Top 11 Best Crypto Trading Bots & Bitcoin robots in 2024

By:

James Knight

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.

 & 

Prash Raval

Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.

Updated:  Sep 30, 2024

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27 min read

Cryptocurrency trading bots offer a way to buy and sell crypto automatically. These bots are pieces of software that often use advanced technology, such as machine learning, large language models, and artificial intelligence, to identify profitable crypto trade ideas.

Most bots are relatively straightforward to use, as all you need to do is to sign up, answer a few questions, and set the bot to work on your behalf. But we know the idea of bots can seem strange at first.

This guide is designed to help you understand crypto trading bots, how they work, and how to choose one that’s safe to give you the best chance of success.

Our experts have rated & compared the best crypto robots in 2024 and ranked them based on their cost, security, and user experience. Learn how to separate the best bots from shady scams and pick a robot that suits your budget, goals, and risk tolerance.

Best crypto trading bots overall for 2024

Where can I find the best crypto trading bot?

Most popular

1

Min Deposit

-

Best offer

User Score

10

62% Users Report Profit from their First Deposit

Reported 31% Success Rate in High-Risk Investments

Get Support From A Free Advisor

Start Trading more info

Payment Methods:

Debit Card, Credit Card, Wire Transfer

Full Regulations:

We are aware of numerous websites which use false celebrity endorsements to send customers to unregulated brokers or call centers. Our website will only send customers to partners who have provided us with the required regulatory assurances. This is a marketing offer and our regulated partners will indicate what services they have available upon registration.

2

Min Deposit

-

Best offer

User Score

9.9

Get Support From A Free Advisor

Tax free unlimited profits

Lightning Fast Data Analysis 24/7

Start Trading more info

Payment Methods:

Bank Transfer, Debit Card, Credit Card, Bank Wire

Full Regulations:

We are aware of numerous websites which use false celebrity endorsements to send customers to unregulated brokers or call centers. Our website will only send customers to partners who have provided us with the required regulatory assurances. This is a marketing offer and our regulated partners will indicate what services they have available upon registration.

3

Min Deposit

-

Best offer

User Score

9.8

Start Earning Profits in 24 Hours

Robust Risk Management

Get Support From A Free Advisor

Start Trading more info

Payment Methods:

Debit Card, Credit Card, Wire Transfer

Full Regulations:

We are aware of numerous websites which use false celebrity endorsements to send customers to unregulated brokers or call centers. Our website will only send customers to partners who have provided us with the required regulatory assurances. This is a marketing offer and our regulated partners will indicate what services they have available upon registration.

Top 11 crypto bots in 2024, reviewed

1. Immediate Edge: Best for analysing historical crypto data to make trade predictions

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Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Fast withdrawal process No fees or commission Ability to perform manual live trading Integrates with prominent cryptocurrency exchanges Helpful 24/7 customer service

Accessibility to the platform depends upon your region/country There are statements about the robot that are hard to verify There's a lack of data on the team behind the robot

Overview

We love Immediate Edge because it uses AI to analyse historical crypto market data and identify winning trends. The Immediate Edge algorithm can be applied to 250+ cryptocurrencies and has a 99% success rate.

The Immediate Edge software is simple to get started with. Customer support is available after registration, when you’re assigned your own account manager to create a bespoke trading system and help with any questions you might have.

The fees: Immediate Edge is free to use, but you must make a $250 minimum deposit in order to be able to place live trades. Each trade is charged a trading fee of 2%.

Highlights

Features	Immediate Edge summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Immediate Edge >

Visit Immediate Edge Immediate Edge Review

2. Ethereum Code: Best for automated Ethereum trading with 24/7 assistance and advice

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...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Offers leveraged trading Advanced technological tools like AI Data secured by SSL encryption

Misleading information Unverified testimonials Lack of detail about team behind the platform

Overview

We love Ethereum Code because it’s a trading robot designed to generate the best returns on the world’s second most popular cryptocurrency. It can be set up to work with Ethereum, other leading cryptocurrencies, as well as other assets like forex.

Ethereum Code is regulated by CySEC, the Cyprus Security and Exchange Commission, as are all of the brokers it partners with. Customer support is available 24/7 and each user is given a dedicated account manager.

The fees: Downloading the Ethereum Code software is free and there are no costs for using a demo account. All trades are charged a 2% fee.

Highlights

Features	Ethereum Code summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Ethereum Code >

Visit Ethereum Code Ethereum Code Review

3. Immediate Connect: Best for analysing market data quickly

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...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Simple to register and no ID required Choose preset or bespoke trading strategies Trade BTC, ETH, LTC, and more with the help of AI Access to 24/7 customer support

Limited number of cryptocurrencies available Few details about the robot's founders

Overview

We love Immediate Connect because it’s a versatile robot that offers a hands off approach to cryptocurrency trading. You can download the bot, connect it to your exchange platform, and start trading instantly. With Immediate Connect, you can also play around with its settings to find the optimal parameters for your requirements. 

Another benefit of using Immediate Connect is that it is fully customisable. If you already have a profitable trading strategy, you can use Immediate Connect to fully automate it, meaning you can spend less time in front of price charts. 

The Fees: There’s a minimum requirement of $250 to open an account with one of Immediate Connect’s partner brokerage firms. You’ll also need to pay trading fees which range between 0.5% – 2%. 

Highlights

Features	Immediate Connect summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Immediate Connect >

Visit Immediate Connect Immediate Connect Review

4. Bit Index AI: Best for using AI and machine learning to trade Bitcoin

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...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Demo trading account is available Various modes of payments for deposits A mobile app is available Advanced technology used to place trades Easy process of registration

Testimonials are unverified False profit claims Lacks authenticity and uniqueness as a platform No information on founders

Overview

We love Bit Index AI because of the way it combines artificial intelligence and machine learning to predict crypto market movements. The Bit Index AI bot offers automated trading on 50+ cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin.

Bit Index AI uses brokers regulated by European financial authorities in Cyprus and abides by KYC regulations to keep your money secure. There’s a free demo account available so you can test the bot before depositing any money.

The fees: Free to download the trading robot but you must make a minimum deposit of $250. Trading fees may also apply but these vary depending on the broker you use.

Highlights

Features	Bit Index AI summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Bit Index AI >

Visit Bit Index AI Bit Index AI Review

5. Oil Profit: Best for finding trade opportunities in smaller markets

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Visit site

...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Simple sign up process Start trading oil and crypto for free Automates up to 20 trades per minute Fast withdrawals

Requires a high minimum deposit of $250 Many claims on the Oil Profit website are unverifiable

Overview

We love Oil Profit because it makes commodity trading accessible to everyone. The Oil Profit software is designed to work best with commodities but you can apply its algorithms to cryptocurrency and stocks as well.

Oil Profit partners with brokers that are regulated by European authorities, such as CySEC. That regulation offers investor protection so that your money is safe. You can also test the software with a free demo account before depositing any money.

The fees: You must put down a $250 deposit before you can use the software. Trading fees range from 0-2%. The demo account is free but you must download the software in order to use it.

Highlights

Features	Oil Profit summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Oil Profit >

Visit Oil Profit Oil Profit Review

6. Bitcoin Bank: Best for using AI to place your own manual trades

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Visit site

...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Multiple options for payment and withdrawals Availability of demo account Partnered with regulated brokers Various instruments available in forex markets

Lack of details on the team behind the robot Unverified claims about profits made by users Very similar to other websites with different domains

Overview

We love Bitcoin Bank because it’s a trading robot that works on all types of currencies, whether they’re digital or fiat. Bitcoin Bank uses decades of past price data to train its software to identify winning patterns and trends.

All of that data is then available to you, so that you can either automate trades or manually place them based on the information at your disposal. This flexibility is a key selling point, as it allows you to utilise advanced technology while still maintaining control over your money.

The fees: The software is entirely free, and you can use a demo account for free as well before depositing any money. You may have to pay a trading fee on each trade. The exact amount is set by each individual broker, but can be as high as 2-3%.

Highlights

Features	Bitcoin Bank summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Bitcoin Bank >

Visit Bitcoin Bank Bitcoin Bank Review

7. The News Spy: Best crypto bot for analysing the latest market news

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Visit site

...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Signing up is smooth and simple There are no hidden charges or fees Offers multiple payments method A useful 24/7 customer support service

Lack of information on its official team members Unavailable services in some countries

Overview

We love The News Spy because it uses a custom built algorithm to analyse the latest news releases. The bot is programmed to react very quickly to news relating to the cryptocurrency industry and automatically place highly probable trades. 

The News Spy also has a manual mode, where you can adjust its settings to react to specific news for select cryptos. You can also program it to trade based on your own strategies, meaning it will buy and sell when instructed. The platform itself is designed with beginners in mind and only takes a few minutes to get up and running. 

The Fees: There are technically no fees to download and use The News Spy, however, you need to register an account with one of its recommended partner brokers. These brokers have a minimum deposit requirement of $200. 

Highlights

Features	The News Spy summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	The News Spy >

Visit The News Spy The News Spy Review

8. Trader AI. Best for automated high frequency crypto trading

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...

Fees

$...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Intuitive trading robot backed by AI Algorithm designed for crypto and stock trading Access high frequency trading speeds Dedicated account manager for every new user Free demo account

$250 minimum deposit makes it expensive for beginners

Overview

We love Trader AI because it offers high frequency trading that makes automated software a practical option for fast-paced trading strategies. With Trader AI it’s possible to automate a successful day trading or scalping strategy, using its rapid analysis and execution techniques to dive into the market.

Trader AI uses advanced software to perform in-depth analysis of crypto market data. From that data it’s able to identify small windows of opportunities for rapid trading, where you can place large trades on small changes in price over a short period of time. This method of trading is unmatched by any other crypto robot.

The fees: You must put down a deposit of $250 in order to use Trader AI. This isn’t literally a fee, but it more or less acts as one as you have to make that initial deposit before using the software. You then also pay trading fees, which are set by third-party brokers and normally range form 1-3%.

Highlights

Features	Trader AI summary
No. of tradable assets
Min. Deposit
ID verification required	No
Free demo account	No
Supported assets
Mobile trading app	No
Web trading platform	No
Regulatory bodies
View more >	Trader AI >

Visit Trader AI Trader AI Review

Read crypto robot reviews

Aren’t sure how to choose? That’s exactly why we’ve provided reviews for you to read and compare best cryptocurrency trading bots available. Find reviews for the most recognised crypto bot brands like Immediate Momentum, Bitcoineer, Everix Peak, and Trader AI, all thoroughly investigated by our team of reviewers.

Here’s a full list of the best AI crypto trading bots to trade Bitcoin with:

What are auto-trading crypto robots?

Crypto trading bots are automated services that buy and sell crypto for you. Bots (which are also known as automated trading software, expert advisers, trading robots, or Bitcoin robots) use software to create a series of guidelines and then execute trades according to those rules.

Each advanced crypto trading bot has its own set of guiding principles and you can adjust them to suit your preferred trading style. They constantly monitor chart patterns and market news, among other advanced trading indicators.

The bot then uses this information to search the crypto market to find trading opportunities based on the criteria you set. After analysing the available information, they can execute a trading order within seconds.

While crypto trading robots have been available for decades in other financial markets, they are relatively new to cryptocurrency. They are also pretty affordable. Access to Bloomberg’s trading terminal would cost thousands, but the transparent nature of crypto allows a user to directly access an exchange’s order book for far less money.

What types of crypto trading bot are there?

The most common types of bots are trend trading bots, which use a range of different tools to help identify which way a crypto price will move and then execute orders in line with the current market movements, and crypto signal bots, which analyse the crypto market and then send trade alerts whenever they see a pattern that indicates a buy or sell opportunity.

Here are some other popular types of bots:

• Grid trading bots. A grid trading bot follows a crypto trading strategy called ‘grid trading’. It involves placing a number of trades at predetermined values around a fixed price. As the name suggests, a grid bot constructs a grid around that fixed price point and then executes trades automatically, buying more crypto when prices are below the value and selling more when it’s above.
• Arbitrage bots. An arbitrage bot is designed to place crypto trades with different crypto exchanges to take advantage of small differences in price between them. Arbitrage trading is a common crypto trading strategy. For instance, if the buy price of a coin is higher on one crypto exchange than on another, the bot automatically places crypto trades to buy at the lower price and sell at the higher one, making a small profit each time. You may find a type of arbitrage bot known as a spot futures arbitrage bot, which takes advantage of the difference in price between the spot and crypto futures markets.
• Rebalancing bots. A rebalancing bot ensures that the ratio of crypto coins in your portfolio remains the same as the value of each coin rises and falls. If have $500 of BTC and $500 of ETH, then the price of BTC falls, it would automatically sell some Ethereum to buy more Bitcoin and keep the ratio the same.
• Market making. These types of bots provide liquidity to exchanges by automatically placing limit buy and sell orders using artificial intelligence. They aim to profit from the spread between the orders they place.
• Momentum trading. A momentum trading bot uses technical indicators to identify and capitalise on trends. They detect rising or falling prices and trade accordingly to ride market swings and volatility.
• Mean reversion. These bots do the opposite, and betting prices will revert to historical averages after major movements. They rely on the assumption that markets fluctuate around a mean.
• Copy trading. Social trading robots allow novice traders to automatically duplicate the trades of experienced, proven traders on connected exchanges. This mirror copying provides exposure to successful crypto trading strategies.
• Sandwich bots. A Sandwich bot attempts to manipulate prices by placing large buy and sell orders before and after entering a position to swing prices up or down before closing the trades.

Other forms of AI crypto trading bot perform scalping trades. These are much more high frequency crypto trading bots that look to take advantage of very small price changes, or price inconsistencies across exchanges.

There are also bots that follow other crypto trading strategies, such as dollar cost averaging bots, which invest automatically at regular intervals, or Martingale bots. A Martingale bot is designed to gradually reduce your average position cost over time by selling as prices rise, and buying as prices fall.

How do AI Bitcoin robots work?

In basic terms, crypto trading bots work by sending and receiving data from an exchange. Cryptocurrency exchanges allow developers to attach their auto trading program via the use of an API and the API sends market data to the bot. The bot analyses the data and follows an automated trading strategy (or trading strategies) to place crypto trades on your behalf.

Using technical indicators and its pre-defined algorithm, the crypto robot calculates a trade and sends the execution details to the API. Finally, the same interface sends the order of trade, which is then automatically executed by the user’s exchange account.

Many crypto trading bots can also be used to carry out trades based on your own automated trading strategies if you set pre-defined conditions. This is particularly useful for crypto markets because they are active 24/7, all year round. For example, a user might input the condition to execute a long position as soon as the price of 1 BTC crosses $70,000, while maintaining the stop loss restricted to 4% volatility. This enables the BTC robot to execute the trade automatically, as soon as the conditions are met.

Read more: How do Bitcoin trading bots work

Are AI crypto trading bots legit? Will they make me money?

Yes, many popular crypto trading bots are entirely legitimate. However, as with almost any market, there are some scams, so a sensible degree of caution is advisable. Be particularly careful of anything that advertises itself as a completely free crypto trading bot, as they often come with a catch or are outright scams.

A Bitcoin trading robot can be thought of as a tool to help in the development and execution of your crypto trading strategy. Trading robots use artificial intelligence, machine learning, or other forms of computer algorithms to take emotional and psychological considerations out of the equation. They can be ideal for new crypto traders, or anyone who struggles with self-discipline.

While there are advantages to using cryptocurrency trading bots, there are no guarantees. Many of the trading strategies they use can be profitable in some conditions, or at certain times, but they’re unlikely to be successful all the time.

Are crypto robots safe and secure?

Yes, the best crypto trading robots have proper security protocols in place to prevent you from getting hacked. Scepticism towards them is understandable as they use third-party API applications to connect with user accounts, but access can be withdrawn at any time by deleting API keys on the crypto exchange. 

The important thing is to always keep the API keys for your Bitcoin robot safe and do not disclose the information to anyone. You should also turn off automated withdrawals and do them manually, and keep the private keys to your crypto wallet secure. Ultimately, the most important thing is to do your own research thoroughly before choosing a crypto bot. 

How do I find a genuine crypto trading bot?

There are a few tell-tale signs that can help you find a genuine cryptocurrency trading bot as opposed to a scam. Here is a list of what to look out for to identify a genuine platform.

• Clear information about how the AI crypto trading bot works. Legitimate Bitcoin trading bots explain how the software works in detail, and allow you to sign up to test the platform without depositing any money first. Scams tend to speak vaguely and hide behind terms like ‘advanced technology’ or ‘quantum computing’ and promise unrealistic returns.
• Names the brokers or exchanges it partners with. Crypto bots work by sending trades to brokers or exchange platforms in order to execute them. Genuine bots state clearly who those brokers are, and you should look for reputable firms like Binance, Kraken, or Huobi. Beware of any platform that doesn’t name its partners, as it means they are likely unregulated and could be dangerous.
• Professional website. A genuine service will have a sleek website that looks like something a real company would have. You will be able to easily find information about the company, who works there, and it should have a support page. Fake crypto auto trading bots have websites that are usually just one or two pages with no information about the team behind the bot.
• Doesn’t hide behind celebrity endorsements. Some fraudulent crypto trading bots often make wild claims about famous personalities who have used or endorsed the platform in lieu of hard facts about the service. Any crypto bot that claims to be endorsed by the likes of Elon Musk or Bill Gates is almost certainly a scam.
• Low minimum deposits. A genuine crypto robot is likely to require only a small starting deposit, such as £10 or £50. It will also offer a free trial period that you can use before you deposit anything to test how the platform works. A scam will ask for $250 or more, and may promise a demo account but you won’t be able to access it until you’ve made the deposit.
• Unique description of the platform. Browse around a few crypto robots and you’ll see that the genuine ones each have a unique selling point and are notably different. By contrast the scams all make very similar claims; trading success rates of 80% or more, $250 minimum deposits, and require a call with a ‘customer service representative’ before you can complete sign up.

How to choose your perfect AI cryptocurrency robot

We’ve compiled a list of factors that help you select the best crypto trading bot to suit all your needs. This can help you choose the best Bitcoin robot and create the perfect trading system.

• Backtest its performance. The best Bitcoin robots allow you to backtest your present crypto trading strategy against historical data. Backtesting allows you to understand the crypto trading bots and their trading strategies, as well as to gather information that might be useful if you want to create your own optimum trading strategies. It also helps you filter out obvious scams, which are any crypto bot that doesn’t provide verifiable backtesting information.
• Find the right pricing plan. Study the fee structure for any crypto robots you’re considering using before you sign up. Most of them have more than one plan, with basic and advanced packages available. The most advanced crypto trading bots might have a sliding scale of subscription options, from a free trial version to extensive paid plans. The fee structure varies from around $20 per month to as much as $100 for advanced or pro packages. You are much better off shelling out for a paid-for plan, as a platform advertising itself as a free trading bot is likely to be a scam.
• Review compatible exchanges. Check if your selected crypto robot is compatible with the exchange you generally trade on. The most popular robots typically support prominent exchanges including Binance, Bitstamp, and Kraken. 
• Look for multiple payment methods. Most crypto trading bot service providers offer common payment methods, including wire transfer, credit card and PayPal. In addition to traditional methods, many software providers have also started offering Bitcoin and other cryptocurrencies as payment options. 
• Check deposit and withdrawal limits. Deposit limits may vary between service providers. Bitcoin robots require you to fund your account with a minimum investment. Robots like Immediate Connect have a requirement of $250 per month.
• Prioritise reputation. Before you choose your Bitcoin bot, take a close look at any online testimonials you can find and verify if customers are completely satisfied. We also offer genuine reviews that should help you to make a well-informed decision as to which are the top crypto trading bots. 
• Use a secure API. The crypto trading bot will be connected to your exchange account so make sure it uses a secure API to transmit your trades. The best Bitcoin robots have tutorials and video guides to help you. Be wary of any cryptocurrency trading platform that just asks you for money and doesn’t offer any guidance on how to stay safe.
• Test it to make sure it works for you. The user-interface and design of your chosen automated crypto trading bot should be intuitive and easy to navigate. Sign up for a free demo account to familiarise yourself with the software before you deposit any money. Demo trading is a great way to test a Bitcoin robot before you risk your money.

Quick answers to key questions

Is it legal to use an AI cryptocurrency trading bot?

It is perfectly legal to use a crypto trading bot in any jurisdiction where crypto trading is permitted. Automated trading is a widely accepted practice in traditional finance and many stock market trades are placed automatically. A crypto bot is simply a means of trading that doesn’t require a human to manually place the trades, and it doesn’t bend the rules in any way.

However, there are obviously some caveats to this. Some AI crypto trading bots are outright scams, while others use unethical tactics, if not openly illegal. That can include things like ‘pump and dumps’, or services that direct crypto investors to unregulated brokers who will simply take your money and run. Those bots operate outside of the law.

Similarly, you must still abide by investing laws in your country. Some countries have banned crypto trading outright. You can’t use a crypto AI trading bot if you’re a resident of those places.

Will I also need an online exchange account?

Yes. A Bitcoin trading robot finds trading opportunities but it doesn’t place the trades itself. It sends the trading signals to a cryptocurrency exchange, where the order is executed. You can connect a Bitcoin robot to the exchange via an API.

Choose one of the best crypto exchanges and set up an account. Then go to your crypto trading bot account settings where you can find details about how to connect to the account via an API. You need to find the API key, and then enter that into your Bitcoin bot to connect the accounts together.

What are the fees for using automated crypto software?

Each crypto robot has its own pricing structure but you usually have to pay a subscription to use one. Often there are multiple packages available depending on how many different trading strategies you want to run. These can range from $10 up to $100 or more for the best crypto trading bot with the most advanced package.

There may also be other hidden fees as well. Along with the subscription to your crypto trading bot, you may have to pay trading fees or commissions. These can mount up quickly and make running a Bitcoin robot quite expensive. Make sure you pick an exchange with low trading fees if you plan on sending a lot of trades.

Some of the best trading bots for crypto choose to avoid a subscription fee altogether. Instead, you may be asked to put down a minimum deposit of $250 before you can start trading. This is how Immediate Bitwave sets out its fee structure and the same is true of many other trading robots.

How do I verify past performance of a Bitcoin bot

Evaluating the historical track record and backtested performance is crucial for identifying the top-performing cryptocurrency trading bots using artificial intelligence and automated trading algorithms. Reputable Bitcoin bots provide transparent backtesting results based on historical market data. 

Backtesting simulates how the bot’s trading strategy would have performed in prior market conditions. Taking the time to analyse these results allows you to assess returns, risk management, drawdowns, and other metrics. The best crypto trading bot platforms offer easy to use backtesting capabilities. Traders can evaluate factors like win rates, return on investment, Sharpe ratios, and Sortino ratios. 

Advanced trading bots like Immediate Connect have configurable backtesting options across multiple time frames and dates. Analyse the backtest report data to verify past performance, including simulated profit/loss, cumulative returns, risk adjustments, exchange fees impact, and technical indicators used.

You should also evaluate the backtesting methodology the crypto bot platform uses. Robust bots use historical OHLCV candle pricing data across various market cycles to simulate live automated trading. The top platforms provide position sizing and risk management modelling for backtests too. Also, research actual live trading results posted by top traders using the bot. Many platforms have social trading communities where experienced bot users share their portfolio performances. 

Do I have to pay tax on automated crypto trading?

Yes, if profits from crypto transactions are taxable in your location (and most are), then it is highly likely that using automated software will result in having to pay tax. How much you have to pay depends on a wide range of factors, such as where you live and the size of your annual income, and you should contact a tax professional or accountant if you aren’t sure about the laws where you live.

In most countries, cryptocurrency is classed as property or an asset. This means any profits you make using the best Bitcoin trading bots will be subject to a capital gains tax.

In the US for example, Inland Revenue Service (IRS) rules dictate that you have to pay tax if you hold your crypto assets for longer than a year, if your annual personal income exceeds $44,000 or your household income is more than $80,000.

Where can I find free crypto trading bots?

Social trading networks are one of the easiest ways to find free bots. Firms like eToro and ZuluTrade have led the way in social trading and offer a place that connect experts with beginners. Experts link their trading accounts to the network, and other users can copy the trades automatically into their own accounts.

Other options include simply using Google – although this can be time consuming and puts you at risk of signing up for scams – finding crypto trading bots through online reviews, or using open source robots that are freely available.

Open source crypto robots like Zenbot and Gekko can be quickly installed and customised. To get the best use out of them you’ll need to have some coding skills, but these bots have active online communities where you can find and share ideas.

Can I use a Bitcoin trading robot on MetaTrader4 (MT4)?

Yes, if your broker has the Bitcoin market available with MT4 then you will be able to use a crypto trading bot on the platform to trade it. On MetaTrader 4, robots are referred to as expert advisors (EAs) so if you buy automated trading software, you’ll need to make sure it works as an EA.

All you have to do is buy an EA online or from the Metaquotes app within the MT4 platform. Your Bitcoin robot will be a file that you’ll save to your computer, usually in the C drive. Open up the file called ‘experts’ within your MetaTrader 4 and paste your robot into it.

Next, open up the MetaTrader 4 platform and find the ‘expert advisors’ section. Click the ‘plus’ sign and select the EA you just transferred. Finally, drag it onto any chart and it will be ready to go. We recommend that you use a virtual private server (VPS) when using an EA on MT4. A VPS makes sure your crypto bot trading platform is operating around the clock, which is especially important for Bitcoin as the market is open 24/7.

Can I create my own crypto robot?

If you have coding knowledge then making your own Bitcoin trading robot on MT4 is easily achievable. You will have to use MQL4, which is a coding service offered by Metaquotes. Alternatively, there are lots of third party vendors that allow you to create a Bitcoin EA for MT4 without any coding experience.

You can then program the crypto trading bot to follow a set trading strategy or set up multiple automated trading strategies. You can tweak and change these at any time.

Do AI crypto trading bots use copy trading strategies?

No, crypto bots use algorithms and machine learning to research market data and identify potential trades. This is different to copy trading, which is about following a human trader’s positions and copying them to your own account. The best trading bots are entirely automated and don’t require much input from you, beyond setting the risk parameters.

Copy trading, on the other hand, involves more active portfolio management, but can be a very good way to learn about how the crypto markets work and how advanced traders make their money. You get to see their own trading strategies in action and then copy the trades of people you deem worth following.

How to set up a crypto trading robot safely

Each type of crypto trading bot is set up differently and may require different skills in order to get it to work. For example, if you buy a crypto trading bot online, you just have to connect it to your exchange or broker platform. If you design your own, then you may need to write some computer code before it works properly.

It’s more common to buy a robot online or to subscribe to an automated service. Here’s a quick guide that explains how to set up a bot you’ve acquired online.

If you opt to design your own cryptocurrency bot, you can follow the above process to set it up. However, you need to use a programming language to code it, which requires fairly advanced technical knowledge. If this is something you are unfamiliar with, there are many services online that allow you to design and create your own Bitcoin trading bot on easy to use platforms. 

How to make passive income from cryptocurrency trading robots

Setting up a crypto bot to earn passive income requires a bit of work before you can get the perfect performance. Here are five top tips to give you the best chance of success.

• Find a profitable crypto trading bot. You won’t be able to make passive income unless you use a profitable crypto bot. You can either develop your own, buy one, or find a free automated trading bot. You can search for trading robots online, or use the many independent reviews we have on Invezz to find one that’s profitable. 
• Set it up right. Many crypto auto traders are sold as ‘set and forget’ software, but most require some adjustments if they’re to work at peak performance. You can decide which automated trading strategy you want the bot to follow, what you want it to trade, and set the risk protocols. It’s important to do all of this before you set your bot to work.
• Manage your risk carefully. During the process of setting up your cryptocurrency trading bots you will be able to set your risk parameters. If you want to make passive income using a bot it’s important to keep your risk at a level that is able to sustain the volatile market conditions which are often experienced in cryptocurrency. 
• Check in on the bot regularly. To make the most amount of money you will have to check up on your crypto trading bot at regular intervals. It is risky to not pay attention to how your robot is performing. If your bot is not generating as much passive income as you’d like you may be able to change its settings, or adjust your risk parameters. 
• Use multiple crypto trading bots. There are lots of types of crypto bots and making passive income can be easier if you use more than one. You could use a scalping robot to capitalise on short term price movements when markets are slow. You could combine it with a swing trading bot to earn money from trending markets. 

What are the risks of using a Bitcoin bot?

There are now so many crypto bots out there that inevitably some of them turn out to be scams. Scam crypto bots can take your money and run, or they can encourage you to keep depositing more money to a fraudulent broker platform.

If you have never used an automated trading bot before, you should spend time researching the market and reading online reviews before you sign up to anything. Look for websites that seem professional and where you can backtest the software’s performance against historical market data.

There are other risks too, as any form of trading runs the risk of losing money, and cryptocurrency is a volatile asset class which has come under the glare of financial regulators over the past couple of years. Here are some more of the risks of using a crypto trading bot:

• Some crypto bots turn out to be scams that take your money or direct you to fraudulent or unregulated broker platforms
• No trading strategy, whether manual or automated, guarantees success and you can lose money very quickly if the market moves against you
• With a crypto bot, you have limited control over the trades it decides to make on your behalf
• Most Bitcoin robots charge a minimum deposit of $250 or more, which is a significant amount of money for a beginner to deposit without any guarantee of success

There’s no doubt that the best crypto trading robot has the potential to seriously upgrade your trading capabilities, but It’s important to keep in mind that robots don’t guarantee profits. While a Bitcoin robot can add speed, accuracy and discipline to your trading strategy, you should regard it as a tool to be deployed intelligently rather than a fix-all solution.

Methodology: How did we choose the best Bitcoin robots?

Helping people make better financial decisions is at the heart of our mission at Invezz. 

We periodically test more than 48 cryptocurrency trading bots to provide our users with clear, accessible guidance on the investing options available. All testing is carried out by our panel of crypto experts, analysts, and active traders who sign up to each robot, conduct research, and score each service.

Our tests are designed to find crypto trading robots that offer a beginner-friendly, secure trading experience at a fair price. To supplement our practical testing and experience, we research each robot to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.

Each crypto trading bot is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit & withdrawals, investing options, range of products/markets, research & analysis tools, and the availability of educational & learning resources.

We work closely with individual crypto robots to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process. 

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