Of course, you can utilize their expertise to make smart trading decisions AFTER you have done your research. That said, what is a trading bot and how could you use it to your benefit?
What are trading bots and how do they work?
Given the fact that there are over 7,000 cryptocurrencies on the market at the time of writing, it is difficult to analyze each crypto asset and find the next 100x gem.
While services like Lunar Crush and CoinMarketCap make it easier to locate trending and upcoming crypto assets, the essence of crypto trading, in my opinion, is to find the best opportunities that could bear fruit in the long term. The human eye and mind alone are not capable of that.
This is where trading bots come into the frame. Trading bots help you analyze large amounts of data (price movements) in double-quick time. They also facilitate automatic trades.
While analyzing and researching price movements using trading bots is smart, leveraging automatic trades is not. Trading bots analyze patterns in graphs and charts using machine learning (ML) capabilities and automate trades in the quest to generate profits.
You can subscribe to a trading bot or craft your own. Bitsgap, for example, is one of the best trading bots around. The bot conducts efficient market research and automates crypto trading as well.
You can employ settings to sell your crypto assets according to market conditions. With the Bitsgap bot, you can automate balance risk exposure as well. While these features are handy, entrusting your money completely to a bot is ill-advised.
How you should use a trading bot
Do not use a crypto bot to make automatic trades according to its research or market conditions.
You could probably use a bot to make purchases or sales according to predefined conditions. For example, you could program a bot to purchase crypto token X when it falls to price Y and/or to sell crypto X when it jumps to price Z.
The research conducted by a trading bot does not come with attached emotions. That’s one of the key benefits of harnessing its market research potential. You could use bots to make automated trades as well, but not all bots are profitable and/or reliable.
That said, the best trading bots can assist you in your crypto trading journey. Explore trading bots today and purchase one that best meets your needs. Alternatively, you can create a bot to meet certain criteria.
Some trading bots worth looking at include Pionex, Cryptohopper, Coinrule, and Trality. Some of these bots are free to use. Keep in mind that bots are exchange-specific, so be sure to use one that is available on your crypto exchange of choice.