Automated trading has revolutionized the way investors interact with cryptocurrency markets. Platforms like Cryptohopper offer a suite of trading bots designed to execute strategies with speed, precision, and consistency—freeing traders from constant monitoring while optimizing returns. Understanding the different types of bots available is essential for aligning your tools with your financial goals, risk tolerance, and market expertise.
This guide breaks down the core bot types offered by Cryptohopper, explains their functions, and helps you determine which one fits your trading style.
Trading Bot with Signals
Signal-based trading bots are ideal for users who want to follow expert market analysis without manually executing trades. These bots automatically act on trading signals generated by professional analysts or algorithmic systems.
👉 Discover how signal-powered automation can boost your trading performance.
When a signal is received—indicating a potential buy or sell opportunity—the bot instantly places the trade on your connected exchange. This model works especially well for those who trust third-party signal providers but lack the time or technical skills to implement strategies manually.
Key benefits:
- Real-time execution of expert insights
- Reduced emotional decision-making
- Access to diverse strategies across multiple providers
Signal bots are a bridge between passive investing and active trading, making them perfect for beginners and intermediate traders alike.
Copy Bots
Copy bots allow you to mirror the trades of experienced and successful traders automatically. Think of it as social investing in the crypto world—you select a trader whose performance and risk profile match your preferences, and the bot replicates their moves in real time.
This type of automated trading bot is particularly valuable for newcomers who want to learn by observing proven strategies in action. It also benefits busy professionals who don’t have time to analyze charts daily.
Important considerations:
- Evaluate trader performance over time (not just short-term wins)
- Check drawdown rates and trade frequency
- Adjust allocation based on your risk appetite
By leveraging copy trading, you gain exposure to high-level strategies without needing advanced technical knowledge.
Regular Trading Bots
For traders who prefer full control, regular trading bots let you build and customize your own strategies using technical indicators like RSI, MACD, moving averages, and more.
These bots operate based on user-defined rules such as:
- Buy when RSI drops below 30
- Sell when price crosses above the 50-day moving average
- Set stop-loss and take-profit levels automatically
Regular bots are highly flexible and support backtesting—allowing you to test your strategy against historical data before going live. This feature significantly improves confidence and reduces trial-and-error risks.
👉 Explore powerful tools that help refine your custom trading logic.
They're best suited for intermediate to advanced traders with some understanding of technical analysis and market dynamics.
Portfolio Bots
Managing multiple cryptocurrencies across different exchanges can be overwhelming. Portfolio bots simplify this process by automating asset allocation and rebalancing based on predefined weights.
For example, you might set a portfolio with:
- 40% Bitcoin
- 30% Ethereum
- 20% Solana
- 10% stablecoins
The bot monitors price movements and automatically buys or sells assets to maintain these ratios. If Bitcoin's value surges and now represents 60% of your holdings, the bot will sell some BTC and buy underweighted assets to restore balance.
This strategy promotes disciplined investing and helps manage volatility without emotional interference.
Use cases:
- Dollar-cost averaging (DCA) across multiple coins
- Long-term wealth preservation
- Diversification across sectors (DeFi, NFTs, Layer 1s, etc.)
Portfolio bots are excellent for long-term investors seeking automated diversification.
Market Making Bots
Market making bots contribute liquidity to cryptocurrency markets by continuously placing both buy (bid) and sell (ask) orders around the current market price.
These bots profit from the bid-ask spread—the small difference between buying and selling prices. While individual gains per trade are tiny, high-frequency execution across volatile markets can yield steady returns.
Key features:
- Operates best in highly liquid markets
- Requires low-latency connections and tight spreads
- Often used by professional traders or institutions
Due to their complexity, market making bots are generally recommended for advanced users familiar with order book dynamics and exchange fee structures.
Exchange Arbitrage Bots
Arbitrage bots exploit price differences of the same cryptocurrency across different exchanges. For instance, if Bitcoin is priced at $60,000 on Exchange A and $60,200 on Exchange B, the bot buys low on A and sells high on B—locking in a nearly risk-free profit.
Cryptohopper’s exchange arbitrage bot automates this process by:
- Scanning multiple exchanges in real time
- Identifying profitable discrepancies
- Executing trades rapidly before prices converge
Success depends on:
- Fast execution speed
- Low withdrawal and transaction fees
- Reliable API connections
👉 Learn how smart arbitrage strategies can uncover hidden profit opportunities.
These bots thrive in fragmented markets where pricing inefficiencies are common, especially during periods of high volatility.
Market Arbitrage Bots
Unlike exchange arbitrage, market arbitrage occurs within a single exchange. These bots identify pricing imbalances between correlated assets—such as wrapped tokens and their underlying counterparts (e.g., wBTC vs BTC)—and execute triangular or statistical arbitrage trades.
For example:
- Buy Asset A
- Convert to Asset B
- Swap to Asset C
- Return to Asset A at a higher value than initial
This type of crypto trading bot relies on complex algorithms and fast data processing to capture fleeting opportunities that may last only seconds.
It’s particularly effective on large exchanges with deep order books and multiple trading pairs.
Core Keywords Identified:
- automated trading bot
- crypto trading bot
- exchange arbitrage bot
- portfolio bot
- market making bot
- trading signals
- copy bot
- Cryptohopper
Frequently Asked Questions (FAQ)
Q: Can I use multiple bot types at once?
A: Yes, Cryptohopper allows you to run several bots simultaneously. For example, you can use a portfolio bot for long-term holdings while running an arbitrage bot for short-term gains.
Q: Do I need coding skills to configure these bots?
A: No. Most bots can be set up through intuitive dashboards without writing code. However, advanced customization may require familiarity with technical indicators or strategy logic.
Q: Are arbitrage bots profitable in 2025?
A: Arbitrage opportunities still exist due to market fragmentation and delayed information flow between exchanges. With low-latency execution and proper exchange selection, these bots can generate consistent returns.
Q: How do copy bots handle sudden market crashes?
A: Copy bots replicate all trades—including losses—so it’s crucial to follow traders with strong risk management practices. Always monitor performance and set account-level stop-losses when possible.
Q: Is there a minimum investment required?
A: There’s no fixed minimum, but profitability often scales with capital size, especially for arbitrage and market making strategies where fees eat into small margins.
Q: Can I backtest my strategies before going live?
A: Yes, especially with regular trading bots. Backtesting against historical data helps validate strategy effectiveness and fine-tune parameters before risking real funds.
Choosing the right bot depends on your experience level, risk tolerance, and investment goals. Whether you're looking for hands-off portfolio management or high-frequency arbitrage profits, Cryptohopper provides a tailored solution.
Start by experimenting with one bot type, monitor its performance closely, and gradually expand your automated trading ecosystem as you gain confidence.