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Binance Arbitrage Trading Bots Lists

Welcome, to our article about the automated crypto arbitrage trading bots for Binance and Kraken. Binance is the largest and best Bitcoin and altcoin crypto exchange.

We will focus on crypto trading bots with an arbitrage function.

To break this down, we have the following headlines

  • What is an auto crypto arbitrage strategy?
  • Best auto crypto arbitrage trading strategy and highest ROI
  • Risks with auto crypto arbitrage trading

Best Automated Crypto Arbitrage Trading Bots for Binance

In the table below, we have listed the best auto crypto arbitrage trading bots allowing arbitrage strategies that can yield a high ROI.

Also, don´t forget to read and understand all the risks associated with crypto trading bots and arbitrage trading, which we have addressed further in the article.

To make a successful arbitrage bot, you need to find the following:

Check our article about crypto trading platforms with the lowest fees to find a good trading platform.

As you can see below, both Cryptohopper and Coinrule let you connect to several crypto exchanges, and both supply you with automated arbitrage trading bot templates.

cryptohopper crypto trading bot logo 2
Coinrule logo
Bitsgap crypto trading logo
Pionex logo

What is Auto Crypto Arbitrage Strategy?

There are 2 different ways to execute your crypto arbitrage trading strategy.

Auto VS non-auto trading strategy

  1. Auto trading means you trade manually, sitting and clicking in front of the computer or mobile device.
  2. Non-auto trading means you set up predetermined rules and let a bot trade automatically for you once the market triggers any of these rules.

Almost any crypto trading strategy is possible and maybe even preferably automated with a bot.

Old manual car gear level representing auto vs manual trading

What is arbitrage trading?

An auto crypto arbitrage strategy is a computer program that examines and compares coin prices across exchanges to make automated trades that take advantage of price discrepancies.

For example, a Bitcoin arbitrage trading bot might identify that BTC is trading for $50.000 on Kraken and $50.100 on Binance.

This will trigger the bot to buy ETH on Kraken and quickly sell it on Binance to make a small profit.

See the example illustrated in the picture below.

  1. Alice deposited $5.000 to Binance and bought 0.1 Bitcoin
  2. Alice transferred 0.1 BTC to Kraken and sold it for $5.010
  3. Now, Alice and move the $5.010 back to Binance and buy 0.1002 BTC
Of course, this method is not applicable for small transactions since there are fees involved in all these transfers. Also, trading bots must automate the process because the prices change very fast, and you can miss the arbitrage opportunity by being too slow.
 
Therefore, arbitrage trading is commonly leveraged by hedge funds and large institutional investors since the fees are lowered if you trade large volumes. For example, with Binance, you can come down to 0% in trading fees on the spot market and even minus if you are trading futures denominated in BUSD. Read more about Binance trading fees.

Cryptohopper Crypto Trading Bot - Arbitrage Strategy

cryptohopper crypto trading bot logo 2

Cryptohopper crypto trading bot lets you copy traders, manage all your exchange accounts in one place, use market-making and exchange/market arbitrage and simulate or back-test your trading strategies. Cryptohopper has many pre-programmed crypto trading bot templates you can use, including arbitrage templates.

With Cryptohopper, you can exchange arbitrage between exchanges without sending funds from one business to another.

Connect your exchanges with funds via an API. Then, enable Exchange Arbitrage and let your Cryptohopper automated bot search for arbitrage opportunities.

In addition, you get fast, automated trading and portfolio management for Bitcoin, Ethereum, Litecoin, and 100+ other cryptocurrencies on the world’s top crypto exchanges.

Supported exchanges are Binance, Binance US, Kraken, Crypto_com, Kucoin, Bitfinex, Bitpanda pro, Coinbase pro, Bittrex, Poloniex, EXMO, Huobi, and OKEX.

Read more about the Cryptohopper arbitrage trading strategy.

Coinrule Crypto Trading Bot - Arbitrage strategy

Coinrule logo

Coinrule is a crypto trading bot and platform which empowers traders to compete with professional algorithmic traders and hedge funds. With Coinrule, no coding expertise is required, and there are already pre-programmed arbitrage templates.

Supported exchanges: Binance, Binance US, Poloniex, Bitpanda Pro, Coinbase Pro, Bitstamp, HitBTC, Kraken, Liquid, OKex

Read the full Coinrule review.

Bitsgap Crypto Trading Bot - Arbitrage strategy

Bitsgap crypto trading logo

Bitsgap is an all-in-one crypto trading platform for trading,  trading bots, providing signals, and much more.

The sign-up process is a straightforward 2 minutes process with email verification.  In addition, Bitsgap provides a 7-day free trial in which the trader can enjoy several features free of charge.

Read more about the Bitsgap crypto arbitrage bot for the highest ROI.

Supported exchanges: Coinbase Pro, Huobi, Kucoin, OKX, Bybit, Binance, Bittrex, Bitfinex, FTX, Kraken, Poloniex, Gemini, Gate.io, HitBTC, Liquid

Read more about Bitsgap in our Bitsgap trading bot review.

Pionex Crypto Trading Bot - Arbitrage strategy

Pionex logo

Pionex is a cryptocurrency exchange with built-in free crypto trading bots.

Here, you will access 12 free pre-programmed unique crypto trading bots. These crypto trading bots allow you to automate your investing strategy.

Read more about the Pionex crypto trading arbitrage bot.

Risks with Automated Crypto Arbitrage Trading

A man jumping between 2 cliffs representing risks in the crypto market

As for any investment, crypto trading risks are associated with auto crypto arbitrage trading with bots.

However, if you are aware of and address the risks, it´s a much higher probability that you can manage and quantify them.

Here are some risks we have identified

  • Execution risk – Arbitrage opportunities are short-lived, and you almost have to execute the trades simultaneously. 
  • Uptime – Since you interact with one seller and one buyer on two exchanges simultaneously, all things must be connected, and no downtime is allowed. In addition, you probably use crypto bot software to perform your arbitrage strategy.
  • Counterparty risk – Since you have to deal with one buyer and seller simultaneously, there is always a counterparty risk.
  • Liquidity risk – If you buy crypto on one exchange, the same position must be liquid to sell on the other exchange.
  • Exchange fees – Arbitrage trading involves a lot of transactions with a small portion of the profit on each trade. As a result, there is a risk the costs will eat up all profit.

More Automated Trading Strategies with a bot

Many crypto trading strategies are possible to automate by using a crypto trading bot software.

For example, we also have a summary of the best-automated crypto day trading function for the most profit.