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If you want to join the multibillion-dollar cryptocurrency trading market but don’t have much expertise, automated trading could be a good option for you.
For independent traders, automated trading bots provide the best value. They may be customized, linked to several exchanges, and function around the clock all year.
With that stated, 3Commas is one of the most well-known bitcoin trading bots on the market right now. The platform includes a variety of cutting-edge trading capabilities that can be integrated into your own custom bot and tested and deployed on a variety of popular cryptocurrency exchanges. In this 3Commas review, I will look at all the key features of this platform and share with you my experience with this crypto trading bot service in 2021.
What is 3Commas?
3Commas is a trading platform for Cryptocurrency that provides both beginners and advanced traders with the tools they need to become successful cryptocurrency traders. Its collection of bots and algorithms, as well as its instructional materials and dashboard for tracking your different transactions, can offer you a significant advantage.
The site also has a variety of low-cost programs and an easy-to-use trading platform where you can configure and modify your trade parameters.
How Does It Work?
For a range of trade purposes, the 3Commas platform provides a number of essential services.
Before you can decide which trading techniques to use, you must first connect your external exchange accounts to the 3Commas platform. In a word, you must grant 3Commas access to your trading account in order for your automated strategy to conduct trades independently.
Even if you don’t want to employ an automated bot, this is useful since it allows you to execute automatic trade orders across all of your cryptocurrency exchange accounts with a single click.
As an example, let’s suppose you have assets held by Binance, KuCoin, and Coinbase Pro to reduce your risks.
If you wanted to execute an automatic trade on BTC/ETH when the price reached a specific level, you’d have to log into each exchange site separately and put your needed order one at a time. Instead, you may use your 3Commas portal to create a single order that will be executed when the pre-defined conditions are satisfied.
How you link your accounts will differ based on which third-party exchanges you want to integrate. In the great majority of situations, however, you will need to extract the API key from your particular exchange account’s settings page.
After you’ve obtained the necessary credentials, go to your 3Commas account’s “My Exchanges” area and select “Connect to a new account.” Finally, paste the API key you obtained from your selected exchange into the field. You’ve successfully granted the 3Commas platform access to conduct transactions on your behalf once you’ve completed the steps above.
3Commas’s Best Features
3Commas is a web-based platform with an easy-to-use and simple user interface that offers a variety of tasks as well as thorough analytics. Users can use short, basic, composite, and composite short bots, as well as create their own trading strategies and set stop loss and take profit goals.
Technology: Users may access their trading dashboard on desktop and laptop computers via API connection with bitcoin exchanges, and the bot operates around the clock on any device. Mobile apps for Android and iOS have also been developed by the team.
When it comes to automatic trading bots at 3Commas, you basically have two options. If you’re an experienced trader who wishes to set your own trading conditions, you may do so with ease. You may also imitate the trading portfolios of other 3Commas users if you’re a beginner trader with minimal expertise in trading techniques.
Before I get into the major characteristics of automated bots, it’s vital to highlight that technical analytical metrics cannot be integrated into the decision-making process. Bollinger bands or Moving Average Convergence Divergence (MACD) are examples of this. Despite the fact that you may build your automated bot, TradingView’s bitcoin signal finder is where the actual decisions are made.
The Smart Trade interface is similar to that of an online FX brokerage, with the exception that it is designed specifically for bitcoin trading. Smart Trade allows you to purchase and sell digital currency pairings while employing a few key risk management features. To begin, you may create market or limit orders, as well as a price precondition that must be satisfied before a market or limit order is executed. You may also make a trailing buy or sell, which buys or sells a currency pair again anytime a price condition is met.
Smart Transaction also allows you to add take profit and stop loss levels to each trade, which is something that many cryptocurrency exchanges do not offer. These settings are very flexible, as you may define several take profit levels and how much volume should be sold at each trigger price, for example.
3Commas’ newest bot, the GRID, operates by slicing a technical price chart into slices. Each slice, which covers a price range, is given a buy or sell signal. The bot buys or sells automatically when the currency price enters a new slice, depending on the signal sent to that slice.
One of the wonderful features of the GRID bot is that you can have the slices automatically determined for you using the AI option, or you can manually put them up. If you set up the bot manually, you may select the price levels of the highest and lowest slices, as well as the price range covered by each slice.This bot is especially useful for stablecoins, which generally trade in a horizontal range since they are intended to maintain a relatively constant value in relation to another currency.
The platform’s trading bots are the platform’s major draw. Two of the three bots are based on the concept of dollar-cost averaging.
Gordon is a pre-built bot that you can configure to operate in a matter of seconds. All you have to do now is pick how much money you want to put into the bot, which exchange you want it to trade on, and whether you want the Gordon bot to trade conservatively, moderately, or aggressively. The Gordon bot employs the well-known QFL trading method, which seeks out dead cat bounces. A conservative approach will wait for more price decreases, but a more aggressive strategy will join trades as soon as a price bottom is detected. The Gordon bot operates on all currency pairings accessible on your linked exchange by default.
The Advanced bot is a dollar-cost averaging bot with greater customization options. You may use a number of trading techniques, such as QFL and scalping, or link a TradingView account to import bespoke trading signals. You may select whether to create the Advanced bot, a basic (one currency pair only) or composite (many currency pairings) bot, as well as the currency pairs it should monitor. Setting, take profit, and stop loss levels, as well as selecting the minimum daily volume a currency pair must reach before the bot starts, are all possibilities for configuring the bot parameters.
Trailing Stop Loss
The trailing stop loss is a far more effective way to avoid losses. This is a better way to deal with the market’s volatility. It is constantly changing in response to price fluctuations. Trailing ensures that you generate a profit before the minimal loss threshold is met.
The algorithm navigates the unpredictable market, detects that you may be at risk of losing money, and then takes critical decisions to help you earn a profit first. When your currency hits its high during the day, the bot will make sure to sell it before it drops.
3Commas employs the “stop loss” approach, which is both effective and strong. The crypto bot uses this functionality to ensure that the user’s money is not at risk of being lost. This is done by using the well-known method and functions like a limit to calculate a loss percentage. If the value of your currency falls below the limit set by the bot, 3Commas will immediately sell the currency before you lose any more money.
This function is completely within the control of the user. They have complete control over setting the limit and managing the risk. If the user is unhappy with the bot’s limit and does not want to risk losing so much money, he or she can increase it to be safe.
A Range of Tools
Users may construct, evaluate, and back-test crypto portfolios, as well as track the top performing portfolios established by other users, using the platform’s trading features, which include automated bots and performance statistics. Users may also participate in social trading, which allows them to follow and replicate the activities of other successful traders.
The trader’s diary is a one-of-a-kind feature that not many bots offer. This enables users to combine their thoughts and opinions about the transactions they have made as well as their reports. This is similar to creating notes and comments, except that you keep a separate record that you may change and update whenever you choose. This allows you to go back on all of your trades and see when they were at their greatest and lowest points. This tool allows you to become a knowledgeable and experienced trader by allowing you to examine your transactions in a more methodical manner.
Trailing Take Profit
The trailing take profit function, like the trailing loss feature, focuses not just on profit but also on ensuring that you make the most profit possible by tailoring itself to the market. In this case, the bot estimates when the price of your cryptocurrency will be at its highest during the day, as well as providing insights for the next day. This feature helps inexperienced traders build confidence in the crypto trade game by ensuring that they do not miss out on any significant earning possibilities.
The Take Profit and Stop Loss features are quite similar. Stop loss allows the user to establish a limit on the percentage of loss after which the bot should sell the currency. Similarly, the user may specify an upper limit for the profit % after which the bot will sell the coin.
As secure as it seems, there’s a chance you won’t be able to benefit more if the currency achieves a new high. As a result, several experienced traders avoid using the take profit function. However, for many inexperienced traders, this is a risk-free way to make some money before the market goes downhill.
Cryptocurrency Paper Trading
You may test your methods and trade with virtual money by using their “paper trading” tool. This will assist you in learning to trade as well as acclimating to the 3Commas system.
Paper Trading is a method of simulating real-time market fluctuations. In real time, the price changes in the same way, and the same variables influence it. BTC has some excellent news and is on its way to the moon? ETH has bad news and is bleeding profusely? The same will be true for paper trading.
To purchase or sell, you’ll still need cash, but you can acquire them quickly by pressing a button. Profits earned on the paper trading account cannot be transferred, but losses can be reset as many times as you wish.
With paper trading, you may master technical analysis, and your abilities will be transferable to real trading. 3Commas features are the same for paper and real trading, so if you use Smart Trade on a paper trading account, you won’t notice a change when you convert to live trading.
However, there is no simulation of trade volume.
Because paper trading does not replicate liquidity, no order book simulation or partial fills are possible. Even without the liquidity simulation, high liquidity pairings like USDT BTC perform well. Only low liquidity pairings, such as BNB XXX, show a difference:
Orders are filled when the price reaches a certain threshold, regardless of the quantity of the order. The difference between 0.1 BTC and 10 BTC is negligible, yet it feels different in real-time trading.
Market orders are filled as if there is always someone looking to buy or sell at the greatest price. If there is little liquidity on the exchange order book, a market order may fill at a considerably worse price in actual trading.
Because all trailing characteristics are based on market orders, they will always produce the greatest possible outcome.
Portfolio tracking is another essential function of 3Commas. Even if your bitcoin portfolio is distributed over numerous exchanges, you can simply track its composition, trading history, and profit and loss.
Furthermore, 3Commas has a copy portfolios function that lets you view what currencies are in the portfolios of other traders. If you wish to duplicate another trader’s portfolio, it’s as simple as clicking a button. Of course, 3Commas also allows you to choose how much of your account worth you want to put into that portfolio, and you may sell coins individually rather than the entire portfolio at once.
One of 3Commas’ greatest advantages is that it allows users to conduct transactions across several exchanges. This allows traders to make well-informed judgments based on data from almost 12 exchanges, thorough research, and all of the necessary procedures for the best strategy and plan.
The platform remains available in English and Russian, and a support crew is available 24 hours a day, 7 days a week to help with any problems. Users may reach out to the team by making a request in the Help Centre, as well as through their Twitter account, Telegram group, and Facebook page. In addition, the Help Centre contains a FAQ page that tackles the most prevalent difficulties, as well as a variety of well-written Guides that assist users in navigating the platform.
How To Create an AI Grid Bot On 3Commas?
You simply need to choose a trading pair, assign funds, and click the “Create” button to get the bot up and running if you already have an exchange link.
How Does the AI Grid Bot Function?
This bot seeks to profit from any price change within the price range it established before. What criteria are used to determine that range? The bot established the upper limit because the highest price obtained in the previous seven days rose by 3%. The lower limit price is the lowest price that has been attained in the last seven days, and it has dropped by 3%.
The bot then divides the chosen range into numerous planes and sets a buy or sell order on each level, allowing you to buy and sell every dip and rise.
Because GRID executes both buy and sell orders at the same time, you must own both coins in the pair to trade. When trading BTC for ETH, you’ll need both BTC and ETH.
Pros & Cons of 3Commas
- You may browse and copy bots from your library.
- A user-friendly dashboard with all of the functionality you require in one convenient location.
- For traders of all levels, there are programs that are both affordable and scalable.
- Customer service that is responsive.
- All of the main crypto exchanges are accessible from a single site.
- Education and learning resources that are comprehensive
- In the mobile app, there may be some slight latency.
- For newcomers, the onboarding process is lengthy and often daunting.
3Commas Mobile App
You’ll be able to utilize 3Commas’ mobile app regardless of the plan you pick. Furthermore, the mobile app has all of the functionality included in the desktop version, allowing you to conduct the same sorts of transactions from your smartphone.
This allows you to keep track of your deals from wherever. However, the mobile app is not yet as slick as the desktop version. Although the engineers are still working on it, you may notice some delays in the alerts and the mobile smart trading platform.
3Commas is one of the most trustworthy and well-known cryptocurrency trading platforms. It is towards the top of most review sites’ lists, with virtually flawless scores and wonderful comments. Although the crypto trading industry is still young and these sorts of services are relatively new, 3Commas is now at the top of the market.
How to Profit From Using Automated Bots
Users may start making long and short trades after setting up a bot. For short transactions, a price increase in the selected currency will result in the underlying cryptocurrency being sold once the profit threshold is met. In the event of a price reversal, safety orders may be placed to guarantee that the bot purchases at the same percentage increase.
The 3Commas team has detailed both long and short algorithms that allow for the profitable employment of opposing tactics of selling higher and purchasing lower.
How Much Does 3Commas Cost?
While you may test 3Commas for free, there are a number of monthly subscription packages available that include a variety of features.
The Starter package is $14.50 per month (paid yearly) and comes with the Smart Trade manual trading terminal but no automatic trading bots.
The Advanced plan adds basic bots that can only open trades on one currency at a time for $29.50 per month. You may import your custom trading signals to 3Commas utilizing the Advanced plan if you have a separate TradingView account and utilize that platform to create them.
The $49.50 monthly Pro plan includes composite bots, which enable you to open trades on multiple cryptocurrency pairings rather than just one.For automated bitcoin futures trading, Pro customers can connect to the Bitmex, Finance Futures, ByBit, and FTX exchanges.
You may try out 3Commas for three days on the Pro plan before committing to the platform. A credit card is not required for the trial.
How Suitable Is 3Commas for Beginners?
Even for inexperienced traders, the site is simple to browse, and trading bots are simple to set up. New and seasoned traders will benefit from the portfolio construction, tracking, and social trading capabilities. Features like bot analytics, which shows which bots and trade pairings are performing well, and the marketplace are well-designed and easy to use.
Binance, Bitmex, BitFinex, Bittrex, Bitstamp, Poloniex, KuCoin, Gate, HitBTC, Coinbase Pro, Huobi, OKEX, and Kraken are among the 13 exchanges that 3Commas is now compatible with.
3Commas is one of the most adaptable and reliable trading systems available. The user-friendly interface is an ideal initial step for users of all skill levels. It is also linked to the market’s main exchanges, with the ability to place orders between exchanges being a key feature.
If you’re considering investing in cryptocurrency, this platform should be at the top of your study list.
While 3Commas’ smart sell, smart cover, and easy interface make it an excellent platform for manual trading, it’s perfect for aspiring bot traders. 3Commas is also a good choice for anybody looking to add automated trading to their bitcoin trading methods because it includes features like portfolio building and tracking, as well as social trading.
3Commas Frequently Asked Questions (3Commas FAQ)
Does Smart Trade On 3Commas Support Margin and Future Trading?
It certainly does. Through the 3Commas Smart Trade interface, you may connect to BitMex, ByBit, orDinance and manage your margin transactions.
What Kind of Trader Is 3Commas Best Suited For?
The platform is suitable for crypto traders of all skill and experience levels. Experienced traders with a history in coding and algorithmic trading would benefit the most from this platform. Newcomers, on the other hand, may start with paper trading and build their knowledge and experience in crypto trading on this platform over time. For the most fundamental activities, the straightforward design is self-explanatory, but getting the most effective and efficient benefits to improve performance requires more effort.
Where Is 3Commas Based?
3Commas is a cryptocurrency trading platform that allows investors to trade with little risk, reduce losses, and enhance profits. 3Commas is headquartered in Toronto, Ontario, and was formed in 2017.
How Many Users Does 3Commas Have?
In 2020, the platform served more than 100,000 users across all major exchanges, with total trading volumes reaching USD 12 billion.
Is 3Commas Safe?
The 3Commas team claims to be dedicated to data security and the safety of their users’ personal information, and that all data is secured by security-integrated measures. These take a variety of forms, including the usage of secure locations and technical safeguards like encryption and secure servers.
Which Is Better: 3Commas or Cryptohopper?
Unlike Cryptohopper, 3commas offers completely automated trading bots that function without the need for client configuration. 3commas also provides simple automated trading tools for simpler trading methods, as well as simple trading tools for creating bespoke bots.
Note: The trade of Bitcoins and other cryptocurrencies offers both potential benefits and risks. Trading may not be appropriate for everyone. Every investing and trading choice has risk, so perform your personal research or consult an expert before making a decision.
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