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The Best Tools for Algo Trading in Crypto

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The Best Tools for Algo Trading in Crypto

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The cryptocurrency market is attracting more and more traders because of the high profits that they yield. There is no high barrier to entry, and you can make x10 your investment in just two weeks, but you could also lose everything. This market, referred to as the “Wild West” by many experts, is the fertile soil for different algorithmic trading tools.

Out of all the robots and programs out on the market that are used for alogotrading, they are divided into two broad categories: bots, who ask traders for permission before taking an action, and then there are the bots that don’t need permission. Of course, every trader wants to use smart algorithms, which knows when to buy or sell and does so at just the moment.

So, what are the best tools for algorithmic trading?

1. You can use the bot that you wrote yourself for the a specific crypto exchange. It can also be used for several crypto exchanges, but in this case, it must include the API of all of the exchanges within its code. This way is suitable only for IT developers, who know at least one programming language and are familiar with trading. Although, there are languages out there is not terribly difficult to learn, such as Python.

Advantages: Customized for your needs, which you can always upgrade later.

Disadvantages: Hard to implement if you are not a professional coder.

2. Create your own bot with TSLab. This program offers wide functionality for algo traders, and it makes it possible to create your own robot, drawing it as a flowchart.  TSLab will perform all of the program commands and scripts itself, you only need to specify the direction.

Advantages: It’s free.

Disadvantages: You should learn how to program and create the bot. There are also hardware requirements for your computer. For Windows, you must have a CPU no older than a Pentium IV 2GHz.

3. Use existing bots. For instance, NeuroBot is constantly analyzing prices on crypto exchanges, applying patterns from traditional technical analyses, and taking into account signal indicators. However, this bot might not be suitable for every trading strategy.  And there are already some disappointed users, complaining that NeuroBot is not good at making predictions.

Advantages: A well-made bot that’s ready to trade for you.

Disadvantages: You must pay a monthly fee for use, and it may not meet your criteria or your trading view.

4. Trading platforms like MetaTrader4. This is a trading platform mostly for Forex, analyzing financial markets and using the strategies of financial advisers. You can also install MetaTrader4 on your iPad or smartphone and trade anywhere.

Advantages: Free to use.

Disadvantages: Works for only one crypto exchange –, which is not very popular at the moment.

5. Solutions like Arbidex – Arbidex is a platform for trading and connecting major exchanges into one single-window interface. Right now, Arbidex is integrated with a number of crypto exchanges such as Bitfinex, Okex, Bittrex, Poloniex, Huobi, and Quoinex.

Advantages: Discounts on the exchange commission, no need to pass KYC for every single exchange, as this can be done only once on Arbidex.

Disadvantages: Not so many exchanges are integrated yet. There was a bug with withdrawing funds that was only recently solved by the project team. Uses only one trading strategy – cryptocurrency arbitrage.

To sum up, there is no ideal bot or program that can make you the highest profits, because the market is unpredictable. As Matthew McConaughey said in The Wolf of Wall Street, “Nobody knows where the market will go.” And algorithmic trading is difficult to use and, to be honest, an expensive tool. However, this is one of the most promising areas of the crypto market to date, which over time will only develop and get better. There is a chance to catch fat profits with a certain bot, and it isn’t a bad idea to give it a try.

Author – Maria Lobanova


Biraajmaan covers market trends of major cryptocurrencies. As a graduate in engineering, his interests lie in Blockchain technology. With over a year as a journalist, his articles focus on US and UK markets.
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