What is a crypto trading bot?

In Trading

Crypto trading is complicated. There’s a lot to learn. Much more time is spent conducting research and looking at charts than you would think.

A crypto trading bot is an advanced crypto trading tool that can take the weight off your shoulders and make a trader’s life much easier. Once set up, a crypto trading bot can do much of the work for you.

What does a crypto trading bot do?

A crypto bot is a piece of software that looks for opportunities in the market and capitalizes on them to generate profit. They’re more nimble and agile than a person could ever be alone – a good tool to have on your team.

A crypto bot can watch various different markets at once and spot an opportunity in an instant. Once found, the bot can execute a trade in the blink of an eye.

All in all, a crypto trading bot is the type of trader you dream of being. What’s great is anyone can set one up.

So how does it work?

There are several different types of cryptocurrency trading bots that take advantage of different situations. All bots are limited by their purpose and how the owner sets them up.

If there is a market opportunity that frequently appears, you can bet there is a trading bot designed to take advantage of it.

What crypto trading bots can I use?

Crypto trading bots require trust. The bot will have control over parts of your exchange account, so you need to be sure that the one you are using is legitimate and proven to be safe.

At Liquid, we have two trading bots that we are happy to recommend because we we have done our due diligence and thoroughly tested them. They are Hummingbot and BitUniverse.


Hummingbot is an open-source software client that can be used to build and operate crypto trading bots on Liquid and other popular cryptocurrency exchange platforms.

We have recently announced a partnership with Hummingbot. Liquid exchange will be integrated into Hummingbot so you’ll be able to deploy automated trading strategies that will execute on Liquid. This will also pave the way for future liquidity rewards programs.

With Hummingbot there are three different types of bot you can build:


A crypto trading bot that looks for chances to buy an asset for a low price on one exchange and sell for higher on another.

Market Making

Operate a bot that provides liquidity to order books by maintaining buy and sell orders.


This is a mix of arbitrage and market making. The bot clones liquidity from one exchange to another.

Get Started


BitUniverse makes trading easier. It’s a customisable crypto trading bot and portfolio tool.

With BitUniverse a trader can track a portfolio, execute trades and set up trading bots on Liquid and other exchanges, all in one place, available now on the web or mobile.

You can access a Liquid account through BitUniverse and begin automated trading through their platform. Simply generate an API key on the Liquid website to get started.

Learn how to connect your Liquid account to BitUniverse.

BitUniverse’s trading bot is called a Grid Trading Bot. It allows you to profit from market swings.

With a Grid Trading Bot, you’re in control. You set up ranges where the bot will buy and sell to capitalize from market swings. Here’s a look at how it works.

Learn how to set up a Grid Trading Bot.


This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.



Providing liquidity for the crypto economy.