AI trading bots are the now and future of crypto trading. They’re slowly becoming mainstream, generating a buzz matched only by a few breakthroughs.
With the efficient automation and accuracy these trading bots offer, it’s unsurprising that they’re taking the crypto world by storm. Still, it’s a complex technology that not many people understand.
So, in this article, we’ll cover what AI crypto bots are, exploring the best ones, and give you tips on how to use them.
Without further ado, let’s dive in.
What Are AI Trading Bots Crypto
AI trading bots for crypto are automated software programs that execute trades on your behalf. These artificial intelligence crypto trading bots examine market conditions in real time and automatically buy or sell cryptocurrencies at specific prices on your behalf based on their price predictions.
Put simply, AI crypto bots are like assistants that formulate trading strategies, prepare setups and help you buy or sell cryptocurrencies with or without your supervision.
Trading experts program crypto AI bots with fundamental and technical analysis techniques to make accurate predictions and engage in profitable trades with their results. They use advanced machine learning technology to ensure that the AI always executes trades with the best chance of profitability.
In addition, even though trading with AI bots has attached risks, as is the norm in crypto trading, they are not limited by your sentiments or emotions. This enables them to make buying or selling decisions that human biases typically defer.
Now that we’ve explained crypto AI bots, let’s talk about how they work.
How Do AI Trading Bots Work?
AI trading bots in crypto work similarly to those in the forex and typical financial markets, although we’re focusing on the former. They are trained by crypto trading experts and programmers using a special kind of machine learning called reinforcement learning.
This training enables them to analyze real-time crypto market conditions, identify patterns, and make trading decisions that are most likely to generate profits based on their analysis.
In addition, an artificial intelligence crypto bot utilizes a combination of fundamental, technical, and on-chain analysis to produce accurate signals and execute them simultaneously. As part of the technical analysis process, these bots can analyze a cryptocurrency’s historical data using market indicators to determine its future price movements.
Also, the machine learning capabilities of AI trading bots enable them to adjust their strategy when there’s a change in market conditions, helping them adapt just like a human trader would.
While a few exchanges provide custom AI trading bots, you may have to get one from a third-party provider. This means you have to connect it to your exchange for it to execute trades.
You can do this using an Application Programming Interface or API. APIs are like links connecting your trading bot with the exchange platform. This helps it execute the set-ups it generates and manage your trading portfolio.
When setting up your AI trading bot, you can choose its risk level. Of course, a low-risk setting will make it perform more conservative trades and fetch less profit. On the other hand, a high-risk setting typically promises potentially more profit.
Furthermore, some AI trading bots also allow you to customize specific trading strategies, such as MACD, RSI, or Bollinger Bands. Regardless, the level of customization differs from provider to provider.
What’s The Difference Between AI Trading Bots And Normal Crypto Trading Bots?
On the surface, it doesn’t seem like there’s much of a difference between the two, but AI trading bots are more complex and functional than normal crypto trading bots.
Let’s break it down.
Traditional or “normal” crypto trading bots usually operate based on pre-programmed rules and algorithms. Like AI trading bots, they are designed to follow specific trading strategies, such as moving averages (MACDs) or relative strength index (RSI) signals, to execute trades automatically when certain conditions are met.
However, they do not use machine learning to create these strategies. These bots rely on technical indicators and historical price data to make decisions. Hence, they cannot adapt to sudden changes in the market. At least not as well as AI crypto trading bots can.
On the other hand, AI (Artificial Intelligence) crypto trading bots incorporate machine learning and advanced algorithms to adapt and evolve their strategies based on changing market conditions.
They can analyze large datasets, identify patterns, and make more nuanced decisions beyond the scope of predefined rules. In addition, they have the ability to learn from experience, continuously improve, and adjust their trading strategies in response to dynamic market trends.
Types Of AI Crypto Trading Bots
There are several different kinds of AI crypto trading bots. They include the following:
- Chatbot Trading Bot/ChatGPT Trading Bot
- Futures Trading Bot
- Spot Trading Bot
- Bitcoin AI Trading Bot
- DEX AI Trading Bot
- AI Crypto Signals Bot
Chatbot Trading Bot / ChatGPT Trading Bot
ChatGPT is often used for AI based crypto trading, as it can generate codes for automated bots.
You can prompt ChatGPT to generate codes for AI trading bots that execute buy or sell orders on blockchains of your choice using a selected trading strategy. It takes a little bit of practice, but it works.
Aside from that, you can also use GPT-4 to provide signals for you as it can now connect directly to the internet and fetch real-time historical data about a cryptocurrency.
However, you’ll have to either generate a ChatGPT crypto trading bot to use its signals or use a third-party trading bot to execute them.
Futures Trading Bot
Futures trading bots are very specialized as they focus on the crypto futures market. These trading bots are programmed to handle the peculiarities of derivatives trading, making them very different from typical AI trading bots.
Analyzing and predicting the price movement of a cryptocurrency in the long run is essential in futures trading. So, these AI bots are designed to make inferences based on thorough fundamental and technical analysis before executing trades, enabling you to make profits using them.
Spot Trading Bot
Spot trading bots are specifically programmed for spot trading. Unlike futures trading, these AI trading bots offer lower risk since there’s no leverage involved.
Basically, they place buy orders at a relatively low market price and sell at a higher price. As with every AI trading bot, these tools analyze a cryptocurrency’s historical data and current market situations to determine the best times to make these trades.
Bitcoin AI Trading Bot
Bitcoin AI trading bots help you trade Bitcoin (BTC) by determining the best time to buy and sell the cryptocurrency through their advanced algorithms. They take advantage of the volatility of the coin’s value either in the short or long term to make profits.
BTC trading bots can employ a number of trading styles, including day trading, swing trading, and position trading, depending on how quickly you want to make a profit.
DEX AI Trading Bot
DEX AI trading bots primarily analyze DEX projects/tokens to find profitable opportunities for investment. For instance, if a token is about to launch, the AI can assess the entire project and check its chances of being commercially successful and fetching you a profit.
In addition, these trading bots perform their activities on decentralized exchanges rather than typical centralized exchanges. They help you automate P2P transactions anonymously and manage your DEX trading portfolio.
AI Crypto Signals Bot
AI crypto signal bots like Crypticorn’s evaluate market conditions and cryptocurrencies’ historical data to predict the best price and time to buy or sell them. These signals make for profitable trades because of the advanced machine learning technology they are programmed with.
That is, these bots are designed to seek out trades most likely to generate a profit, making for smooth artificial intelligence crypto trading.
Like typical AI trading bots in crypto, most AI signal bots allow you to choose a risk setting. However, you have to either manually trade their signals, or pair them with a normal trading bot.
What Are The Benefits of AI Auto Trading Bots?
Adjusting to market behavior
One of the main advantages of artificial intelligence crypto bots is that they can adjust to market behavior. When the market moves against their position, they can adjust their strategy to ensure they don’t incur losses for you. And when it moves favorably, they can switch strategies to maximize profits.
Using sentiment analysis
AI trading bots have the ability to perform sentiment analysis. They can sense the prevailing emotion (optimism, fear, greed, uncertainty, etc.) towards a particular token at any given time and adjust their trading setups to match.
This function is possible not only because of their artificial intelligence but also because they can connect to the internet and view the live price movements of cryptocurrencies.
24/7 automated trading
One limitation of humans is that we require sleep and rest to function efficiently. That, combined with other responsibilities, takes our time and prevents us from viewing market movements and trading constantly.
Thankfully, AI trading bots can function endlessly as long as your computer is on. They do not require rest and can continuously trade and adjust positions to make profits without taking breaks.
Effortless
You don’t have to supervise the trading process, change strategies, or adjust your position when performing a I bot trading. The bot does everything itself.
So you can relax and face your other activities while the bot handles the trading for you.
AI Crypto Trading Bots Based on Crypto Price Predictions
Some AI crypto trading bots like Crypticorn’s have the capacity to generate the accurate signals because of the elite price prediction algorithm they possess. Although some trades will not follow through as planned, because of how volatile the crypto market is, they can make predictions just as well as an expert trader would.
Moreover, these price predictions enable the AI to create strategies that are well-optimized for your trading portfolio. These can be straightforward logical strategies that stem from human ideas, or they can be complex, especially when the market is moving unsteadily.
The price prediction capability of AI trading bots for crypto is made possible through reinforcement learning. This machine learning technology enables AI to analyze the market deeply for the best setups that can generate a profit depending on the market situation. It will also continually adjust and optimize its position to ensure minimal loss.
In addition, AI crypto price prediction bots or AI signal bots can work hand in hand with AI trading bots for an automated and efficient trading experience. This means you get both automated signals and automated trade execution when you combine both.
What Are The Best AI Trading Bots For Crypto?
The market is flooded with many AI trading bots; as expected, only a few of them are great. So, having tested a couple of them, we recommend these as the top 5 best AI trading bots for crypto:
- Crypticorn AI Trading Bot
- Haas Online Trading Bot
- B-Cube AI Trading Bots
- Stoic-AI Trading Bot
- CryptoHero AI Trading Bots
1. Crypticorn AI Trading Bot
Crypticorn leads our list with its stellar AI trading bots that help you make passive income while you enjoy the things you like the most. The bots are designed with advanced machine learning technology, which enables them to assess trending news and market sentiment alongside historical data to create and execute profitable trading strategies.
Furthermore, you can customize the risk settings of the AI, helping you passively make income with a style that matches your risk appetite. They also support multiple cryptocurrencies across several trading platforms like Binance, BingX, and Bitget among others.
All you need to do to gain access to these incredible trading bots for free is to sign up for the $AIC presale.
2. Haas Online AI Trading Bots
HaasOnline’s AI crypto trading bots come second on our list having impressive AI bots that can manage your trading portfolio. If you have knowledge of coding, you may like the fact that they have a custom programming language.
However, these trading bots are not cheap, with their reasonable monthly offerings starting from $40.83. Still, HaasOnline’s trading bots are a great option if you’re looking to automate your trading portfolio.
3. B-Cube AI Trading Bots
B-Cube AI trading bots are great options if you’re looking for a quality trading bot that’s free and allows for a ton of customization. It offers Bitcoin spot trading bots, and AI bots that execute trades on select cryptocurrency pairs.
As expected, the freemium plan is rather limited, capping your trades at $500, while the Basic+ subscription starts at 49€.
Disadvantages: Poor performance. As we see from users in their Telegram chat (before they get banned) we can see that B-Cube AI’s trading bots don’t perform as promised. We want to issue a warning because of this. Banning users from a public Telegram chat is never a good sign.
4. Stoic AI Bot/ Stoic Trading Bot
Stoic’s AI trading bots are another wonderful option on our list offering trading AI bots almost on par with our best option on the list, Crypticorn.
They have a custom app that lets you view and manage your portfolio. Once you connect the app, you can deploy an AI bot from a pricing plan of your choice and begin.
One advantage of Stoic AI’s bots is their simplicity and straightforwardness. If you value these, then these are a good option for you.
5. CryptoHero AI Trading Bots
Last but certainly not least on our list is CryptoHero’s AI trading bots. Programmed by trading experts, these bots are designed to make setups that work.
Their backtesting feature is very advantageous as they can run simulations to determine the best setups in any given market condition, enabling you to pick the best trading strategy possible.
To begin, all you need to do is download the CryptoHero app on your appstore.
What Are The Best FREE AI Trading Bots for Crypto?
There are not many free AI trading bots that offer superb quality. Still, we believe these ones are pretty great despite being a bit limited. Here is our list of the top 5 best FREE AI trading bots for cryptocurrencies:
- Kryll Trading Bots
- Pionex Trading Bots
- ChatGPT AI Trading Bots
- Wunderbit Trading AI Crypto Bots
- b-Cube AI Trading Bots
Let’s dive into these and explain them in detail.
1. Kryll Trading Bots
Kryll has free AI trading bots on its app that is easy to use and pretty reliable. Although they support a lot of exchanges and can help you manage your portfolio across different platforms at once, they require a little more manual input than premium versions.
Still, you should consider it if you’re just starting trading or are looking to ease your trading process as a pro.
2. Pionex Trading Bots
Pionex offers up to 16 free trading bots, each optimized for a different trading style: spot trading, arbitrage trading, etc.
They’re good, considering they have low trade fees, are efficient, and are easy to use. But they’re not as automated and advanced than AI trading bots like Crypticorn’s.
3. ChatGPT AI Trading Bots
You can use ChatGPT to generate codes for AI trading bots you can deploy on exchanges of your choice. This is free and doesn’t cost any money.
However, using GPT-4 is a more reliable option, and it’s subscription based. Also, you may need to have some coding experience to utilize them.
4. WunderTrading AI Trading Bots
WunderTrading has AI trading bots optimized for different exchanges. They’re great, but you can only use them free of charge for seven days, after which you’ll pay a subscription fee or cancel the plan.
There are better options than this if you’re looking for a long-term free trading bot, but it’s good if you’re looking to make the most from a short-term trading strategy.
5. B-Cube AI Trading Bots
Even though you’ll enjoy more perks when you upgrade to a paid plan, it’s still a great option if you’re low on funds.
Red Flags For AI Crypto Trading Bot Providers/Platforms
While AI based cryptocurrency trading is pretty exciting, it comes with a lot of scams, as many providers are looking to make the most from the uptrend.
That said, here are some of the things you should look out for.
Asking for API Keys to Your Wallet
It’s easy to confuse the API Keys needed to connect your AI trading bots to your wallet with CEX keys. But don’t make the mistake of giving out these keys because the bot providers can drain your account if you do.
So, ensure to never give permissions to any external party to withdraw your crypto.
Unrealistic Results
Don’t be tempted by these get-rich-quick and FOMO (fear of missing out) ads.
Many scammers will tell you they have a 90% plus win rate and an ROI of 1% or more daily. Make sure to steer clear of them.
Beware of providers telling you their bots can give you 1% daily. Think about it. If you compounded 2% every day on 1000$ for one year, you would yield 1,377,408$. Yes, that’s 1.3 million.
If that’s possible, everyone would be using their bots.
Over-Fitting and Faking Backtesting Results
It’s easy to fake incredible results from trades. Everyone can easily create a trading strategy, run an optimisation algorithm, and create tremendous results. At some point the AI’s strategy and the optimisation will learn every low and high from the past and will only trade them perfectly resulting in unbelievable gains.
To avoid this, ask the developer for the trading strategy for live results or out-of-sample back tests to see the real performance. Because there is nothing worse than an overfitted algorithm that only loses you money.
Using AI as Marketing Hype
Many projects will tend to say they are using AI for their trading. A lot of them are liars that will use a simple strategy and overfit it, as mentioned above. If you really want to know if their AI trading bots are legit, ask them a few questions about their AI approach and what they did; if they just throw around some AI words and can’t explain them, it’s a red flag, and they are likely scammers.
Poor User Interface
One major indicator of a trading bot scam is a poor user interface. Although there are a lot of scams with great UI in the crypto space, most of the terribly designed bots are scams.
So, if you see a provider offering insane results but have a product you can’t use, it’s a scam.
How To Find The Best AI Crypto Trading Bots?
There are certain factors to consider when you’re looking for a great AI crypto trading bot. They include the following.
Check for reasonable drawdowns
A drawdown is basically the maximum loss you can incur if you start trading at the wrong time. That is, if trades go bad to the extent where you incur losses steadily, a drawdown worst loss you will incur.
Make sure to check the average drawdowns from recent trades the AI has executed before you start using it. Because the crypto market can be very volatile, profits are not always guaranteed. Make sure that you are going to lose only amounts you’re comfortable with losing.
Ensure you look for profitable ROIs
Telling you to check for profitable ROIs sounds counterintuitive, especially when we just warned you to beware of blown up ROI values.
But consider the ROIs which are the average results you can receive from trades. Focus on monthly or yearly results, as short term ROIs are often not very impressive even from accurate AI bots.
Risk-Reward-Ratio (RRR or RR for Risk-Reward only) and Win-Rate
Many AI trading bot fraudsters will provide a high win-rate because it attracts beginners.
But it’s not always straightforward. This is because of the risk-reward ratio. An AI trading strategy can be profitable even with a 40% win-rate.
Yes, you read correct. You lose more than every second trade, but you are still profitable. How? Easy, here’s an example:
Win rates are calculated in percentages which can be up to 100%. And often times, they are divided in multiples of four, as in this example. So, a 75% win rate means you win three trades and lose one. And a 25% win rate means you win one trade and lose three.
Risk-reward is expressed in ratios. For instance, if the risk reward is 5:1 it means you lose five units of crypto and win one during trades.
So a 75% win-rate and risk-reward ratio of 5:1 means that for every fourth trade you lose $5 while you win the remaining 3 trades with $1.
What’s the result? You lose money even with a “high-winning strategy.”
On the other hand, a 25% win-rate and RR of 1:5 means you win $5, while losing only $1 per losing trade. So, you lose 3 trades with -1$ each and win the fourth trade with 5$, which means you are overall profitable ($2)
Congrats! Now you know more than 99% of the people out there that fall for these high-win-rate scam strategies. Choose wisely and use simple maths and logic.
Seek AI trading bots with Good Reviews
You can never go wrong with AI trading bots that have genuine reviews from real traders. Make sure to check for balanced reviews because if a trading bot is over hyped, there’s a probability that it’s a scam.
Conclusion
AI based cryptocurrency trading enables you to diversify your trading portfolio and make profits passively. It’s no wonder that many people consider bots like Crypticorn’s the present and future of crypto trading.
While free AI trading bots offer some advantages, it’s best to invest in quality bots as they have a higher chance of helping you make profits.
Finally, beware of scams as a lot of people are riding the AI wave just to rug users and get away with their funds. Hopefully, if you follow the steps we’ve outlined in this article, you can choose an AI bot that works for you.
Make sure only to trade crypto assets you’re comfortable with losing, as crypto market conditions can be unpredictable sometimes. Always consider setting relatively safe stop loss levels before engaging a set-up. While you may make a lot of profits using its product, Crypticorn is not liable for any financial losses you incur when trading.
Q&A?
Are Crypto Trading Bots Profitable?
Crypto trading bots with reasonable risk-reward ratios and win rates are profitable. But generally, if a crypto trading AI uses a proper trading strategy and adjust to market conditions appropriately, it will likely be profitable. Still, there’s no guarantee for profits given the volatility of the
Are Crypto Trading Bots Legal?
Yes, crypto trading bots are legal. There aren’t any regulations against using them. So, you can use them for trading as much as you want.
Are AI Trading Bots legit? Is Crypticorn’s AI trading bot legit?
Yes, AI trading bots are legit. AI trading bots like Crypticorn’s are legit since they offer precisely what they promise, unlike scammy versions.
Still, ensure you understand the risks of trading using these bots before you begin.
