3Commas Safety Profile — ScammerWatch

Overview

3Commas is an automated cryptocurrency trading platform founded in 2017 and based in Canada. It connects to exchange accounts via API keys and offers DCA bots, grid bots, options bots, smart trading, copy trading, and a signal marketplace. Unlike the unverified platforms reviewed elsewhere on ScammerWatch, 3Commas is a publicly identifiable company with disclosed pricing and documented features. This page is a safety profile — not a fraud report and not a product recommendation. It documents the 2022 API key incident, conflict of interest history on this page, and the key risks specific to using 3Commas.

W>What is 3Commas?

3Commas is one of three the most popular crypto trading bots online. The next is Coinrule and another one we’ve already mentioned in the Bitsgap review.

As you probably already know, automated trading bots are set to buy and sell cryptocurrency automatically by following the instructions you placed.

The company is based in Estonia and its main purpose is to help people earn money in a short period. It is the easiest and quickest online crypto trading bot platform for everyday crypto traders just like you. It offers automated trading bots, but provides access to manual trading as well.

If you are a beginner, don’t worry. This trading platform is suitable for you, since it has a simple and intuitive user interface and developed trading tools to make generating money online as easy as possible. On this trading platform, you can also access tutorials and videos on almost every crypto trading feature, that they’ve made for users like you.

No matter what you’re looking for – an automatic crypto trading bot or manual trading with the bot’s assistance, after our 3Commas review you will know if this bot is right for you, or if you should go find another way to make a profit or another automated trading solution.

H>How does 3Commas work?

3Commas’ platform provides various services that correspond to different trade markets. To simplify your trading process, we outlined the core product below.

3Commas automated trading bots are four different bots: DCA bots (dollar-cost average), a HODL bot, a trading grid bot, and an options trading bot. Each of them calls for a different setup of the 3Commas bot, which we will discuss in more detail later in our 3Commas review.

In short, no matter what kind of 3Commas bot you use, basically, the 3Commas trading bot will always open and close deals automatically.

Now, you must be wondering how do 3Commas bots decide what to buy. Well, the bot will initiate transactions if the trading parameters you defined are satisfied. When earnings reach the specified value, the bot will sell the assets, raising the worth of your trading portfolio.

However, don’t think that you can’t lose money with 3Commas trading bots. Even the best cryptocurrency trading strategies are not perfect. That’s why it is necessary to set up stop losses to lower risks.

Let’s now see how each of these trading bots works.

H>How do DCA bots work?

The 3Commas DCA long bot places a trade after receiving a buy order (limit or market), and it places a take-profit trade when you want to cash in.

If the market moves in your favor, the bot will simply sell the assets in a particular trade, while keeping the difference in your wallet. However, when the market seems to be against you, this DCA bot strategy takes on a completely new level.

Consider making a trade at the initial trade price of $100 with a 15% higher take-profit level ($115 in this case). The price varies over the next few days, changing to $90, $80, $70, $90, and then it rests at $105.

Without DCA, your take-profit would stay at $115 and the trade would stay open. With the DCA bot, however, the average price moves to $89.17 ((100+90+80+70+90+105)/6 = 89,17).

As a result, even if the $115 target hasn’t been achieved yet, you may obtain the 15% at a lower take-profit pricing point of $102,54 ($89,17+15%=102,54), allowing you to close the deal in the green.

H>How does a HODL bot work?

HODL bots provide greater freedom while still sticking to the traditional DCA (Dollar Cost Averaging) investing method. Traditional investing involves monthly withdrawals from your account, which are subsequently invested in bond funds, mutual funds, and other components of a diversified portfolio.

The HODL bot from 3Commas operates similarly, except you can choose the specific asset and purchase frequency.

For instance, if you wish to invest $600 per month in Bitcoin, you could set up your HODL bot to purchase $600 every 30 days, but you could also instruct it to buy $20 worth of Bitcoin each day.

H>How does the 3Commas grid bot work?

The next thing we’re going to discuss is the grid bot.

This program automates the process of buying and selling assets by using a grid made up of buying and selling rates. Grid bot works well for cryptocurrencies that run sideways, since it enables you to profit from such cryptos’ slight fluctuations frequently.

The grid bot seeks to catch the smallest price fluctuations by separating this range into many grid levels. It creates a buying or selling limit order at each level, providing you with the option to purchase or sell based on price movement.

Also, with the grid bot, you can create a trading strategy to delay purchasing an asset at the present price if you think that it is too high, or the strategy to purchase an asset in tiny amounts.

H>How does the options trading bot work?

We have now reached the last of the four trading bots in this 3Commas review.

Options are one of the most difficult financial instruments to learn. If you are a holder of options, you have the right, but not the obligation to sell or buy an asset in the future.

The two key components of options trading are:

• The strike price – the price that you consent to pay when you eventually buy or sell the asset.
• The premium – the sum you must pay if you decide not to fulfill the contract, or, to put it another way, the cost of the deal.

Upon expiration of the contract, as a holder, you don’t have to pay the full strike price of the contract, but just the premium of the option.

3Commas options trading bot includes some complex trading strategies, so to learn how to apply them, you should have a good understanding of how options trading works.

Source

3>3Commas supported exchanges

3Commas trading bots operate in multiple exchanges. To be precise, 18+ major exchanges. You can connect as many exchange accounts as you want to your 3Commas account. Also, you can have multiple exchange accounts for the same exchange.

Not all features are offered for all exchanges, so we’ll list a few exchanges along with the features available there:

• Binance – Smart Trade, Portfolios, DCA Bots including Gordon bots, GRID bots;
• Binance US – Smart Trade, DCA Bots including Gordon bots, GRID bots;
• Bitstamp – Smart Trade;
• Coinbase Pro (GDAX) – Smart Trade, DCA Bots;
• Gate.io – Smart Trade;
• Poloniex – Smart Trade, Portfolios;
• KuCoin – Smart Trade.

Major feature>Major features of the 3Commas automated bot

Automatic tra>Automatic trading

With the right setup, this may generate a reliable passive revenue stream every day or month.

There are two types of bots on the 3Commas platform:

• simple bot,
• composite bot.

With the simple bot, you just choose a trading pair, set your take-profit targets, and let the bot run.

However, the composite bot is a little more complex, but offers more flexibility. It allows you to choose multiple trading pairs and run them simultaneously.

Manual tradin>Manual trading with smart trade feature

PortfoliosPortfolios

Source

Can you do fu>Can you do futures and margin trading on 3Commas?

3Commas supports Binance Futures Bitcoin X, BitMex Bitcoin X, and other cryptocurrencies. Please note that margin trading is only possible via a Smart Trade terminal dedicated particularly to manual trading.

How does the >How does the smart trading feature work?

Traders can modify their portfolios by placing buy or sell orders at certain price points.

For both experienced traders and newcomers, this is combined with TradingView signals. Here, you can see the trading dashboard of TradingView:

3Commas trade>3Commas trade signal marketplace

A trade signal is an indicator of a particular market trend that urges either to buy or sell an asset. Trade signals are generated through a study of technical analysis, mathematical formulas based on market movement, or a combo of financial factors.

3Commas enables you to follow signals from knowledgeable traders, for a monthly charge. You only need to build a signal bot, link a preferred exchange account, look for a signal provider that meets your needs in the 3Commas Marketplace, and then follow the instructions.

TradingView c>TradingView cryptocurrency signal finder

TradingView signal-finding software scans cryptocurrency markets in symmetric terms to detect potentially profitable signals. The protocol provides the following orders: “buy” the assets, “sell”, and the “strong buying” order.

When 3Commas’ automated bot receives signals, it orders automatically. It always includes exit strategies based on profit and loss, which can be determined by using a trading view algorithm. It’s important to know how to adapt the underlying details, related, for instance, to entering or exiting the market, to your specific situation.

Premium CQS s>Premium CQS signals on 3Commas

API Key Risk >API Key Risk and How to Reduce It

2022 API Key In>2022 API Key Incident — Full Account

3Commas subsequently acknowledged that API keys had been compromised. The company stated the compromise occurred via a data leak from within its systems. Binance confirmed to affected users that the unauthorized trades originated from 3Commas API keys. The full scope of affected users and total funds lost was disputed between 3Commas and the user community at the time of the incident.

This incident is directly relevant to anyone considering connecting an exchange account to 3Commas. It illustrates the core risk of API-connected trading platforms: regardless of which party is responsible for a security incident, the financial impact falls on the user whose exchange account was connected. 3Commas has stated it implemented additional security measures following the incident. ScammerWatch has not independently verified these measures.

Conflict of Inter>Conflict of Interest — Previous Version of This Page

ScammerWatch’s current methodology does not endorse, recommend, or carry affiliate links for any trading platform. The “approved bots” sidebar and all affiliate links have been removed from this and all other pages on the site. This safety profile documents 3Commas as a publicly identifiable platform with known incidents and known risks — not as a recommended service.

If you used 3Commas based on a previous recommendation on this site and experienced unauthorized trades or fund loss, you can submit a report at scammerwatch.com/report-a-scam.

How to start on 3Comm>How to start on 3Commas?

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