Mudrex vs 3Commas: An In-Depth Review
Gone are the days when crypto investors had to rely solely on their own trading skills or resort to passive hodling. Today there are lots of options for actively managing a crypto portfolio with automated crypto trading tools — more commonly known as crypto bots.
In this post, we’ll review two popular crypto trading bots: Mudrex vs 3Commas. While both are used for automated crypto trading, these tools have different approaches.
What is Mudrex?
Mudrex is a platform for crypto investment that aims to simplify investing experience.
With Mudrex, users can connect their crypto exchanges or deposit funds directly into a Mudrex wallet. After that, users have two investment options:
- Select one of the ready-to-use crypto portfolios,
- Or build their own investment strategies using a visual strategy builder.
With Mudrex, there is something for everyone. New users can just invest in one of the pre-built strategies. More advanced users can build their own portfolios with algorithmic rebalancing.
The pre-built strategies are grouped into three categories:
- Coin Sets — these are baskets of cryptos grouped by themes such as Defi, Metaverse, tokes issued by crypto exchanges, etc
- Mudrex Mints — active automated trading strategies with returns that are higher than just holding BTC and lower risks (Low, Medium, and High)
- Algos — a marketplace of algorithms built by top traders, available for different exchanges and assets.
You can also build your strategy using ‘Build’, a visual strategy builder.
The strategy builder includes a wide range of options:
- Signals based on price, volume, and other indicators such as moving averages
- Trend and patterns recognition
- Logical connections such as ‘AND’, ‘OR’, ‘NOT
A strategy could be as easy as buying at a certain price or as complex as you want.
Once you’ve defined your strategy, you can run a backtest, paper test, or live trading test right in the Mudrex platform.
The great thing about Mudrex strategies is that it’s easy to see the past performance or at least expected profitability.
For example, here is the profitability of a Medium Risk Mint, which trades perpetual futures for USDT pairs with BTC, ETH, ADA, MATIC, and BNB.
For each mint, Mudrex also shows additional statistical information about the past performance, including win rate, drawdowns, Sharpe ratio, and more. There is also a list of past trades with its maximum drawdown and the final PnL.
It’s clear that the Mudrex team takes security seriously.
Mudrex is a Binance Broker and uses AWS, GCP, and Microsoft Azure cloud platforms. Also, all user data is encrypted with AES 256, and access to it is limited to whitelisted IP addresses.
To further strengthen access to user profiles, Mudrex uses 2-factor authentication: email confirmation and Google authentication.
Mudrex charges different fees for different products.
For Coin Sets, there is currently no fee. This is only for a limited time as it’s an experimental product. However, the company likely also earns money with the so-called rebates from connected exchanges, which share their transaction fees with Mudrex.
Mudrex Mints charges a monthly fee of 1% of the strategy’s account. If the market goes down and the strategy loses money, this fee is refunded for that month.
For Algos, there are two fees based on the invested amount: the Mudrex fees and the fee set by the creator. Again, the fees are charged on a monthly basis.
Mudrex supported platforms
Currently, Mudrex works with several cryptocurrency exchanges in the spot market and the perpetuals market.
Mudrex supports spot crypto exchanges:
- Binance and Binance US
- Coinbase Pro
Mudrex supports perpetual futures with these exchanges:
- Binance futures
- OkEx Futures
Mudrex says that more exchanges will be connected soon, including HitBTC, Kraken, Poloniex, Huobi, and Bitfinex.
What is 3Commas?
Founded in 2017, 3Commas is one of the leading platforms for automated crypto trading. It offers a wealth of options for creating trading bots.
Like Mudrex, 3Commas gives its users the freedom to create their own trading strategies.
Of course, creating a custom strategy requires a lot of time and skills. Any algo strategy simply automates what the trader would have done manually. If you aren’t confident in your trading skills, automation won’t help. And while automated trading helps to save time on execution, it still demands regular reviews to ensure that market conditions haven’t changed significantly.
Luckily, 3Commas also offers two relatively simple strategies that are easy to set up and ready-to-use presets.
The two main trading strategies on 3Commas are:
- DCA Bots — this is a way of investing a fixed sum during regular intervals in order to avoid buying at the top just before the market falls. Instead, in a highly volatile market, buying in smaller chunks can give a better average entry price.
- GRID Bots — this strategy places a chain of buy and sell orders, creating a grid. The idea is simple: buy low and sell high. Yet this works best in sideways market with high volatility. If there is a clear upward trend, you’d end up without a position. And if there is a downward trend, you can end up holding a losing position that you would have to close manually.
Because any 3Commas strategy is defined by the user, it is hard to evaluate the overall profitability.
Trading Bot Presents show profitability for the past month. After clicking through to a preset, you can see the daily profit for the last 30 days.
Unfortunately, however, a month is not enough to fully evaluate the profitability of a strategy. Furthermore, conditions might change.
As one of the official Binance Brokers, 3Commas take security very seriously.
In reported cases when attackers stole passwords and logins of 3Commas users, the credentials was obtained from other sources, not directly from 3Commas. To prevent attackers from using leaked logins, 3Commas strongly advises enabling the two-factor authorization.
There are several monthly plans, ranging from free to $99 a month. Discounts are available for paying for the whole year upfront. Usually, the free plan is should be enough to try out the interface and see if a DCA bot or a Grid bot is what you need.
3Commas’s supported exchanges
Currently, 3Commas supports 17 spot and derivatives crypto exchanges, including Binance, FTX, Gemini, and others.
3Commas connects to crypto exchanges via API. The process is straightforward and usually doesn’t take much time.
Mudrex vs 3Commas at a glance
Both Mudrex and 3Commas could be great tools for an experienced crypto investor.
The Alternative to Mudrex and 3Commas: Stoic
The main drawback of Mudrex and 3Commas is that those platforms require a fairly high level of crypto knowledge.
Mudrex offers ready-to-use strategies yet the user still must be sophisticated enough to pick the right one. 3Commas also offers bot presets yet it evaluating it and finetuning it might be too difficult for a new crypto investor. In general, the great freedom of choice might lead to doubts and excessive switching between strategies.
One alternative is Stoic, a simple app for smart crypto investing.
Like Mudrex and 3Commas, Stoic connects to crypto exchange via API. After paying the 5% management fee, Stoic’s algorithm starts to build and rebalance a portfolio of altcoins. The strategy uses quant research, seeking to buy a set of assets that are likely to go up in price. And it evaluates the portfolio every day, cutting losses and regularly taking profits.
Since launching in March 2020, Stoic’s algorithm has returned +1,394% as of January 21, 2020.
Even after the recent correction, it still outperforms Bitcoin as well as Crypto20, a cryptocurrency index. At its latest all-time high, Stoic has delivered a return of over +2,600%.