The old adage, “time-is-money” is probably more than true when it comes to a high-paced world like crypto. The crypto industry is extremely volatile and can swing from low to high and vice versa in just a few days. Such frequent dips and rises call for instant action for the traders as the crypto does not wait for anybody. But, it is not humanly possible to stay glued to the crypto market 24 hours- people have other important things in their schedule as well. Now, this is where crypto automation will come handy. Crypto automation empowers traders to enter the world of crypto trading with the help of trading bots. These bots are designed to automate the trading activities on behalf of the traders – with crypto automation, there would always be someone who would carry out the trading activities even when you are able to manually.
Crypto automation with trading bots
The trading bots are essentially cutting-edge software applications that are especially designed to carry on the crypt trade for a trader. The bot itself will connect with your chosen crypto exchange and execute the trade when the time is right. Your function here is to present some strategies that the bot will use based on the specific market condition. Also, you must make sure to integrate the bot with your crypto exchange.
Crypto trading bots are mostly APIs aka Application-Programming-Interface. These APIs are designed to connect with user’s crypto exchanges and enter or exit a trading position. However, the newer version of crypto trading applications is equipped with cutting-edge smart contracts that operate straight on blockchain. buy bitcoin
The most common trade bots that you would see with crypto automation applications are grid trade bots and arbitrage bots. The first one is about buying when the price is low and selling as the price shoots up. The other one, arbitrage, is about selling at a comparatively higher price after a comparison study of the price of a crypto at various exchanges.
Why do crypto traders count on trading bots?
Less manual effort
Trading efforts shoulder almost every single activity you need to count on to execute a crypto trade. Right from studying the market to finding the right entry time to connecting with your crypto exchange to conduct the trade, to buying crypto, the bots will do every single thing for you. And, that too on automation mode while you focus on other more important things in your life.
Trading at the right time
The crypto industry features a highly fluctuating trading zone.
For example, Dogecoin had an immediate 10% surge after one of its leading investors- who is also a major crypto investor- took over an esteemed company. Then you have the example of Bitcoin that immediately sank by 12% the moment one of its major institutional investors announced about not accepting BTC given environmental concerns.
So, sudden ups and downs are extremely common given the Wild West nature of the crypto market. And such a highly volatile market demands immediate action lest you might miss out on the opportunity of a great trade. But, as mentioned above, even the most dedicated trader would not be able to commit 24 hours constantly on the crypto to find the right moment. And, market timing is extremely crucial in the crypto scene. Well, crypto trade bots would do the job for you. These applications can work tirelessly 24/7 and 365 days, and would immediately take action the moment they find the right timing.
Unbiased trading
Trading, especially crypto trading, could be extremely risky. As a trader, you must stay alert all the time as any emotional weakness or egoistic attitude might dampen your crypto journey. But, you don’t have to face these problems with crypto automation. Trading bots are devoid of emotions and these won’t commit the same human mistakes that a trader might commit.
Final words
We will wrap up the discussion with a few words on choosing the right crypto trading bot for your trading journey.
First, always check the pre-set templates available with trading bots. The more a boy offers at low cost, the better. Next, your chosen bot must be compatible with all the crypto exchanges where you hold accounts. Finally, the trading bot should command a stellar market reputation in the industry.
