3Commas is a non-custodial trade automation platform in the cryptocurrency market, launched in 2017 by Yuriy Sorokin, Egor Razumovsky, and Mikhail Goryunov.
The service is designed to help solve the problem of trading cryptocurrency across multiple digital platforms, and it allows users to manage trades and portfolios on more than 18 supported exchanges and over 2,000 crypto trading pairs.
- Smart Trading: 3Commas offers a host of trading tools that enable users to trade across multiple exchanges, maintain several positions effortlessly, and even have access to order types not supported on some trading platforms such as ‘Take Profit,’ ‘multiple Take Profit Targets’ and ‘Trailing Take Profit’.
- Portfolio Tracking: The platform enables users to monitor and manage their assets on more than 18 crypto exchanges using the API feature.
- Paper Trading: This feature allows users to test out their trading strategies without risking their funds.
- Trading School: Provides access to educational material, including guides, tutorials, and blog posts with tips and tricks on how to improve trading skills and use 3Commas effectively.
- Social Trading: Users can track and replicate other traders’ positions and portfolios. Users can also share their winning trading strategies through the crypto signals service6
- Cloud-based services: The platform hosts its user interface online, allowing users to interact with their accounts from remote locations using mobile devices and computers alike.
- A comprehensive suite of trading tools: The platform includes backtesting, a trading academy, social trading, and more.
- Crypto wallet: Users can store their cryptocurrencies temporarily on the platform as they manage their portfolios.
- Automated Trading with Bots: There are several bots programmed to perform various functions, including opening one or multiple positions automatically, opening long or short trades on multiple supported platforms, setting buy and sell levels for multiple future trades, and more.
Pros & Cons
- A wide array of trading tools and bots
- Supports multiple exchanges and trading pairs
- Offers educational resources for beginners
- Allows paper trading for strategy testing
- The social trading feature allows following expert traders
- TradingView integration for technical analysis
- Real-time notifications and mobile apps for on-the-go trading
- Some features may be complex for beginners
- High-performing bots and advanced features require paid plans
- Dependence on the API of the exchanges could lead to issues if the exchange's API has problems
- No direct control over funds as trades are executed on the exchanges
3Commas charges a straightforward fee based on pricing packages, which are as follows:
- Free: $0
- Starter: $29/m (50% discount if paid annually)
- Advanced: $49/m (50% discount if paid annually)
- Professional: $99/m (50% discount if paid annually)
3Commas Trading Bot
3Commas trading bots work based on a number of customizable strategies that you set. Here is a general overview of how they operate:
- Bot Creation: Firstly, you need to create a bot. You can choose from various types of bots available on 3Commas, including DCA (Dollar Cost Averaging) bots, Grid bots, and Options bots. You have the option to use pre-configured bots or customize your own.
- Setting Up the Bot: After you've chosen the type of bot, you'll need to configure it. This involves selecting the exchange where the bot will operate, the trading pair, and the strategy that the bot will use. You can define the strategy by setting various parameters, including when to buy and sell, stop loss levels, take profit levels, and more.
- Running the Bot: Once the bot is set up, it will start to operate on the exchange you selected, according to the strategy you defined. It will monitor the market prices in real time and make trades when the set conditions are met.
- Monitoring and Adjusting the Bot: After the bot is live, you can monitor its performance on the 3Commas platform. You can see the trades it's making and the profit or loss it's generating. If needed, you can tweak the bot's settings to adjust its strategy based on changes in the market or your investment goals.
- Stop or Pause the Bot: You have full control over the bot and can stop it or pause it at any time.
Let's take the DCA bot as an example. It stands for Dollar Cost Averaging bot, which is a strategy where you spread out your investment over time, buying a certain amount of cryptocurrency at regular intervals, regardless of the price. This strategy is designed to mitigate the effects of price volatility and avoid making large investments at high prices.
When setting up a DCA bot, you can specify the base order size (the initial amount of cryptocurrency to buy), the safety order size (additional amounts to buy if the price drops to lower your average cost), the maximum number of safety orders, the price deviation to place safety orders, and more. The bot will then start buying the chosen cryptocurrency according to these settings and will sell it when the specified take profit level is reached.
Who is 3Commas Best Suited For?
3Commas can be beneficial for a range of investors due to its broad selection of features, from beginner-friendly options to more advanced tools. Here's a breakdown of who might benefit from using 3Commas:
- Beginner Traders: For those new to cryptocurrency trading, 3Commas offers a variety of educational resources through its Trading School, including guides, tutorials, and blog posts. Its simple interface and paper trading feature, where you can test trading strategies without risking real funds, can be particularly beneficial for beginners. The social trading feature also allows beginners to learn from and replicate the strategies of more experienced traders.
- Intermediate Traders: Traders with some experience can leverage 3Commas' wide array of trading tools, including smart trading options and various types of bots for automated trading. The platform's portfolio tracking feature is also useful for managing assets across multiple exchanges.
- Experienced Traders: Advanced traders can take advantage of the extensive suite of tools available on 3Commas. Features such as the ability to set up complex order types, manual trading options, and a wide variety of bots can be particularly useful. Experienced traders might also appreciate the TradingView integration for effective technical analysis, as well as the ability to backtest strategies.
- Investors Seeking Diversification: Since 3Commas supports over 18 exchanges and more than 2,000 crypto trading pairs, it can be a good tool for those looking to diversify their cryptocurrency investments across multiple platforms.
- Busy Investors: For those who don't have the time to constantly monitor the markets, automated trading bots can be a major advantage. They allow users to automate their trading strategies, which can save time and effort.
While 3Commas has a lot to offer to different types of traders, it's important to note that using the platform requires a certain level of knowledge and understanding of cryptocurrency markets, and all trading involves risk.
Overall, 3Commas is a comprehensive trading platform that caters to traders of all experience levels. It offers a variety of tools to optimize trading strategies, with a focus on automation and efficiency.
Despite some complexities in the use of its features, its educational resources can help users to navigate these, making it a strong choice for both beginners and experienced traders.