Best AI Crypto Trading Bots in 2024

A simple thing like an automated crypto trading bot could not avoid the influence of quickly evolving artificial intelligence technologies. The role of these novel systems in algorithmic trading is hard to overestimate. Since machine learning allows for extensive training using massive volumes of data, it is possible to make a program extremely proficient at analyzing market dynamics and coming up with a reliable short-term plan for action.

What AI crypto trading bots are capable of?

A report by Grand View Research estimates the volume of the algo trading market at $11 billion with a projected growth of 64% by 2027. The report was published in 2021, before the beginning of the AI craze around the world, and many headlines were generated by the success of OpenAI’s ChatGPT. With the current pace of development of the concept in the blockchain industry, it seems to be a good idea to rethink these estimates at the very least for the blockchain industry.

The CFA Institute, a global educational platform for financial experts, conducted a study where it compared traditional and AI-powered algorithmic trading systems. The results were not unexpected. Modern independently thinking software agents outperformed traditional strategies consistently and delivered better results in the long term. Note that the study was conducted before 2023 when the whole world seemingly shifted its attention to the next generation of ML-based systems.

Another huge change in the landscape of contemporary automated trading is the employment of deep learning algorithms by many companies producing consumer-grade and large-scale systems for individual retail traders and financial institutions. As more infrastructure providers start catering to the new wave of developers, deep learning algorithms are becoming cheaper and easier to deploy even by relatively small teams.

Companies like JP Morgan and Goldman Sachs have dedicated teams that work on creating advanced analytical systems capable of forecasting various trends in several seemingly disconnected markets and assisting in building perfectly balanced portfolios.

Even software agents that are not specifically trained in financial data can deliver good advice to users. NLP (Natural Language Processing) is used to feed a variety of text-based inputs like relevant news stories, social media posts, and more to allow for even deeper analysis.

Capabilities, present and promised, of the best crypto trading bots

When we mention these powerful software programs, we do not mean any specific product currently available in the market. It is a blanket term covering a wide range of contemporary algorithmic systems powered by expert systems. While strategies may employ different methodologies and approaches to trading, the vast majority of them share many features and capabilities.

Here are some of them that demand recognition:

• Powerful data processing. The modern digital infrastructure provided by tech giants like Microsoft and Amazon allows third-party solutions to work with incredible volumes of data in real time. Price action information, news articles, trending topics on social media, and a variety of technical and fundamental indicators — a machine learning crypto trading bot can process everything quickly and efficiently.
• Pattern recognition. Financial analysis, technical and fundamental, is based on recognizing repeating events in various markets to make educated predictions. Since these self-sufficient software agents are capable of processing vast amounts of data and storing practically infinite amounts of patterns for future use, they are positioned to outperform even the best human retail traders. A report by McKinsey says that modern autonomous software asset managers identify patterns with an impressive 90% accuracy.
• High-level predictive modeling. Historical data can be incredibly valuable to a proficient analyst. Sufficiently trained software models can be used to assess the current market situation and make good predictions about price action changes, volatility, and risk levels for any asset. Accentury, a consultation company for information technology, conducted a study where it demonstrated that many of these advanced systems can produce a 15% annual turn in backtesting simulations.
• Effective risk management. One of the most apparent trends in the world of finance is the utilization of autonomous software in risk mitigation. The technique is employed by over 72% of all institutional investors according to Greenwich Associates. Contemporary trading robots are capable of adjusting a wide range of parameters in real time. Bots can change delayed orders, position sizes, and other factors based on the observable market dynamics.
• Fully autonomous trading. The need for human supervision makes automated trading systems slower and less efficient. Many experts believe that a program can effectively remove the need for human intervention. High-frequency trading algorithms and statistical arbitrage systems are especially sensitive to execution speed.
• Dynamic learning. Traditional crypto trading bots follow strict instructions and appear rigid to experienced retail traders. The reason is quite simple: such robots are incapable of learning and adapting to changing environments. On the other hand, a machine-learning bitcoin trading bot can change its behavior and adjust forecasts based on previous actions and price action dynamics.

These qualities make contemporary software systems extremely useful for many applications within the financial sector. For example, the crypto industry often experiences liquidity shortages due to the fractioned landscape and inconsistencies in regulatory practices in different regions. In such environments, working with digital assets through ML can be a great tool for advanced market-making and liquidity procurement. The report by TABB Group indicates that over 50% of all market-making volume is produced by fully independent machines.

What is the best AI trading bot for crypto?

Picking the right crypto investment automation option can be a challenge thanks to the oversaturation of the market and a large number of DeFi and TradFi startups incorporating a variety of novel features like ML and autonomous software programs into their product lineups. However, if you do the necessary due diligence and focus on certain criteria, it is possible to find a great product in this category that will work excellently for your portfolio.

Here are some factors that you should pay extra attention to:

• The track record. It seems that the fintech industry is on board with the idea of using software wherever possible. A study by Eurekahedge, an investment consultation firm, indicates that hedge funds utilizing expert AI systems produced 8.7% annualized returns on average during the decade between 2010 and 2020. Looking for products that have a good reputation and history is crucial!
• Transparency and explainability. Despite the complexity of contemporary software agents, it is still possible for a layman to understand what is happening under the hood. If you don’t have any idea about the inner workings of a self-sufficient investment robot or which strategy it employs or enhances, it is not a good investment in the long run!
• Risk management features. An industry-wide survey by Deloitte reveals that over 91% of all institutional investors consider risk management as a crucial criterion for the selection of any investment instrument powered by a self-sufficient robot. Choose robots that can place and adjust delayed orders, can react well to volatility, and utilize other methods to reduce risks.
• Investment cost and payment plans. Individual investors should be very careful when picking analytical and trading automation tools. Annual fees may feel less intimidating when broken down into monthly payments but comparing prices to returns is something that must be done for everything, let alone innovative and still insufficiently tested tools like early iterations of autonomous robots.
• User interface and experience. Working with platforms that are hard to navigate or do not have informative enough dashboards can be hard and ineffective. It is important to choose apps and websites that have intuitive navigation, smart layouts, and dashboards allowing for easy management and performance assessments.

While user reviews and opinions from experts matter, the sector of the fintech industry is too young, and many technologies have not yet been tested or mastered by retail traders. Use them to assess the general quality of the service provided by a vendor you like, but do not believe every word. However, do not underestimate the word of mouth and experiences of other users.

Using AI to trade crypto is a method that needs more time to be assessed properly. Right now, you should be extra careful when selecting a good bot powered by a crypto artificial intelligence trading agent. On the other hand, lagging behind the industry and failing to recognize the importance of contemporary trading tools may be even greater risks than what may endanger your portfolio if you try them out.

The best AI crypto trading bots in 2024

Despite the oversaturation of the market, there are some automation vendors that offer promising AI cryptocurrency trading robots. We compiled a list of interesting products that score highly on all previously mentioned criteria like user experience, track record, transparency, risk management features, and more.

Note that we strongly encourage our readers to do their own research and make decisions only after learning more about automation vendors they are interested in.

Cryptohopper

Software products with ML components from this company are limited to GRID systems. However, Cryptohopper’s development team has been focusing strongly on producing other interesting solutions and enhanced programs trained with ML.

The brand is known well in the crypto industry thanks to its robust track record and reliability throughout the years. The bot comes with a wide range of complimentary tools that allow for fast analysis, high-speed execution, and comfortable controls.

Here are interesting products from Cryptohopper that deserve your attention:

• Algorithm intelligence. The latest product from the company allows clients to feed their system any strategy and allow it to evaluate it. The algorithm intelligence simply compares different approaches and advises you on which you should be using for any given portfolio.
• AI-powered grid bots. The use of ML and the deployment of fully autonomous systems can enhance any trading strategy including fully automated systems like grid. Cryptohopper hopes that their product will start delivering better performances than standard GRID bots in the near future.

3Commas

3Commas is another household name in the automation industry that has been around for a long time and managed to keep up a good reputation. Lately, the company has been trying to stay ahead of the competition by introducing innovative enhanced products. While many of their new offerings are just extensions of existing features, they are still powered by advanced self-sufficient robots.

Here are new products from 3Commas that utilize different autonomous algorithms:

• The smart terminal. 3Commas has a flagship product which is their SmartTrade Terminal. Recently, it has been revamped and improved with a new architecture to help traders make informed decisions by providing real-time insights and suggesting the most appropriate actions. It makes decisions based on the analysis of the market history and other factors.
• The SmartSell feature allows retail traders to liquidate market positions at the best possible market conditions. The system makes judgments about sell price targets based on a variety of factors including price action dynamics, trading volumes, and more. When it finds a good moment, the system automatically sells assets.
• AI portfolio management features help investors better control their assets and active automated trading systems. While not directly controlled by an independent software agent, it is still a massive improvement of the portfolio tracker which usually looks like a bunch of incoherent charts that do not provide meaningful insights into the performance of investments as a whole.

GunBot

Among the other mentions in the list, this particular vendor does not have the same level of public recognition and reputation. While its main product roster features standard automated systems, its autonomous software agent features are quite neat and look unique compared to what many other platforms offer.

Here are features to be aware of on the Gunbot platform:

• GunBot is a highly specialized system that heavily uses NLP to interpret user inquiries and build custom bots based on what users want. The program understands what retail traders write quite well and can create a bot based on the text description. While still undercooked, it is an innovative way of using generative text bots in the financial industry.
• Autoconfig is a great set of tools that helps retail traders adjust the parameters of deployed automated trading systems in real-time based on several criteria. It is a standalone feature right now, but the development team announced its decision to connect it to their systems.

Learn2Trade

As a respectable company in the trading automation industry, L2T offers a wide range of interesting products that help retail traders achieve success in the market. While its current lineup of trading robots does not feature anything directly powered by machines that can think for themselves, the company uses something like ChatGPT and Copilot for all its features and services.

Here are some ways in which the company integrates the technology:

• Personalized recommendations for trading. Learn2Trade uses ML algorithms to conduct the analysis of social media sentiment and market factors to identify good suggestions for their users and form a list of individual recommendations.
• AI bot is not directly controlled by an expert artificial intelligence crypto trading system. Instead, it is an ATS that follows recommendations from over 100 technical indicators managed and monitored by the system. While it is a system that still demands more testing and research, allowing it to manage a moderate investment is not a bad idea if you are into hi-tech instruments.

Zygnaly

ZIGDAO is the flagship product of the trading automation platform that promised to change the whole industry a while ago. Many of its ambitious plans did not materialize into something palpable. Recently, the company shifted its focus to a new product — ZIGDAO, a new web 3.0, enhanced network.

The main goal of the new platform is to unite active investors and retail traders and incentivize them to share insights, trade results, forecasts, and more. The algorithm searches for opinions, suggestions, and strategies that quickly gain traction. In essence, the platform works as a combination of a strategy generator and a social network.

In its current state, the project does not look like something mind-boggling and is capable of completely reinventing the way investors communicate and search for fresh ideas. However, with enough effort from the development team, ZIGDAO could turn into a game changer for many retail traders looking for advice.

Octobot

This platform does not shy away from incorporating the best products and designs in the emerging technological bubble to enhance its offerings. The company is known for its robust lineup of highly efficient automated trading systems, but it is a little bit too late to the party where all the seats are already taken. Right now, the development team is looking for a new vector to improve their products.

One of the recent innovations of the platform is its fully autonomous software investment robot that leverages the power of high-profile platforms like ChatGPT and Copilot to produce investment advice and build automated trading systems.

The feature does have some issues as it relies on a technology known for its “hallucinations” and problems with comprehending some types of data like market history represented in numerical form or images. Nevertheless, trying this system can be fun. Right now, users can check it out for free.

WunderTrading

This platform has a good reputation and offers a rich selection of trading automation tools on par with the best in the industry. The biggest advantage of the WunderTrading platform is that you can access a variety of tools like copy trading, portfolio tracker, arbitrage, DCA, and GRID bots.

Despite an already expansive catalog of products, the company is looking for new ways to help retail traders reach their goals. Advanced self-sufficient systems for investors seem like the most logical next step and WudnerTrading has been moving in this direction for a while now. The platform has rolled out several interesting new products and plans to implement machine learning into many of its currently existing features.

Here are some innovative products on the WunderTrading platform that should attract your attention:

• GRID bots can be enhanced by artificial intelligence quite easily. By smartly moving exit prices and acquiring assets in dynamically changing quantities depending on the market situation, GRID bots produce better outcomes for users who don’t even have to intervene too often. In a sense, it is a self-sufficient system that operates autonomously.
• AI-assisted statistical arbitrage. Here’s where the ability to implement a powerful software agent trained using the best machine learning techniques comes into play and delivers a stellar performance. Statistical analysis is all about computation, selecting assets, and searching for patterns — all things such programs usually excel at. The WunderTrading platform allows users to run its statistical arbitrage robots to manage massive portfolios.

Risks associated even with the best the industry can offer

Despite the big promises and incredible potential, autonomous investment robots have several inherent risks that cannot be avoided by smart picking the right tool for the job. Only by limiting the exposure of your capital to these instruments, you can reduce the danger to investments.

Here are several risks strongly associated with the new tech:

• The growing sense of complacency. Humans like it when something makes their lives more convenient. As in the case of any new groundbreaking technology, this one may create a situation where over-reliance on technology retail traders fail to do their due diligence. Without any research done by the participants of the crypto ecosystem, the market will become fragile and prone to crashing.
• Untested technology. Many enthusiasts of the tech believe that ChatGPT, Claude, and Copilot are infallible and require just a little bit of fine-tuning to become flawless. However, any digital technology is vulnerable to glitches, software bugs, and other issues. In some sense, these autonomous robots are even more susceptible to such risks. In 2012, Knight Capital Group lost over $440 million in under an hour due to a glitch in their trading algorithm.
• Data bias. Software agents must be trained well. They can be excellently set up for success and work as intended, but the quality of data they analyze and its completeness play a big role in the eventual success or failure of any automated trading system. Flawed data can skew the judgment of bots and make the market more volatile.
• Detached management. If a system performs well and survives several iterations, it can be turned on to operate autonomously. However, the lack of human oversight can lead to unpredictable behavior under unexpected market conditions or due to technological issues. It is important to keep an eye on your autonomously operating systems.
• Regulatory risks. Many experts are quite concerned with the future of financial markets if the technology becomes widespread. These concerns are especially true for the largely unregulated and highly speculative cryptocurrency market where all of the issues associated with expert artificial intelligence agents trading assets are even more applicable.

Remember that any autonomous system carries risks that can affect not only your portfolio but also whole markets. Bad actors using expertly crafted high-performance ATS can destabilize ecosystems, cause “flash crashes”, or simply manipulate markets without ever being caught.

Why should you use these advanced systems?

There are many reasons to embrace new promising technology even if it has currently unsolved issues or presents significant dangers to users. Being among early adopters is always a good thing. However, you should approach the new technology cautiously and invest significantly less than you are willing to lose.

Here are some reasons to take on the risk and start using it:

• Market volatility. The crypto market is highly speculative with many assets carrying no utility and still attracting capital. Volatile price movements can be accounted for by independently operating programs that analyze price action and volumes in real time.
• Trading around the clock. Humans have to rest and take breaks to maintain adequate performance. These instruments can be as good or better than retail traders and work 24/7 without any disruptions.
• Data analysis on steroids. Smart retail traders with enough cognitive resources to be dedicated to analyzing markets can deliver good performances. A well-trained self-sufficient investment robot can process huge swaths of data effortlessly.
• Emotionless trading. Human retail traders can be affected by strong emotions like fear, greed, and doubt. However, the next generation of robots is not only superior to algorithmic robots but also trades without any hesitation or fear.

The novelty of the technology attracts many new users to generative ML systems and everything related to them. However, you should never act on hype and incomplete information. On the other hand, using an AI crypto trading bot for investments in 2024 is a good idea just to stay in touch with the latest developments in fintech and become early adopters of the rapidly changing technology.

Start using these amazing products today to learn more about the tech and master it by the time more complete products hit the market. It is hugely important to continuously use them to stay informed and be in a position to capitalize on any improvements to the most useful products such as AI-assisted statistical arbitrage by WunderTrading.