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Automated trading is on the rise! Who do you choose as the best trading bot of the year?

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Automated trading is on the rise! Who do you choose as the best trading bot of the year?

With the development of cryptocurrencies, there have been many trading bot services in the market. It is said that a good investment mindset is more important than trading techniques. These bots not only eliminate the human weaknesses of emotional fluctuations in investors but also possess certain trading skills. But when should one use a trading bot? And what improvements can it bring? The crypto data agency Dapp.com has listed the top 8 trading bots for 2020, which will be summarized and compiled in this article.

When to Use Trading Bots?

  1. Repetitive Nature of Trades
  2. Specific Time Execution
  3. Execution of Complex Trades

The cryptocurrency market is often volatile, making the immediacy of trades and price points crucial. Trading bots can set specific trading strategies, monitor the market, and execute trades at the right time.

Dapp.com points out that some more complex trading strategies require multiple pairs to be traded, and each pair must be completed at specific times based on trade volume and price. Trading bots can easily automate these complex, seemingly difficult trading strategies.

#1 Pionex –Exchange-Embedded Bots

The exchange Pionex is quite well-known in Taiwan and does not require API binding for use. It has provided various trading strategies, including grid trading, leveraged grid, margin grid, infinite grid, reverse, leveraged reverse grid, and lending grid.

Overall, Pionex is an exchange with built-in trading bots that aggregates the liquidity of Binance and Huobi, offering free and user-friendly trading bots. It has obtained approval from the Monetary Authority of Singapore (MAS) and U.S. MSB license.

Pionex Trading Interface (Source: Dapp.com)

BitUniverse also focuses on grid trading, but unlike Pionex, it requires API key binding to integrate with major exchanges. Dapp.com claims that BitUniverse charges exchanges rather than users, making it free as well.

Dapp.com notes that BitUniverse supports over 20 exchanges (including Binance, Huobi, Bittrex) and collaborates with mainstream exchanges like KuCoin, Binance, Bithumb to host trading competitions, hence listing it as one of the best trading bots in 2020.

Source: Dapp.com

Cryptohopper, founded in 2017, is a paid trading bot but offers a free 7-day trial. Its mechanism is similar to Pionex's grid trading, but Dapp.com highlights its focus on arbitrage trading.

Cryptohopper is compatible with over 100 cryptocurrencies and 12 major trading platforms, including Binance, Bitfinex, Bittrex, Coinbase Pro, Huobi, Kraken, Kucoin, and Poloniex, among others.

In addition to creating custom trading strategies based on technical indicators like Bollinger Bands, Stoch, RSI, and MACD, it also provides trading signals in its community platform.

Source: Dapp.com

Shrimpy is a paid trading bot focusing on automated portfolio management and offers social trading features. Unlike high-frequency grid trading, Shrimpy executes trades relatively less frequently, making it more friendly for long-term holders.

Source: Dapp.com

Zignaly provides tools for automating trading strategies for daily traders. Users can create strategies on TradingView and execute trades across major exchanges, including Binance, Bittrex, Poloniex, KuCoin, and BitMex.

3Commas is one of the famous trading bots. Dapp.com ranks it sixth because it caters more towards professional traders, offering automated trading strategies based on technical indicators.

TradeSanta's main feature is grid trading, integrating eight exchanges (Binance, Bittrex, HitBTC, Bitfinex). However, Pionex and BitUniverse mentioned above already provide similar functions for free. Additional features may require a monthly fee ranging from $14 to $70, so users should evaluate carefully.

Source: Dapp.com

Quadency's best feature, as recognized by Dapp.com, is its backtesting function, allowing users to optimize trading strategies based on provided data. It is divided into three tiers based on monthly trading limits and other features: HODLER, Pro Edition, and Institutional Investor.

Passive income has always been a sought-after target for investors. While automated trading eliminates human weaknesses, it still carries risks and potential losses. Besides carefully selecting platforms, investors should disable withdrawal permissions for API keys when connecting bots to their exchange accounts to prioritize asset protection in their investment pursuits.