Trading cryptocurrency isn’t rockets science; the goal is to buy for a low price and sell for a high price. However, this is easier said than done. The cryptocurrency market is highly volatile; good timing is the key to becoming a successful cryptocurrency trader. Therefore, A lot of time and effort is needed. Unlike stock markets, the cryptocurrency market is always active and never sleeps. This results in highly stressful situations for the traders and investors.
It’s impossible to sit in front of a computer 24/7 to monitor investments. Therefore, there is a possibility that valuable trading opportunities are missed. In the last few years, crypto trading bots have become increasingly popular to avert this problem. In this article we will discuss what A crypto trading bot does and why it can be highly profitable.
If you are an experienced crypto trader, you might have noticed that if you try to place a limit order on any popular cryptocurrency exchange, you’ll immediately see a better offer pop up above yours.Thus, you have no other choice than to place your order at market value, which makes it less profitable for you.
The person who countered your offer, is in fact not an actual person. When you placed your offer, you triggered a crypto trading bot. These highly efficient bots are programmed to analyse the crypto market at all times and execute trades faster than you could ever do manually.
So in essence, a trading bot is a software program that executes trades on your behalf, based on a set of predefined and pre-programmed rules. Nowadays, the crypto market is taken over by crypto trading bots. The chance of making money out of crypto trade yourself, stacked against millions of crypto bots, is extremely slim.
Working with trading bots is very practical and saves A lot of time. While humans are influenced and limited by their physical needs, trading bots are not. Trading bots work more efficiently and are not influenced by any factors other then the current market. When given permission, trading bots will analyse the market conditions of multiple coins at the same time. While a human can only analyze one at the time.
If a bot sees there is an opening for a profitable trade, it will be executed immediately. Human beings are much slower during this process and definitely can’t work at the same speed as bots. Also, most trading bots are set up in the cloud, which means that they work 24/7. They’ll never miss a trading opportunity, even while you’re asleep. Additionally, this means that there is no need for you to keep your computer running at all times.
To conclude, if you are an experienced trader, bots are an easy and practical way to make even more money!