First and foremost, you need to understand what automation is and which factors affect its performance. We are not talking about artificial intelligence or something else from sci-fi. These are highly specialized machines that deliver results based on their programming.
Automation is one of the most powerful tools at the disposal of a contemporary retail trader. It is a way to make money passively if you have a consistent strategy. How to choose a good auto crypto trader and start engaging with the cryptocurrency market?
What are trading bots?
A trading bot is a script executed in the cloud and trading on your behalf. There are some solutions that can be installed on the client’s machine, but these are way slower because they depend on your internet connection, do not connect directly to the API of exchange (in most cases), and may not operate at their fullest potential due to limitations of your hardware.
Online services are already finely tuned in the technology department and have direct connections to services involved in the automation process. Modern cryptocurrency robots work 24/7 whether your device has a connection to the internet or not.
There are three main components to any script that wants to be the best automated crypto trading bot:
- A source of data and signals. These can be sourced manually, but it is much better to use specialized platforms like TradingView, an extremely popular charting and analytical tool offering access to an endless selection of various indicators, signal generators, and graphical overlays.
- A data processing entity. Companies like 3Commas, WunderTrading, and NinjaTrader receive data and process it. You may set up any type of script that will react to different inputs accordingly and immediately send their orders to an exchange of your choice.
- A CEX platform. These are your crypto exchanges like Binance, KuCoin, Kraken, and others. Exchanges receive orders from the processing component via API and execute them as quickly as possible reducing any wasted time, usually spent during manual trading, to virtually zero.
How to pick the best Bitcoin trading bot?
There are several crucial aspects that determine the quality of user experience and, ultimately, the results achieved by a retail trader using an automation solution.
- User experience (UX/UI). While many think that functionality and feature-rich architecture are the most important traits of any online instrument, the reality is quite a bit different. A great platform must have an intuitive interface and ensure that users can build complicated scripts without going through manuals and tutorials with thousands of pages.
- While a product can be detached from the world at large and still fulfill its purpose, platforms that focus on integrating with crucial third-party providers generally achieve better performance. For example, a few companies are directly integrated with TradingView and multiple exchanges allowing it to perform faster and more reliably than competitors who do not have the same level of interconnectedness with related services.
- Variety of tools. Automation is becoming a widely used tool, something that many retail traders cannot live without. However, it means that both veterans and novices are coming to automation vendors. A great provider will offer a rich selection of instruments that will suit the needs of experienced and beginner traders.
Which were the best crypto trading bots in 2024?
Multiple companies made their names shine even brighter among the competition. However, some deserve a little bit more attention than others. Below are some of the best trading bots from the last year:
- 3Commas is a good selection for people who want to specialize in social trading and do not need any fully automated products that work even without your initial input. 3Commas is a very old company by the standards of the cryptocurrency industry and offers a long lineup of interesting solutions to veterans and newbies.
- AvaTrade offers a good number of social trading products including AvaSocial and Duplitrade, both quite popular among users of the platform. However, their other offerings are lacking and the interface is quite a mess compared to their competitors with much cleaner UIs.
- WunderTrading is the best cryptobot for people who are looking for efficient preset bots, diverse copy trading marketplaces, and consistency. The company offers unique products such as GRID bots, DCA buying, Arbitrage (cross-exchange and intra-exchange), and a flexible script-writing service where you can create a custom automated strategy.
Which platform should you use in 2024?
When looking for the best cryptocurrency trading bots, it is essential to determine which goals you want to achieve. Is it consistent money-making? Do you want to learn and explore? Are you interested in diversifying with low-risk strategies? The company has several great choices for all types of clients:
- People interested in safer trading systems will enjoy using This is a script that places buy orders under predefined conditions (when there is a downtrend, for example) and immediately puts stop-loss and take-profit orders to reduce risks.
- Investors who are learning technical analysis and want to experiment will be happy to know that it has an option of building customized scripts that will use inputs generated by the TradingView platform where you can use any strategy you like, no matter how complicated.
- Want consistency and steady returns? Use arbitrage bots to make money on price discrepancies across multiple exchanges or on P2P/Spot markets (triangular arbitrage). This is one of the most reliable methods of making money passively. Although, due to price convergence, opportunities are seldom so running a 24/7 script is a must.
Do you need automation?
The contemporary cryptocurrency industry is so complex that engaging with it while not using any automation solutions is quite impossible. If you want to be successful in the crypto market, you have to incorporate automation in your system to, at least, some degree.
The only thing that you should think about thoroughly is which automation platform to use. We recommend testing platforms using their free plans which often include more than you need to start investing successfully.
