The digital asset industry is growing and becoming more real in our lives. More individuals are attracted to the sector and we are seeing how more institutions are slowly gravitating to the sector as well. These movements are important because it indicates that there is likely staying power in the digital asset industry.
Those who are in the space are embracing innovation and progress and are not only looking at speculating in the traditional fashion. Rather, these individuals are looking at more automated options to help them streamline how they invest in the world. This is crucial and a critical distinction because the digital asset sector is digital by definition. It indicates that individuals have to be more smart, efficient, and use technology to earn their alpha returns.
Let us look at the value of trading automation and two platforms offering crypto bot solutions: 3Commas and Shrimpy.
🤖 Automation is Critical
Automated digital asset speculation has gained a lot of attention in recent years. What just a few years ago seemed out of reach, is today used by even the everyday traders, and the options aren’t limited at all, with dozens of automation tools at disposal, ranging from simple auto systems to fully-fledged programs and strategies.
Two of the most popular options available today on the market are 3Commas and Shrimpy. But which one of the two is truly the better option? This is what you are going to find out in this brief guide.
⌛ A Brief Overview of Both Platforms and Time in Business
Shrimpy is a platform that hosts over 30 cryptocurrency exchanges and wallets, both hardware and software. Founded in 2018 by Michal McCarty and Matthew Wesly, its goal was to assist traders in tracking and rebalancing their crypto holdings across different platforms. As far as features for your crypto portfolio management, Shrimpy offers some solid variants including portfolio tracking, smart trade, social trade, automatic rebalancing, and others.
3Commas was founded in 2017, as an automated crypto trading platform with smart execution.
Like Shrimpy, 3Commas uses an API to connect to cryptocurrency exchanges. Following that, the user may trade on any exchange directly from the 3Commas console. Shrimpy looks to be designed for portfolio investors, whilst 3Commas is designed for traders. Advanced orders with conditions, trailing buys, and other smart trading strategies are available. This might be daunting for a beginner trader. It is necessary to have a good command of the details to do a good job overall in this market.
💡 Reputation
3Commas is extremely straightforward to use, making it a good choice for cryptocurrency traders who are new to trading bots. 3Commas also interfaces with the majority of major crypto exchanges and offers a spot trading interface for manual trades with risk management tools.
Shrimpy’s portfolio rebalancing capabilities are well-known. It’s the process of rebalancing a portfolio’s asset weighting. It is accomplished by gradually buying and selling assets in order to maintain the risk/asset allocation level at the desired or original level.
The service claimed to make crypto trading easy for both new and seasoned investors. Customers may also use Social Trading and Mimic Trading to copy prominent traders and their various tactics.
The service is completely free and quite beneficial to new traders. It is beneficial to skilled users since a replicated portfolio approach results in a monthly payout of $4. Shrimpy is available to holders for free. Professionals, on the other hand, must pay $13 per month for an annual plan.
Shrimpy’s appeal is its simplicity. Its trading bot has a simple and easy-to-understand user interface. Even for beginners, the web-based tool is visually appealing and simple to use. Users may quickly set up the instrument and use features like spread and slippage. But even if its appearance and usability are tempting for new traders, experienced traders are also finding its tools to be handy.
💰 Packages/Prices
Let us take a look at the packages of Shrimpy first.
Shrimpy has a very straightforward price structure. It offers 3 paid plans options: Started, Professional, and Enterprise.
Starter is a $20-per-month option for traders who are just getting started in the business. Spot trading, portfolio tracking, strategy automation, social trading, smart portfolio rebalancing, strategy backsetting, IP whitelisting, spread and slippage safeties, and other basic functions are limited. It allows you to link 5 exchange accounts and gives you a 15-minute balance refresh as well as access to 3 portfolios per exchange account.
Professional is for people that require a high level of control over their investment. For $79 per month, you get all of the benefits of Starter plus some extras including a 5-minute balance refresh, access to 5 portfolios per exchange account, API access, and the ability to connect up to 10 exchange accounts.
Enterprise is a particular sort of plan developed for businesses that require portfolio management at the enterprise level. It includes all of the benefits of the Professional tier, plus priority assistance, a 1-minute balance refresh, 10 portfolios per exchange account, and the ability to link 25 exchange accounts for $299 per month.
Now, let’s take a look at 3Commas.
Probably the biggest advantage of 3Commas over Shrimpy in terms of price is the fact that it offers a free version of its platform, meaning that crypto noobs can enter and try the platform without having to pay. It offers them one GRID bot, one Active SmartTrade, an Options Bot and a DCA bot, plus an infinite scalper terminal. Additionally, it offers 3 other plans: Starter, Advanced, and Pro.
18 recognized exchanges, a multi-level referral scheme, TradingView integration, access to the mobile apps, and more than 20 other trading tools are included in all subscriptions. In addition, all of your cryptocurrency accounts are consolidated into a single portfolio.
Starter has all of the features of the free version, as well as additional bonuses including unlimited Active SmartTrades, unlimited Scalper Terminal, and Paper Trading.
The usual price is 29 euros per month, but with an annual plan, it drops to 14.5 euros per month.
Advanced unlocks all of the features offered in the Starter tier, as well as an unlimited number of DCA Bots. The regular monthly fee is 49 euros, but if you sign up for an annual plan, it decreases to 24.5 euros.
Pro is the highest tier of the plan, and it grants you unrestricted access to all of the platform’s features. The regular monthly fee is 99 euros, but if you sign up for an annual plan, it decreases to 49.5 euros.
⚙️ Strategies
When it comes to strategies, Shrimpy provides its users with a variety of possibilities. The first choice is to use the automated mode, which allows you to choose assets manually or create an index. If you choose the assets, you’ll need to choose weights and rebalancing rules based on a period (e.g. every week) or threshold weights.
More choices are available for index strategies:
Weighting Method: Equal weights, market cap, square root of market cap (to distribute weights more evenly), or market cap.
Asset Range: such as, for example, assets ranked by market cap
Asset Type: Here, assets can be grouped by themes, such as Polygon assets or Defi
Include/Exclude Assets: It gives you the possibility to include or exclude specific assets
Rebalance Strategies: It can be programmed to act periodically or when a threshold is hit
A stop-loss feature is also available, which converts assets to a user-defined stablecoin or BTC if the portfolio’s percent return falls below a specified threshold. A simple backtesting tool compares a passive hold of a portfolio with fixed weights to a rebalanced portfolio every few days, weeks, or months. Backtesting, on the other hand, is incapable of comparing the results of many portfolios.
3Commas offers its users two main options when it comes to strategies:
DCA bots, which buy (or sell) a cryptocurrency (or many) regularly according to a set of criteria and circumstances. When riding a long-term trend, the key goal is to attain a better average price.
The process of purchasing an asset for a preset dollar amount at regular intervals is known as dollar-cost averaging, or DCA (for example, every week). This eliminates the risk of paying a lump sum for a home at a local high. On 3Commas, you have a lot more options, including the possibility to abbreviate. A short DCA would sell the asset you now own and then try to repurchase it at a cheaper price during a downturn, making a profit.
GRID bots is the other option, which, depending on criteria provided by the user or AI, purchase when the price is low and sell when the price is high.
👌 Supported Exchanges
Investors need to be able to connect to a number of top exchanges, which is why trading platforms like 3Commas and Shrimpy are so important. These top exchanges have the liquidity necessary for a smooth trading experience.
Shrimpy provides immediate access to more than 29 different exchanges. Customers can link as many exchange accounts to a single Shrimpy account as they choose. That means you can use Shrimpy to link all of your exchange accounts, whether you have more than 20 or one for each exchange. The best thing about Shrimpy is that each transaction has the same set of features. That way, you won’t be confused about what possibilities are available when you sign up for a new exchange account.
3Commas supports a total of 23 different exchanges. Not all of 3Commas’ exchanges have the same capabilities, therefore they can be linked to the platform to manage a wide range of trading approaches. This could be a huge source of uncertainty for unskilled investors who want to automate their strategy across multiple exchanges.
👨💻 Fantastic Customer Service
3Commas provides customer assistance for all of its services as well as all of its pricing options. It provides 24/7 help through a chatbot on its website, as well as the ability to contact its team whenever you have an issue with the platform.
On their website and blog, they provide a number of articles that can help you with issues ranging from subscriptions and payments to paper trading, connecting exchanges, and even issues with your bots.
Shrimpy, like 3Commas, provides complete assistance on their website. There are articles available to assist you in overcoming challenges with any type of usage or trading-related subject. They also provide you with training to assist you to get started with their platform.
📢 Overall User Experience
Both platforms offer you a great experience trading. They are designed to be easy to use by newbie traders and have a clean, simple interface that could benefit even experienced traders. From a security point of view, Shrimpy uses APIs to connect to exchange accounts. FIPS 140-2 approved hardware security modules are used to encrypt and store API keys.
There’s also the option to whitelist IP addresses, limiting API access to Shrimpy’s IP addresses only. If this is enabled, the attacker will be unable to utilize the API keys even if they are stolen.
Shrimpy simply requires API access to read and trade. Because withdrawals are generally disabled, your API keys won’t be able to move your assets from an exchange. 3Commas connects to crypto exchanges through API, similar to Shrimpy, except it can only read and trade assets, not withdraw them. Your cryptocurrency remains in the hands of exchanges, which are ultimately responsible for its safekeeping.
💭 What You Need to Take Away From This Guide
To summarize, Shrimpy is for long-term investors, whereas 3Commas is for expert traders. Both systems need a high degree of expertise. Based on basic research, Shrimpy users would be best served in having a strong knowledge of what they wish to invest in. Shrimpy can automate rebalancing and maintain goal weightings if you know how much of each cryptocurrency to retain for the long run.
Similarly, 3Commas traders should be skilled at selecting the appropriate bot for the appropriate trading pair at the appropriate moment. The trader would still need to do market research and keep an eye on the bots to make certain that the settings are still appropriate for the current market circumstances.
The key benefit of 3Commas is that it automates time-consuming, repetitive trading processes and does so as you desire. If you want it to run regularly, it will, because it is made to do so.
If you are looking to try them out, remember to do so and to find out which one works best for you. Remember that it is up to you to practice caution, due diligence, and safety. You are entering into the world of further investing and it is necessary to have certain levels of risk management present in the picture.