Best Crypto Trading Bots
In the dynamically changing cryptocurrency environment, it is difficult to constantly monitor market changes. This is where bots (robots) for cryptocurrency trading - automated systems that instead of the trader perform transactions based on the set parameters of his strategy - can help. Such programs are becoming indispensable tools for traders, as they can react to changes instantly and work around the clock. In this article, we will look at which cryptobots are the most relevant today and how they can help to make money on exchanges.
| Bot | Chart | PNL% (Month) | Average Time In a Deal | Minimum Deposit | Risk | |
|---|---|---|---|---|---|---|
DOGE EMA
|
|
+35%
|
12H | $1000 |
|
Try |
SOL Channel
|
|
+32%
|
3D | $1000 |
|
Try |
TRX Diver
|
|
+28%
|
3D | $1000 |
|
Try |
ETH MACD
|
|
+22%
|
1D | $1000 |
|
Try |
SUI BB Grid
|
|
+26%
|
1D | $1000 |
|
Try |
Content
A bot for cryptocurrency trading is specialized software designed to automate transactions with digital assets. A person sets the rules for making transactions, and the cryptobot performs operations based on them. The main purpose of such solutions is to perform tasks that require constant monitoring and quick response.
A cryptocurrency bot works by connecting to the exchange through an API (interface for programs to interact with the exchange). It then analyzes the data and checks it for compliance with the specified conditions for buying or selling assets. For example, the program can be configured to buy an asset when a candle closes below the Keltner channel boundaries or to sell it when a predetermined profit level is reached for the aggregate buy position opened on the exchange account.
Such programs are ideal for those who are not ready to devote much time to manual control, but prefer to use automation to increase their income. Robots allow to minimize the human factor, excluding from the process emotional decisions and fatigue, which often lead to mistakes in trading.
How do bots for crypto work?
The work is based on the algorithm of analyzing market indicators or price movements directly. Bots react in real time to any change in the exchange rate.
The process of work begins with setting the parameters. After clicking on the button “create a bot” in the personal cabinet Veles user:
- Specifies the crypto exchange with which the system will interact,
- For some trading platforms - selects the type of account (spot or futures),
- Assigns an API key that is tied to the Veles account in advance,
- Specifies the trading pair,
- Specifies the amount of money the bot can trade,
- And then sets the strategy to be executed by the program to earn money.
After the launch, the work consists of continuously checking the compliance of market data to those conditions that are prescribed in the strategy. That is, the bot for cryptocurrency on the exchange tracks price changes and places orders to buy or sell when the right conditions appear. If the trader uses indicators, these conditions can be indicators such as RSI or MACD to determine the optimal points to enter and exit the market. It is important to understand that the program does not make decisions on its own - it only follows predetermined rules.
Automating trading means increasing the speed of execution of trades. And several instances of the same bot can work with different trading pairs simultaneously, which expands the trader's possibilities. The key feature of such work is to analyze huge amounts of data in the shortest possible time and to react instantly to changes.
Register on the Veles platform
Connect the exchange manually or via fast-API
Choose a ready-made bot or set it up yourself
Now let's repeat it in practice
For successful bot trading, it's important to choose a reliable exchange platform that offers a full range of tools for automating trades. Generally, large exchanges have well-developed APIs, and there are no issues with automation. On newer exchanges, which are still developing their trading interfaces, there may be more market opportunities, but it can be more difficult to take advantage of them. This is because the API may not be fully developed, and automation might not always work as expected.
Our prices
For payment of commissions for the use of Veles trading bots an account is used, which is opened on the platform itself. Each user opens such an account at the time of registration.
Payment occurs only when the bots bring profit. 20% of this profit will be deducted from the balance of your Veles account, but no more than 50 USDT per month for one type of trade.
For the bot to be able to open a position, you need funds in this account. That's why you need to fund your account before launching the bot. You can be sure that a deposit of 100 USDT per month will be enough even in case of the most profitable trading on both spot and futures trading bots combined.
We take a 20% commission on the profit you make from bot trading, but no more than $50 per calendar month.
Types of Crypto Bots
GRID
GRID bots operate on the principle of creating a grid of buy and sell orders. The strategy involves placing buy and sell orders for cryptocurrency at specific intervals, in a "ladder" fashion. Once the price of an asset reaches one of these levels, the bot executes a buy or sell order, depending on the market direction.
GRID bots are particularly effective in highly volatile markets, where the price of an asset frequently fluctuates within a specific range. The bot profits from each small price movement, allowing traders to make gains even from short-term fluctuations.
However, it's important to note that in trending markets, where the price moves in one direction (up or down), GRID bots may be less effective.
Example: The price of Bitcoin fluctuates between $49,000 and $74,000 for several months. The bot buys Bitcoin every time the price drops to $69,000, then to $64,000, $59,000, $54,000, and $49,000. When the price increases by $5,000, the bot sells:
- The batch of Bitcoin bought at $49,000 will be sold at $54,000.
- The batch bought at $54,000 will be sold at $59,000.
- The batch bought at $69,000 will be sold at $74,000.
If the price drops again, Bitcoin will be bought again at the same price levels. This allows the bot to profit from each fluctuation within the range. However, if the price breaks out of the range, the trading stops, and the trader is left holding a depreciating asset:
- If the price breaks out downward, the depreciating asset will be Bitcoin.
- If the price breaks out upward, the depreciating asset will be dollars.
DCA
DCA (Dollar-Cost Averaging) is a strategy for averaging the purchase price, which involves regularly buying an asset for a set amount, regardless of its current price. DCA bots automatically purchase cryptocurrency at pre-determined intervals. The main goal of this strategy is to smooth out the impact of volatility on the asset’s price.
DCA is ideal for long-term investors who want to minimize the risks associated with short-term price fluctuations. Using a DCA bot helps avoid buying an asset at an inflated price, followed by a sharp drop in its value. With regular purchases through DCA, a trader buys assets at both high and low prices, which, on average, makes the entry price into the market more balanced.
Example: A trader wants to invest $1,000 in Bitcoin, but instead of buying the entire amount at once, they set up a DCA bot to buy $100 worth of Bitcoin every week for 10 weeks. If the price rises during all 10 weeks, the strategy will be less profitable than buying the entire amount at the beginning. However, no one knows for sure how circumstances will play out!
Spot Trading Bot
Spot bots are designed for transactions with the actual transfer of asset ownership. This means that all purchased cryptocurrency can be withdrawn to a personal wallet, transferred to another exchange, or used for staking. All trades executed by Veles bots on the spot market are done without leverage.
Such bots are useful for those who prefer to avoid the risks associated with margin trading. Spot bots are often used for short-term strategies like scalping, where profits are made from small price fluctuations. Additionally, spot strategies are less risky for beginners.
Sniper Bots
Sniper bots are high-frequency programs that catch sharp price fluctuations based on short-term market signals. They monitor large trades in the market and react instantly by opening or closing positions.
Sniper bots are useful in volatile conditions, when sharp price movements occur. These systems allow for quick responses to sudden price jumps, which is important for those who cannot constantly monitor the market.
Example: The price of Ethereum drops sharply by 5% within minutes, and the sniper bot buys the asset at the low price, then quickly sells it after the price recovers.
Indicator Bot
Indicator bots operate based on the analysis of technical indicators. These programs determine the optimal moments to enter and exit the market by tracking indicator signals. A complete list of indicators available for configuration with Veles trading bots is provided on the Veles website.
This type of bot can be set up to execute trades when specific conditions are met. For example, if the RSI indicates that an asset is overbought (above 70), the bot may sell the asset. If the indicator shows oversold conditions (below 30), the bot may open a buy position.
Arbitrage Bots
Arbitrage bots take advantage of price differences for cryptocurrencies across various exchanges to generate profits. The principle behind this is that prices for the same asset can differ between platforms, and arbitrage bots aim to profit from these discrepancies.
Example: On one exchange, Bitcoin is priced at $62,000, while on another it's priced at $62,200. An arbitrage bot will buy Bitcoin on the first exchange at the lower price and immediately sell the same amount on the second exchange at the higher price. It is important to note that arbitrage bots need to operate very quickly. Arbitrage is one of the most profitable trading strategies, which is why there are many arbitrage traders in the market, and emerging opportunities usually disappear in fractions of a second.
Pros and Cons
Pros
Automation. Bots allow for trading without the need for constant human involvement.
Wide opportunities. Automated solutions allow for implementing complex trading approaches, such as arbitrage or trading based on multiple indicators.
Fast execution. Bots can detect price changes faster than humans, which is crucial in volatile markets.
Cons
Risk of losses. A crypto trading bot, even with optimal settings, can incur losses if market conditions change.
Need for adjustments. The market is constantly changing, so the bot's performance should be monitored, and its settings adjusted as needed.
Dependency on API. The bot's performance depends on the speed and reliability of the exchange's API, which can sometimes experience outages. However, such issues are rare on large, reliable platforms.
Conclusion
Cryptocurrency bots are powerful tools that can greatly simplify trading and help traders increase their profits. However, it is important to remember that bots do not guarantee success – their performance depends on proper configuration and understanding of the market situation. By choosing the right strategies and configuring the bots correctly, you can successfully automate your trading.
Frequently Asked Questions
Cryptocurrency bots are not limited to just popular coins like Bitcoin or Ethereum. On most trading platforms, including Veles, you can configure bots to work with any coins that are traded on supported exchanges. This allows traders to diversify their portfolios and implement strategies for altcoins. Bots can effectively trade coins that are less volatile or, conversely, those that offer greater opportunities for short-term trading.
