The Truth About Crypto Trading Bot Returns: Hype or Reality?

Imagine a world where all the heavy lifting is done by automation and you reap all the benefits? Not in the sense of physical work but in finance. Where transactions are free and secure without oversight? This is the promise of the crypto trading world, as promised by its endorsers and social media influencers.

AI is overtaking crypto trading with automated trading tools called bots. These programs can work at lightning speed to perform transactions 24/7 without human intervention. This sounds too good to be true, and it is. The automated crypto world is not as simple as people with stakes in bots try to make it.

While sounding good on paper, the ROI on crypto bots is often low, and they are complex to handle. For beginners, they can be a nightmare if not properly configured. But there are always exceptions to the rule.

What do We Mean by Crypto Trading Bot Returns?

Crypto Bots are automated software that execute crypto trading on your behalf. As crypto markets work 24/7, it becomes impossible for crypto traders to keep track of them all the time. For this purpose, crypto trading bots have been developed to execute trading in your absence. They are fast and work according to the instructions provided.

There are two types of crypto trading bots.

Rule-Powered Bots: These crypto bots only follow fixed strategies hardcoded into them.
AI-Powered Bots: These crypto bots evolve with market conditions by using AI and make decisions themselves.

The word “Returns” in crypto bot trading refers to the profit or loss percentage generated by a crypto bot in a specified time. This specified time can be a month, a quarter, or a year. The returns in crypto bot trading can include.

Monthly, quarterly, or annual gains or losses. These are always represented in percentages.
The increase in the value of your assets, also known as capital gains.
How much have you earned from the difference across exchanges? This is called arbitrage profits.
Crypto trading bots can also return compound growth by reinvesting profits.
Risk-adjustment returns, where profits are calculated about volatility or risk taken.

However, the returns from crypto bots are not linear, as these bots are affected by numerous factors too. These include market volatility, the type of strategy used to create a bot, how bots are configured, exchange fees, and data quality fed to AI bots.

Can Crypto Trading Bots Make You Money?

Sort of. If a crypto trading bot is configured with well-designed strategies, has great risk management protocols implemented, and is working in a highly volatile environment, it can make you money, even up to 15% in an ideal situation.

However, the reality is often disappointing. The crypto space is flooded with fake ads and paid influencers who promote fake trading bots with slogans like “guaranteed profits” without understanding real crypto markets.

They will tell you that crypto bots always make money and are always profitable. However, in reality, bots can easily lose money if they are not well-designed or if the markets are not favorable.

The biggest lie involves telling you that you don’t need to put any effort while crypto bots work. In reality, you must take crypto trading as a serious job and always keep a close eye on how markets are performing. Use your trading bots when markets are favorable and pull them out when not.

There is no shortcut method to getting rich. Even if there is one, crypto trading bots are not it. You need a consistent approach with patience without blind reliance on an overhyped bot.

It is not like the situation is only bleak. There are good crypto trading bots available, but most of them are lost and difficult to find in this crazy, overly-hyped world. To find a good crypto bot, look for the following indicators.

Transparency: The bots should share their history and strategy transparently with the buyers.
Community Feedback: Check crypto communities and Reddit to see what the reviews are about a bot you are interested in.
Too good to be true: Avoid bots offering extremely high returns like 20% or above, as they are not possible.
A Demo run: Always test a crypto trading bot with a small amount first.

Top 8 Crypto Trading Bots for High & Consistent Returns

With thousands of crypto trading bots available online, it becomes impossible for a potential buyer to get a good one. For this purpose, we have a curated list of the 8 best crypto trading bots available right now in 2025. We have selected these bots based on the following criteria.

Reliability: These bots have a known pedigree and are trusted by thousands of users.
Profitability: The bots that made our list are the ones with a consistent track record of turning profits for their users, even in the long run.
Ease of Use: The bots in our list are easy to use and even offer a beginner-friendly setup that anyone can master.
Transparency: These bots have their clear objectives, pricing, and history that anyone can access.

1. 3Commas

3Commas is a world-leading platform that offers various crypto bots, manual tools, and portfolio management, all under one umbrella. Their crypto trading bots are considered the best in class because of the following reasons.

Their bots can range from DECA, Grid, Options, and signals, making them the largest variety available.
These bots can work across 20+ exchanges with only one dashboard.
You can request a demo or a test to check a specific strategy.
3Commas trading bots are implemented with strategies taken directly from successful traders in crypto markets.

However, there are some problems associated with 3Commas’ bots.

3Commas’ trading bots are complex and difficult for beginners to understand.
3Commas is prone to external attacks, as evidenced by its track record.
These bots are not ideal for low-volume traders.

2. Cryptohopper

Cryptohopper was launched in 2017 for cloud-based crypto trading. Their trading bots are known for.

Allowing wide chain support, including Binance and KuCoin.
Evolution by creating new strategies with 30+ indicators and 90+ candlestick patterns.
Allowing you to access trading signals from third parties.
Allowing backtesting data before bot deployment.
You can practice trading without using real assets.
Copying strategies from market leaders and successful traders.

However, Cryptohopper’s bots fall short in the following areas.

They don’t offer guaranteed profits and can result in a loss if the market shifts sideways.
Custom strategies are not beginner-friendly. They are only for advanced users.
You can only use the full features by paying $19/mo.
Mobile apps are lacking compared to their web experience.

3. Pionex

Launched in 2019, Pionex is a crypto trading exchange with its built-in 16+ trading bots. This means no third-party integration is required. Their bots have the following characteristics.

They are free to use for anyone on the Pionex platform.
All bots are beginner-friendly with pre-configured templates and UI.
Pionex only charges a 0.05% transaction fee.
These bots are cloud-based and run 24/7 without your help.
Great mobile support for the bots with IOS and Android apps.

Pionex’s bots have the following drawbacks.

You can’t customize the bots with your parameters.
You can’t demo a bot.
Each bot is limited to a single strategy, which the users can’t alter.

4. WunderTrading

WunderTrading offers multiple bots that are loved and recommended by thousands of users. Their bots offer some great features that include:

You can customize the bots with custom strategies using automation tools.
Allows you to copy and implement strategies from successful traders.
Allows you to connect to 10+ exchanges.
You can use historical data for backtesting before using your assets.
The bots can be accessed directly from web browsers without the need to install specific software.
Beginners can use bots with basic programs for free.

However, WunderTrading crypto bots also carry some disadvantages.

The interface is complex and can be off-putting to beginners.
Mobile apps are not robust and lack important features.
Bots’ performance is mixed, and the results from previous years are not helpful.
Most of the advanced tools and strategies are locked behind paywalls.

5. Bitsgap

Bitsgap is a crypto trading platform launched in 2017. It offers trading bots that can access 30+ exchanges. These bots are good for.

Performing trades across multiple exchanges like Binance and KuCoin.
Taking advantage of both trending and sideways markets with the help of DCA and Grid bots.
Providing helpful tools to take advantage of arbitrage opportunities.
Allowing paper run without using real assets.
Using AI technology to evolve with market conditions.
Offering a clean, user-friendly interface.
A 7-day trial period before the purchase

However, Bitsgap’s bots have the following cons that users should consider before taking the plunge.

Restrictions on IOS users.
Bitsgap is not available in various countries due to regional limitations.
You can’t copy strategies from successful traders.
Subscription plans are costly and not ideal for beginners.

6. HaasOnline

HasOnline is known for its on-premise software, known as the Hasbot trade server. This software works locally on your computer and gives you complete access and control over the trading bot.

You can use HaasScript to customize your bots to your heart’s content.
All of your keys and APIs remain with you, and no one can access them from the cloud.
Hasbot supports 20+ exchanges, including Binance and KuCoin.
You can backtest data with built-in tools.
Allows you to build bots with drag-and-drop, without coding.
Upon paying the license fee, you can make infinite transactions with zero trading fees.
Allows experienced traders to make high-frequency transactions with precision and speed.

There are some problems associated with Haasbot.

Steep learning curve and only for advanced users.
There is no free or trial version available.
Customer support is slow and sometimes unresponsive.
Hasbot can only be installed on Windows, Mac, or Linux, and does not support cloud installations.
Hasbot is only for experienced crypto traders.

7. TradeSanta

TradeSanta is a cloud-based crypto trading automation platform. It allows you to create infinite bots that can handle a variety of functions. Some prominent features of these trading bots are.

Easy to set up with guided templates and strategies.
TradeSanta bots support DCA, Grid, long, short, and Martingale strategies.
These bots use indicators like MACD, RSI, and Bollinger Bands to make smart decisions.
TradeSanta bots can be accessed from both web and mobile apps.
Paid plans start from $18/mo.

The cons of using TradeSanta crypto trading bots are.

Advanced features are only available in paid versions.
You can’t copy or implement strategies from successful traders.
Low performance in sideways markets.
You will need an API key set up to use your bot, which is not beginner-friendly.

8. Shrimpy

Shrimpy was launched in 2018 as a crypto trading and portfolio management tool. Over the years, their bots have gained popularity amongst crypto traders and are well-known for.

Clean interface and easy drag-and-drop strategy building. This makes them beginner-friendly.
Automatically adjusting asset allocations to maintain target ratios.
Copying the strategies of well-known and successful traders.
Backtesting data up to five years.
Support for multiple exchanges with one interface.
Allowing users to create their crypto index funds across exchanges.

However, Shrimpy’s bots are not without their drawbacks.

These bots don’t offer real-time trade alerts.
Shrimpy’s bots are not ideal for scalping or high-trading frequencies.
You can’t control these bots from mobile due to a lack of a mobile app.
Don’t offer proper transparency into strategies.

The Difference Between Rule-Based and AI Crypto Bots

Crypto trading bots belong to two categories, depending on their inception and mode of operation: Rule-based and AI-based crypto bots. The main difference lies in their implementation approach and users’ philosophy.

Rule-Based Crypto Bots

Rule-based crypto bots follow the instructions set by the user. They never deviate from the instructions and use specific conditions like price movement or volume to make a transaction.

These bots are easy to audit and carry low risk. Rule-based crypto bots are usually beginner-friendly and can be programmed easily.

However, these bots have limited adaptability to survive evolving markets. They also need manual tweaking to stay up-to-date.

AI-Based Crypto Bots

AI-based crypto bots use machine learning and data analysis to evolve and alter their instructions over time. These bots make dynamic decisions, depending on the market situation.

They can detect patterns and improve performance with data collection. As users do not program AI-based bots, they are emotion-free and only follow market trends.

However, these bots are difficult to audit due to their opaque instructions. They cost more than rule-based bots and carry vulnerabilities that hackers can exploit.

While both rule-based and AI-based crypto bots have their pros and cons, rule-based bots are better for conservative markets. They are easier to control and understand, carry less risk, and can be audited transparently.

Key Factors Affecting Crypto Trading Bot Profits

Returns or profits generated by crypto trading bots are not fixed, no matter how much the creators tout them. Their performance can vary depending on market conditions and the rules implemented for them. A bot may generate fixed profits in one market but underperform in the other one.

To know how profits generated by crypto trading bots are affected, you must understand the following key factors and their impact.

Strategy Selection

Crypto markets never stay the same. They keep shifting between bullish, bearish, and sideways. Each market is different from the others, and you will need a specific bot for each one. You can make an informed decision by reading the market trends when selecting your crypto bot.

Market Type	Bot Required	Reason
Bull Market	Trend-Following Bot	It can capture upward momentum by buying dips and riding rallies.
Bear Market	Shorting or Mean Revision Bot	It can profit from price corrections or rebounds.
Sideways Market	Grid Trading Bot	It can buy low and sell high within a defined range.
High Volatility Markets	Scalping or Arbitrage Bot	It can exploit price discrepancies across exchanges.

However, crypto markets shift rapidly, making your current strategy useless. You must keep an eye on the market trends and adjust your bot selection accordingly.

Market Volatility

Volatility in a crypto market means the rate and magnitude of price fluctuations. While volatile markets can be beneficial for crypto bot trading, they can also create circumstances that can result in loss.

Grid bots and arbitrage bots thrive in volatile crypto markets. You can use these bots to either place short buy and sell orders or take advantage of price discrepancies between various exchanges to make a good profit.

However, crypto bots like DCA and trend-following bots won’t survive volatile markets. They will either keep collecting assets at low prices or fail to follow signals in a whiplash market, resulting in significant loses.

Bot Configuration & Backtesting

Bot configuration and backtesting are the major factors that affect the profit generated by crypto trading bots.

With bot configuration, you can set the size order (large or small), grid spacing (tight or wide), and time intervals (short or long). The selection of these configurations plays an important role in how your bot will perform and whether it will turn a profit or result in a loss.

Large orders can increase the risk of loss, while short orders eat into profits. Tighter spacing allows frequent trades with higher returns but at the cost of high risk and fees, while wider spacing means slow trading and losing out on opportunities. Short trading is done in volatile markets with suitable bots, while long relies on trend-following bots.

Backtesting means using historical data to test your crypto bot’s performance in a specific market. It is important as it will allow you to evaluate your bot and optimize its performance for increased returns.

Fees, Slippage & Execution Speed

Exchanges charge a fee per trade, which accumulates rapidly in markets with high transaction volumes. To avoid these fees, you can use your bots in exchanges that charge less or program your bot to perform fewer transactions.

Slippage is the difference between the ideal and the execution price. As the margins are narrow in HFTs, slippage can eat away at all the profits accumulated by your bot in a run. You can limit your orders or set up servers near exchanges to reduce latency, thus allowing your crypto bots to perform better.

Speed matters a lot in HFTs as prices fluctuate within milliseconds. This can severely impact your returns if you are on a slow network or have high latency. You can reduce these loses by using high-speed internet and programming your crypto bot with event-driven triggers for instant execution.

Risk Management Settings

HFTs are full of risks and can result in severe loses incurred by your crypto bot. To prevent these loses, you can program risk management protocols into your crypto bot.

Stop-Loss Setting: This setting will trigger your crypto bot to exit a market when loses reach a predefined threshold. This can prevent you from losing all your assets if you don’t monitor the market.
Take-Profit Setting: With this setting, you can program your crypto bot to stop trading once the desired profit has been achieved. This will save you in case the market swings rapidly and all the gains are converted into loses.
Position Sizing: This setting determines how many assets will be used in a trade. With this setting, you will be saved from either oversizing or undersizing, which both can result in a loss.

Poor implementation of risk management protocols in your crypto bots can lead to catastrophic results. You can lose all your assets in an instant, or incur heavy losses if your bot is not programmed to stop at a certain threshold.

Without capital, you have no place or value in a crypto market. Protecting it is of utmost importance, especially when you are relying on automated tools like trading bots. Before deploying a bot, read carefully about market trends and implement risk management settings to survive the cruel world of crypto trading.

How to Choose the Right Crypto Trading Bots for Your Needs

The crypto market is overflooded with trading bots. All of these bots offer profits, reliability, automation, and ease. However, not all bots are created equal, and most of them are plain bad. Choosing the right crypto trading bot to match your needs is extremely important for any crypto trader.

Ease of Use

A crypto bot must be easy to use and program. As crypto markets swing at a rapid rate, it is important to change the instructions of your crypto bots at regular intervals.

If the crypto bot doesn’t offer easy manipulation of instructions, you will incur heavy loses, especially in HFTs.

Reliability and Security

A good crypto bot is reliable and secure. You can program it at your will without worrying about hackers accessing its functionality. Make sure to read about a bot’s uptime, API handling, and market reputation before making the purchase.

Strategy Customization

Bots that allow you to customize strategies and even copy strategies from successful traders are a better choice than hard-coded ones. This can allow you to stay ahead in the game and change your strategy to meet the market expectations.

Exchange Compatibility

Make sure the bot you are purchasing is compatible with the exchange you are using. Otherwise, you will be left with a useless and costly piece of software.

Backtesting and Simulation

Backtesting and simulation play an important role in finding out how your crypto bot will perform in a specific market, under specific conditions. Make sure the company offers a demo for backtesting before making the purchase.

Pricing and Value

It all boils down to your pocket and the value you receive for the amount paid. Go for the best one you can afford, but make sure that it meets your demands perfectly.

The Risks and Limitations of Bot Trading

While crypto bots offer fast and automated trading with optimized results, they are not without their risks and limitations.

Market Risk

Crypto bots follow predefined rules and don’t think or adapt like humans. Any change in the market, like black swan events or market crashes, can lead to massive losses if risk prevention measures are not implemented.

Technical Failure

Bots are software and prone to the same failures as bugs, crashes, outages, or even hacks. If a bot is not programmed carefully, it can execute wrong commands, leading to disaster.

Security Vulnerabilities

Crypto bots require API keys to access your crypto accounts. If the bot gets hacked, the hacker can access your crypto assets.

Strategy Limitations

Crypto bots learn from historical data and market trends. They don’t know or predict the future. As a result of this, many bots struggle in sideways markets unless AI drives them.

Best Practices to Maximize Your Crypto Trading Bot Returns

Crypto bot trading can be scary and stressful. However, by following these guidelines, you can maximize your returns.

Always set clear goals and risk tolerance. Once you have set your profit and loss goals, implement the instructions in your crypto bot. Before deploying the bot, make sure security protocols are in place and determine the level of risk the bot is allowed to take.
Choose the right bot for your selected crypto market. If you go with the wrong bot, you will end up incurring loses instead of profits.
Backtest your crypto bot with historical data to have a clear picture of its performance. This will allow you to identify the bot’s weaknesses and correct them.
Fine-tune your crypto bot with order size, grid spacing, stop-loss, and take-profit to have better control over the outcome.
Monitor your bot’s performance and update it according to market needs.
Implement strong security practices to protect your API keys.

Is Automated Trading Through Bots Better Than Manual Trading?

Both automated trading through bots and manual trading have their own pros and cons. They are worlds apart in philosophy while working in the same market conditions.

Feautres	Automated Trading with Bots	Manual Trading
Speed	Trade in milliseconds	Slow
Emotion control	No emotions involved	Can result in fear and stress
Market coverage	24/7	Limited
Adaptability	Follows pre-defined rules with little to no adaptability	Highly responsive
Set up and maintenance	Requires setup and constant upgradations	Requires monitoring and decision-making
Learning opportunity	Mostly passive with little learning	Great for learning market trends
Cost	Costly with subscriptions	Low cost but requires more input

There is no clear winner here as both approaches cater to different people. However, the best way to approach crypto trading is by using a hybrid approach, where you combine fast trading by crypto bots with the adaptability of manual trading.

Let your bots do trading while you monitor them constantly. Apply the risk management protocols that you have learned from manual trading to improve the bots’ protocols.

This way, you can have the best of both worlds, and crypto markets will become your playground for success.

Final Thoughts

Crypto trading bots are dual-edged swords that can either earn you massive profits or destroy your assets in an instant. It all depends on the technology used and protocols implemented for the markets you are interested in.

By combining bots with manual trading, you can enhance your trading experience. At Dypto-Crypto, we offer detailed free How-To guides that cover both aspects in detail.

You can also sign up to access our free resources section, where you can learn all about crypto trading and current trends. We also offer a free weekly newsletter to satisfy your crypto needs. Be a part of an ever-growing crypto family today and become an industry leader.

Frequently Asked Questions (FAQs)

Q: Is crypto bot trading profitable?

A: It depends on your crypto bot selection and its deployment in proper trading markets with clear instructions and risk management strategies.

Q: What is the most profitable crypto trading bot?

A: 3Commas and Cryptohopper have the highest performing crypto trading bots with returns up to 20%.

Q: Are crypto sniping bots profitable?

A: Crypto sniping bots can be highly profitable with a few caveats. They are capable of snatching crypto tokens within seconds of their launch. However, rug pulls and honey traps can result in you losing a lot of fortune.

Q: Are crypto trading bots risky?

A: Yes, crypto trading bots that lack proper security measures can prove risky to the users. Bad implementation of conditions can also result in catastrophic losses.

Q: Are there open-source crypto trading bots with good returns?

A: Yes. FreqTrade and Jesse trading bots have shown amazing returns in the past.

Q: Are trading bots worth it for beginners?

A: Yes, if used wisely and with proper instructions. They also help beginners learn how automated crypto markets work.