Many investment banks or institutional investors use automated trading technology daily. You can use these tools in trading Forex, stock, cryptos, and many other assets. If you aim to automate your crypto trading, look at the Bitsoft360 review. But what is actually a crypto trading bot?
Crypto trading software is an algorithm or app that trades the chosen markets based on preset conditions. Most of these trading apps work in a simple way – you allow the system to trade assets when certain criteria are met. Your trading bot is in charge of executing your trades, so there is no need to analyze the dashboard all day long to observe when price moves are hit.
Usually, there is an option to customize the system to execute trading orders based on your ready-made trading strategy. So, you can have your bot sell many coins at $20. And it can set the parameters, so it buys them back in case the price drops to $19. Most crypto bot platforms charge monthly or yearly fees. The supported assets and account types on your automated trading platform vary from one provider to another.
Do Crypto Bots Really Work?
Many crypto robots claim to be able to achieve a high success rate. But keep in mind that the crypto marketplace considerably fluctuates, and trends are prone to change constantly. Suppose you plan to invest or trade using a bot. In that case, you will generally not spot the same kind of results as if you had actively managed your automated trading system taking into account overall market conditions.
Benefits of Crypto Bots
If you are one of those traders who usually tend to initiate trades enticed by FOMO emotions, then your crypto bot could help you improve your strategy.
So, here are some of the perks you can benefit from if you decide to use a cryptocurrency trading bot:
Automated investments: From panic to fear of missing out when selling or buying assets, there are numerous reasons a trader might opt for executing a trade that will cause him to lose the whole investment. When relying on a crypto trading bot, none of these can affect your trades.
More efficiency and improved execution speed: You may need hours to properly scan the cryptocurrency market for opportunities as a retail trader. When you detect an opportunity, the prices could move upside down.
Trading bots allows for more efficiency, scrutinizing the entire crypto market in a matter of seconds. Crypto trading bots can react faster than you would manually. If you want to boost speed and efficiency, relying on an automated trading system might be an excellent decision.
More time in the market: unlike the Forex or stock market, cryptocurrency marketplaces are active 24 hours a day, during the entire week. Investors can’t spend such a long time in front of their screens. Crypto bots give you extra time for exposure without requiring you to actively monitor your positions.