With the rapid development of the crypto industry, buying and selling cryptocurrency for profit has become a reasonably popular field. The market of digital assets is volatile, which both opens loads of earning opportunities and risks of loss.
If your goal is not to buy and hold cryptocurrency, and you are somewhat interested in trading, this article will be helpful.
To take your investments under control, you can take advantage of automated cryptocurrency trading. These are different programs that help traders keep track of the market fluctuations and not miss the opportunities to make a profitable deal.
A cryptocurrency trading bot monitors the market situation 24/7, which is just impossible for humans. So they greatly simplify traders’ experience by automating important operations, therefore, increasing profit.
You can configure a bot to purchase an asset when its rate drops automatically and sell it when it grows. Additionally, you can configure the bot algorithm depending on your purposes and set the conditions when a bot enters a trade or leaves it.
The types of crypto trading bots
- Arbitrage (allows to carry out trades on several exchanges and receive income from the price difference of assets)
- Marker making (designed to increase liquidity by adding orders to both sides of the other book)
- Script (customized by a user manually according to the user requirements)
- Signal (recommendations on trading based on analysis)
- Trading (analyze technical indicators and conduct trades on a single exchange)
- Advanced (designed for experienced traders and can be configured from scratch).
To succeed in automated cryptocurrency trading, you should understand how bots work and how to use them. We recommend practicing on a demo account first. This option is available in some large and credible exchanges like WhiteBIT. A demo account allows you to try different bots with no risk of losing money.
Where to Buy A Cryptocurrency Trading Bot
There are three options for getting a cryptocurrency trading bot. First, you can download a free bot from the Internet. Although this option may not work smoothly and moreover, free programs are often involved in fraudulent activities. By using a free bot, you risk losing your funds.
The second option is to buy a bot at an official company that works on their development. Legal and trusted services are always better options than suspicious and free.
The third option is to create a bot yourself. If you know how API and scripts work, you can create your own bot that will 100% fit your requirements. Many crypto platforms provide tools for this.