Embrace the crypto trading bot that lets you trade crypto in your sleep!by Katrin Kunze Blockchain Firm
On the wall street area, there is a famous saying “money never sleeps” but most financial markets are closed during nights and weekends. In contrast to that crypto currencies trade around the clock, 365 days a year.
Obviously it is impossible for any trader to take advantage of every opportunity. But it is not technologically impossible. Yes! Algorithm trading plays an important role in the global financial market and crypto market.
So if a trader configures them once, trading bots take over the most of the work and seize the opportunity in the rapidly changing crypto market.
The automated trading bot leaves no room for guessworks, executing trades while reducing the risk. Now let us go through how trading bot works along with the pros and cons of it.
What is a crypto trading bot ?
Crypto trading bot is an automated software that monitors, analyzes and executes trades using the predetermined protocols.
These bots use trading algorithms to buy and sell crypto according to the strategies given. The most common strategies are market making, trend following, and mean-reversion program.
How do they work?
The trading bot communicates with the exchange and places the order based on the instructions given. Generally this is done by providing the bot with the authenticated access to your crypto exchange account through an application.
Once the permission is granted, the bot pulls and analyzes the market data on the fly, trading automatically based on the configuration. The bot has the ability to read and display the balance and the capability to trade.
If you want to stop the bot then simply revoke the permission from all the affiliated crypto exchanges.
When should you need to use a crypto trading bot?
The crypto trading bot significantly saves time with many operations including the rebalancing market analysis and smart order routing.
The best of the crypto trading bot is it can be customized to carry out specific conditions. So if you want to repeat an action then a crypto trading bot can probably do it for you.
Similarly, tasks that require high precision can be assigned to crypto trading bots. Selling an asset at a specific price might be tedious for a human to do. Bots monitor crypto exchanges for particular conditions and execute the trades at the precise rate.
Needless to say, Bots can be a cost effective method of finding effective trades.
Apparently, humans need sleep but bots don’t. As the number of cryptos and its users increases, the volume of opportunities becomes harder to track. Whether you are an experienced trader or a newbie looking to make money, crypto trading both offer reliability and stability amid the volatility of the market. So set up one for you today and start turning your insights into profit.
Created on Jun 28th 2021 02:39. Viewed 104 times.