Automatic trading eliminates the stress factor inherent in human nature and eliminates the hassle of waiting for the right time to enter and exit positions due to manual tracking.
In this article, we will explain how trading bots work. We will explain (in the example of TradeSanta Bot) and automated trading.
Mankind VS bots: Why choose bot trading?
Which is better automatic trading or manual? Here are the points where algorithmic trading takes over, leaving human beings helpless.
Bots always manage to stay cool
It is not easy for human beings to keep their emotions under control, but a bot trades without any hesitation or panic.
Bots save time
You don’t have to do this as the bots constantly check the market status for you. Or you don’t need to calculate prices manually. Because bots are always on the alert and they always make this calculation.
Bots make quick trade decisions
Bots respond instantly to the instantaneous movements of the market and immediately fulfill orders in accordance with the presets. However, it is not possible for a human to enter hundreds of thousands of orders within a second, as bots do.
Please See: Bitcoin news, agenda and last minute developments
Bots does not sleep
Unlike traditional markets, the cryptocurrency market is open 24/7. If you don’t want to miss an opportunity, you need to be on the screen all the time.. Or a bot can do it for you instead of sacrificing your sleep. Just while you sleep.
Bots do not only adapt perfectly to the crypto routine, but also do these things according to your settings.. So bots act smart beyond a passive income source.. Here we have compiled tips on how to set up the right bot for you.
Keep in mind the 3 basic rules when trading with trade bots
Keep an eye on your bot
Bots need to be managed and directed to earn you money. Therefore, check your bot regularly to see if it is up to date with the latest market situation.. Follow the pairs you trade, analyze the charts, follow the cryptocurrency news to avoid losing all your savings.
Limit your risk
Make an account taking into account the number you can lose in the worst case scenario and open a separate exchange account for this amount you will trade with the bot accordingly.
< Stay away from scams
Try to get to know the bot well before using it. Check how long it’s been on the market and read reviews about it. This way, you are less likely to be scammed and lose your money.
NEVER trust bots that are described as “black boxes” and promise income in exchange for sending your money to their smart contracts.. A real bot works only as software that helps you trade on well-known exchanges through your account.. So you can see what transactions you have made in your own stock market account.. You should not provide any bots with API key settings to withdraw from your account.. Also, the transaction permission should be done only according to your settings.
So what’s next? Yes, now it’s time to choose which bot to choose.. You can choose one of the following options.
What are the trading bots in the market?
As crypto markets mature, more automated trading bots started entering. Below we have classified these bots according to their basic functions.
Trend trade bots
This bot is a cryptocurrency monitors trends and enters buy and sell orders to respond to them. Trend trading bots aim to make profits by acting safely with the prediction that a trend will continue in the same way.. These are generally designed to target a certain profit with presets such as take-profit or end-loss, avoiding big losses in case of trend reversal.
For example, you can examine 3commas, cryptohopper and TradeSanta trend trading bots.
Arbitrage bots
These bots are designed to track the price of the same cryptocurrency on different cryptocurrency exchanges.. These bots work to buy cryptocurrencies with a low price on an exchange and instantly sell them on an exchange with a higher price.. Thus he earns. Many traders are skeptical about the efficiency of such bots.. But Gekko and Blackbird, which are among the prominent bots, are these types of bots and you can check their suitability for yourself by examining them.
Lending bots
These bots are bots that you lend your crypto money to for profit.. You can enter the earning rate, amount and loan period from the beginning and you can trade to get the most interest income according to the market situation.. Poloniex and Bitfinex exchanges can be counted as the leading exchanges that support this type of lending bots.. Examples of such bots are Coinlend and Cryptolend.
Market-maker bots
These bots profit from the differences between trading. These bots place their buy and sell orders at a value right next to the current market price and profit from it when the order is fulfilled.. Examples of these bots are Haasbot and Scavenger.
In summary
Trade bots can save you time, increase your trading activity and profit. can enable you to get. Of course, if you can use it properly.
Beyond that, remember that bots are not traders.. You determine the strategy of the bots or what action will be taken when.. We wish you lots of luck.