Best AI Trading Bots & Tools 2025

Level up your trading with AI trading bots. Learn about how AI trading bots work, whether they're profitable, and about the best AI trading bots. 🤖

What are AI trading bots?

It depends on your definition! There are a multitude of trading bots that use AI to automate trading and execute an investor’s strategy (and you can read about them in our crypto trading bots guide). But what many people have in mind when it comes to an AI trading bot is a bot that utilizes artificial intelligence to create a successful trading strategy, as well as automate it - and that’s the type of bot we’ll be focusing on in this guide.

Pros and cons of AI trading bots

Pros

• AI trading bots operate continuously, 24/7, without the need for human intervention, and can handle multiple strategies and transactions at once.

• They leverage advanced algorithms and historical data to make informed trading decisions.

• Many platforms include backtesting capabilities, allowing users to test strategies against past market data.

Cons

• AI trading bots can’t predict the unexpected, like sudden market crashes or extreme price volatility.

• Trading bots may face outages due to technical issues like API failures or connectivity problems.

• Setting up a bot requires technical knowledge.

• Some bots may be expensive, and scams are rife within the market.

Do AI trading bots actually work?

It very much depends on the bot you’re using and how reputable it is. The vast majority of platforms offering insane returns with AI trading bots are scams and should not be trusted. As well as this, the vast majority of those with successful AI trading bots certainly aren’t sharing their code! There are however a select few platforms offering trading bots that utilize artificial intelligence to create and deploy a given trading strategy. As ever, our guide is not an endorsement of any given platform and you should DYOR before investing in any platform or service.

With that out the way, let’s get into some of the options available for AI trading bots and tools.

Read next: Is Crypto a Good Investment?

What are the best AI trading bots & tools?

Cryptohopper

Cryptohopper's Algorithm Intelligence allows users to combine and automate multiple trading strategies, enabling the bot to analyze and select the best approach for current market conditions. It adapts to changing trends by ranking and backtesting various strategies and optimizing performance across different trading pairs. The AI is designed to continuously learn and adjust, making it similar to a hedge fund with multiple strategies. Users can also train the AI based on personal preferences for optimal results.

WunderTrading

WunderTrading's AI crypto trading bot leverages advanced algorithms and statistical analysis to identify profitable trading opportunities by analyzing crypto pairs for price convergence and divergence. It employs strategies like statistical arbitrage, mean reversion, and spread normalization to optimize trades, using features such as Take Profit, Stop Loss, and Trailing Stops for risk management. The bot adapts to market changes with machine learning, enhancing its ability to identify new trading patterns. Users can quickly set it up with compatible exchanges and new users benefit from a free trial.

Kryll

Kryll isn’t actually strictly a trading bot anymore. The platform previously offered automated trading bots and services but faced regulatory challenges from the AMF, the French Financial Markets Regulator, which classified them as an exchange and required them to become a registered Digital Asset Service Provider (PSAN). Despite Kryll only using APIs for trading, they had to comply and shut down their platform within a negotiated time frame.

However, the company has adapted and pivoted into a Web3 platform with AI-driven tools for cryptocurrency management. It’s worth noting that the new service hasn’t fully launched yet, but it’s looking to position itself as a leader in the AI trading market.

The new Kryll platform will utilize machine learning and real-time data analysis to provide users with personalized trading insights and automated strategy optimization to help users maximize profits while minimizing risk through intelligent automation. For example, Kryll’s SmartFolio features an AI-powered agent that provides real-time analysis of on-chain data, market trends, and asset performance, offering personalized insights and recommendations to help users track smart money movements, balance their portfolios, and more.

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How to choose the right AI trading bot

Your trading bot needs to be secure, as well as match your trading goals and your risk tolerance. Some factors to keep in mind include:

1. Investment goals and risk tolerance: Determine whether you're aiming for short-term profits or long-term gains, and assess your comfort with market volatility. This will help you choose a bot with strategies that align with your objectives and risk profile.

2. Supported exchanges, trading strategies, and fees: Ensure the bot supports your preferred exchanges and offers relevant strategies like grid trading or dollar-cost averaging. Also, consider the fee structure, including subscription or transaction costs.

3. UX, customer support, and security: Opt for a bot with a user-friendly interface, strong customer support, and essential security measures like two-factor authentication and encryption to protect your assets and personal information.

How to use AI trading bots responsibly

While crypto AI trading bots offer the potential to automate and simplify trading, using them responsibly is critical to avoid losses and reduce risk. Some key tips include:

1. Monitor performance: AI trading bots aren't a "set-it-and-forget-it" solution. Regularly track performance to ensure the bot is working as expected and responding to market changes.

2. Understand limitations: AI bots are powerful but not foolproof. Keep in mind profits are not guaranteed, technical issues may impact your bot, and that backtesting is not a guarantee that your strategy will work in current market conditions. 

3. Risk management strategies: There are a number of means to manage risk when using AI trading bots including stop-loss orders, position sizing, and regular withdrawals to name a few.

Remember, your bot trades are taxable

It doesn't matter whether you've got AI doing it on your behalf - if you have profits from crypto investments, you'll need to pay tax on them. Fortunately, Koinly can help make this simple with support for more than 800+ exchanges, wallets, and blockchains. Try it free today.