What is a crypto trading bot?

In Trading Strategies

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 four trading bots that we are happy to recommend because we we have done our due diligence and thoroughly tested them. They are Hummingbot, BitUniverse and most recently Coinrule and Quadency. 


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


London based Coinrule offer automated trading. Their tools empower traders to compete with professional algorithmic traders and hedge funds. No coding required. This makes it very easy for regular traders to build algorithmic trading strategies through an ‘If-This-Then-That’ interface.

Create automated trading rules, 24/7

Set custom automated trades and never miss a rally or get caught in a dip. Coinrule obsessively seeks out effective market indicators to enable smart allocation of funds while putting you in control of your trading machine.

Securely trade across crypto exchanges

Coinrule is a beginner-friendly and safe platform to send automated trading instructions to your favorite exchanges, including Liquid. We don't ask for private keys or withdrawal rights.

Learn more 


Quadency is a cryptocurrency trading management platform that is packed full of powerful, easy to use tools that can help you manage your cryptocurrency investments and trades. Find all the information you need, reach conclusions and execute on your decisions from one dashboard. 

Portfolio management

Soak in a comprehensive portfolio overview, even including assets held in offline storage. Track performance over time using in-depth portfolio analytics and trading statistics. If you’re feeling lost, flip the switch to change the portfolio into native currency mode for extra clarity.


Quadency allows traders to set up trading bots to streamline and automate the trading process. Create your own automated trading strategies or select from popular, pre-built options and customise them to your liking. Strategies can be tested in a safe, risk-free environment before being set live on the crypto markets. 

News and research

All financial decisions should be the result of thorough research and informed reasoning. Quadency provides a high-quality curated news feed that presents the most relevant industry news from respected publishers and industry insiders, keeping traders in the know. 

More about Quadency


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.


All guest authors’ opinions are their own. Liquid does not endorse or adopt any such opinions, and we cannot guarantee any claims made in content written by guest authors.

This content is not financial advice and it is not a recommendation to buy or sell any cryptocurrency or engage in any trading or other activities. You must not rely on this content for any financial decisions. Acquiring, trading, and otherwise transacting with cryptocurrency involves significant risks. We strongly advise our readers to conduct their own independent research before engaging in any such activities.

Liquid does not guarantee or imply that any cryptocurrency or activity described in this content is available or legal in any specific reader’s location. It is the reader’s responsibility to know the applicable laws in his or her own country.



Providing liquidity for the crypto economy.