation.

Like Coinrule, Cryptohopper has opted for a pricing model that ranges from $0 to $99 a month. The more expensive packages allow for more open positions and market arbitrage.

Bitsgap

There are three main crypto trading bots on the Bitsgap platform. The standard grid bot puts buy and sell orders in predetermined intervals. Meanwhile, the dollar cost averaging bot gives traders a chance to invest at multiple price levels to improve the entry price. Finally, its futures bots use leverage to increase profits.

Along with its crypto trading bots, investors can trade with smart algorithm orders. These include stop losses, take profits, and trailing orders

Its website wrote: “Bitsgap’s mission is to bring cutting edge trading automations like smart orders, trading bots, and portfolio management tools to as many crypto traders and investors as possible. You can connect up to 15+ different exchanges and manage your assets on all of them via one powerful interface.”

The prices range from $24 to $123 a month, with the more expensive packages allowing for traders to activate a greater number of bots.  

The Blockonomi review wrote: “ If you are looking for a combination of advanced trading tools, technical indicators and ease of use, Bitsgap is worth considering. Overall, Bitsgap is a safe, secure and fully encrypted platform to trade with.”

Gunbot

The groundbreaking trading bot features offered by Gunbot come at a cost: a difficult to use interface. This tool was designed for investors who can code and create their own scripts for trading.

Unlike the monthly pricing model offered by Bitsgap and others, users can purchase the Gunbot software for a one-time cost of $99. However, it does offer more expensive options that come with more features.

Traders can choose from grid bots, scripts that follow trends, and those that use indicators such as Bollinger Bands. Its website said: “Strategies are fully configurable to suit even very demanding traders.”

Final thoughts

Trading with bots solves an important problem in the cryptocurrency industry; following complicated strategies without it becoming a time consuming process. There are a range of trading bots to choose from, which can suit personal preferences and the current state of the market.

But like any investment, traders will still need to keep an eye on the market to ensure their bot is profitable and not investing in a depreciating asset.

As well as the need to fully understand what do trading bots do, it is also important to understand that they poses the same risk as any cryptocurrency investment. With the industry’s well-known volatile market, trading bots can result in losses.

FAQs

There are many different trading bots to chose from. The classic grid bot buys low and sells high; meanwhile other bots can follow indicators such as the moving average. The profit of a trading bot will depend on the type of strategy it follows and the state of market.

Remember, these can result in losses if the bot is investing in a bearish cryptocurrency, so you should never invest more than you can afford to lose.

The access to trading bots will depend on the jurisdiction’s approach to cryptocurrency investment. Investors should check their country’s advice on cryptocurrencies before trading with bots.

It depends on the bot and the asset. Traders should check to make sure they are using a verified platform and investing in a legitimate cryptocurrency.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image