A cryptocurrency market, unlike traditional stock markets, never stops working. For this reason, it is almost impossible to monitor all price fluctuations 24/7. This leads to risks that are difficult for traders to prevent. That’s why trading robots come into play.
Briefly about the robots
Before we will tell you how to use crypto trading bots and explain how to make money, first it’s important to realize what are trading bots.
A bot is an automated program, which performs repetitive actions more effectively than a person.
The trading robot is a program used for automatic algorithmic trading. The speed of its reaction is incomparable to that of a human. This is the reason why these programs are growing in popularity every day.
How do you use such robots?
The trader’s work is opening and closing deals on a cryptocurrency exchange. In other words, if a trader wants to make money from it, he needs to:
- log on to the exchange;
- choose the perfect moment to buy or sell a coin;
- make a deal.
It is easy to guess that all these actions take a fair amount of time. However, if a trader uses a cryptocurrency robot, he can do it much faster. Moreover, most robots can independently detect the best moment to enter the market and get the maximum profit from buying or selling a coin.
The number of trading software is enormous. The simplest ones advise the trader when is the best time to open and close a deal. More advanced robots open and close deals for the trader. AI trading bots can make the new strategies, read the news feeds and take over almost all duties.
Pros and cons of such robots
Based on the above, we can easily determine why more and more traders prefer to use trading robots.
- It works for you
The robot handles most of your buying and selling activities. If you are a day trader who has to make dozens or even hundreds of deals a day, the help of such a robot is indispensable. It will save you time and allow you to mind your own business.
- It never gets tired or makes mistakes
A robot is not a human, so it will not get nervous and stressed out when the price of your favorite coin suddenly drops. In addition, the bot will not make mistakes, which can be common to a tired trader.
- You can adjust the settings of each trading robot
A trading bot is a software whose settings you can change at any time. For example, you can get reports and charts, you can set up SMS alerts from your robot, or you can put a new trading strategy into it.
With all the benefits, such software has some disadvantages.
Firstly, most robots operate according to a clearly defined algorithm. If the market situation deviates from this algorithm, you can take a loss. Therefore, it is still worth checking the work of your robot from time to time to check it.
Almost all auto trading bots require at least a minimal knowledge of what cryptocurrencies are and how the cryptocurrency market works. Otherwise, it will be difficult for you to understand how to set it up correctly.
Advanced robots, especially those based on artificial intelligence, have a high price. Of course, you can use free crypto trading bots, but they most often have a basic feature set that is not enough to fully automate trading.
How much can you earn on cryptocurrency?
The earnings on a crypto exchange are based on the high volatility of digital money. Due to the fact that the price of various coins rises and falls very often, you can make big profits by buying coins at a lower price and selling them at a higher one.
Arbitrage trading is also popular – buying cryptocurrency on one exchange and selling it on another. This concept is based on the fact that the value of the price of the same coin will almost always be different on various exchanges. So, you can make money on the difference in price.
The amount of profit depends on the difference in the value of the coin, the number of transactions made, and most importantly, the number of profitable transactions. Therefore, the more powerful robots you use, the more profit you will get.
Copy-trading – another way to automate trading
In addition to using such robots, there is another way to automate your work on an exchange – copy-trading crypto.
It is copying deals of successful traders you have chosen. That is, you repeat the same actions as he does. For example, if he buys bitcoins, you do the same. If he sells bitcoins, you repeat after him. At the end of the trading session, you make the same profit as he does.
The benefits of copy trading are obvious:
- You copy deals of professionals and make a profit.
- You can do that manually or use the crypto copy trading bot.
- You don’t need any experience.
- By copy trading you get the experience and you can trade on your own in the future.
The trader, whose deals are copied, also has advantages – he gets a commission from everyone who uses his knowledge and experience.
The most popular and convenient platform for copy trading crypto is Wundertrading. You can connect your Wundertrading account to any exchange and practice copy trading crypto Binance. Another advantage of using this platform is that it allows free copy trading crypto.
Besides, the platform has a lot of other bots, the benefits of which we have described above. They will help make your trading easier and increase your profits.