The cryptocurrency market, unlike stock markets, remains open all the time. Traders and investors who have tested these waters can well vouch for the feelings of sudden elation or despair when they witness an overnight change in fortunes, this way or that. However, can anyone actually keep a round-the-clock eye on the crypto market?
How Do Crypto Trading Bots Work?
You may think of a trading bot as robot broker of sorts, one that executes trades through online cryptocurrency exchanges. Trading bots send trades to an application programming interface (API), and the API then transfers all the trade-related information to a cryptocurrency exchange. The bot actually does not interact with the exchange, the API does.
Benefits of going this way include being able to increase trade volume, as well as identifying opportunities faster and at the right time.
It was only a matter of time before trading bots became popular with traders, giving them the ability to stay in control of their trades at all times. While there are scores of trading bots from which you get to choose, you need to look at various factors if you wish to benefit through the time, money, and effort you put into the process.
Access to Trading Signals
Good automated crypto trading bots should give you access to multiple trading signals. People who are new to the world of automated trading stand to benefit through the trading suggestions of buying and selling particular cryptocurrencies at specified times or prices. While trading signals were mainly generated manually in the past, trading algorithms and bots are now capable of creating and sending trade signals automatically.
Integrated Trading Platform
A trading platform typically comes as part of the package, essentially serving as a terminal that you use to implement different strategies. For instance, you might consider using a trailing stop loss order to keep an eye on the price until there is a reversal in the market. You may also consider using other strategies such as stop-loss and take-profit concurrently. Incidentally, the service provider you shortlist should offer integration with one or more prominent exchange trading platforms such as BINANCE, BITTREX, and BitMEX.
Reliability and security play crucial roles because this realm is not devoid of its share of unscrupulous elements. If the service provider you select requires withdrawal rights, you might want to move to your next alternative. This is because finding companies that execute orders on your behalf, while trading directly on the exchange side, is not difficult. This way, all your cryptocurrency remains stored on the exchange.
If you choose a program that you need to save on your hard drive, you might need to think about getting access to a server. Besides, updates tend to be an ongoing process. With a cloud-based solution, everything you need is online, and you may access the same platform from no matter where you are.
There is no shortage of crypto trading bots out there, ranging from free software to subscription-based models. What you should look for in the one that may work best for you include ease-of-use, profitability, as well as quality.
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