Discover the Power of Free Crypto Trading Bots

In the world of cryptocurrencies, trading bots have become a vital tool for traders. These bots are software programs that interact directly with cryptocurrency exchanges to analyze trading data and place trades on behalf of the users. They not only save time and energy but also increase the potential for profit by trading 24/7.

This article aims to guide you through the labyrinth of crypto bots, specifically focusing on the best free crypto trading bots available in the market. Let’s unravel the mystery of these bots and how you can leverage them to maximize your profits in the crypto world.

How Do Crypto Trading Bots Work?

Before we dive into the best free bots, it’s crucial to understand how these tools work. Trading bots, such as Cryptohopper, apply algorithms and trading strategies on historical and fresh market data to identify opportunities. They interpret the market data, place buy or sell orders, and track the trades.

def place_order(pair, order_type, quantity, price):
    params = {
        'symbol': pair,
        'side': order_type,
        'type': 'LIMIT',
        'timeInForce': 'GTC',
        'quantity': quantity,
        'price': price
    }
    return requests.post(base_url + 'order', headers=headers, params=params)

The above Python code snippet is an example of how a trading bot might place an order on the Binance exchange. The function takes in a trading pair (pair), order type (buy or sell), quantity, and price, and sends a POST request to the exchange’s API endpoint.

Why Use a Crypto Trading Bot?

There are several reasons why a crypto trader might choose to use a trading bot:

• 24/7 Trading: Cryptocurrency markets never sleep. Bots can trade round the clock, while humans can’t.
• Speed: Bots can process and analyze vast amounts of data much faster than a human.
• Emotionless Trading: Bots strictly follow the strategy programmed into them, eliminating emotional trading decisions.
• Backtesting: Most bots offer backtesting, enabling traders to test their strategies on historical data.

Best Free Crypto Trading Bots

1. Gekko

Gekko is a popular free and open-source bitcoin trading bot that can be downloaded on GitHub. It is supported on all major operating systems (Windows, Linux, MacOS) and offers features like importing historical market data, simulating live markets with historical data, and charting the results.

Gekko supports 18 different exchanges, including Poloniex and Bitfinex. It provides basic trading strategies that can be customized through a ‘plug and play’ feature.

2. Zenbot

Another free and open-source trading bot is Zenbot. Zenbot supports a larger number of cryptocurrencies and more trading pairs than Gekko. It also offers high-frequency trading and allows users to execute arbitrage strategies.

Zenbot’s codebase can be modified to fit different trading strategies and styles. One downside is that it has a steep learning curve, especially for beginners.

3. Shrimpy

Shrimpy is a free crypto trading bot that offers portfolio management, indexing the market, rebalancing, and strategy backtesting. One of Shrimpy’s unique features is its community, where users can follow and copy other traders’ strategies.

While the basic functionalities are free, they also offer a premium version with advanced features.

Conclusion

While free crypto trading bots can ease your trading process, it’s essential to remember that they are not a sure-shot way to make profits. They are tools that need to be used wisely and with caution.

Before using any bot, do your due diligence. Backtest your strategies, start with small amounts, and never invest more than you can afford to lose. As the saying goes, “Don’t risk what you can’t afford to lose.”

Remember, in the world of crypto trading, there’s no substitute for knowledge and experience. So, keep learning, keep experimenting, and may the crypto odds be ever in your favor!