crypto trading bots

Best Free Crypto Bots 2021

As a crypto investor, you need the finest tools in the market to get big returns. The best crypto trading bot gives you the edge you need to achieve appreciable gains without having to sweat it out. 

As with FX robots, these bots are automated and help reinforce your approach and execution. As the bots adhere to particular preset rules and approaches that you customize, you need not be wary of taking emotional decisions that can bring irrevocable harm. 

Interested in knowing more about these automated systems? Here is a comprehensive guide and our list of the best crypto bots. 

Crypto trading bot: what is it?

Cryptocurrency trading bots are software programs designed to make it easy for you to identify and execute trades accurately using a set of rules. The cryptocurrency trading software can complete numerous computations faster than when you do it manually. 

Further, you have minimal chance of errors allowing for fruitful trading. Another advantage with these bots is they have a huge memory capacity and can calculate at astronomical speeds so you get better precision. They can multitask. For instance, they can trade many cryptos across various exchanges, evaluate the markets, and much more concurrently.

How do crypto trading bots work?

An API (Application Programming Interface) is used by the bots to connect to exchanges you use. They execute specific trades based on the settings you have configured and help generate consistent profits.  Based on the set files the bot uses, it may work with a few or more algorithms and make you profit without much input on your part. But remember that it is not a hands-off operation. You need to be still engaged in the process and most importantly choose your bot wisely.

How much can you earn with crypto bots?

You can make huge profits with crypto bots. But you need to choose a suitable bot that has a high winning rate. You should be able to set the minimum profit percentage based on the prevailing market trends. Since the crypto market is very volatile, choosing a customizable bot will serve you well. By using a reputed software, you can be assured of a dependable and potent bot.

If your jurisdiction accepts crypto trading, using software is legal. While there is not as much regulation in the crypto market as with a traditional market, it is still legal to use the bot in a conventional market. Unlike the traditional market, the crypto market does not have many limitations as it is not a fully legalized unit. 

What are the types of cryptocurrency trading bots?

You can find diverse kinds of software now. The labeling is made from the approaches they employ. Here are the common types you can find now.

Trend Trading: An asset’s momentum is the main working principle of this type of bot. If a favorable trend is identified, the bot enters a long position and will change to a short position if there is a fall in the price. 

Arbitrage: The price imbalance in the markets is leveraged by this type of bot. It can track the price variation in different markets and give you good returns.

Market making: This type of bot uses the order book spread for profits. Actively traded assets with a wider spread give you better gains.

Coin lending: With this bot type, you can automate the coin lending process and have hassle-free returns

When should you use crypto trading bots?

If you are a newbie and find the process overwhelming or have a busy work schedule that prevents you from getting fully immersed, the software programs are perfect for you. They help rebalance your crypto portfolio, gather info related to your asset, and predict the returns and losses so your losses are limited.

How to pick the best crypto trading bot?

You can find abundant automated crypto trading products available now that assist you in structuring the entire process. Choosing the best from the choices is not an easy task. Here are some crucial points that assist you in picking a suitable and efficient bot.

Reputation: Since the software will have account access, you must choose a reputed bot. This is especially true for free bots. Ensure that it is regularly updated and has good support.

Supported exchanges: It should be compatible with most of the exchanges you use.

Easy and efficient settings: Even with an automated set up you should optimize the bot to sustain its profitability. Make sure it is easy to customize.

How do you file taxes for crypto bot trading?

Since the digital currency is a relatively new entity, investors can find it difficult to file taxes. But the process is not a difficult one. You need to follow the steps below:

  • Calculate the amount you have gained and lost in your trading
  • Fill in the IRS Form 8949
  • In your Form Schedule D enter the 8949 total and include the crypto income you have earned via staking, mining, and other forms

Once you complete the above steps, the rest of the return document can be done as usual.

What are the advantages and disadvantages of cryptocurrency trading bots?

With software, you don’t have the hassle of spotting market trends and other parameters indispensable for fruitful operation. It helps to keep track of the rapidly changing market situation and works as an extended arm of your trading. But no program can assure full success. Here are some of the advantages and disadvantages of bots.

Advantages

  • Using the algorithms, the software can identify price momentum and carry out instant trades
  • The shortcomings in manual format like response time lag, inefficient market scanning, etc., are eliminated completely
  • The software is set to analyze the market 24/7 so you will not lose out on the right opportunities 

Disadvantages

  • The ability of the software is based on its configuration and durability. An inefficiently designed software can affect performance.
  • For continuous monitoring, you need an uninterrupted power supply and network connection which can be an issue 
  • The approaches used for creating the algorithms are not tested for effectiveness

Are crypto trading bots profitable?

Yes, they can make you appreciable profits. But as with any other trading program you use conventionally, these products have their limitations. Your profits depend on the bot selection. When chosen properly, the automated process brings you profits in a smaller amount that can add up to a considerable amount in the long term.

Top 7 Free Crypto Trading Bots

You can find open-source bots (free) as well as paid versions online. If you are using the program for the first time, free bots are an apt choice. You can test the features of the software and find out if it is apt for your specific style. We have put together a list of the best free crypto trading bots here. Read on to know the key details about these robotic systems.

Pionex

Pionex free crypto bot

As a large Binance broker, Pionex is known for its liquidity accumulation from Huobi Global and Binance. It boasts 16 inbuilt trading bots and has over 100,000 users. The monthly trading volume exceeds 5 billion now. BitUniverse invests in this bot and has 1.2 million downloads globally. Important features include

  • Low trading fee of 0.05% 
  • The smart terminal feature helps in customizing the SL, TP, and trailing stop levels
  • It has the MSB license from the U.S.FinCEN

Pros

  • 16 free bots
  • API integrations are not needed
  • Low fees
  • Smart terminal

Cons

  • For using a USD account, you need to download the Pionex Lite app
  • 10% of the profits from arbitrage is taken by the company

Mobile apps: IOS and Android

Exchanges: Binance, Huobi Global, Pionex

Cryptohopper

cryptohopper bot

Claimed to be easy, efficient, and innovative, this free bot provides multiple benefits including exchange accounts management, use efficient approaches, and backtest. It covers more than 100 cryptocurrencies. Feature highlights of this platform include

  • Social trading feature that allows signal subscription, approach discussion, and ability to purchase templates
  • Approach designer tool 
  • Arbitrage tool to exploit the value difference between exchanges

Pros

  • Beginners have access to vast resources
  • Experts get to use the customization and backtesting

Cons

  • Signals carry an additional cost
  • Bots lack efficiency

Mobile apps: IOS and Android

Exchanges: HitBTC, Okex, KuCoin, Bitvavo, Bitpanda Pro, Huobi, Poloniex, Kraken, Bittrex, Bitfinex, Coinbase Pro, Binance

Shrimpy

shrimpy crypto bot

Portfolio management over the long term is given importance by this trading bot. It has a unique social feature. It links nearly 30 exchanges and wallets. The feature highlights for this service include

  • Copy trade feature that lets you copy the trades of top users
  • Earn monthly profits from having your trades copied by other users
  • Backtest your trading approaches
  • Be informed about the market conditions and asset returns
  • Dashboard feature displays stats on each of your assets and your portfolio returns

Secure API key and FIPS 140-2 for security

Pros

  • Covers over 30 exchanges
  • Pricing plans are affordable
  • Social trading feature

Cons

  • No mobile app is present

Mobile apps: N/A

Exchanges: KuCoin, Binance, Binance US, Bittrex, Bittrex Global, Coinbase Pro, Kraken, Poloniex, Gemini, Bitbox, BitMart, Huobi Global, HitBTC, OKEx, Bitstamp, Bitfinex

TradeSanta

TradeSanta free crypto bot

As the best crypto bot, this service provides hassle-free money management. The site offers multiple language support and has a paid top-quality service besides its open-source program. Some of the feature highlights include

  • Trading bot that works in the long- and short-term enabling profits from profitable and unprofitable tokens
  • Automated templates that help you form the ideal approach you need
  • The program works on the principle of buy at a low price and sell when the price moves up.
  • The bot tracking feature helps you to monitor the exchange growth and decide on continuing with the service or not.
  • Customizable options based on trend movements

Pros

  • Dashboard design is smart
  • Strategies of long- and short-term used

Cons

  • Bad customer service

Mobile apps: IOS and Android

Exchanges: HitBTC, Binance, Bitfinex, Bittrex, Huobi, BitMEX, OKEx, UPbit

CryptoHero

CryptoHero free crypto bot

For newbies who can be easily overwhelmed by complex interfaces, CryptoHero offers a convenient and affordable choice. Driven by Artificial Intelligence this bot automates your trades 24/7. You can make a bot in a few minutes, operate it, manage trades from any place and at any time. The feature highlights of this crypto trading bot are

  • Technical indicators for better efficiency
  • 100% automated program
  • Monitor portfolio performance on various exchanges
  • Backtest the bots before using them
  • Test the bot without an account or without owning crypto

Pros

  • AI presence provides a convenient operation for newbies and professionals
  • Technical indicators for data generation

Cons

  • Does not provide analytic reports
  • Only one-year backtesting present

Mobile apps: IOS and Android

Exchanges: Binance, Bittrex, Huobi, Okex, Coinbase Pro, FTX, Kraken, KuCoin, Bitfinex, Gate.io, Binance US, Indoda

Stoic

Stoic free crypto bot

Created by Cindicator, a predictive analytics company founded in 2015, Stoic has more than 9500 users with an asset tally of more than $86 million. Stoic uses portfolio diversification and identifies the apt opportunities in the market. The algorithm uses price volatility, returns, and other aspects to identify the trend and also predicts the rise or fall of an asset ensuring you get to profit from any price movement. Important features found here are

  • Uses daily rebalancing for asset managing
  • API of secured exchange is used for connecting Binance account
  • Data from 170,000 analysts are available for quantitative research
  • Use the quant approach for managing your portfolio

Pros

  • Suitable for small and medium businesses and investors considering automated trading
  • Does not save users’ private keys 
  • Withdrawal is easy as funds are not held up for any reason

Cons

  • Requires a minimum of $1000 for trading
  • Not for Newbie traders

Mobile apps: IOS and Android

Exchanges: Binance

Zenbot

zenbot

As an open-source platform, you can use Zenbot with cloud hosting or on your computer. It covers a wide range of crypto instruments and is ideal for high-frequency transactions. It focuses mainly on Bitcoin and crypto trading exchanges. However, it is a command-based program that needs users to be tech-savvy to handle it. Important characteristics of this free bitcoin trading bot are

  • Supports coding languages like HTML, CSS, Python, etc.
  • Make a bot with customizable settings
  • Backtest your approaches to identify the right approach

Pros

  • Customization features
  • Best for high-volume trading

Cons

  • User interface is poorly made
  • Need basic coding knowledge

Mobile apps: IOS and Android

Exchanges: Binance, Bitfinex, Bitstamp, Bittrex, CEX.IO, GDAX, Gemini, HitBTC, Quadriga, Coinbase Pro, Kraken, Poloniex, and TheRockTrading.

Conclusion on free crypto bots

Now that you know about crypto trading bots and the various choices present in the free category, you can choose suitable software. Make sure you can limit the access of the bot to your exchange account to sell or write orders and not for withdrawal of money. Even if you choose a suitable bot, customize it so it works well with the changing market conditions. Last and not least is to have the mobile app of the bot installed to monitor your portfolio and execute trades effectively.

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