If there’s one thing everyone knows about crypto markets for sure, it’s that it fluctuates all the time. Although it is New York City that may have been the first well known as “The City That Never Sleeps”, the crypto market is also a part of the universe that never sleeps, keeping track of all the crypto assets’ prices day and night.
The real present question, being a trader, are you ready to spend 24/7 in front of your screen? This is where the trouble begins. On the one hand, you need some sleep. On the other hand, how are you going to take advantage of the crypto market’s volatility at 3 a.m.? The good news is that it is possible, no worries: just set up a crypto trading bot!
Here it goes. Let’s dive deep into automated trading to see how you can benefit from running bots on a regular basis.
How does it work?
So, what’s a crypto bot? In essence, it’s software you can easily preprogram, according to your views on things all crypto. Just select markets, choose a trading strategy, say Grid or DCA, set up a few extra parameters, and go.
Yes, you got it right: crypto trading bots place orders on a crypto exchange of your choice on your behalf. And because these are basically robots, they don’t need to sleep to recharge their batteries like us, humans. They just trade for you as long as you have enough money to trade, and guess what?
They have no emotions, no fear, no greed, their weapon is cold-blooded premeditation and hard math.
Plus, if you’re away from your PC, your crypto grinders will work for you non-stop wherever you are. Just make sure to monitor them from time to time.
Setting up a bot is not difficult. It’s, actually, a matter of a few minutes when you know what you’re doing. Just connect your crypto exchange account via API, select a trading pair, and set up a strategy. The bot starts working when it’s connected to the exchange and activated.
Now, what exactly does your crypto trading bot do? It opens and/or closes trades based on the strategy parameters you’ve implemented earlier. Simply put, a crypto trading bot follows the defined rules and performs the required action (buy or sell).
The benefits of automated trading
Whether you like to go short or long, it doesn’t matter. Crypto trading bots are for you in any case. They use volatility to your advantage, so bears or bulls, they are all your friends if you run bots.
Works 24/7 and saves time
As we’ve mentioned earlier, it’s cool to be a part of the changing crypto landscape. Crypto is now turning into something more than an expensive hobby or a part of Snoop Dogg’s eccentric image.
In 2022, it is a solid part of a casual trader’s portfolio, and this is where crypto trading bots can be quite useful. They can keep an eye on the market at all hours of the day and night, saving you a lot of time.
All you have to do is check in on them now and then and start new ones as needed.
Increases number of deals & multiplies trading speed
There’s one more important market advantage that bots can grant you with. Easy! No human being can trade as fast as a robot. You will simply not be able to place several orders in a fraction of a second (one 64 millionths of a second if we are talking about HFT bots).
So, suddenly, it’s something more than just a tool sparing you some time. It gives you a competitive advantage over other market players since you simply can trade multiple pairs at once.
Also, a crypto trading bot will push your order up to the head of the order book, ensuring that it is executed first. Doing so manually all the time is exhausting.
Protects you from emotional outbursts
When things start to go wrong, the ticking time bomb of uncontrollable emotions normally takes off. Have you ever run wild, selling low and buying high? Congrats, you’ve just passed a test, determining you’re a human. But as good as it sounds in the universe of the blade runners, in the crypto world, trading on emotions almost always results in losses because you abandon your well-planned strategies in favor of an impulse.
Crypto trading bots are emotionless and always follow the algorithm that was programmed into them.
Cuts the routine from your trading
Crypto trading is of course an interesting process, but a lot of traders complain that after some time, the excitement levels decrease, and all you’re left with is routine or stress. Don’t you think it would be much more convenient to delegate automated processes to robots and start living your life?
Using automated crypto bots can make trading more convenient and help you simplify things.
In short, whether to run crypto bots or not is of course your choice. Don’t be like those people who buy things just because they liked the article. Explore the topic, choose the right crypto bot provider and start doing things efficiently. Because, first and foremost, crypto bots scream efficiency. This is probably their key characteristic.
Trading hundreds of times faster than when trading manually, trading dozens of markets, trading day and night – this is the story of crypto bots. And at TradeSanta we like that story.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.