3Commas offers a large number of automated trading tools, bots, and advanced settings for manual traders. The team behind the project set out with the aim of creating tools that help traders minimize their risks while maximizing their profits.
3Commas is one of the top platforms offering this type of service, utilized by over 220,000 traders worldwide with an overwhelming number of positive reviews from satisfied users.
The Key Features of 3Commas are:
- Functionality– The platform interface provides significantly more robust tools and settings for trade management than what is available on crypto exchanges. It offers traders a simple-to-use and intuitive interface with useful data and analytics regarding trading performance and history.
- Technology- Automated trading takes place via an API integration with cryptocurrency exchanges. The bots are able to trade 24/7 and there are tools to scan multiple charts, searching and executing trade setups on a trader’s behalf.
- Huge range of tools– There is a large range of trading tools for both automated and manual trading strategies. Users can create, analyse, backtest, demo test, and copy portfolios of other traders. There are over 30 indicators and 90 candle patterns available for different strategies.
- Support- The platform offers substantial self-help and FAQ articles to help traders and customer support is available 24/7 in multiple languages.
Pros:
- Clean interface that is easy to use
- Impressive list of Supported Exchanges for integration
- SmartTrade, crypto bots, and copy trading are popular features
- Cloud-based software that can be accessed anywhere
Cons:
- Concepts and strategies not suitable for beginner traders
- Amateur traders often have false expectations of profits and do not know how to manage risk or set the bots appropriately
What is 3Commas?
3Commas is a cloud-based trading terminal software. It is not an exchange where you can buy and sell crypto, but the 3Commas software provides an interface that integrates and syncs with crypto exchanges that already have a charting platform and order functionality available.
3Commas can connect to crypto exchanges like Binance, FTX, Bybit and more, and provide traders with a more advanced level of functionality for manual traders, or automated strategies and copy trading for traders who are looking to put their trading on autopilot.
Trading on cryptocurrency exchanges has the following drawbacks:
- Lack of advanced order management settings with less effective stop loss and take profit settings.
- Lack of automation.
- Inability to monitor different exchanges.
- Lack of notifications.
- Traders need to actively monitor charts looking for trade setups and monitor open positions.
The four primary benefits of 3Commas are:
- Better profit and risk management– With advanced settings not supported natively on exchanges, traders have access to a plethora of features which provide traders with tools to help them better manage their risk and lock in profits. These settings will be covered later on.
- Trade automation– 3Commas has multiple bots and strategies available for traders to customize or select pre-built options to help them automate their trading activities.
- Trade 24/7– Automated trading strategies can be deployed on multiple different charts and trade at all hours of the day, potentially increasing a trader’s efficiency and profitability.
- Copy portfolios– Traders can choose to copy other traders’ portfolios or bots, which can help with diversifying risk, enhancing profits, and learning from other traders and strategies.
3Commas is a haven for traders who are interested in trading bots or who are in need of more advanced trading functionality. The platform has multiple features needed to enhance the trading experience while maximizing profits, minimizing risks, and making it possible for traders to not have to stay glued to their charts constantly looking for trade setups and babysitting open positions.
3Commas Key Features
In this next section, we will cover the key products and features of the platform
Paper Trading Accounts
An important feature of 3Commas that should 1,000% be utilized and taken advantage of is the ability to do what is known as paper trading, also known as demo account trading.
This area of the site allows traders to test out strategies and practice bots on demo accounts without risking live funds. I cannot recommend this enough as it is common knowledge that the majority of traders who use trading bots lose money due to inexperience. Demo accounts do not get utilized enough as many traders are too impatient to practice and just want to jump in right away thinking they can start making money from day one.
Trading bots are tools best used by experienced traders who know the appropriate market conditions in which to run a bot and have already developed manual profitable trading strategies.
So, with that warning out of the way, please be sure to test out any new strategy or bot on a demo account first. A good rule of thumb is to test out your strategy or bot for 2-3 months and if you manage to make a profit at the end of 3 months, then you can consider trying your strategy out with live funds and never risk more funds in a trading account than you can afford to lose.
Connect Exchange APIs
Before you get started doing anything with 3Commas you are going to need to link your exchange account to the 3Commas platform. Basically, you need to give 3Commas access to your trading account and provide it with permission to execute trades on your behalf.
This is useful even for traders who do not want to use automated bots as they can execute trades across multiple different exchanges all from within one interface.
The process to connect the APIs will vary depending on what exchange you use, but, for most exchanges, you will simply navigate to the settings page and extract the API key.
Once you have the API key and API secret from your exchange, you will head to the “My Exchanges” section on 3Commas.
Automated Trading and Trading Bots
3Commas trading bots are the primary attractor to the platform and have been incredibly successful in onboarding over 220,000 users. The bots on 3Commas are highly customizable and very user-friendly with simple plug-and-play settings that allow traders to create bots with no coding or in-depth technical skills needed.
Traders can set up their own trading bots, select pre-configured bots to run autonomously via artificial intelligence, or simply copy the bots created by other traders.
If you are going to copy the bots created by other traders, you will be able to see the statistics and performance of the bot before choosing to copy them.
3Commas Grid bots
Grid bots are automated trading strategies that execute trades based on a pricing grid.
Traders can select a price where they want the bot to open trades, then it will continuously monitor the price and open and close trades depending on the selected trading price range.
There are two options traders can select for the grid bot:
- AI-based strategy- Here the AI sets the range for the upper and lower limit of the grid in which the bot will be trading within.
- Manual strategy- This is where the trader sets the range and the bot can only buy/sell within the defined range. Traders need to take into consideration things like Average True Range and volatility before setting the parameters. It is also crucial to be able to identify if a market is range-bound/consolidating or trending as Grid bots do not work well in strong one-directional trends.
3Commas DCA Bots
Dollar-cost average bots are suitable for volatile markets where price swings up and down multiple times throughout the day or week, remaining within a fairly stable range with multiple retracements.
This strategy is ideal for traders who want to ensure their position is fully exited once a profit target is reached.
Trading Signals Marketplace
As if all the other features weren’t enough, traders can also head to the 3Commas marketplace to access trading signals.
Here traders can purchase trading setups of other 3Commas bots after checking out their historical performance. Each bot has its own strategy and risk profile for the trader to choose from.
Portfolio Management
Through 3Commas you can manage your own portfolio and also check out other traders’ portfolios for comparison. This makes it possible to not only track and measure your own portfolio over time but compare your strategy and results to other traders and even copy their portfolios while learning from them.
Traders can perform the following functions under the Portfolio Management section:
- Create portfolios with any coin amount
- Balance or rebalance your portfolio through coin ratio management
- View performance and analyze other users
- Copy and edit coin ratios of other users to your own portfolio
Security
3Commas is safe and perfectly secure as it only interacts with user funds via API keys with no withdrawal functionality, meaning the 3Commas team couldn’t steal your funds even if they wanted to.
As the only integration is done via API key, 3Commas does not have access to any login details or personal information that was used when signing up for the exchange. On top of that, user data is secured with enterprise-grade protocols and the site uses firewalls and SSL/TLS encryption.
It is good to know that 3Commas has been operating for over 5 years without a single breach of security.
Customer Support
Good customer support is incredibly important on a platform like 3Commas because if anything goes wrong, it’s a trader’s live funds on the line should anything go haywire or one of your trading bots decides to go all Terminator: Rise of the Machines on you.
With so many API integrations and moving parts between 3Commas and exchanges regarding bot connectivity, data transmissions, and server uptime, there is a lot that can go wrong. Though I am happy to report that 3Commas is a rock-solid platform and even though there are about a million things that could go wrong, it seems they seldom do, and the entire platform functions quite seamlessly.
Final Words
I hope this 3Commas review provided you with all the information you need to determine whether or not the platform is right for you.
After utilizing multiple automated trading platforms myself over the years, I do feel that 3Commas is pound for pound, the best one available for crypto trading thanks to the sheer number of features and functions that makes this a real powerhouse for traders from all walks of life.
The simple-to-use and highly customizable interface, along with the great reputation and security of the platform has made this a “go-to” platform for crypto traders for over 5 years and counting.
