Automated trading bots offer the best value for independent traders. They can be customized, linked to several exchanges, and potentially work 24/7 year-round. In this article, we will review 3Commas, one of the well-regarded crypto trading bot services.
Table of contents
What is 3Commas?
At its core, the Miami-based 3Commas is an online platform for people interested in trading cryptocurrencies using automated bots. It is especially attractive for people without a technical background in finance or extensive experience in stock markets.
3Commas is a web-hosted platform that is accessible from any device with an internet connection. 3Commas provide different trading bots that can perform specific strategies such as stop-loss, short, to name a few.
It is also possible to customize unique trading positions using the user interface. The trading bots can also be programmed to operate at specific hours or around the clock non-stop. Let’s start our 3Commas review.
- Better User experience and beginner-friendly
- Support of a wide range of trading strategies
- Good reputation
- Provide competitive speed and security
- Pricing starts with $22 (Free trial available)
The 3Commas platform has a very friendly UI/UX. All of the customization for the different strategies can be done using sliders and marked indicators.
The experience is intuitive and can be done without too much previous experience in the area.
3Commas offers a myriad of possible trading strategies. Many come pre-set and are easy to personalize, more complex ones are also possible.
We will focus on the main ones, but this is by no means an exhaustive list.
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Stop Loss is one of the most common basic moves. Here the user sets a loss percentage. Once that percentage is crossed, the bot will sell the asset.
As an example, a buy order for BTC at $10,000 is placed by the bot. The stop loss is programed at 10 percent below the initial price. If BTC’s price drops to $9,000, the bot automatically initiates a sell order. With stop-loss, the user can be protected from wild and unexpected swings in the market.
Trailing Stop Loss
Trailing Stop Losses a more sophisticated version of the previous strategy as the name suggests, in this strategy, the order trail price at a particular price(or percentage) distance.
So, using the previous example, let’s say we set a trailing stop at $1,000 from the current price, which is $10,000. Let’s say Bitcoin price starts rising and reach to $10,500; in this case, a sell order will be set to $9,500.
Now, if the price starts dropping and that sell order remains at the place will be executed if the Bitcoin price falls below $9,500.
Take Profit is self-explanatory; it gets executed once a predetermined percentage of gains has been realized. If BTC is bought at $10,000 (with 20% take-profit) and the price climbs to $12,000, the bot sells the position and locks up the profits.
Trailing Take Profit
Trailing Take Profit similarly to trailing stop loss incorporates the gains into the strategy. The bot is programmed to profit at 10%. This option will take your Profit at 10 percent of the highest point of the trend. So, if in the previous example, after hitting $10,500, Bitcoin price keeps climbing, the position won’t be liquidated until the trend reverses.
These are just a few examples of the possibilities offered by 3Commas. Other options are to customize pairs, trade volume restrictions, initial trade size, and many others. In short, it is a very robust and easy to personalize platform.
Ease of use
As stated before, the platform is very intuitive and user-friendly. Beyond that, 3Commas offers the ability to copy strategies from seasoned users. Besides, educational blog posts, tutorials, and an active community of people will engage with new traders.
3Commas Review: Security
3Commas is not very forthcoming with details in regard to the security protocols which they deployed. But it is important to remember that the funds are not actually held on the platform, and the trading bots are not able to make withdrawals from your linked exchange accounts.
The trading bots are connected with the exchange’s accounts via API and then proceed to carry out automated trades on the linked exchanges. This process doesn’t require users to make any cash nor crypto transfers to external accounts, only the provision API keys that are generated by their exchanges. These keys, in turn, provide the trading bots with restricted access to the user’s account and do not grant the bots any withdrawal rights.
Now, regarding the trade data, the Terms of Service are a little ambiguous. It seems 3Commas does collect information about the strategies and gains made by users. It is unclear how personalized this data is, maybe it is aggregated data, but it can also be individual. What ways the company uses this information is not specified anywhere on the site.
3Commas offers monthly subscriptions, but it doesn’t end there. The per month fees change if these are paid a year in advance, six months, or month by month. On top of it all, there are three plans offered with features increasing with the price.
The Starter package costs 22/25/29 USD per month, six months, or a year in advance.
The Advance package starts from 37 USD, and the Pro package starts from 75 USD. Finally, the platform does not charge any trading fees when using its services.
3Commas Review: Performance
Since the APIs of the different exchanges give limited access to the bots from 3Commas servers, there are no considerable speed advantages. The rate of response to changing market conditions, as well as the speed of placing and sending orders, is standard for a retail platform.
There is no information available regarding latency tests regarding 3Commas, so it is hard to make a judgment.
The institutional investor with low latency equipment and faster connections will have an edge. But on the retail side of the market, 3Commas has no significant disadvantages against other competitors.
3Commas is among the most reputable and well-regarded trading platforms in the crypto world. Most review sites have it at the top of the list with nearly perfect scores and with glowing comments. The crypto trading space is still young, and these types of services are relatively new, but in the current market, 3Commas is at the top.
Right now, 3Commas is compatible with 13 exchanges, including Bitmex, Bittrex, BitFinex, Binance, Bitstamp, KuCoin, Poloniex, HitBTC, Gate, Coinbase Pro, OKEX, Huobi, and Kraken.
3Commas Review: Conclusion
3Commas is among the most versatile and robust trading platforms out there. The easy-to-use interface is an excellent first step for users of all levels of experience. It is also connected to the largest exchanges in the market, and the ability to place orders across exchanges is a significant feature.
It is safe to say that if you are thinking about trading in crypto, this platform should be at the top of your research list. Let us know what you think about our 3Commas review in the comment section.
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