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Cryptohopper Review (2022)

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Have you been looking for a quick and easy way to build automated trading bots?

If so, Cryptohopper is definitely worth checking out.

The service was designed to make automated trading as accessible as possible and is great for those who don’t know how to write code or interact with exchange APIs. If you’d like to learn more about Cryptohopper, how it works, and what it does – then keep reading – it’s all covered below.

Summary

What Is Cryptohopper?

Cryptohopper is an automated trading platform that lets you build and deploy your own trading bots with absolutely no coding required.

Once built, bots will automatically execute buy and sell orders based on the instructions you’ve given them. For example, you can instruct a bot to buy Ethereum (ETH) every time it dips below its 5-day moving average or decreases in value by 15% or more.

The number of instructions you can give a bot is seemingly endless and, as we will see later, they can be configured to employ a variety of trading strategies.

Trading bots on Cryptohopper are called Hoppers and all Hoppers require three components to function:

  • Strategy: The set of trading instructions a Hopper follows is its strategy. Strategies are built using technical indicators and candlestick patterns.
  • Exchange: Bots must be linked to a supported exchange to run. Because the bot trades on your behalf, you need to have an active account with whichever exchange you assign it to.
  • Template: This is like a container for all information a Hopper needs to function. It includes stop loss and take profit settings, along with what cryptocurrencies your Hopper will trade.

This might sounds confusing. But don’t worry, it quickly makes sense when you give it a shot yourself.

You can download ready-made templates from the marketplace, meaning the process can be entirely hands-off if you wish. You can also create strategies and templates from scratch (which we will look at later).

Once your template is complete, you can connect it to your exchange account using API keys. Upon connection, your template becomes a Hopper and instantly starts processing buy and sell orders.

What cryptocurrencies can a Hopper trade?

What cryptocurrencies a Hopper can trade is determined by the exchange and template you choose. Some templates may trade as few as two cryptocurrencies while others may trade as many as 15.

That said, popular coins include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Solano (SOL)
  • Aave (AAVE)
  • Synthetix (SNX)
  • Maker (MKR)
  • Sushi Swap (SUSHI)
  • Polkadot (DOT)
  • Cosmos (ATOM)
  • com Coin (CRO)
  • Ripple (XRP)

Why do people use trading bots?

As any seasoned trader will tell you, controlling emotions is one of the most difficult parts of trading. Because bots operate on a set of pre-programmed instructions, they allow you to remove emotions like fear, greed, and excitement from the trading process.

Trading bots and other automated trading tools receive and process information at a much faster rate than people, allowing them to rapidly execute trades and monitor many markets at once.

Bots also run autonomously, meaning you don’t have to be at your computer 24/7 scouring the market for entry and exit points. If you do go AFK, your bot can take over.

Advantages & Disadvantages

Advantages

  • Strategy designer tool is simple yet highly customizable.
  • API integrated with 15 of the top exchanges.
  • Quality analytics tools available for both live trading and backtesting.
  • Strong social trading capabilities offered through the marketplace.

Disadvantages

  • Number of exchanges is somewhat limited compared to other services.
  • Low customer service ratings.
  • No libraries can be imported for hand coding.
  • Only coins/tokens can be traded (no crypto futures or ETFs).

Main Features

Cryptohopper makes automated trading accessible to beginners. But this doesn’t mean it isn’t packed full of powerful features that everyone will appreciate.

Automated Trading

When creating an automated trading hopper, you have three options to choose from.

Auto Trading Bot: The most basic option available, an Auto Trading bot functions as outlined in the previous section. You choose which template you want to use and connect it to your exchange account. Once connected, the hopper automatically places buy and sell orders on your behalf.

Arbitrage Bot: Designed to exploit price differences between exchanges, Arbitrage Bots can be a valuable tool in highly liquid markets. To use an arbitrage bot, you must link your Hopper to two or more exchanges.

Market Maker: More advanced than the other two options, Market Maker bots place calculated buy and sell orders to profit off the spread. How market makers work can be confusing at first, and if you’d like a more detailed explanation of the topic, I recommend this video.

How does arbitrage trading work?

Due to differences in supply and demand, the price of a particular cryptocurrency may be higher on one exchange than on another. When this price difference is exploited for profit, the process is known as arbitrage trading.

If you would like a more in-depth explanation of arbitrage trading and how it can be done on Cryptohopper, read here.

Strategy Designer

The Strategy Designer offers a simple, code-free way to build your own trading bots. Buy and sell conditions can be constructed from over 130 technical indicators and candlestick patterns and the process is highly customizable.

For example, say you want your bot to place a buy order whenever a coin’s RSI drops to 20 or less. To do so, simply select RSI from the indicators tab, make sure it’s set to buy, and enter in the appropriate value.

Yes, it really is that easy.

There’s no limit to how many conditions you can create. Your strategy can be as simple, or as complex, as you want it to be. If you fancy yourself a programmer, know that all source code can be accessed and edited. Unfortunately, no libraries can be imported.

Don’t let its simplicity fool you, the Strategy Designer is extremely powerful and is one of the best tools of its kind that I’ve come across. If you want to learn more about how the Strategy Designer works and what it can do, I recommend watching this video.

Marketplace

You can buy pre-made templates and trading strategies from the Cryptohopper marketplace. All available templates/strategies are made by other users and cover a variety of trading styles – like scalping, swing trading, and position trading.

When you click on a template for sale, you’ll be taken to a page containing all the basic information, including price, the number of purchases, reviews, quote currency, cryptocurrencies traded, performance data, and more.

Many users buy well-performing strategies from the marketplace and use them with a custom template. Most strategies will come with recommended stop-loss and take-profit settings, but these can be changed to better suit your trading style and risk tolerance. Signal packages are also available for purchase.

What is the difference between a template and a strategy on Cryptohopper?

A template contains basic settings like trading strategy, supported cryptocurrencies, quote currency, stop loss info, and which exchange(s) it’s connected to.

A strategy is a collection of conditions made using technical indicators and candlestick patterns. Strategies can be downloaded for free, purchased, or built using the strategy designer function.

Strategies are added to templates and templates require strategies to function. Together, the two make up a Hopper, which is Crytphopper’s name for a trading bot.

What are trading signals?

Trading signals are calls to buy or sell a cryptocurrency. They are either human or AI generated and use Technical Analysis to identify entry and exit points.

Signal services can be purchased from the Cryptohopper marketplace and notifications are received through your mobile and desktop app.

Paper Trading

Paper trading subjects your bot to real-time market data using ‘dummy’ coins, meaning you don’t have to put your stack at risk when trying out a new template or strategy.

To access Paper Trading, go to your dashboard, select the template you want to use, and enable paper trading.

In some ways, paper trading can be thought of as practice or demo trading. I think it’s an invaluable tool for assessing and improving your strategies.

Bear Market Tools

Cryptohopper has several tools designed to help you profit and protect your holdings during a market downturn.

Dollar Cost Averaging

A popular investment strategy, dollar cost averaging (DCA) involves buying equal amounts of a cryptocurrency over an extended period (e.g., buying £50 of Ethereum (ETH) every week for a year, regardless of the cost).

The purpose of this strategy is to reduce the impact of price volatility and is a common practice among long-term investors – especially during market downtrends.

Shorting

You can instruct trading bots to automatically short cryptocurrencies when certain conditions are met. To understand more about short selling and how it works on Cryptohopper, read here.

Triggers

As many crypto-traders know, your hard-earned gains can be wiped-clean with just one bad market downturn. To help protect your holdings from large price swings, Cryptohopper lets you set up Triggers.

Triggers are customizable actions that are most commonly in the form of sell orders. For example, you can create a trigger that sells all your Bitcoin (BTC) if the price drops below its 50-day moving average.

In some ways, Triggers can be thought of as your last line of defense and work by turning your cryptocurrency into stable coins before your portfolio suffers any further damage.

Backtesting

Backtesting allows you to test your Hoppers and trading strategies against historical market data. Each time you perform backtesting on your Hopper, you’ll be provided with an analytics report that contains useful information like max profit, number of trades with a loss, and average hold time.

The difference between paper trading and Backtesting is the source of the data. While paper trading subjects bots to live exchange data, backtesting utilizes historical price data.

Why would you use backtesting instead of paper trading?

Say you want to test out a trading bot that you’ve designed specifically for bullish market conditions. If the market is in a bad downturn or correction, paper trading won’t be of much help.

With backtesting, you can rewind to when the market was in an uptrend, allowing you to test your bot under the conditions it was designed for. Additionally, backtesting lets you test your bot under a variety of different market conditions.

Supported Exchanges

You can currently connect your Cryptophopper account to 15 cryptocurrency exchanges, including popular names like Binance, Coinbase Pro, and Kraken.

Although you won’t be charged additional trading fees when using Cryptohopper, you will be charged a commission for each buy and sell order your bot executes (by the exchange, not Cryptohopper).

This can make low-cost (and less regulated) exchanges like Binance and KuCoin more attractive to use.

What exchanges does Cryptohopper support?

Cryptohopper currently supports 15 exchanges:

  • Binance
  • Coinbase Pro
  • KuCoin
  • Bitvavo
  • US
  • Kraken
  • Bittrex
  • Bitpro Panda
  • HitBTC
  • Poloniex
  • Bitfinex
  • com
  • OKEx
  • Huobi Pro
  • EXMo

Pricing and Payment Methods

Cryptohopper’s pricing plan has four tiers: Pioneer, Explorer, Adventurer, and Hero.

Which features and tools you have access to depends upon what plan you purchase. For a complete overview of the different account types and what they offer, read here.

Only PayPal, BitPay, EPS, SOFORT, BTC, and a handful of other cryptocurrencies are currently accepted. If you were hoping to pay by card, one workaround is to link a debit/credit card to your PayPal account and pay that way.

Is Cryptohopper Safe?

Cryptohopper is safe and no major security issues have been reported.

Still, you may not feel comfortable giving CryptoHopper access to your Coinbase or Binance account.

However, the API keys you generate and connect to Cryptohopper don’t have permission to withdraw funds from your account. It’ll only be able to place buy and sell orders.

If someone did compromise your Cryptohopper account, they wouldn’t be able to initiate a withdrawal. However, they would be able to change the strategy and template you’re using – which could be engineered to lose you money (by making bad trades).

The Cryptohopper website is secured by CloudFare and all API keys are encrypted on the company’s database. For an added layer of protection, you should immediately active 2FA on your Cryptohopper account when you signup.

Cryptohopper Alternatives

Here are a few alternatives to Cryptohopper that you could check out:

  • 3commas: Similar to Cryptohopper and its most popular competitor. Like Cryptohopper, 3commas has lots of features and makes it easy to build and deploy crypto trading bots.
  • Shrimpy.io: Unlike Cryptohopper, you can connect wallets like MetaMask and Guarda to Shrimpy’s automated trading tools. It supports more than 20 cryptocurrency exchanges and is known for its social trading features.
  • Pionex: A fully functional cryptocurrency exchange that gives you access to 16 free trading bots. Although they’re not very customizable, they can be used with almost any coin on the platform (300+).
  • HassOnline: Geared towards more advanced traders (and isn’t as user-friendly as Cryptohopper). That said, the service comes with plenty of powerful and highly customizable automated trading tools.

Other alternatives include GunBot, Trade Santa, and Gekko.

The Bottom Line

Cryptohopper is a highly customizable trading bot service that makes automated trading accessible to those who don’t know how to write code or complex algorithms.

Here’s what stands out to me:

  • Easy to create trading bots (even if you’ve never done something like this before).
  • Active marketplace for buying bots, strategies, and signals.
  • Quality mobile support and an easy-to-use interface.
  • Most popular cryptocurrency exchanges are supported (but only a total of 15).

You can sign up and try out Cryptohopper for 7 days without paying a penny (which I absolutely recommend, as it’ll give you a better impression of whether it’s right for you).

If you do, I’d go with the Explorer plan – which allows you to create trading bots, test them out, and even deploy them on the live market if you want.

Have a Question?

Thanks for checking out this Cryptohopper review!

Got a question about Cryptohopper that you can’t find the answer to?

Let me know in the comments below!

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