Before the rest of the world got excited about artificial intelligence (AI), financial markets have long interacted and still interact with bot innovation. AI has automated activities in different financial markets—from stock to crypto markets. It has enabled traders to make informed financial decisions and execute faster trades.
AI Crypto Trading | An Overview
Just like the term implies, AI crypto trading is the use of artificial intelligence and machine learning techniques to automate cryptocurrency trading strategies. AI uses algorithms to pull large amounts of market data from various sources and use the information to predict future market movements.
As a result, AI minimizes or even eliminates human intervention during trades. Through AI trading, traders can improve trading performance, reduce risks, and maximize profits using real-time and historical data.
Related FintechZoom article: What are the Best Artificial Intelligence Stocks to Invest?
However, AI crypto trading isn’t without attendant risks. Traders may risk technical errors, algorithmic bias, and failure of the AI to predict or respond to sudden market moves.
AI Crypto Trading Bots | What Are They?
As computer programs, AI crypto trading bots analyze the cryptocurrency market and automatically execute trades using artificial intelligence (AI) and machine learning algorithms. They monitor the market at all times and employ strategies including technical analysis and trend following.
Although they are computer programs, they are designed to be flexible enough to adapt their trading strategies to current market data, in addition to historical data. They also implement risk management strategies to minimize potential losses and maximize profits.
AI Crypto Trading Bots | Ten Popular Examples
Some of the AI crypto trading bots available include:
- Cryptohopper: This is a cloud-based trading bot that automates trading strategies across multiple exchanges. Features of this bot include various technical indicators, signalers, and custom strategies.
- 3Commas: This is another popular bot that automates trades through AI and machine learning. It uses features such as smart trades, trailing stop loss, and grid bots.
- Shrimpy: Shrimpy helps traders diversify their portfolio and automate trading strategies.
Credit: Shrimpy.io
Features
- Portfolio rebalancing
- Portfolio management
- Social trading
- Haasbot: Haasbot is a customizable trading bot that helps traders automate their trading strategies. It has over 50 technical indicators and risk management tools.
- Zenbot: Zenbot is an open-source trading bot for traders to build their custom trading strategies.
Credit: Github
Features
- Supports multiple exchanges
- Backtesting
- Paper trading
- Live trading
- Gunbot: This trading bot allows traders to automate their trading strategies on different crypto exchanges. To achieve this, it employs various trading strategies, indicators, and market analysis tools.
- Kryll.io: This AI-powered trading platform allows traders to create trading strategies using a visual editor. Its features include technical indicators, signalers, and order types.
- Gekko: Like Zenbot, Gekko is also an open-sourced bot that automates their trades. It features technical indicators, backtesting tools, and plugins.
- Blackbird: Blackbird focuses on arbitrage trading strategies and allows traders profit from price discrepancies across exchanges. It allows customizable trading parameters, backtesting, and real-time monitoring.
- AlgoTrader: This is a crypto trading bot that enables traders to automate their trading strategies across multiple markets. Some of its tools include trading algorithms, backtesting tools, and risk management tools.
Conclusion
While AI crypto trading bots help traders automate their trading strategies and make informed trading decisions, it is important to note that they are risky tools. They do not eliminate the financial and emotional management skills required for executing successful trades.
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