With the advent of the Internet, trading has become something special and simple. After all, now everyone can connect to the exchange and start trading, earning fabulous sums. Previously, this privilege was available only to a select few. Cryptocurrencies became the impetus that took trading into something new and attractive. However, not all so simple. We'll tell you about trading, cryptocurrency bots with pros, cons and a selection of the best.
Click-click and profit in your pocket
This is exactly how many beginners perceive cryptocurrency trading. After all, here you don’t need to understand stocks and complex concepts: choose the right cryptocurrency and make money on the difference in exchange rate.
However, not everything is so simple in a fairytale castle. Cryptocurrencies are a complex asset with huge risks, since there is no stability as such. It all depends on the situation in the world, on the market, sentiment, supply and demand. A huge number of factors that need to be taken into account.
Indicators that help assess the situation on the market often give false signals due to strong volatility (rate fluctuations). Therefore, you need to focus not on the indicator that you like or is easier to understand, but on the maximum possible number of them. Only a comprehensive assessment of various indicators with a combination of studying industry news will help you understand and correctly predict.
As a result, simply “clack-clack” will not work. When trading manually, a trader has to visit many sources in order to correctly assess the situation and understand when an asset is worth holding, when to sell, and when to buy more.
Algorithmic trading or just a cryptobot
In principle, this is the same thing, despite the huge number of subtypes: copy trading (repeating operations after a professional), arbitrage (trading on several platforms for one or more crypto pairs), etc. All this has a common component - automation and programming for certain situations and actions.
Cryptocurrency robots are always programs that focus on a number of signals, upon detection of which specified actions are performed. This is where the biggest disadvantages of cryptobots lie:
You probably don’t know what algorithms are included in the program if you can’t configure the bot 100% yourself. The minimum number of parameters will lead to the robot simply interpreting the situation incorrectly and ultimately losing the deposit.
SCAMS and pyramids. A huge number of brokers and projects that provide bots are simply scammers. They collect user deposits for several months and then simply disappear.
Hacking and hacker attacks. There is no perfect protection. Even trading via API can be intercepted, although this happens extremely rarely and with small platforms. However, this possibility is worth taking into account.
These disadvantages can be crossed out if you approach it wisely. First, materiel is important and it’s worth not just studying it, but also learning it. Understanding the terminology and strategies will help you avoid losing your deposit when working with a bot. You will also be able to fully evaluate his work.
The second is a total verification of the cryptobot. Study reviews of it from different sources, look at reviews, if any. Check security measures: confidentiality, protection from hacking. It will be a plus if you don’t need to transfer your assets directly to the project.
By doing things responsibly, you can protect your assets. After all, cryptobots have a lot of advantages:
No emotionality or panic. The bot simply completes the task, regardless of the situation. The main thing is to set it up correctly.
Analysis and 24/7 trading. The crypto market, unlike the stock market, does not sleep, and therefore overnight quotes can either fall or rise to unprecedented heights. A human cannot monitor the market around the clock, but a bot can. At the same time, he focuses on indicators and signals: properly constructed analysis algorithms will ensure the effective operation of the program.
Work with minimal effort. You set up a crypto bot and periodically monitor the general state of the market and its performance. You don't have to do this all the time, which gives you a lot of free time.
More profit. Bots react instantly, and therefore close transactions in the most favorable conditions. While a person analyzes and decides, the cryptobot is already closing dozens of transactions and opening new ones. Parallel work allows you to diversify your assets and get even more profit.
There are several accents to choose from other than those listed above. It is important that you can use several cryptobots on different sites and using several types of cryptopairs. This will ensure reduced risks and higher profits.
Don't look, we've already found it
There are a huge number of services and brokers on the market that provide cryptocurrency robots. Some provide trial periods, others demo versions, others provide bots for free, but with a commission.
GRIN4. An ecosystem that includes a trading terminal with technical indicators, crypto bots by subscription (without restrictions) or free of charge (two bots with a 25% commission on profits), and a wallet aggregator with a non-custodial system. Safe, convenient and effective. They give you $25 upon registration. Payment for subscription in USDT. Supports 6 crypto exchanges (including Binance). Subscription from a dollar a day.
CryptoHopper. Cryptobot designer. Supports 9 cryptocurrency exchanges. cost from $20 per month.
Wunderbit. Bots are provided for trading and copy trading. Supports only one cryptocurrency exchange. There is a free version and a paid version ($45 per month).
These three options are the best, in our opinion. However, as we have already said, there are a huge number of bots, so the choice is really extensive. Approach it carefully and successful trading awaits you.