Crypto trading bots are a controversial topic in the crypto industry, with influencers everywhere claiming that they’ve found the perfect trading bot that users can easily make money with.
This article will list some trading bots that beginners can explore. However, it should be noted that total rookies who know nothing about trading are unlikely to have a use case for trading bots.
Trading bots are best used by traders who are already profitable and want to automate their process, not by people who do not know how to make money trading crypto.
Top 4 Crypto Bots for Beginners
What are the best crypto trading bots for beginners in 2024? Let’s take a look at some of the most popular crypto trading bots in the market today, focusing on the best crypto bots for beginners, i.e. those that do not require much manual programming on the user end.
Pionex
Pionex is an exchange that offers built-in trading bots that beginners can experiment with for free. The platform is user-friendly and includes a Grid Trading Bot, DCA (Dollar-Cost Averaging) Bot, and other bots that users can attempt to make a profit with.
Pionex has no subscription fee for its bots and makes money from its 0.05% transaction fees instead, allowing users to try the bots out at a low cost.
3Commas
3Commas is a crypto trading bot that is typically considered easy to navigate and provides a comprehensive toolset for any crypto trader. From smart terminals, portfolio management tools, and bots for dollar cost averaging and other strategies, 3Commas is a versatile tool that offers somewhat low-risk strategies compared to some of the other bots out there.
The bot is priced at $29 per month for the starter plan, moving from $49 to $99 for higher tiers of service and access to more advanced tools.
CryptoHopper
CryptoHopper is an AI-powered bot platform that allows users to automate and backtest their trading strategies. It also offers copy trading of other successful traders. As with anything, this copy trading feature can be useful when done responsibly, although it very often results in newcomers losing their money both on CryptoHopper and elsewhere.
Copy-trading platforms incentivize traders to pursue high-risk strategies for higher rewards, and copy-traders who follow others without having a well-executed risk management plan are often highly exposed to getting liquidated. Newcomers are best advised to carefully research before getting started.
CryptoHopper is priced from $19 to $99 per month depending on how many trading strategies and open positions a trader wants to access. It also offers a free trial to get started.
Bitsgap
Bitsgap is a crypto trading platform with AI bot features available. It also allows users to try a demo mode where they practice their trading without risking real crypto, allowing users to get a feel for the market. It is integrated with multiple other exchanges where its bots can trade automatically.
Bitsgap is priced from $24 – $123 per month depending on how many bots and features a user wants, and it also offers a free trial which offers access to the highest tier of service for 7 days.
Bitsgap offers a 14-day free trial, and its pricing starts at $24 per month for the Basic plan, which includes access to basic trading tools and one active bot, $57 per month for the Advanced plan, which provides more bots and trading features, and $123 per month for the Pro plan, offering unlimited access to all bots and advanced features.
Best Free Crypto Trading Bots for Beginners
When considering the best crypto trading bots for beginners in 2024, cost is a major factor.
Our two top pics for free crypto trading bots that beginners can use are Pionex and Mudrex.
Pionex stands out with its range of free bots, offering a low barrier to entry for beginners. Users can work with strategies, including grid trading and arbitrage, on a fairly intuitive trading platform without having to pay a subscription fee.
Mudrex also offers a free model called “Pay as You Profit,” which only charges users a fee when they actually profit from trading. While this is not technically free, it’s a forgiving pricing model that doesn’t charge users money they don’t have and only rewards profitable trades, making it appealing to those seeking to avoid subscription costs.
Choosing the Right Crypto Trading Software for Beginners
Crypto trading software can be useful, but users need to be very careful when signing up for unknown software. Here are some things to watch out for.
- Ease of Use: As a beginner, ease of use is important. Make sure that you understand how to use the software, and that you find it easy to use and understand so as to prevent any mistakes.
- Security: Your crypto trading software is handling your money. Make sure the platform is reputable by checking reviews and articles online, as well as recent social media commentary. Check that the platform is regulated and offers security features like 2FA and data encryption.
- Compatibility: The more exchanges your bots can trade on, the more options you have when it comes to trading.
Crypto Trading Bot Strategies for Beginners
More important than finding the best crypto bot for beginners, perhaps, is learning how to use it.
There are several different trading strategies you can try out, even as a beginner. It’s an excellent idea to try these out on a demo using simulated money before using any real funds.
- Grid Trading: This strategy involves placing buy and sell orders at set intervals around a predefined price, creating a “grid” of orders. It is ideal for volatile markets and helps in profiting from market fluctuations.
- Dollar-Cost Averaging (DCA): This strategy involves buying a fixed dollar amount of cryptocurrency at regular intervals. It reduces the impact of volatility and averages out the purchase cost over time, making it a great strategy for beginners who are risk-averse. Many bots, like the DCA Bot offered by platforms such as 3Commas and Pionex, automate this process, making it easier for new traders to implement.
- Arbitrage: Arbitrage bots exploit price differences of the same cryptocurrency across different exchanges. This strategy requires quick decision-making and execution, making it a perfect candidate for automation. Beginners can start with simple arbitrage strategies using bots like those available on Pionex.
- Copy Trading: This strategy allows beginners to mirror the trading strategies of successful traders. Platforms like Shrimpy and CryptoHopper offer this feature, where new traders can learn from the best while still earning profits.
Most Profitable Crypto Trading Bots
A crypto trading bot is a tool, like a crypto wallet or portfolio tracker. To say that there are profitable crypto trading bots is to misunderstand the nature of this technology. Generally speaking, it is the trader who is profitable, not the trading bot itself, and profitability depends entirely on how the trader uses this tool.
If you’re trying to make money with a crypto trading bot, you need to understand how to trade crypto, and you need to have a well-thought-out risk management strategy. The trading bot needs to be programmed to use a profitable strategy, and you need to have a good reason to deploy the bot to implement that trading strategy.
If you simply buy access to a bot and tell it to follow a strategy on a whim, it is most likely going to lose your money, and the outcome will be determined purely by chance, as with gambling. Crypto trading bots can automate trading to free up traders and carry out actions 24/7 that a trader cannot do, but they still need to have a competent trader pulling the strings and steering the bot in the right direction.
Even with copy trading, traders need to be aware that the profitable traders they’re copying may be chasing high-risk strategies that could liquidate their followers, who may have different stop-loss settings, different levels of capital exposure, and other factors.
It’s considered a best practice to research risk management and crypto trading as well as crypto trading bots very deeply before making a financial decision, as automated trading is a particularly fast way to execute trades whether they’re making you money or losing it.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
FAQs
Do crypto bots really work?
The issue of whether crypto trading bots really work is controversial. The general consensus is that while crypto bots can work, the average user is unlikely to make money from using a crypto trading bot without bringing any kind of additional trading knowledge to the table. Crypto trading bots are most effectively used by skilled traders as an automation tool rather than as a get-rich-quick scheme by unskilled users.
How do I choose a crypto trading bot?
The best trading bot for your needs will depend on your requirements in terms of fees and features and how it all fits in with your overall strategy. Again, trading bots are best used by traders who are already profitable and are simply seeking to automate their trading rather than people who do not know how to trade.
What is the best AI crypto trading bot for beginners?
It could be argued that beginners who do not know how to trade should simply stay away from AI trading bots and focus on learning how to trade profitably by themselves before introducing a tool like an AI trading bot.
Source: https://crypto.news/best-crypto-trading-bots-for-beginners/