Trading bots have become an essential service for traders in the cryptocurrency market. The manual processes associated with executing trades on an exchange without the aid of automation are cumbersome and inefficient. Without trading bots, crypto users are unable to effectively manage a portfolio of assets on exchanges.
Throughout this article, we will explore the 3 most popular trading bots in the market:
- Shrimpy — The social trading platform for cryptocurrency
- 3Commas — Smart trading terminal and auto trading bots
- Cryptohopper — World class automated crypto trading bot
Depending on our goals as a trader, each of these trading bots could be the ideal solution. At a high level, Shrimpy is designed for portfolio management, while 3Commas and Cryptohopper are designed for day trading.
Monitoring a portfolio of assets isn't always easy with cryptocurrency. The fragmented market makes it difficult to manage all of our assets on a single platform. As a result, each of these 3 trading bots provides features that can help us track our portfolio.
Cryptohopper is far more focused on individual positions than 3Commas or Shrimpy. Rather than providing information on the entire portfolio, Cryptohopper focuses on providing stats for individual trades.
We can see from the Cryptohopper dashboard that the design is not suited for portfolio tracking, but instead for trade tracking.
3Commas primarily focuses on the execution of trading strategies across single trading pairs. As a result, the platform has been built around tracking trades on individual trading pairs. Rather than providing a high-level overview of our entire portfolio, 3Commas is ideal for day traders who are looking to track their trades.
Investors won't find a wide variety of portfolio tracking features on 3Commas. Instead, only simple performance metrics are available for those traders that want a high-level overview of their portfolio performance.
Shrimpy provides a well-organized dashboard that offers a total overview of a portfolio. This includes a breakdown of each asset that is contained in the portfolio, stats about each asset, and performance metrics for the portfolio over various time frames.
In addition to the clean dashboard, Shrimpy users can track their historical trades and portfolio updates in the History tab. Investors can also view the historical performance of assets by selecting an asset on the dashboard.
The difference in philosophies shines through when discussing trade automation. While 3Commas and Cryptohopper focus on providing trading strategy automation on single trading pairs, Shrimpy focuses on portfolio automation. Essentially, you can think of 3Commas as a short-term trading platform and Shrimpy as a mid to long-term trade management solution.
Much like 3Commas, Cryptohopper focuses on individual trading pairs. When configuring the trading strategies for bots, each individual trading pair is treated as a separate strategy.
While this allows for fine control over how each asset is traded, it also becomes a burdensome task to ensure everything is set up exactly as intended.
Over time, Cryptohopper users will also need to maintain their bots as the market conditions change and the effectiveness of specific trading strategies diminishes.
Cryptohopper is a great resource for advanced traders who have the time and patience to manage a complex set of strategies, but the novice trader will certainly have a difficult time managing a diverse portfolio with Cryptohopper.
3Commas has become the go-to platform for day traders due to the large selection of automated trading bots. Instead of focusing on portfolio automation, 3Commas provides tools for trading across individual trading pairs.
Configuring a trading bot on 3Commas has endless possibilities. Customers can leverage signals, technical indicators, and countless other triggers.
The process for building an effective trading bot is not easy. Each bot needs to be individually configured and periodically maintained. This makes it time-intensive to get started managing a variety of trading bots on 3Commas.
In addition, getting started for the first time has left many investors feeling lost. The vast number of technical indicators and complex configurations make 3Commas far too complicated for new traders.
Portfolio automation is the bread and butter of Shrimpy. No platform does it better. If you want to set up your investment for long-term success, look no further than Shrimpy.
Allocating and automating a portfolio is simple with Shrimpy. Figure 4 illustrates how investors can select assets, configure automated rebalancing settings, enable dollar-cost averaging, and implement portfolio stop-losses with Shrimpy.
Investors have the ability to segment their funds into multiple portfolios and automate each individual portfolio separately. These multi-portfolio features are a unique selling point for Shrimpy since no other service provides the ability to divide up funds on exchanges.
With a few clicks, users can add or remove assets from their portfolio. Shrimpy will automatically use smart order routing to buy and sell assets on the exchange to reach the specified target allocations.
Customers can also execute a rebalance instantly using the "Actions" option on the dashboard. With a single click, Shrimpy will get to work buying and selling assets on the exchange to rebalance the portfolio. It only takes a few seconds to complete a process that would take hours to do manually.
Smart Trading Terminals
Smart trading terminals are an integral part of trading platforms. When complete automation isn't possible for a strategy, then a trader can take the reigns and execute a strategy manually.
Continuing the trend, we quickly notice that even in their smart trading terminals, Shrimpy offers portfolio management functionality while 3Commas and Cryptohopper focus on more technical aspects of trading.
Cryptohopper provides a wide range of resources for manual trading. Everything from stop-losses to options for taking the profit. However you want to manage your trading strategy, manually executing trades through the Cryptohopper trading terminal is a complete experience.
Of course, trading with an advanced terminal like Cryptohopper is not for everyone. Traders should be comfortable with advanced trading concepts before taking the dive into this solution.
3Commas offers a wide range of technical indicators, controls, and smart trading features in its smart trading terminal.
The smart terminal provides a way for traders to manage their own order execution without relying on bots to automate the trades.
This resource is perfect for day traders or swing traders who want to maintain a manual strategy.
Shrimpy provides a number of key features in their smart trading terminal. Beyond the charting and data capabilities, traders can execute limit orders and smart market orders.
The live order book and trade data in the trading terminal leverages Shrimpy's real-time websocket streams to ensure an experience that feels native to the exchange.
Copy & Social Trading
Social trading is becoming a growing industry within cryptocurrency. Over the last few years, platforms have been working to find new ways to differentiate themselves from the competition by integrating social trading, signals, and strategy marketplaces. Shrimpy, Cryptohopper, and 3Commas are no different in this sense.
Cryptohopper provides access to 3 different types of market places. Each of these marketplaces is designed for different trading strategies.
Templates provide a way for traders to exchange ideas for configuring a trading bot. These templates can provide a foundation for inexperienced traders to understand how to get started setting up a trading strategy.
Strategies are a selection of indicators that are used to decide when trades should be executed. These indicators are picked by the seller of the strategy.
Signals are notifications provided by a trader to tell your bot which asset to buy and when the trade should be made. These signals can be manual or based on a number of custom indicators.
3Commas has one of the largest marketplaces for trading signals. These signals can be attached to trading bots within the application to automatically trade based on the signal.
The price for these signals can range from free to a few hundred dollars each month. Both the price point and technical requirements for signals can make them problematic for novice crypto traders.
Shrimpy has developed a unique approach to social trading. Unlike other platforms that focus on signals, indicators, and marketplaces, Shrimpy is growing a community of traders. Each trader can either decide to follow another trader on the platform or lead a group of their own.
The relationship between the social leaders and followers make Shrimpy the perfect place for investors to learn about cryptocurrency, follow successful strategies, and grow a portfolio of assets. As the leader updates their portfolio, the changes will instantly be sent to the followers to make the same changes.
At the end of the day, Shrimpy makes it easier than anyone to copy the trading strategies from the top crypto traders in the market.
Before we can decide on a trading bot, we must first ensure our funds are on a supported exchange. Each trading bot supports only a finite selection of exchanges. Rather than attempting to integrate every exchange, most trading bots will select a few specific exchanges that are popular.
Cryptohopper currently supports 13 different exchanges. Each of these exchanges can be connected to the platform to automate trades, exchange strategies, and manage a diverse portfolio.
Although Cryptohopper supports fewer exchanges than some other trading bots, the most popular exchanges are still supported.
3Commas supports 23 different exchanges. Each of these exchanges can be connected to the platform for managing a diverse number of trading strategies.
Unfortunately, not all exchanges supported by 3Commas have the same features available inside the application. This can cause a significant level of confusion for new investors who are looking to automate their strategy across multiple exchanges.
Shrimpy plugs into 16 different exchanges for immediate access. Customers can connect an unlimited number of exchange accounts to a single Shrimpy account. That means whether you have 31 Binance accounts or one of each exchange account, they can all be linked to Shrimpy.
The best part is every exchange has an identical set of features in Shrimpy. That means there is no confusion regarding what features will be available when linking a new exchange account.
Building financial products is expensive. As a result, each of these platforms has decided to target the professional investor market. The most common way these platforms make money is through a tiered subscription offering.
The Cryptohopper pricing plans start at $19/mo. With this tier, you will get access to 80 positions, up to 15 assets in your portfolio, and 1 simulated trading bot.
Since the lower tiers have significant restrictions on what functionality can be used for trading, we believe the Hero package would be ideal for most traders. Unfortunately, this package starts at $99/mo.
The high price point for Cryptohopper might make this trading service out of reach for many smaller investors.
The 3Commas pricing plan is more nuanced. The starter plan that starts at 14.50/mo is highly restrictive. That means you won't have access to most of the features that you would likely want.
The advanced plan has more functionality, but it still does not provide access to the full suite of trading tools.
The recommended plan, which provides access to all features, is the $49.50 professional plan. At this pricing point, 3Commas is expensive, but it does provide access to a wide range of trading features.
The pricing plans for Shrimpy are extremely simple. There is essentially only one payment plan, which is a 13/mo option. This plan will give you access to 100% of the Shrimpy features, unlimited trading, unlimited social following, and so much more.
Anyone who is using Shrimpy will want to subscribe to the professional plan.
The cryptocurrency community is beginning to see the emergence of powerful platforms that can automatically manage a selection of crypto assets. While Shrimpy focuses on portfolio management and providing a pleasant user experience, 3Commas and Cryptohopper are designed for the advanced trader who wants to implement complex strategies.
Although investors that are new to cryptocurrency would heavily benefit from the Shrimpy trading services, seasoned professionals may gravitate more towards the complexity provided by 3Commas and Cryptohopper.
We recommend trying out each of these platforms to find the one that works best for you. There is no perfect platform that will work for everyone.
Frequently Asked Questions
If you are looking for portfolio management, try Shrimpy. If you are looking to create trading strategies and automate your trades, you can try 3Commas.
Alternative Trading Bots
Bitsgap, a one-stop crypto trading platform that caters for all your trading needs. It allows its users to bring all their crypto-exchange accounts under the same roof and trade from an integrated interface.
While exchanges are busy spending time more on launching new tokens and assets only to increase their trading volume, platforms like Mudrex are actually working on the right problems and are making sure that traders actually end up making some money!
Quadency, a crypto trading automation platform launched in 2018. It brings you a smarter way to trade and manage your crypto.