Unlike the stock exchange, which closes on weekends, the crypto market never sleeps.
Also, due to its volatility, traders need to make sure they don’t miss important trades. This makes it imperative that they find a way to keep an eye on the market. Since traders can’t react fast enough to take advantage of price changes that will help them achieve optimal trading, they need help.
Achieving the best trades means that cryptocurrency traders need to be awake all day long and ready to trade at any time. Again, with the slowdown in some trading exchanges and transaction times, some traders may lose certain profitable trades. The solution to these is that merchants now use crypto trading bots.
This article will help you understand what crypto trading robots are, their pros and cons, how they work, and also show you some of our favorites.
Cryptocurrency trading bots are automated tools that help you as a cryptocurrency trader to conduct your trade and execute transactions using some technical indicators. You can customize your crypto trading robot to execute trading orders on your behalf according to certain specifications.
For example, you can tell your bot to buy a particular coin at $15 and buy it back if the price drops to $12. Depending on the bot provider you choose, you’ll find plenty of account options and supported currencies there.
Trading bots are a controversial component of the crypto market. Some people think it shouldn’t be allowed, while others say it has some advantages. Anyway, here are some of its uses.
- Bots help automate trading so that traders have time to research, work, do business, or anything else they want to spend their time on.
- Investors use them to take advantage of the cryptocurrency market, which never stops all over the world around the world.
- Bots react faster to the market, so they have a significant advantage over manual trading.
- A type of bot called an arbitrage bot takes advantage of price discrepancies on different exchanges.
How do trading bots work?
While some investors are still debating whether trading robots should be allowed in the world’s cryptocurrency, some traders have started using them. Each bot has a different set of requirements in terms of software and hardware. Although some bots are free to use, others need a huge fee to subscribe and use.
Typically, traders will download a code from a bot’s developer after discovering the bot they will find useful. The trader will now follow the instructions and set up their bot on the exchange they want to use.
As much as bots can help traders, you still need to decide when to buy or when to sell. A cryptocurrency exchange bot is not a quick fix to getting rich. It’s not a tool that, once you get it, will win all your trades. You still need to get involved and dedicate the time, effort and knowledge necessary to have great success in your operations. Pros and cons of using a bot
Trading in the cryptocurrency market requires you to leave emotions at the door. If you can’t and notice that you buy and sell on impulse, then maybe you should consider using a trading robot.
Here are some of the advantages of using an encryption bot. 👍
- Automated Trading: A cryptocurrency trading bot offers you an investment and trading option solution that can prevent panic trading from occurring. Buying and selling FOMO can also cause a trader to lose money if they are not using a bot. A trading robot helps you stay away from all these factors that can make you lose money.
- Efficient and Fast: A trading robot makes cryptocurrency traders have fast and efficient trades. If you are trading manually, it can take minutes or even hours to execute a single operation. But with a bot, you have fast speed, plus it can help you see opportunities faster.
- More time for you: Since the crypto market operates 24 hours a day, you can’t stay up all day and night monitoring trades. But a crypto bot can help you trade the crypto market 24/7. That way, you can have many hours in the market without being actively present.
Although the use of a trading robot has advantages, there are still some disadvantages. Some of them are listed below:
- Required monitoring: Many bots can only provide marginal returns even if they work properly. Therefore, you should monitor it regularly to avoid losses as you are trading in a highly volatile market.
- Unregulated field: Many cryptocurrency trading bots are not well designed, and since it is an unregulated field, no one is checking it.
- Necessary knowledge: To use a bot effectively, you need a thorough knowledge of the cryptocurrency market and a good investment plan. Although some bots come with predefined strategies, templates, and settings, you still need to know how to use them well.
Some merchants notice that when they have done everything necessary to use a bot, they no longer need the services. However, if you want to automate your trades and be more efficient, here are some bots you can use with their compatible exchanges. Coinrule
Moneda has the widest range of preset trading strategies, making it one of the most popular bots available. It allows users to customize the investment with more than 150 trading templates that run automatically when market conditions meet the parameters already defined. Coinrule regularly introduces new templates on its platform, from long-term holding strategies, stop-loss setups to accumulation.
With free and paid plans, the number of templates you’ll have access to varies depending on the plan you choose. Their paid package comes with advanced charting options, unlimited use of templates, even one-on-one trading tutorials and lessons, while the free plan has 7 complementary template strategies.
Changes: CoinbasePro, Binance, Bitstamp, Bittrex, Poloniex, Kraken, BitMEX, Bitfinex, Bitpanda pro, Liquid, Okex, Binance US, HitBTC.WunderTrading
WunderTrading is a cryptocurrency automation platform with cryptocurrency portfolio management and mirror trading tools. Users can create fully autonomous cryptocurrency trading bots with TradingView PineScript, earn passive cryptocurrency income by following highly skilled traders, or trade manually with the sophisticated trading terminal.
The wide range of trading capabilities offered by WunderTrading sets it apart from its competitors. You can use the Trailing-stop function and even Swing-trade on the WunderTrading platform. You can also use advanced trading features like Stop-loss and Take-profit to improve trading strategies. You can incorporate numerous trading algorithms and technical indicators into your bots thanks to the TradingView integration. Their specific built-in Terminals can also be used to develop DCA and Spread tactics.
