30 Best AI Crypto Trading Platforms to Make Passive Income

Updated on March 5th, 2024 by Quertime Team in Cryptocurrency

The popularity of trading has grown rapidly. Today, traders can predict and execute trades in seconds with the use of advanced trading tools. Given that trading activities are continuous, operating 24/7, it presents a formidable challenge to fully leverage every market opportunity, even for seasoned traders. As a result, experienced traders often rely on trading bots to overcome these limitations. They utilize algorithmic trading platforms to execute their trading strategies automatically.

How is AI revolutionizing the cryptocurrency trading landscape? We’ll explore the benefits and challenges of AI-based crypto trading bots, their significant impact on the cryptocurrency market landscape, and how you can leverage this technology to secure passive income.

The Use of AI in Trading

In the early 2000s, AI was first used in the trading industry when computers began to play a central role in financial markets. At that time, the system was still very simple, focused on rule-based algorithms and simple decisions. Several years later, some significant achievements and breakthroughs changed how the market functions. For example, we now have machine learning algorithms that can dissect large amounts of data in seconds. This led to uncovering an abundance of patterns and insights that were previously undiscovered. Additionally, by using AI, traders can also generate sophisticated risk management models when executing multiple orders on high-frequency trading.

Nowadays, AI Trading bots operate across various trading platforms automatically, according to the user’s preferences and risk tolerance. Some of the best AI trading bots are automated computer programs that execute specific tasks with minimal to no human intervention. In addition to being used for automated trading strategies, these bots can also be deployed to boost trading profits and generate passive income.

Types of AI Trading Bots

There are several types of AI trading bots. We’ll discuss three types of AI trading bots that are widely used by traders.

AI Crypto Trading Bot: AI Crypto Trading Bot refers to a specialized software created to simplify the buying and selling of cryptocurrencies on various exchanges. These bots use artificial intelligence and machine learning algorithms to analyze market information, recognize patterns, and execute trades based on predefined strategies.

AI NFT Trading Bot: The AI NFT Trading Bot is designed specifically for the Non-Fungible Token (NFT) market, where digital assets are traded. These bots utilize artificial intelligence to examine metadata, historical sales data, and market trends, allowing them to make informed decisions regarding buying and selling NFTs.

AI Stock Trading Bot: AI Stock Trading Bots focus on conventional financial markets by automating the buying and selling of shares and securities. These bots leverage artificial intelligence to research financial data, perform fundamental and technical analysis, and make data-driven investment decisions.

What is an AI Crypto Trading Bot?

AI Crypto Trading Bots are computerized programs that analyze market data and execute trades on behalf of users using AI algorithms. These bots can be programmed to follow specific trading strategies, make decisions based on market conditions, and execute trades more efficiently. This can save more time and energy while potentially generating higher profits for traders.

AI Crypto Trading Bots allow users to maintain trading activity in the markets 24/7, allowing them to trade continuously. Due to the volatility of the crypto market, it is difficult for humans to keep up with the constantly changing trends and execute profitable transactions or apply stop-loss orders at the right time. Additionally, this AI Crypto Trading bot allows users to automate processes in manual mode, allowing adjustments to strategies and risk factors based on user instructions.

How Do AI Crypto Trading Bots Work?

AI crypto trading bots work by using advanced algorithms to analyze market data, identify trading opportunities, and automatically execute trades on behalf of users.

Here’s how it works:

1. Collects and Analysis Data

AI trading bots continuously collect and analyze large amounts of market data from various sources, including price charts, order book data, trading volumes, and news feeds. Typically AI trading bots use advanced analysis techniques to identify patterns, trends, and potential trading opportunities in the cryptocurrency market.

2. Implementation of Trading Strategy

Based on the trader’s predefined trading strategy or parameters, the AI trading bot determines when to enter or exit a trade. These strategies can range from simple approaches like moving average crossovers to more complex techniques such as machine learning models trained on historical data.

3. Decision-Making

AI trading bots use decision-making algorithms to assess market conditions, risk factors, and other relevant variables before placing a trade. The bots take into account factors such as price movements, trading volume, volatility, and liquidity to make informed trading decisions.

4. Trade Execution

Once a trading opportunity is identified and a decision is made to execute the trade, the AI trading bot places a buy or sell order automatically on behalf of the user. They interact with cryptocurrency exchanges via API connection on each of the exchanges to execute trades in real time.

5. Monitoring and Optimization

AI trading bots continuously monitor the performance of executed trades and adjust trading strategies accordingly. The bots dynamically adapt to changing market conditions, optimize parameters, or employ risk management techniques to maximize profits and minimize losses.

Overall, AI crypto trading bots make the trading process easier and efficient, thereby enabling users to automate their trading strategies and capitalize on market opportunities.

What are the Key Features of AI Trading Bots?

Some of the key feature of AI trading bots are:

Simple and easy interface: Many AI trading bots offer intuitive user interfaces that make it easy for users to set up and manage their trading strategies.

Customized Strategies: Users can customize trading strategies to suit their needs, risk tolerance, and investment goals.

Security and Customer Support: The top AI trading bots prioritize security and implement measures to protect users’ funds and personal information. They also have reliable customer support for users to address any technical issues or questions they may encounter while using the bot.

Simplified Registration: The registration process typically takes between 2 to 5 minutes. Once successfully registered, you gain the ability to execute live trades.

Advanced Algorithm: AI crypto trading bots have a high success rate, indicating that these AI bots accurately predict trades in 80% of cases. Coupled with its sub-second order execution ability, this high success rate means it can execute profitable trades quickly, in the volatile crypto market.

Top 10 Leading AI Crypto Trading Bots

Automated crypto trading bots are available with various features, user interfaces, user experiences, as well as different software requirements. Let’s take a look at the most popular AI crypto trading bots available today:

1. Coinrule

Coinrule allows users to automate their cryptocurrency trading strategies without requiring any coding skills. With a user-friendly interface, traders can set up rules and conditions for executing trades across various cryptocurrency exchanges. Users can create custom trading strategies using a simple “if this, then that” logic, and Coinrule will execute the trades automatically based on these rules. The rules run 24/7 to make users’ portfolio management safer and more efficient. Coinrule makes implementing different trading strategies easy to meet the needs of both beginner and experienced traders alike.

Coinrule has many unique features such as its ability to let users set up rules for automatic trading, offering a range of templates that traders can choose from, demo wallet to test trading strategies in a risk-free environment, monitoring price trends for more than 10,000 different cryptocurrencies, supports leverage trading on multiple exchanges, and provides a TradingView Integration for even more advanced trading.

2. Altrady

Altrady is a multifaceted cryptocurrency trading platform crafted to empower traders with a wide range of tools and resources. It facilitates portfolio management, trade execution, and informed decision-making in the dynamic and often unpredictable realm of cryptocurrency markets. Whether you’re a novice exploring the digital asset landscape or an experienced trader seeking to refine your strategies, Altrady serves as your all-in-one solution for navigating the world of cryptocurrencies.

3. Octobot

OctoBot is an open-source cryptocurrency trading bot that enables you to buy and sell crypto assets without ongoing manual intervention. Instead of setting up manual trades or executing them by hand whenever you want to transact cryptocurrency, you can rely on the OctoBot automated program to execute trades for you. This ensures that you don’t have to keep your eyes glued to the screen to buy and sell crypto using OctoBot. Instead, you can set up specific trading strategies within the program and wait for the market to meet those conditions.

4. Kryll

The Kryll trading bot platform was built to allow users of any crypto trading expertise level to utilize and create automated trading techniques. Kryll hosts a user-generated strategies marketplace. The Kryll platform has a native token that became available to the public in 2018 through an Initial Coin Offering. Following the successful Initial Coin Offering, the token was listed on major exchanges. It offers over 280 strategies on its platform and enables users to trade on multiple exchanges simultaneously.

5. Bitsgap

Bitsgap is a platform tailor-made for crypto traders. One of its most notable characteristics is that it leverages AI-driven trading bots. A trading bot, short for “trading robot,” is a software program designed to streamline the process of buying and selling assets, such as crypto, stocks, or commodities, in financial markets. In addition to its automated trading bots, Bitsgap also functions as a portfolio management platform of sorts. With it, you can aggregate all of your cryptocurrency exchange accounts under one roof.

6. Tradesanta

TradeSanta is software that enables users to automate their cryptocurrency trading strategies in a simple, straightforward manner. It offers long and short trading bots that operate in both spot and futures markets, along with risk management tools to minimize exposure in unfavorable market conditions.

7. CryptoHero

CryptoHero operates as a cloud-based cryptocurrency trading bot capable of executing trades around the clock on various crypto exchanges. Because the platform connects directly with your crypto exchange account via API, you don’t need to deposit cryptocurrency directly with the platform. This means you don’t need to worry about CryptoHero going bust or running off with your crypto because it can’t. CryptoHero is trusted by thousands of experienced and novice traders around the world.

8. Pionex

Pionex stands out as one of the pioneering crypto exchanges to provide several in-built trading bots for free, presenting an excellent opportunity for beginners to automate trading, gain market insights, and capitalize on opportunities. The user-friendly platform offers ample liquidity, a wide selection of coins, and competitive fees of 0.05%. Featuring various earning and staking options, alongside crypto loans, Pionex serves as an ideal starting point for beginners and a valuable platform for experienced traders to leverage their expertise. If you aim to automate your trading and remove emotions from your investment strategy, Pionex is the go-to choice.

9. Cryptohopper

Cryptohopper is an automated crypto trading bot that enables users to take a hands-free approach to buying and selling altcoins. The trading bot scans the market 24 hours a day, 7 days a week, and opens positions based on users’ trading strategies and preset parameters. The Cryptohopper bot scans the market for the best prices to maximize profits. This innovative trading robot can be integrated with top crypto exchanges, including Binance and OKX, allowing for real-time trading of cryptocurrencies.

10. 3Commas

3Commas is a crypto trading platform, providing a wide range of features and tools for experienced traders. It connects traders to multiple crypto exchanges, enhancing the trading experience with automation and advanced tools. However, beginners may find the trading experience challenging.

Top 10 Open Source AI Crypto Trading Bots

Asides from the popular trading bots, there are also alternative crypto trading bots that you can use, these bots are mainly open source (and free) and also offer the customization needed to tailor the bot to trade in any way you prefer. All of these bots require some technical experience to set them up. Even though they are free, each provides many features to help keep your automated trading profitable.

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 platform offering a sophisticated trading bot for cryptocurrency markets. It provides users with automated trading strategies and tools to optimize their trading activities. With features like backtesting, trend analysis, and multi-exchange support, Cassandre aims to empower traders of all levels to make informed decisions and maximize their profits.

4. Freqtrade

Freqtrade is a crypto trading bot written in Python that is free and open source. It is designed to support all major exchanges and can be controlled via Telegram or webUI. Freqtrade includes backtesting, plotting, and money management tools, as well as strategy optimization by 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

An algorithmic trading library is a collection of code that offers functionalities and tools for developing, backtesting, and deploying algorithmic trading strategies. These libraries typically include functions for accessing market data, executing trades, managing positions, and analyzing performance. They are created to streamline the development process for algorithmic traders by providing ready-to-use components and tools for building and testing trading strategies.

1. Stocklook

Stocklook is an open-source project available on GitHub created by zbarge. It appears to be a tool for monitoring and analyzing stock market data. The project provides functionality for retrieving stock data, performing technical analysis, and visualizing the data through charts and graphs. Users can customize the data they want to analyze and use the tool to track stock performance over time.

2. Ta

This technical analysis library provides easy-to-use functions to perform various technical analysis operations on financial data. It is built on top of pandas, numpy, and other libraries, and it aims to simplify the process of calculating common technical indicators used in trading, such as moving averages, RSI, MACD, and others.

3. Ta-Lib

TA-Lib is a widely used open-source software library that provides tools for technical analysis of financial markets. It offers various functions for analyzing and calculating indicators such as moving averages, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and many others. TA-Lib is popular among traders and analysts who use technical analysis to make trading decisions.

4. TechAn

TechAn is a Go package for technical analysis of financial markets. It provides a set of tools for analyzing and visualizing market data, such as stock prices, using various technical indicators and charting techniques. The package is designed to be flexible and easy to use, making it suitable for both beginners and experienced traders.

5. Pandas Ta

Pandas Technical Analysis (Pandas TA) is a library that utilizes the Pandas package. It offers more than 130 indicators and utility functions, along with over 60 TA Lib Candlestick Patterns. It includes many commonly used indicators.

6. Ta4j

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

7. Technicalindicators

Technicalindicators is a JavaScript library for calculating various technical indicators used in financial analysis. It includes functions for calculating indicators like moving averages, relative strength index (RSI), MACD (Moving Average Convergence Divergence), and many others. This library can be used in web applications or Node.js environments to perform technical analysis on financial data.

8. Finta

Finta is a Python library for financial technical analysis. It provides a set of functions to calculate various technical indicators commonly used in trading, such as moving averages, relative strength index (RSI), and Bollinger bands. The library aims to be efficient and easy to use, making it suitable for both beginners and experienced traders who want to perform technical analysis on financial data.

9. Tulip Node

Tulip Node is the official node.js wrapper for Tulip Indicators. It offers over 100 technical analysis indicator functions, including simple moving average, Bollinger Bands, MACD, Parabolic SAR, Stochastic Oscillator, and more.

10. Pyti

Pyti is a Python package that provides a collection of common technical analysis functions for analyzing financial markets. It includes functions for calculating various technical indicators such as moving averages, relative strength index (RSI), and Bollinger Bands. These indicators can be used to analyze market trends, identify potential trading opportunities, and make informed trading decisions.

Conclusion

The top AI trading bots can assist traders in discovering more trading opportunities, mitigating risk, and potentially increasing profits. These bots provide a diverse range of strategies and can be utilized to trade not only crypto, but also stocks, forex, and more assets.