Cryptohopper review 2023: is it the most powerful cryptocurrency trading bot?

Overview

The crypto market is open all day, every day of the year. By operating this way, crypto markets level the playing field for all market participants and improve price discovery. However, the markets also pose great challenges to investors and traders.

When the crypto market is open 24/7, there will be periods with low liquidity. And when markets lack liquidity, volatility shoots up, and most traders fail to catch the rapid price movement. If you’re an investor, it is harder to manage or rebalance your portfolio when the market is free-falling, and you are asleep.

So what’s the solution? Simple — you automate everything! The rapid advancements in artificial intelligence have created some of the most powerful trading bots that can handle everything for you in the markets. From dollar-cost averaging to exploiting price mismatches, a crypto bot always has your back. But is it that easy?

Absolutely not! A bot saves time and removes emotions from trading. But you still have to build the right strategies and adjust risk parameters as markets evolve. To help you with that, you need an all-around, user-friendly, safe automated trading bot like Cryptohopper. This article will provide a comprehensive Cryptohopper review with all its features, trading bots, and much more.

What is Cryptohopper? 

Founded in 2017 by Rudd and Pim Feltkamp, Cryptohopper is an all-in-one crypto trading bot for traders and investors. Built using AI, Cryptohopper comes with automated trading functionalities that you can apply in spot and derivative crypto markets. 

For professional traders, Cryptohopper has specialized tools to automate their market analysis involving various technical indicators. In the case of beginner traders, Cryptohopper provides a marketplace to buy reliable trading signals from market veterans. 

To access the platform, you must generate an API key for your exchange and link it to your Cryptohopper account. Some popular exchange accounts supported on Cryptohopper are Binance, Bitfinex, Bittrex, Coinbase Pro, OKX, and Kraken. As Cryptohopper is hosted on the cloud, you can monitor your account from anywhere in the world and on any device you like, including your phone, tablet, and smartwatch. 

Cryptohopper features

To use Cryptohopper effectively, you must select the right set of trading features and configure them for high bot accuracy. Cryptohopper simplifies this process by dividing features into easy and advanced categories. 

While the easy features provide a hands-off approach to crypto investing, the advanced ones help more experienced investors and traders devise the best strategies with pro tools. All the features are given below: 

Trailing orders 

Charting candlestick partners using advanced tools and tracking price movements to hit your target is time-consuming. Even if your trading setup aligns with the market direction, managing risk and maximizing profit simultaneously can be tricky. To automate this process, Cryptohopper introduced trailing orders for stop-loss, stop-buy, and stop-short. 

The most popular trailing order is Trailing Stop-Loss (TSL). It helps all kinds of traders by increasing the stop-loss when the price increases. And when the price goes below the TSL, the bot automatically sells your position. This way, you don’t need to worry about selling too early or too late. Similar mechanics apply to stop-buy and stop-short, where the bot tries to find the ideal bottom price.

Dollar-cost averaging 

Most successful cryptocurrency investors made their wealth by not timing the market. Rather, they doubled down on their investing strategy during market downturns by DCAing. You can DCA in two ways. One, you can manually place buy orders every month. Two, you can let a fund manager do it for you. Both these ways are not efficient in the long run. This is where the DCA bot comes to your aid. 

Cryptohopper lets beginner traders add DCA features to their trading setups to combat loss-making positions. When a DCA order gets triggered on Cryptohopper, the order size is twice the normal amount. This removes emotions from trading and allows traders to take advantage of wild price swings in the crypto market. 

Copy trading signals

You can earn passive income using crypto bots without knowing how to trade cryptocurrencies. Sounds too good to be true? Well, it is possible with Cryptohopper. With a marketplace for trading templates and signals, Cryptohopper gives you access to some of the best traders or “signalers” in the market.

You must install the template or bot and backtest before deploying in live markets. It is also important to check the historical performance of signallers before you buy a template or subscribe to their signals. At times, the copy bot can send your portfolio into deep losses. To mitigate this risk, you have to set a stop-loss and start using a semi-automated trading bot.

Strategy designer 

Strategy designer is one of the advanced analysis tools Cryptohopper provides, aimed towards automating technical analysis. You can create algorithms using technical indicators and build your own trading strategies without writing a single line of code.

To create a strategy, you first select the indicators and candlestick patterns that give you buy and sell signals. Second, you match the indicator settings with advanced charting tools like TradingView. Lastly, test your strategies with historical data and start trading. 

If your strategy is performing well in different market conditions, you can consider selling it on the marketplace, serving as another source of passive income. 

Advanced trading dashboard 

Cryptohopper has one of the most user-friendly trading dashboards in the industry. The advanced view dashboard has everything you need, from monitoring markets to managing active positions. You can also place manual buy and sell orders by simply dragging and dropping them from the order book. 

On the right-hand side of the dashboard, you can check your current assets, deposit and withdraw funds, and synchronize exchange holdings with Cryptohopper’s trading bot. To synchronize, you have to enter the correct buying price and enable the Sync option. Some more features available in advanced view are Reserved funds, Log, Trade history, and Strategy values. Based on which pricing plan you choose, the features change on your dashboard. 

Paper trading 

Backtesting is crucial for developing a trading bot system. But, before you deploy it, you should consider opening a paper trading account to test the same strategy. Cryptohopper provides a paper exchange to check how the new strategies would play out in real-time. This boosts your confidence in the trading bot before you use it with money on the line. 

When paper trading on Cryptohopper, you should remember that you can only open one account per subscription. In addition, your paper trading accounts will have limited functionality in terms of maximum open positions and interval time. Furthermore, the paper bot doesn’t consider the supply and demand of the market. So, the result can be slightly off compared to trading with real funds. 

Multi-purpose trading terminal 

Cryptohopper provides a comprehensive trading terminal for traders and fund managers. You can add multiple accounts from different exchanges and seamlessly execute trades under Cryptohopper’s trading terminal. This simplifies tracking portfolio performance across exchanges and allows traders to easily adjust open positions. Also, you don’t have to pay any extra fee for adding new exchange accounts. 

Types of trading bots 

Cryptohopper has created three crypto bots for high-frequency traders who aim to take advantage of market inefficiencies. Some of these act as extensions to already available features but act independently. 

Market maker bot 

Trading the spread, the difference between buy and sell price is a common practice for institutional players and experienced traders. The market maker bot helps streamline this complex process by helping traders place layered buy and sell orders. If the spread is too big and market-makers provide liquidity to reduce it, the profits go up significantly compared to a market with deep liquidity. 

You can also adjust your market maker bot based on market trends. For example, when the market is trending upward, you should buy first and sell later. It’s the exact opposite when markets go down. In sideways, you should buy and sell at the same time. 

Arbitrage bot 

Arbitrage is an activity of buying and selling financial instruments in different markets, profiting off the price difference. With Cryptohopper’s arbitrage bot, you can automate the entire trading process of scanning the markets and finding profitable opportunities. 

You can arbitrate in two ways with the Cryptohopper bot. One, you can find price differences between different cryptocurrencies on the same exchange. For example, BTC, ETH, and BNB are your three crypto holdings. Let’s say BTC is your base coin. By using the market arbitrage bot, you can find price divergences between these three cryptos and increase your BTC exposure. 

The second way to use an arbitrage bot is to track the prices of the same coins on different exchanges. This is also called exchange arbitrage. For example, you apply the bot to USDT stablecoin. The bot will constantly compare the prices between the exchanges you added on Cryptohopper. And, when there is a price difference, it will buy on the cheaper exchange and sell it on the exchange offering the highest price. 

Copy bot 

Copy bot is a trading bot that follows the trading signals a Cryptohopper signaler gives. To create a copy bot, you first buy the bot template from the Cryptohopper marketplace. Second, you go to configuration and enable the “signals only” option. Third, you can select which coins to trade using a copy bot. While running copy bots is simple, you should note that trading signals aren’t always accurate, and the past performance of signalers doesn’t indicate their future performance. 

How to create trading strategies & backtest on Cryptohopper

So far, we have learned about features, tools, and types of trading bots available on Cryptohopper’s platform. Now it’s time to implement them and create a trading strategy from scratch. 

Even though you don’t need to be an expert in technical analysis, you need to be at least familiar with a few indicators and candlestick patterns. You can check out trading academy if you’re a beginner.

Step 1: Click on [New strategy] 

After you login into your Cryptohopper account, you will see the Strategies tab on the left-hand side of the trading terminal. 

Upon clicking on it, you should see a new window showing your current strategies, market strategies purchased from the marketplace, and strategies created using Cryptohopper’s AI. 

On the top-right, you should see a green button labeled New Strategy. Click on it, and you’ll be redirected to the editor for designing strategies. Before proceeding to the next step, you must name and describe your strategy. 

Step 2: Add necessary indicators 

Click on the blue “Indicators” button and you’ll see a menu pop up. Enter the names of the indicators you want to use and select them to add to your strategy. 

To keep things simple, let’s use RSI and moving average indicators to build our trading strategy. An RSI indicator gives you signals when a coin is oversold and undersold. In the case of the moving average, it shows the future direction of the market based on how the MA lines cross each other.

Step 3: Adjust indicator settings 

One of the biggest mistakes made by users on Cryptohopper is they don’t match indicator settings with a trading platform like TradingView. So before you save the strategy, you need to adjust indicator settings. If you want to trade in shorter time frames, you have to change the chart period from 4 hours (default) to less than an hour. Similarly, you have to change fast, slow, and signal periods to increase bot performance. 

You can also add boolean functions like OR and AND to your indicators to make your signals more tight and accurate. In this example, we have used two indicators for buy signals. So if you want more indicators to trigger to give a signal, you have to increase the minimum value from 1 to 2.

Step 4: Backtest before you go live 

The final step before you start using the strategy in the live markets is backtesting. Click on the blue “Test” button to start the testing process. Select the exchange and trading pair you want to use. 

After selecting the trading pair, click on the green “Backtest” button. That’s it! Cryptohopper will take care of the rest. Once the test is over, you can check the results for accuracy. If you’re happy with the strategy, you can add it to your base config and start using it in real time with real money.

Cryptohopper affiliate program 

Trading bots aren’t the only way to make passive income on Cryptohopper. You can join as an affiliate partner and promote Cryptohopper to your audience. This can be incredibly beneficial if you have an active distribution channel with a large follower base on social media, blogs, or email. 

Cryptohopper follows a multi-level affiliate program where you can earn higher percentages on each sale, given you increase your monthly commissions. The first level comprises affiliates earning less than $500 and giving them a 10% commission. After crossing the $500 mark, Cryptohopper upgrades the commission rate to 12.5%. The third level is for affiliates making more than $1000 with 15% commissions. 

So far, Cryptohopper has partnered with 25,000 affiliates who helped create 650,000+ accounts. For their service, Cryptohopper distributed more than $1.5 million with an average order value of $73. If you want to join the affiliate program, click here and fill in the details. If you have a question, you can contact the Cryptohopper customer support team. Their ticketing customer service is highly responsive and always available. 

Cryptohopper pricing plans 

The free or Pioneer version of Cryptohopper is a great starter pack for beginner investors and traders. You can place manual orders, manage portfolios, and backtest trading strategies. But, when it comes to automated trading experience, the features are limited. You need more advanced features to optimize your crypto trading bot to profitability. 

You need to subscribe to a paid plan to access those additional features and tools. Currently, Cryptohopper has three paid plans: Explorer, Adventurer, and Hero. To help you make the right decision, we have given a comparison table below: 

After selecting the type of plan, you have to choose between monthly or yearly payments. If you go with the latter, you can save anywhere from $29 to $189 based on the plan. Once the selection is over, you can make the payment. Cryptohopper accepts PayPal, direct bank transfers, Bitcoin, Litecoin, and many more. 

Closing thoughts

Cryptohopper is a complete platform for automated trading in the crypto markets. It has something unique for every market participant. Even complete beginners can sign up on Cryptohopper and start trading, thanks to its trading academy, copy bots, and social trading marketplace. 

For professional investors and traders, Cryptohopper has strategy designer tools that automate technical analysis and help backtest using past market data. Cryptohopper also helps cryptocurrency miners auto-import payments from exchanges and convert them into fiat currency. 

While the functionality of Cryptohopper is second to none, there are still some issues. If your centralized exchange is compromised, hackers can take your API keys to manipulate illiquid coins. Also, the trading signals are not always accurate. 

So if a bot underperforms for an extended period, your losses will pile up quickly and wipe out your account. This is why it’s recommended to regularly check on your bot and make necessary adjustments based on market conditions.

That said, Cryptohopper is primed for growth by the next bull run. Its comprehensive mobile app will attract new traders to try trading bots and simplify the onboarding process. Further, the rise of arbitrage opportunities in crypto markets will only increase trading bots like Cryptohopper. 

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