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30 Best AI Crypto Trading Platforms to Make Passive Income

Posted on by in Cryptocurrency

The upswing in the popularity of trading has been astounding. Nowadays, traders can anticipate and conduct trades in a very short amount of time thanks to trade execution platforms. Trading actions are continuous with trading happening 24/7, so it is tough to always take advantage of all the market opportunities – even the most experienced traders may struggle to reach their goals. Thus, experienced traders will often employ trading bots as an effective tool to combat the challenges of successfully and fully implementing all their trades. Traders will execute their trading strategies by accessing and using algorithmic trading platforms that deal automation with great speed and effectiveness.

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How is AI changing the cryptocurrency trading environment? In this guide, we will discuss the good and bad of AI-based crypto trading bots, the impact of trading bots on the market, and how you can use trading bots to make passive income.

The Use of AI in Trading

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AI applied to trading took off in the early 2000s when computers began to take a dominant role in financial markets. At that time, the system still remained rudamentary, modelled on rule based algorithms (of simple binary decisions). A few years later, there were substantial developments & breakthroughs in how the market operates. For example, we have machine learning algorithms capable of analysing large amounts of data in seconds. This in turn provided a myriad of patterns or insights that we never even knew existed. Furthermore, AI allows traders to build more sophisticated risk management models on multiple orders to be executed for high-frequency trading.

Today, AI Trading bots can deploy to a variety of trading platforms completely automatically, as their developed usage by the trader depends on their discretion & risk tolerance. Some of the best AI trading Bots are automated computer programs that execute a task on behalf of the user, usually with little to no human input. In addition to automated trading strategies, they can also be used to enhance existing trading profits and create a passive income.

Types of AI Trading Bots

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There are multiple categories of AI trading bots. We will only identify three categories of AI trading bots used among traders.

AI Crypto Trading Bot – An AI Crypto Trading Bot is a tool defined as a type of program designed to assist in buying and selling cryptocurrencies on cryptocurrency exchanges. These AI crypto trading bots leverage AI and machine learning algorithms to receive, parse, and analyze the data related to the particular market and execute trades based on defined or learned trading rules.

AI NFT Trading Bot – AI NFT Trading Bot is designed specifically for Non-Fungible Token (NFT) markets, a market that trades digital assets. NFT trading bots leverage AI and machine learning to examine NFT metadata, sales history, and market trends and will help the trader make more informed decisions when buying NFTs and selling NFTs.

AI Stock Trading Bot – AI Stock Trading Bots address more traditional financial markets and automate buying and selling shares of stock and securities. AI stock trading bots will leverage AI and machine learning algorithms to review financial data, obtain an understanding of measurable financial relations via fundamental or technical analysis, and make decisions or recommendations based and based on that information.

What is an AI Crypto Trading Bot?

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AI Crypto Trading Bots are common computer programs that analyze market information and execute trades for users with the help of AI algorithms. They can be customized with trading strategies, help traders to make trades based on the current market conditions, and help traders make trades with greater speed and efficiency. This saves time and energy while gaining higher returns for traders.

AI Crypto Trading Bots maintain users trading the markets continuously, 24 hours a day, and 365 days a year. Trading can be continuous because of the crypto market volatility, making is difficult for humans to watch for every continuously changing trend to execute profitable transactions or execute stop-loss orders timely. Furthermore, this AI Crypto Trading bot allows users to automate processes in manual mode, allowing users to modify strategies and risk factors by providing instructions as the user sees fit.

How Do AI Crypto Trading Bots Work?

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AI crypto trading bots function by using algorithms to analyse market data and find trading opportunities automatically executing the trade for users.

How Does It Work?

1. Data Collection and Analysis

AI trading bots amass and analyse data from multiple sources with just about any trading information, price charts, orderbook data, trading volumes and even news feeds. It common for AI trading bots to find trends, patterns and potential trades when they utilize these factors and advanced analysis methodologies.

2. Trade Implementation Based on Trading Strategy

Once an AI trading bot obtains and analyses its required data, it must implement a trading signal process. Trade implementation involves the process by which an AI trading bot determines whether to buy/sell/hold and when to do it based on the pre-defined strategy or parameters set by the trader; this can be based on simple strategies, following just bitcoin moving average crossovers or something more complex like a machine learning model based on historical data.

3. Decision Making

Decision making, or trade execution decision is the process by which a trader sets up an automated order based on their predefined trading strategy or rules once a trade opportunity has been identified. The AI trading bot can determine when to enter size and where to limit and stop loss, only after it has assessed market conditions, risk objectives and other relevant circumstances. To do this, an AI trading bot must take into account other factors such as areas of liquidity, volume flow, price action and volatility findings.

4. Execute Trades

Once identified trading opportunity is confirmed, and when ready to move, the AI trading bot will execute automatically the order to buy or sell as an API connection allows for “real time” access to cryptocurrency exchanges. The trading bot will apply both liquidity as well as depth of level 2 orders to for accuracy and risk exposure.

5. Monitor Trades + Amend to Trading Strategy

AI trading bots can continuously collect and process performance data from trades executed in a market environment to efficiently amend trading strategies of each bot dynamically adhering to the changing market if required, optimize various parameters or even implement risk management protocols to assist with maximizing profit and minimizing losses.

Overall, AI crypto trading bots make the trading process efficient and easier turning a logistical nightmare into a virtually hands-free trading strategy making it possible for users to automate their trading strategies, orders and exploitation of the market.

What are the Key Features of AI Trading Bots?

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AI trading bots have several key features that distinguish them from human traders.

Easy to understand product: Many AI trading bots have simple interfaces, which makes it easy to set trading strategies.

Multiple customizable strategies: Users can customize the trading strategies according to their risk tolerance, investment objectives, personal needs, etc.

Security and customer service: The best AI trading bots are a priority for their security and implementing the necessary steps to protect your funds and your personal information. Furthermore, they also have customer support for users to help troubleshoot any technical issues or answer any questions they encounter while using the AI trading bot.

Fast and simple registration process: The registration process just takes about 2 to 5 minutes. Once registered, you are ready to execute live trades!

Advanced algorithm: If an AI crypto trading bot has a success rate of 80%, it means that it is able to predict trades accurately 4 out of 5 times. When combined with ability to execute orders in less than a second, then an AI trading bot can execute profitable trades quickly in the very volatile crypto market.

Top 10 Leading AI Crypto Trading Bots

Automated crypto trading bots come in different kinds, with a range of features, different user interfaces and user experiences, and also different software requirements. Let’s review some of today’s most popular AI crypto trading bots:

1. Coinrule

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Coinrule allows investors to automate their cryptocurrency trading strategies through simple interactions with automation, no coding experience required. The lengthiness of these paragraphs are annoying, but Coinrule’s ease of use allows traders to easily set rules and conditions with how they would like to trade on various exchanges in cryptocurrency. Users can develop trading rules or strategies from many templates that include simple “if this then that” logic, and Coinrule will trade automatically based on the predetermined rules. The rules run 24/7 in order to improve users overall portfolio management and provide a safer trading opportunity. Coinrule can support beginners and more experienced traders as they use multiple strategies.

Coinrule has many wonderful features for users including: ability to create automated training rules; many templates for users to select in automated trading; demo wallet to help users test their trading capabilities, it includes over 10,000 coins to track price and volume trends; support for leverage training across multiple exchanges; TradingView Integration for more advanced trading.

2. Altrady

Altrady is a versatile cryptocurrency trading platform designed to give traders a wide array of tools and resources in order to make trades on the go with regards to managing portfolios, executing trades, and making informed decisions in a rapidly evolving and sometimes uncertain cryptocurrency ecosystem. New traders getting started in digital assets as well as seasoned traders looking for opportunities to improve trading strategy are seeking a one-stop shop to assist in learning about, and navigating the world of cryptocurrencies, which is what Altrady is designed for.

3. Octobot

OctoBot is an open-source crypto trading bot that allows you to buy and sell crypto assets without needing to manage it continuously. Instead of personally creating manual trades or accompanying them by hand every time you want to buy and sell crypto, you can just allow OctoBot to execute the trade for you without requiring your attention to the screen to buy and sell crypto using OctoBot. Rather, you can build specific trading strategies in the program and wait for the price to hit those conditions.

4. Kryll

The Kryll trading bot platform was developed to enable anyone, regardless of their crypto trading experience, to use and develop automated trading strategies. Kryll has a marketplace for user-created strategies. Kryll uses a native token for the platform that was released to the public in 2018 via an Initial Coin Offering, followed by the listing of the token on subject exchanges after the Initial Coin Offering was complete. The platform is more than 280 strategies and allows the user to operate on multiple exchanges at the same time.

5. Bitsgap

Bitsgap is a platform designed specifically for crypto traders. One of its key features is that it deploys AI-powered trading bots. A trading bot is short for “trading robot”, a piece of software that facilitates the buying and selling of assets (such as crypto, stocks, or commodities) in financial markets. Bitsgap combines an automated trading bot with a sort of a portfolio management platform, you can bring all your cryptocurrency exchange accounts into one place.

6. Tradesanta

TradeSanta is a software that allows users to easily automate their cryptocurrency trading strategies. The software offers long trading bots and short trading bots on both spot and futures markets, in addition to risk management tools to reduce exposure in adverse market conditions.

7. CryptoHero

CryptoHero functions as a cloud-based cryptocurrency trading bot that can process trades 24/7 across multiple crypto exchanges. The platform connects with your crypto exchange account via an API, which means you don’t ever have to deposit cryptocurrency directly with the program. Therefore, you needn’t worry about CryptoHero going bankrupt or running off with your crypto, because it can’t. Thousands of experienced traders and novice traders trust CryptoHero across the globe.

8. Pionex

Pionex is one of the first crypto exchanges to provide multiple built-in trading bots free of charge and it is a great way for beginners to begin trading, research the market, and make a successful trade. Pionex is a smooth platform with sufficient liquidity, lots of coins of choice, and 0.05% trading fees. With several earning and staking options as well as crypto loans, Pionex is a wonderful place for a beginner to start trading and a serious option for more experienced traders to utilize their trading techniques. If you want to automate your trading and take the emotion out of your investment strategy, Pionex is the best option.

9. Cryptohopper

Cryptohopper is an automated crypto trading bot that allows you to automate the buying and selling of altcoins, technically a hands-off activity. The trading bot scans the market 24/7 and opens positions as defined by users’ trading strategies and preset parameters. Our bot scans the market, and trying to find the best price for maximum profits. This trading robot can connect with the best crypto exchanges to maximize trading in real-time with cryptocurrencies, such as Binance and OKX.

10. 3Commas

3Commas claims to be a cryptocurrency trading interface, and a hosting platform with a meaningful variety of features and tools for active traders. The 3Commas system connects a trader to multiple cryptocurrency exchanges in a reasonable way and enhances the trading experience by migrating the trading action to automate many aspects of trading. So for a beginner, the trading experience might be overwhelmingly hard.

Top 10 Open Source AI Crypto Trading Bots

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In addition to the well-known trading bots in the cryptocurrency trading sphere, there are also lesser-known crypto trading bots you can use. Most of these bots are open source (and free) and allow you the customization to configure the bot to trade in any way you would like, however, it is worth saying that they all will want some level of technical experience to set it all up. While they are free, just like other trading bots, each of these have a lot of features to help you keep your automated trading as profitable as possible.

1. Solie

The trading bot is designed specifically for targeting the futures markets of Binance. It allows you to create and customize your trading strategies, simulating them using real historical data from Binance with the power of Python.

2. Superalgos

Superalgos is an open-source crypto trading bot that allows you to visually design your crypto trading bot. It leverages an integrated charting system, data mining, backtesting, paper trading, and multi-server crypto bot deployments.

3. Cassandre

Cassandre is a sophisticated trading bot for cryptocurrency markets. It allows users to trade automatically using their own trading strategies and tools to enhance their trading experience. Features such as backtesting, trend analysis and trade on multiple exchanges, are intended to assist traders of all levels to make great decisions, and earned the maximum profit.

4. Freqtrade

Freqtrade is a free and open-source crypto trading bot. It is written in Python and is designed to work with all major exchanges. Freqtrade can be run via Telegram or webUI and includes backtesting, plotting, and money management features, and strategy optimization and machine learning.

5. Hummingbot

Hummingbot is an open-source project that integrates cryptocurrency trading on both centralized exchanges and decentralized protocols. It enables users to run a client that executes customized, automated trading strategies for cryptocurrencies.

6. QtBitcoinTrader

Multi-crypto exchange trading client. This software assists in quickly opening and canceling orders. It offers real-time data monitoring and is developed on pure Qt, utilizing OpenSSL, AES 256 key, and secret protection.

7. Wolfinch

Python trading bot supporting algorithmic trading for the equity market and cryptocurrency exchanges. The modularized implementation is easily extensible to support more exchanges, trading strategies, and indicators. A UI is available out of the box to view trades and allow basic controls in operation.

8. Fast-Trade

Backtesting library utilizing pandas and technical analysis indicators, built with strategy portability and performance in mind for back-testing trading strategies.

9. K

K is a low-latency market-making trading bot with a fully featured web interface. It can place and cancel orders on one of several supported crypto coin exchanges in less than a few milliseconds per order on a decent machine.

10. Kelp

Kelp is a trading bot for the Stellar universal marketplace and centralized exchanges such as Binance, Kraken, CoinbasePro, etc. Kelp includes configurable trading strategies and exchange integrations. You can define your parameters or use the sample configurations to quickly get up and running with a trading bot in a matter of minutes. The modular design allows you to create new trading strategies, exchange integrations, and assets to give you control over the bot.

Top 10 Algorithmic Trading Libraries

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An algorithmic trading library is a body of code that provides functionality and tools for developing, backtesting, and executing algorithmic trading strategies. Algorithmic trading libraries typically include functions for retrieving market data, placing trades, managing positions, and analyzing performance. Algorithmic trading libraries are designed to help algorithmic traders by giving contributors a large part of the development effort by supplying some components and tools whether it be for developing or testing trading strategies.

1. Stocklook

Stocklook is a project on GitHub built by zbarge that is open source. It may be a monitoring and analysis tool for reviewing stock market data. The project provides the ability to download stock data, analyze stock data through technical analysis, and the ability to visualize the data through line charts, bar charts, and other chart types. The user can decide what data they wish to look at, so they may choose any stock with the ability to monitor over time.

2. Ta

This technical analysis library provides easy to use functions to perform various technical analysis on financial data. The library is built on top of pandas, numpy, etc. Its purpose is to simplify code by calculating technical indicators/trading measures typically implemented when using technical analysis. This includes calculating moving averages, RSI, MACD, etc.

3. Ta-Lib

TA-Lib is open source software that is widely used for technical analysis of financial instruments. The library has many functions for analyzing and computing consistent indicators, moving averages, RSI, MACD, etc. TA-Lib has a passionate following in the world of financial instrument technical analysis for traders and analysts that use technical analysis for trading decisions.

4. TechAn

TechAn is a Go package for technical analysis on financial markets. The package supplies users with basic tools to analyze and visually present market data such as stock prices with technical indicators and charts. TechAn aims to be flexible and easy to use for novice and sophisticated traders alike.

5. Pandas Ta

Pandas Technical Analysis – Pandas TA – is a library that uses the Pandas package. Pandas TA includes over 130 indicators and utility functions as well as over 60 TA Lib Candlestick Patterns. The library contains many of the more commonly used indicators.

6. Ta4j

Ta4j is an open-source Java library for technical analysis of financial markets. Ta4j provides a rich set of tools for analyzing historical market data in order to assist traders in making informed decisions. Ta4j stands for “Technical Analysis for Java”. Ta4j allows users to perform various technical analysis techniques such as indicator calculations, backtesting trading strategies and generating trading signals. The library is designed to be flexible and extensible, making it suitable for novice and advanced users in the quantitative finance field.

7. Technicalindicators

Technical indicators is a JavaScript library for computing many of the technical indicators used for financial analysis. It contains functions for computing things like moving averages, relative strength index (RSI), macd, etc. This can be used in a web application or a node.js environment to conduct technical analysis of financial data.

8. Finta

Finta is a Python library for conducting financial technical analysis. It provides a basic set of functions to compute many of the various technical indicators used for trading like moving averages, relative strength index (RSI), Bollinger bands, etc. The library was designed to be both performant, as well as easy to use for both those new to programming and experienced traders looking to conduct technical analysis with financial data.

9. Tulip Node

Tulip node is the officially endorsed node.js wrapper for Tulip Indicators. It has over 100 technical analysis indicator functions including a simple moving average, Bollinger Bands, MACD, Parabolic SAR, Stochastic Oscillator, etc.

10. Pyti

Pyti is a Python package that provides some of the more common technical analysis functions used to analyze financial markets. It includes functions to compute a handful of the more common technical indicators (moving averages, relative strength index (RSI), and Bollinger Bands). These indicators can all be used to analyze trends in the market, find potential trading opportunities, and trend traders in making more informed decisions about when to make trades.

Conclusion

The best AI trading bots can help traders find more trading opportunities, reduce risk, and potentially increase their profits. They offer a range of different strategies, and can be used to trade crypto, stocks, forex, and potentially other assets.

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