3Commas Review

Are you tired of spending hours staring at charts, and just want to automate your trading strategies? A platform that offers trading bots might be the answer, as bots do the heavy lifting and execute trades 24/7. We'll check out one such platform in this 3Commas review!

Together, we'll explore its features, benefits, potential drawbacks, and 3Commas’ price, as well as its brief comparison to Cryptohopper, another platform that provides trading bots. That way, you can decide which one is the right option for you. 

However, whichever platform you choose to use, stick to popular exchanges like Binance and Bybit because these offer a wide range of assets, better security, and more reliable support (by the way, they even have their own trading bots).

Verdict at a glance: 3Commas offers a handful of features to automate your trading process, from various bots to comprehensive portfolio management. While it's designed to simplify the trading process, note that it's not a completely hands-off solution. Setting up and configuring bots still requires a degree of knowledge and effort. Besides, it's very important to note that the platform has suffered from several hacks in the past.

What Is 3Commas?

3Commas is a crypto trading platform, particularly known for its bot trading capabilities. The features help users automate their trading strategies and execute trades 24/7 on their behalf based on predetermined criteria or using artificial intelligence (AI). In automated trading, the criteria generally cover “when to buy”, “when to sell”, “what the target price is”, and “how long to target”^[1].

Launched in 2017, this platform was actually built for personal use, but its popularity among friends led to its public release. With that launch, the idea of automated trading strategies through the 3Commas trading bot was born, offering a way to avoid the constant need for manual price monitoring.

Over the years, 3Commas has established itself as one of the leading players in the crypto trading bot market. It has over one million traders registered and a $400 billion volume traded.

I think another reason this platform has such a huge base is due to its widely supported exchanges, especially when compared to another 3Commas alternative like Coinrule.

Coinrule only integrates four exchanges, although it also covers reputable options, such as Binance and Kraken. On the other hand, you have more options on 3Commas. Binance, Kraken, and Bybit along with over 20 other platforms, are in the 3Commas supported exchanges list.

Besides the extensive exchange support, 3Commas has features that cater to experienced traders, including customizable bots that reflect trading preferences, manual trading, and comprehensive portfolio management. I’ll cover each of these in more detail in the next sections of this 3Commas review, along with the drawbacks, platform costs, and how to use it.

3Commas Review: PROS

Let's continue this 3Commas review by highlighting the good aspects of this platform, from its comprehensive bot trading capabilities to social trading.

Automated Trading With Bots

First thing first, let’s discuss this platform’s strength: its trading bots. At the time of writing, 3Commas offers three options that may suit different trading styles: Dollar Cost Averaging (DCA) bot, GRID bot, and Signal bot.

Dollar Cost Averaging (DCA) Bot

DCA bots enable you to purchase an asset little by little over time, no matter if the price goes up or down. The main advantage of this strategy is to reduce exposure to temporary price fluctuations that can lower your returns^[2]. No wonder this bot is more suitable for long-term investing and bearish markets where prices are expected to decline.

On 3Commas, you can set the bot type to be “Single-pair” or “Multi-pair”. The first one is for a bot that trades with only one coin pair, while the latter lets you trade several coin pairs at once.

To help you identify potential trading opportunities, this tool shows a dynamically updated list of coin pairs with the highest trade volume within the last 24 hours. However, you’re always allowed to pick other options by clicking the dropdown menu.

To further maximize your returns, 3Commas lets you customize many configurations, such as:

• Your strategy. Pick a long or short strategy. The long option aims to make a profit from the difference in prices as you get more after the sale. Meanwhile, the short strategy lets you make a profit from the difference in prices as you spend less to repurchase.
• Profit currency. When "Quote" is on, the bot makes money in the second coin of the pair (like BTC in ETH/BTC). When "Base" is on, the bot makes money in the first coin of the pair (like ETH in ETH/BTC).
• Start order type. Here, you choose the “Limit” or “Market” order. Use "Market order" to buy or sell quickly, but you might not get the best price. Use "Limit order" to get the best price, but it might take longer.
• Profit type. This is the amount of profit (%) the bot should make on each trade. When the bot starts a new trade, it will set a price to sell at based on this percentage.
  
• Stop loss. If the price goes down to this level or lower, the bot does what you told it to do. The value should be higher than the last safety order. The bot calculates when to stop the trade based on the original price, not the average price.
• Safety order. The bot places safety orders to buy more of the coin at a lower price if the price goes down. This helps you get a lower average price.

If you’re confused about the settings, consider navigating to “Presets”. These are settings for bots that other people make, helping you learn from their strategies. So, instead of spending time studying the market and making your own bots, use presets that other people made and have been successful.

You can filter the presets by several criteria, such as trading pair, strategy type, and bot type. Don’t worry, it’s still possible to change some parameters from the selected preset settings.

GRID Bot

When the DCA bot is good for bearish markets, the 3Commas GRID bot might help you make money during sideways markets when there’s no clear trend – the price only goes up or down a little. It also might be a valuable tool for optimizing returns during periods of high volatility.

The GRID bot’s algorithms can strategically execute trades between upward and downward movements, as well as during lateral trends.

To start trading using the 3Commas GRID bot, select one of the available strategies: Rising, Stable, Reversal, To the Moon, and Falling. Note that different exchanges may offer only certain methods.

In the default view, you only need to select the exchange, trading pair, and investment. To further personalize the transaction, click the “Customize” button to use the “Geometric” or “Arithmetic” bot. 

In “Geometric”, you buy more of the coin you want when it's cheaper, and less when it's more expensive. The amount you buy is based on a percentage of the price. Meanwhile, “Arithmetic” buys the same amount of the coin each time, regardless of the price. The amount you buy is based on a fixed amount of the coin you're buying.

Signal Bot

Lastly, let's talk about the newest type of bot: Signal Bot. This innovative tool allows you to automatically execute trades based on “signals” received from external providers. 

Signals on 3Commas are essentially trading recommendations provided by experienced traders or automated systems, such as alerts from TradingView indicators and automation services like IFTTT that send signals from relevant X posts.

By connecting your 3Commas account to a signal provider, you can use the insights to make informed trading decisions. The platform also lets you receive only signals relevant to your strategy. 

Further, pick a suitable mode to maximize your automated trading experience. For example, enable multi-pair trading mode to easily manage up to 200 trading pairs with just one bot and handle signals for all pairs simultaneously. Additionally, it offers full transparency, so you can monitor every signal execution including the detailed logs, like the trigger time and price.

More Than Bots: Manual Trading and Backtesting on 3Commas

In addition to automated functionalities with 3Commas trading bots, the platform is a decent tool for manual trading (although I'd prefer using a renowned crypto exchange like Kraken or Bybit for that). I think this is a more suitable method for those who prefer a hands-on approach to financial markets since all trades are under control. You yourself decide when to open and close positions!

3Commas offers two modes for manual trading: Terminal and SmartTrade.

Terminal’s interface looks similar to common trading platforms that have an order book, charts, and tables, as well as tools on the chart widget like zoom, text, and graphic shapes. This familiar arrangement makes it easy for experienced traders to navigate and execute trades. 

Moreover, the layout is customizable. For example, you can hide or show certain parts of this feature. It’s also possible to drag and drop the elements to arrange them based on your preferred workflow by moving the handle located on the upper right of the control or widget.

In the "Order" control panel, you can make orders to open, close, or add to trades you have created. Select the price to execute an order and enter the amount of funds you wish to use.

Enough about Terminal, let’s move on to SmartTrade. This may look similar to Terminal, but it offers more functionalities. SmartTrade makes trading easier by letting you use special types of orders or settings that common terminals don’t have:

• See charts for different currencies and trading signals from TradingView all in one place.
• Automatically close a trade when the price reaches a target, but also close it if the price falls below a safety order.
• Automatically keep your target price and stop-loss moving with the market. This helps you adjust your exit strategy based on price fluctuations.
• Use Step Sell to take profits in stages by selling a portion of your coins at different price levels. For example, sell half at $10,000, then a quarter at $11,000, and the rest at $11,500.
• Protect your position from market fluctuations by selling your coins and buying them back at a lower price during a market downturn.

Beyond the mentioned capabilities, SmartTrade has features that enable you to automate trading strategies.

Simply set criteria for entering and exiting trades, and then SmartTrade executes these orders automatically when the conditions are met. I think this is the middle ground between the terminal and automated bots – you can maintain control over your trades while benefiting from automation.

Plus, SmartTrade has customization layout settings that allow you to personalize the trading interface. For instance, click the toggle buttons at the top to hide or display several elements, such as the TradingView chart, Orders and positions, and signals.

If you’re still unsure about which trading feature and configurations to use, try the Demo Account where you can practice trading in 3Commas without risking your funds. This account lets you explore available features and hone (or refine) your trading skills and strategies as it mimics the price movements on a real exchange with real-time market prices on the Binance Spot market.

However, note that the demo account is not designed to hold large amounts of money in various cryptocurrencies for asset-tracking purposes. 3Commas suggests you keep the Demo account balance up to $350,000 in total funds, as it doesn’t support a real order book, and large orders, particularly on illiquid markets.

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Tap Into Expert Insights With Marketplace

To use the trading features discussed in this 3Commas review, you need to configure them yourself. If you need assistance, click on the “Marketplace” menu to find and subscribe to various trading signals generated by experienced traders.

Explore “Presets” for different platforms, trading strategies, market conditions, and risk tolerances. These are “templates” for trading settings made by other people, as I mentioned earlier in this 3Commas review.

Filter the presets by the platforms and assets, and then click the “Explore more presets” button to further refine the options according to more detailed criteria, such as strategy type or bot type.

Click one of the presets, and you should see the graphs showing historical performance and other details, like an estimate of the total amount of funds and average profit per day, to help you make an informed decision.

Other than “Presets”, scroll down on the “Marketplace” menu to see a list of signals you can subscribe to, letting you integrate them into a bot to execute trades from seasoned traders automatically. You can sort the options by the weekly, monthly, and annual percentage yield, number of followers, and cost (yes, it can be free and paid).

Each profile contains information like the available platforms, strategy, trading pairs, and transaction history within 24 hours. Some even provide frequently asked questions to clear up any doubts.

Robust Portfolio Management

When people hear about 3Commas, "trading bot" is probably the first term that comes to mind. However, I think any 3Commas review readers should also check its robust portfolio management features.

First, go to “My Portfolio” in the left-hand bar, where you will see an overview of your portfolio's performance, displaying graphs and key metrics.

You can also create multiple portfolios to organize your assets and choose coins you want to add to each portfolio. As soon as you add the coins, determine the ratio by dividing it equally or using a percentage. To see all of your portfolios, including the ones you subscribe to on “Marketplace”, click on your profile in the upper right corner and navigate to “My Portfolios”.

To further optimize your portfolio, activate “Auto Reallocate” (Automatic Balancing or Auto Rebalancing), where 3Commas automatically adjusts the allocation of your assets to maintain the desired balance. 

Choose the portfolio you want to rebalance and the reallocation frequency. However, you can always deactivate it if necessary. Note that it’s available only on the Binance Spot and HTX exchanges.

I also suggest you check “Control Panel”. Although it’s still in the beta version, this feature helps you see how well you’re doing, check your open trades, and make good decisions as it compiles essential trading information and presents it in a user-friendly, summarized format.

This shows you everything about your trading, including your overall results, futures contracts, what assets you own, and how much money you have. Control Panel also allows you to perform bulk editing on bots from the same exchange type. The beta version still covers DCA bots only, but this may expand to include other bot types in the future.

Did you know?

Compare Crypto Exchanges Side by Side With Others

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3Commas Review: CONS

If I only talk about the benefits of this platform, 3Commas trading bots would sound too good to be true. As with any trading tool, it also has limitations you have to consider. Let's discuss those in this part of the 3Commas review!

Steep Learning Curve

Most user 3Commas reviews would agree that this platform has a lot of features. It's packed with multiple trading bots, manual trading functionalities, and customizable settings. However, even with its user-friendly interface and quite generous 3Commas pricing plans, understanding all these features to maximize our trading experience demands a significant learning curve.

For example, you need to thoroughly understand the underlying principles of grid trading, like price action and market volatility, when you use the 3Commas' GRID bot. This can be challenging for beginners who may not have a strong background in trading or technical analysis.

Thankfully, 3Commas offers various useful resources that might help you. At the same time, you can always turn to Bybit or Binance trading bots that are more beginner-friendly than those of 3Commas'.

One way or another, it's highly recommended to invest time in learning the platform and its features, as there are potential consequences of using 3Commas or any trading bot without a thorough understanding of its features and functions, including:

• Incorrect bot configuration. Setting incorrect parameters or choosing a strategy that doesn't align with your trading goals and market conditions can lead to losses. For example, using a DCA Long bot during a bear market might not yield the desired results.
• Risk management oversights. If you don't set a stop-loss correctly, you could lose a lot of money if the price goes down. A stop-loss is like a safety net that tells the bot to sell if the price drops too low.
• Limited understanding of technical indicators. Those who don't fully understand the underlying logic and implications of technical indicators might misinterpret signals and make poor trading decisions.

Using a powerful trading platform can be thrilling, but it's important to make decisions based on careful analysis instead of letting emotions cloud your judgment.

History of Security Breaches

Despite the advanced features mentioned in this 3Commas review, this platform has faced security problems.

First, hackers stole the 3Commas API keys of around 100,000 customers and posted the data publicly in December 2022, which allowed them to trade without permission and take money from users. In October 2023, there was another security breach, and some user accounts were hacked.

The team said that the first security breach was minor, mainly affecting accounts that didn't have two-factor authentication turned on. Many people were angry with this argument, and they accused 3Commas of blaming users unfairly. However, the team then confirmed that they changed how people can reset their passwords. Now, when someone resets their password, their 3Commas API connections are automatically turned off. This is an extra security measure.

Meanwhile, the extent of the second security breach’s damage is still being assessed, but it’s believed to have had a more limited impact compared to the December 2022 incident.

These two breaches highlight the vulnerabilities in 3Commas' security infrastructure, and the team is under pressure to come up with stronger security measures to prevent future breaches and protect user data.

If you’re confused about whether or not to choose 3Commas as your trading tool due to these breaches, let's look more into its current security measures. 

At the time of writing, 3Commas trading bots use the security service provider Cloudflare to protect the user data. This includes a web application firewall to prevent malicious attacks, DDOS attack protection for network security, and SSL/TLS encryption that encrypts data transmitted between your device and 3Commas.

Besides the security measures from its side, 3Commas encourages users to keep their data safe by only interacting with its official websites and apps, using two-factor authentication (2FA), creating a strong and unique password, and keeping their API keys for themselves.

If you use mobile devices, secure your smartphone with a PIN code or biometric measure and limit anyone’s access from your device while the trading app is open.

Or, better yet, consider trying out Binance or Bybit built-in trading bots. As of September 2024, neither of those had any issues with security.

3Commas Pricing Plans

To get the overall picture of this platform, let's discuss its pricing, as this factor can impact your overall trading experience and profitability. Different pricing plans offer varying levels of features discussed in this 3Commas review and can directly affect your returns.

Well, anyone can create a free account using their email. When you sign up, you get a free trial to test features available on the Pro plan. If you don't want to continue paying for one of the 3Commas pricing packages after the trial ends, you’re automatically moved to the free plan that you can use forever.

The availability of a free account may sound like good news, but it’s very limited. You can only use one Single-pair DCA bot and only on the Spot market. Some highlighted features are also not available, such as Take Profit/Stop Loss, Demo account, and Auto Reallocate.

So, to maximize the value of this platform, it's probably better to subscribe to the paid 3Commas packages, starting from $37/month. Even with the lowest paid plan (Pro Plan), you have better features and capabilities, enough for casual trading. You can pay directly for a year to get a discount.

Considering the features it provides, 3Commas' price is generally affordable, offering a good balance of features and affordability. Though, if you're looking for a platform with free trading bots, there definitely are better options out there.

How to Use 3Commas?

Now, you’ve weighed the pros and cons, as well as the 3Commas pricing plans. If you’re interested in trying it out, let’s continue this 3Commas review by learning how to register an account and connect it to an exchange to start trading.

How to Sign Up to 3Commas?

Setting up your account on 3Commas is a straightforward process. Simply follow these three steps:

Step 1: Visit the official website and hit the “Sign up” button in the upper right corner. 

Step 2: Choose one of four sign-in methods: email and password, Google account, Apple ID, Facebook, or Binance.

Step 3:  In this 3Commas review, I use a Google account. If you do the same, log into your account and enter the password. Alternatively, select an account if you’re logged in already.

That’s it! You now have a new 3Commas account. If you use a Google account to sign up for 3Commas, and you've already used the email address to log in using other methods (regular email sign-up, or via Facebook or Apple accounts), you would need to enter your password and a confirmation code that 3Commas sends to your email.

How to Connect Your 3Commas Account to an Exchange?

As you now have an account, you need to connect to an exchange to start trading and using the features. There are two methods to connect to an exchange: via Fast Connect and using API keys. 

In this 3Commas review, I’ll show you how to do it using API keys:

Step 1: Create your API key on your exchange using your exchange's help center for instructions on generating it.

Step 2: Navigate to the “My Portfolio” menu and hit the ”Connect a new account” button.

Step 3: Select “Exchanges” to start managing your assets and execute trades or “Wallets” to track its price movement.

Step 4: I select “Exchanges”, and then the available platforms pop up. Choose the exchange you want to connect to. Some require you to enter the API key directly, but others prompt you to log in to your exchange account first. So, just follow the on-screen instructions according to your exchange and confirm the connection.

You should see the exchange statistic page when it successfully connects. 

3Commas VS Cryptohopper

Cryptohopper, a 3Commas alternative, is also a popular crypto trading bot platform offering automated trading capabilities. You’ve learned in this 3Commas review this platform has helpful features, and so does Cryptohopper. These include backtesting, stop-loss orders, social trading, and mobile app access.

Cryptohopper’s fees are also similar to the 3Commas price. Both platforms have different pricing tiers based on the features you get, but Cryptohopper offers a cheaper plan starting at $29/month. 

However, if we compare 3Commas VS Cryptohopper, you may notice some key differences in terms of the features and interface.

Unlike 3Commas, which focuses on personal traders, Cryptohopper lets its users add clients’ (or friends' and family’s) API keys to manage all their accounts from one place. Additionally, this 3Commas alternative has a feature called “Algorithm Intelligence,” which uses AI to automatically backtest all your strategies simultaneously, so you can quickly identify the most profitable ones.

When it comes to the 3Commas VS Cryptohopper debate, it's also important to note that Cryptohopper has a more user-friendly and intuitive layout, making it easier for beginners to set up their trading strategies and explore the features. On the other hand, 3Commas offers a more comprehensive interface with many customization options that are suitable for advanced users.

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Conclusions

From this 3Commas review, we can conclude that this platform offers comprehensive trading features, from automated bots to manual trading tools. While it can be a valuable tool for especially experienced traders, it's important to consider the 3Commas’ cons, including its pricing, security measures, and learning curve.

You should also think about which exchange to connect to because some features are limited or unavailable on certain exchanges. In this case, Binance and Bybit are popular and reputable choices that offer a wide range of features and support for 3Commas users. Though, these platforms also have their own built-in trading bots, so you might want to consider trying those out first.

Also, those who prefer a more beginner-friendly trading bot-focused platform might want to check out another 3Commas alternative, Cryptohopper. If we evaluate 3Commas VS Cryptohopper, the latter option may be more suitable for newcomers due to its simpler interface and easier learning curve.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. B. Hirchoua, B. Ouhbi, B. Frikh: 'Deep Reinforcement Learning Based Trading Agents: Risk Curiosity Driven Learning for Financial Rules-Based Policy';

2. J. L. Kirkby, S. Mitra, D. Nguyen: 'An Analysis of Dollar Cost Averaging and Market Timing Investment Strategies'.