Best crypto trading bots for beginners in 2024

As a seasoned trader with years of experience under my belt, I can confidently say that crypto trading bots have been instrumental in streamlining my trading strategy and maximizing profits. However, it is essential to approach these tools with caution and a clear understanding of the market dynamics.

Discussions about automated cryptocurrency trading systems, or “bots,” often generate heated debates within the crypto community. Many prominent figures assert that they’ve discovered a top-notch trading bot that enables individuals to effortlessly earn profits.

In this write-up, we’ll present several trading bots suitable for newcomers to delve into. Yet, it is important to acknowledge that individuals completely new to trading, with no knowledge of the field, may find less application in using these trading bots.

It’s most beneficial for traders who are currently earning profits to use automated trading bots, rather than individuals new to the concept of cryptocurrency trading.

Table of Contents

Top 4 Crypto Bots for Beginners

In the year 2024, which crypto trading bots are ideal for newcomers? Let’s explore some of the top-rated crypto trading bots currently available, focusing on those that cater to beginners by minimizing the need for intricate user-side programming.

Pionex

Pionex functions as an exchange, providing pre-installed trading bots which are suitable for newcomers to test out at no cost. This platform is designed with user convenience in mind and features various automated tools such as the Grid Trading Bot, DCA (Dollar-Cost Averaging) Bot, and more, allowing users an opportunity to potentially generate earnings.

On Pionex, you can utilize their bot services without any subscription charges. Instead, they generate income through a minimal 0.05% transaction fee, making it an affordable option for users to test their bots without breaking the bank.

3Commas

3Commas is a user-friendly cryptocurrency trading bot, offering a wide range of tools suitable for any crypto trader. These include intelligent interfaces, portfolio management systems, and automated strategies such as dollar cost averaging and others. Compared to many other bots, 3Commas provides relatively lower risk options.

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

As a researcher exploring the world of cryptocurrency trading, I’ve come across CryptoHopper – an AI-driven platform that empowers users to automate and test their own trading strategies. One intriguing aspect of this platform is its ‘copy trading’ feature, which allows users to mimic the trades of successful traders. While this feature can be beneficial when used with caution, it’s essential to remember that newcomers often find themselves losing their funds, not just on CryptoHopper but across other platforms as well.

As an analyst, I’d rephrase it like this: By encouraging traders to adopt high-risk strategies for potential greater gains, copy-trading platforms can expose inexperienced users who lack a robust risk management strategy to the risk of being liquidated. It is crucial for beginners to thoroughly research and understand the risks involved before diving into copy-trading.

CryptoHopper’s pricing varies from $19 to $99 monthly, based on the number of trading strategies and active trades a user desires to utilize. Additionally, it provides a complimentary trial for new users to explore its features.

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.

With Bitsgap, you can take advantage of a 14-day free trial. After that, their pricing begins at $24 monthly for the Basic package, which grants you use of fundamental trading tools and one active bot. For those seeking more functionality, there’s an Advanced plan available at $57 per month, providing additional bots and enhanced trading features. Lastly, the Pro plan is priced at $123 per month, offering unrestricted access to all bots and premium 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 distinguishes itself by providing a variety of free trading bots, making it an attractive choice for newcomers due to its low initial costs. On this user-friendly platform, traders can experiment with strategies such as grid trading and arbitrage without incurring any subscription charges.

Mudrex provides a complimentary service known as “Pay as You Succeed,” which means users are charged a fee only when their trading results in profit. Although not entirely free, this flexible pricing model is advantageous because it doesn’t drain money from users without any return and only benefits profitable trades, making it an attractive option for those looking to sidestep ongoing subscription costs.

Choosing the Right Crypto Trading Software for Beginners

When it comes to crypto trading software, it can indeed prove beneficial, yet extreme caution is essential when registering with unrecognized programs. Here’s what you should keep an eye on.

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.

As a novice trader, there are numerous strategies available for you to experiment with. A wise approach is to test these strategies first in a demo environment using virtual money, prior to investing actual 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 cryptocurrency trading bot is a kind of software, similar to a digital wallet or portfolio manager. It’s important to note that the idea of profitable trading bots might be misleading. In reality, it’s the trader who becomes profitable, not the bot itself. The success of using this tool depends entirely on how skillfully the trader employs it.

To successfully earn money with a cryptocurrency trading bot, it’s essential to grasp the fundamentals of crypto trading and devise a meticulous risk management plan. The bot should be programmed with a profitable trading strategy, and you must have compelling grounds for activating the bot to execute that strategy effectively.

Using a cryptocurrency trading bot without proper guidance could potentially lead to financial losses, as its performance is largely dependent on luck, much like gambling. While these bots can automate trades around the clock and perform actions that human traders cannot, they require skilled oversight to ensure they’re moving in the right direction.

When replicating trades from successful traders, it’s crucial to remember that these traders might be pursuing risky tactics which could lead to the forced closure of positions for their followers. These followers may have varying stop-loss configurations, degrees of investment exposure, as well as other variables, making each situation unique.

Before diving into financial decisions related to crypto trading or using trading bots, it’s highly recommended that you thoroughly investigate risk management strategies and the world of crypto trading, including trading bots. This is because automated trading can swiftly execute trades, whether they result in profits or losses.

FAQs

Do crypto bots really work?

The debate over whether trading bots for cryptocurrency actually produce results is contentious. Generally, it’s agreed that these bots can function, but the typical user may not earn money from them unless they have specialized knowledge about trading. In essence, crypto trading bots are primarily helpful to experienced traders as an automation tool, rather than a shortcut for inexperienced users seeking quick wealth.

How do I choose a crypto trading bot?

As an analyst, I’d advise that the ideal trading bot for you hinges on aligning its fee structure, features, and overall functionality with your unique trading strategy. It’s essential to keep in mind that trading bots are primarily beneficial for profitable traders looking to streamline their trading processes, rather than individuals new to the trading world who lack the necessary knowledge of how to trade effectively.

What is the best AI crypto trading bot for beginners?

One might suggest that individuals with no prior experience in trading should initially concentrate on learning the skills necessary for profitable trading, rather than jumping into using AI trading bots. It’s wiser to build a solid foundation of understanding and expertise first, then consider incorporating tools such as AI trading bots later in their trading journey.

2024-09-18 10:44