3Commas is a cryptocurrency trading platform designed to help you build automated trading bots. The platform has more than 33,000 users and sees more than $10 million in trading volume each day.
3Commas is relatively intuitive to use, making it a good option for crypto traders trying out trading bots for the first time. In addition, 3Commas works with most major cryptocurrency exchanges and offers a spot trading interface that adds risk management tools to manual trades.
The Smart Trade interface resembles the trading interface you might expect from an online forex brokerage, except that it’s geared for cryptocurrency trading. With Smart Trade, you can buy or sell pairs of digital currencies using a few essential risk management tools. First, you can set market or limit orders, or set a price conditional that must be met before a market or limit order is subsequently triggered. You can also create a trailing buy or sell, which repeatedly purchases or sells a currency pair once the price condition is triggered.
Another advantage to Smart Trade is that it enables you to add take profit and stop loss levels to every trade, which many cryptocurrency exchanges do not allow. These options are relatively robust, as you can, for example, set multiple take profit levels and specify how much volume should be sold at each trigger price.
Dollar-Cost Averaging Bots
The main attraction of 3Commas is the platform’s trading bots. Of the three bots, two are designed around dollar-cost averaging.
The Gordon bot is a largely premade bot that you can program to run in just a few seconds. All you need to decide is how much money to commit to the bot, which exchange to run on, and whether you want the Gordon bot to run a conservative, moderate, or aggressive strategy. The Gordon bot uses the popular QFL trading strategy, which looks for potential dead cat bounces. A conservative strategy waits longer for additional price drops, while a more aggressive strategy will enter trades at the first sign of a price bottom. Note that the Gordon bot by default runs on all currency pairs available on your connected exchange.
The Advanced bot is a more customizable dollar-cost averaging bot. You can choose from a variety of trading strategies, including QFL and scalping, or connect a TradingView account to import your own custom trading signals. With the Advanced bot, you can decide whether to make it a simple (one currency pair only) or composite (multiple currency pairs) bot and choose what currency pairs it should monitor. There are a number of options for customizing the bot parameters, including setting, take profit, and stop loss levels and specifying the minimum daily volume a currency pair must meet before the bot activates.
The GRID bot is 3Commas’ newest bot, and it works by dividing a technical price chart into slices. Each slice, which covers a range of prices, is assigned a buy or sell signal. When the currency price crosses into a new slice, the bot will automatically buy or sell based on the signal assigned to that slice.
One of the nice things about the GRID bot is that you can have the slices determined automatically for you using the AI setting, or you can set up the slices manually. If you set up the bot manually, you can decide the price levels of the maximum and minimum slices and the price range covered by each slice. This bot is particularly useful for stablecoins, which typically trade in a sideways range since they are meant to keep a roughly constant value relative to another currency.
One other useful feature within 3Commas is portfolio tracking. You can easily track the composition, trading history, and profit and loss of your cryptocurrency portfolio, even if it is spread across multiple exchanges.
On top of that, 3Commas offers a copy portfolios feature that allows you to see what coins are inside other traders’ portfolios. If you want to copy another trader’s portfolio, you can do so in just a one-click transaction. Of course, 3Commas also lets you decide how much of your account value you want to invest in that portfolio, and you can sell off coins one at a time rather than being forced to sell the whole portfolio.
3Commas is designed to work with your accounts at a cryptocurrency exchange rather than serve as an exchange itself. To connect an account to the service, you’ll need to get an API key from your exchange and connect your wallet.
Currently, 3Commas works with 22 exchanges, including Binance, Bitfinex, Kraken, Coinbase, Poloniex, and Bitstamp. Note that not all exchanges support trading bots, although all of the exchanges do support Smart Trade. You can find a full list of 3Commas’ supported exchanges here.
How Does 3Commas Stand Out?
3Commas isn’t the only trading bot service available to cryptocurrency traders, but it stands out for being relatively affordable and relatively easy to use. 3Commas is fairly straightforward to get started with even for those who haven’t used trading bots in the past. There are several automated strategies that you can turn to, and the Smart Trade feature is somewhat self-explanatory. It also helps that 3Commas works with such a broad range of popular cryptocurrency exchanges.
That said, 3Commas doesn’t enable you to truly customize the trading bots unless you have a linked TradingView account. While you can use TradingView for free, most of the platform’s best features for building custom signals require a paid plan – which starts at $14.95. That can raise the cost of using 3Commas, although it’s still not overly expensive given how powerful the software is.
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