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Best Crypto Trading Bots 2022

Learn to use the best crypto trading bots
Automated crypto trading bots help you earn passive income from cryptos and keep your losses at the minimum even in a bear market.
Use free trading bots in these exchanges

Best Crypto trading bots

What are crypto trading bots?

Crypto trading bots are automated trading programs that buy or sell cryptos automatically, without your intervention, based on predefined rules and crypto trading strategies you have set for the bot.

You can use crypto trading bots to help to keep emotions away from your trading and make it possible to automatically execute buy or sell orders based on specific rules.

For example, if a certain crypto has reached a predefined price level, the crypto bot might automatically buy or sell the crypto.

There are different types of trading bots and they all function in a different way.

But these trading bots are all similar in one aspect - all trading is done automatically without your intervention.

Risks in trading cryptos using a bot

Is trading with crypto bots risk-free? No, it isn't. The exact risks depend on the type of trading bot we are talking about, but in essence, the trading risks are the same whether you are trading manually or using the help of trading bots when buying and selling crypto.

But the crypto trading bots can do the following:

  •     They trade based on predefined rules and help keep your emotions away from the trading decisions
  •     They are automatic and they do not require your hourly intervention
  •     They don't sleep and can trade 24/7

Are crypto trading bots legal?

Yes, they certainly are. But not necessarily all crypto exchanges allow the usage of crypto bots.

Different types of trading bots - or different crypto bot trading strategies

So what type of crypto bots are out there?

Arbitrage bots

Arbitrage bots compare the prices of the same crypto across different exchanges.

While the price of the crypto is generally the same across all exchanges, there are always minor differences. And crypto arbitrage bots tries to take advantage of them.

Bitcoin price can sometimes vary by a few hundred bucks across different exchanges. This case you would buy Bitcoin at the exchange where it's the lowest and sell where it's the highest.

But obviously, the price difference would have to make sense.

For example, at the time of writing this article, Bitcoin price in Binance is $40,339, at Kucoin $40,356 and at Gate.io $40,355. There's no real difference here now, so currently it wouldn't make sense to make a trade.

You can use Arbitrage bots at Cryptohopper, for example.

Grid trading bots

Grid trading bots work differently. Grid bot always places at least two orders. One above the current price and one below the current price.

Let's say you are trading Litecoin (LTC) and the current price is $200.

Before you start the trading bot, you need to set the grid upper limit, lower limit, and also grid quantity.

For example:

  • Upper limit: $250
  • Lower limit: $150
  • Grid quantity: 10

The grid trading bot now opens 5 open buy orders and 4 open sell orders. The orders are placed $10 apart. So if the price grows to $210, the bot automatically places an order to sell and also an order to buy again at $150. In theory, this first trade gives you $10 profit.

Grid trading works the best with kind of stable (long-term), but relatively volatile cryptos.

Sandwich bots

Sandwich bots might be the best for cryptos with lower trading volume. How it works is that the trader first places a bid on one token and buys it. Then it makes another bid on the same crypto, but this bid is slightly higher. That higher bid *might* push the price of the crypto slightly up, so the bot immediately sells the coin again, making a small profit.

Smart rebalance bots

Smart rebalance bots are trading bots that run at specific intervals (or base the trading decisions on %) to restore the initial proportions of the cryptos in your wallet.

Smart rebalancing usually assumes that you are dealing with more than one crypto.

Read more about smart rebalance bots.

Crypto trading indicator bots

Many crypto trading bots can also use set trading indicators. For example the bot might trade based on specific MACD levels or Moving Average levels or even Bollinger bands. Trading indicator bots should only be used if you know exactly what you are doing.

Custom trading strategy bots

Additionally, there are also trading bots that use numerous different indicators based on your own exact settings. These bots are recommended only to the most knowledgeable traders.

Best free trading bots

When you're just getting started, we recommend you start with free crypto trading bots and there are cryptocurrency exchanges that offer them by default.

For example Gate.io has a good set of crypto trading bots - they offer Smart rebalancing bots, Spot Grid trading bots, Future Grid bots, Margin grid bots as well as trading indicator bots and custom strategies.

Another good free crypto bot provider is Kucoin exchange - they offer Smart Rebalancing, Spot Grid, Futures Grid and more.

Trading bots fees

How much do trading bots cost? As we just mentioned, there are enough free crypto trading bots which just take money for trading.

But there are also other crypto bots out there that are not free. These crypto bots might cost you anywhere from $10 to thousands of dollars each month.

The best paid crypto bot is possibly Cryptohopper.

Which trading bot should you use?

There are a number of different trading bots and which type of trading bots you decide to use depends on your preferences, risk tolerance and also your capital.

Best trading bots for beginners

The best type of trading bot for beginners is either Smart Rebalance bot or Spot Grid trading bot.

Best trading bots for maximum gain

Margin Grid bots give you the option to trade with up to 10x leverage (or even more), which means that you can profit from up to 10x more money than you actually have.

However, keep in mind that the more you can earn, the more you can lose as well.

Best trading bots for risk-free profit

For risk-free profit we recommend you look into Spot-Futures Arbitrage bots. These might offer low constant income with low risk. Also Smart-rebalance bots are sort of risk-free, unless any crypto in them happens to totally crash.

Best trading bots for advanced traders

Advanced traders can obviously use any and all different bots. But additionally, advanced traders can start using trading bots that trade based on trading indicators like MACD, RSI, EMA and everything else. In case of bots that run based on technical indicators you really need to know what you are doing.
Jay Gory image
Jay Gory
I became interested in cryptos only in 2021 when the crypto prices started taking off. Since then I have been in investing in cryptos myself and decided to launch with Cryptolorium.com as well.
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Quick answers to frequently asked questions

Do any crypto exchanges offer free trading bots?
Yes, they do. Cryptocurrency exchanges that offer the best free crypto trading bots are Gate.io and Kucoin.
What is the safest trading bot?
The safest type of trading bot is most likely Smart Rebalancing bot. ALl this bot does is just rebalances your different cryptos at a certain interval.
Which trading bot can lose you a lot of money?
You need to be careful with any bot that uses margin/leverage. These bots make it possible to earn a lot, but with potentially high returns come high risks.
Which are the best trading bots for maximum gain?
Margin Grid bots give you the option to trade with up to 10x leverage (or even more), which means that you can profit from up to 10x more money than you actually have.

However, keep in mind that the more you can earn, the more you can lose as well.
Which are the best trading bots for risk-free profit?
For risk-free profit we recommend you look into Spot-Futures Arbitrage bots. These might offer low constant income with low risk. Also Smart-rebalance bots are sort of risk-free, unless any crypto in them happens to totally crash.
Which trading bots are meant for advanced traders?
Advanced traders can obviously use any and all different bots. But additionally, advanced traders can start using trading bots that trade based on trading indicators like MACD, RSI, EMA and everything else. In case of bots that run based on technical indicators you really need to know what you are doing.