Earn Profits Consistently and Automate Your Trades by Using Crypto Trading Bots
Trading cryptocurrencies is not a game of a child! It requires experience and efforts from the trader’s side. Crypto trading is challenging, but thanks to the variables available. Automated crypto trading options and strategies have made the task of trading crypto assets accessible to beginners as well as experienced traders. There are times when even the most experienced traders fail to make consistent profits. As a result, crypto trading bots came into existence.
Crypto bots are automated tools that simplify the trading task easier. They are efficient and make fewer errors as compared to manual trading. The best crypto trading platforms like TrailingCrypto provide backtesting services that will help traders assess the strategy before using it in any kind of trade. Whenever you are placing such a kind of trade, your risk will be reduced, and all this is also advantageous during the volatility in the market.
Different types of crypto trading bots
Crypto trading bots on the best crypto trading platforms are customizable and allow traders to change the algorithms based on their long-term or short-term trading strategies. Here are some of the most popular crypto bots that are in use in 2023:
- Arbitrage bots
This is one of the best trading bots that helps traders to place a contract to earn benefits from the pricing discrepancies. These bots can yield profits but there are chances that these profits are minimal and require a large number of trades to turn smaller gains into the larger ones. - Coin lending bots
One way to earn profits in crypto trading market is to lend coins to margin traders. In this kind of trading, the traders have to pay back this loan amount with an additional percentage. The best exchanges offer this feature of margin trading to traders. And, a coin lending bot automates the process while reducing the time required setting the interest rates manually. You can also configure your coin lending bot to align with your lending strategy by defining interest rates, currency, along with the loan due date. - Margin trading/leverage bots
Margin trading is all about borrowing funds from an exchange to execute larger trades. It involves leveraging on third-party capital to perform a trade. Leverage bots can capitalize on these borrowed funds to execute trades beyond your capital amount. - Market making bots
Market making refers to buying and selling an asset to take advantage from the price differences between the bid and ask price. A market making bot is used to provide liquidity and as a result, establish certain level of trust with crypto sphere. Market making bots monitor the market all day to help traders take advantage ofask and bid prices difference. - Technical trading bots
Most of the crypto trading bots in the market today are technical trading bots. These bots forecast the future price movements of an asset using signals and technical indicators. This further led to earning profits.
So, after understanding what trading bots are and what are the different types of bots available in the market; make sure to choose the one that will let you make money. A crypto trading bot isn’t a guarantee that you will earn profit, so make sure to understand about the market first before adding it to your trading strategy.
Benefits of using trading bots
• Increased efficiency
• Time-saving
• Analyse past performance
• Quicker response to place trades
• Risk management
• Lesser human errors
Cons of using trading bots
• Loss of control
• Costly at times
Best trading platforms offering crypto trading bots
• TrailingCrypto
• 3Commas
• Cryptohopper
• Pionex
Other trading bots available in market
Most crypto trading platforms will give you access to crypto trading bots to interact with the exchanges via API. For this, you need to generate an API key. Trading bots fetch data from these APIs and then they analyze the data to identify patterns or trends that could help them make informed decisions about buying or selling any asset. Another popular bots available in market are DCA bot, grid bots, and more.
To trade on Binance exchange, you will need a grid trading strategy that will help you generate profits from the smaller price movements.
Lets’ understand about grid trading strategy and grid trading bots for Binance exchange:
Grid trading
Grid trading automates the buying and selling process of crypto assets by following some rules which are preset by the trader. It allows you to set a part where the grid trading bot will operate to execute buy or sell orders. When the price of asset drops to the lower limit, a buy order will be executed and if the price rises above the upper limit, a sell order will be executed. And, the traders can take advantage of this ranging situation.
The main principle of grid trading bot is same as the DCA bot. Grid trading is systematic suitable for different types of market conditions.
Benefits of grid bots
The key advantages of grid trading bots are:
• These bots will allow you to make continuous profits when other strategies fail to make profits
• These bots move the order grid following the price in both directions, thus saves more time an d stay active
• Grid bots are very easier to use and you can customize them according to your requirements
• Lets you make profit even during a quiet market
Best grid trading bots
- 3Commas grid trading bot
- Bitsgap grid trading bot
- Binance grid trading bot
- Quadency
Conclusion
Trading via crypto trading bots has changed the way how traders trade before. Using automated trading software like trading bots, the traders can stay ahead of other traders in the crypto market. While using the bots, you have the chance to earn better profits while minimizing the risks. Make sure to choose from different types of bots after understanding about the market and market trends to play smartly.