Automating your income stream can help you make big money and create long-term wealth. This article will show you how to automate your Crypto Trading and make money while you sleep. Trading is challenging to master and can take several years to perfect. To be a successful trader, one must dedicate a lot of time.
It would be best if you also kept an eye on the markets at all hours. To add stress, the Crypto market can be accessed 24 hours a day. This means many things can happen while we're away, taking breaks or sleeping. We began looking for other ways to cash in on all available trading opportunities. Finally, it clicked.
Automated Crypto Trade
What about turning our trading strategy over to a Crypto Trading Bot? The bot will execute all transactions according to instructions. Our proxy (crypto bot) would trade for us 24 hours a day. This allows you to make maximum money. It's like finding a treasure in a haystack. We want to share that with you. So, let's get started.
What Is Automated Crypto Trading?
Automated crypto trading is using an algorithm or bot to automate your crypto trades. The bot would work 24/7 to execute your transactions. Automated Crypto Trading allows you to either create your strategy or if the platform is new, it will give you techniques that have worked in the past.
Automation allows you to cash in all market opportunities, remove emotions from your trading process, and make money while you sleep. The best thing about social trading platforms is that they are free to use. Other than the transaction cost, there is no additional cost.
How A Crypto Trading Bot Works
Sadly, investment funds have yet to outperform significant indices. Even though fund managers professionally manage most investment funds with decades of trading and investment experience, this happens. They are also supported by analysis and research from individual analysts, professional traders and investors.
It is difficult to beat the bull market because it uses trading bots. They use trading software trained to trade algorithms to take profit-making positions. Their trading positions are so prominent that they can swing the market's favor.
A trading bot can help traders make more money in two ways:
- It can send signals to the trader or notify him when the price reaches a level the trader has been waiting for.
- It can execute trades, including buy and sell, but the trader must set the asset, price, volume and trading position.
A trader who needs to decide on whether to proceed with the scheduled trade often chooses the first option. It informs them that the asset has reached the price they are looking for. Day traders of crypto trading prefer the first option because it provides intraday notification and doesn't force them to make a decision.
Experienced traders prefer the second option with multiple accounts and positions. They can execute trades at predetermined price points and buy or sell. It can also monitor many other variables. It can monitor trading volume, demand and moving averages. It can also track the relative strength of a trend based on buying/selling pressure, price movements, and many other variables.
A crypto trading bot can execute trades at the price you specify, even when you are busy with other things. A simple stop-loss and take-profit function can be used to set your order. The trading bot will execute your instructions when you have set the price point. This can be either to stop loss or to take profits. The trading bot removes emotion and hesitation, which can sometimes make traders hesitate or not take a trade.
Many cryptocurrencies are volatile. It is unclear what factors or fundamental conditions exert the most significant influence on price movements. The cryptocurrency market is also awake all night. It doesn't take holidays or weekends off. It is open seven days, 24 hours a day. This means traders need to be alert as anyone can open and close positions at any hour of the day from anywhere in the world.
Types Of Automated Crypto Trading Platforms
Your Crypto Bots can be run on many platforms. These platforms can be categorized as either Centralized or Decentralized.
Exchange Bot Trading Platforms
Many Centralized Exchanges offer Bot Trading. These platforms are responsible for all crypto funds.
Trusting the platform's integrity and security in this instance would be best. You may lose all of your funds if there is an exploit on this platform. Apart for Pionex, the majority of centralised platforms feature few Bot Trading Techniques. Binance and Pionex have Trading Bots, making them some of the most popular centralized platforms.
Independent Bot Trading Platforms Using Exchange API
Independent Bot Trading platforms don't have custody over your funds. They only give trading instructions for your existing crypto exchange account. You are still trading on a centralized exchange, which carries risks. This can be done using the API (Application Programming Interface), the key of the crypto exchange where you have crypto funds.
These platforms generally offer more trading strategies and social trading features than other platforms. You can use these features to help you master your bots. These platforms can be risky. Any exploit via the API of your exchange can result in a loss or theft of funds. 3Commas, Bitsgap and others are two of the most popular independent Bot Trading Platforms.
Smart Contracts-Based Bot Trading Platforms
This is the best option for bot trading. This isn't for beginners. A smart contract is created to deposit crypto assets and set algorithmic instructions. This intelligent contract would place your buy and sell orders. Smart contracts can be exploited, however. It would help if you made sure that your smart contract is secure and not vulnerable to being exploited.
Here's a link to the best-automated crypto trading platform:
- The Best Crypto Trading Bots
- Best Crypto Grid Trading Bots
- Best Crypto DCA Bots
Different Types Of Automated Crypto Trading Strategies
Automated Crypto Trading can use a variety of trading strategies. These are the most common and straightforward strategies for Automated Crypto Trading:
Grid Trading Bot
Grid Bot Trading allows you to automate your Scalp Trading Strategies. These bots use the volatility of crypto tokens to automate scalp trades. Grid Bots are best started in the final phase of the Bear Market when the trend is reversed, and the market is poised to rise.
You will make money until BTC prices stay within these Grid ranges. Grid bot will continue buying and selling within these ranges. Grid Bots can help traders make a profit with some guidance and practice.
Read More: What are the Issues Surrounding Cryptocurrency and Blockchain
DCA Trading Bot
DCA, a.k.a. Dollar Cost Averaging, you want to invest around $100,000 into Bitcoin. You have two options: invest $100,000 in one transaction (a.k.a. You can choose to invest $100,000) in one marketing (a.k.a. lumpsum investment) or 1,000 in 100 transactions over the next 100 days. This is known as Dollar Cost Averaging. DCA is primarily used to help investors or traders in two ways.
- This reduces volatility in prices as investors can average their costs.
- It can bring discipline to your trading or investment process.
A few bots can also automate your DCA strategy. You don't have to process 100 transactions manually. The bot will take care of that. Our List of Best Crypto DCA Bots can be consulted.
The Pros And Cons Of Automated Crypto Trading
There are pros and cons to automated crypto trading.
Automated Crypto Trading Offers Many Benefits
Here are some of the benefits of automated crypto trading:
It Saves Time: Bot trading is a time-saver. The bot will automatically determine the best time to sell or buy. The bot will take care of it automatically. Beginners can also make trades. You will need your strategy for manual trading. Many bot trading platforms offer a pre-designed process, which is extremely helpful for beginners.
Develops Discipline - Keeps emotion out of the equation. Bot trading is an excellent method to trade emotionlessly. It follows a strategy. This helps to keep your trading process focused and prevents FOMO (Fear Of Missing Out).
Take Advantage Of All Opportunities: A bot can run 24/7, so you can cash in on all trading opportunities. This strategy is more efficient than manual trading, which requires you to place each order manually.
Faster Than Human: Bots are faster than humans. It is a great way to beat manual traders on the market.
Automated Crypto Trading Does Have Some Limitations
These are the limitations of automated crypto trading:
You Cannot Ensure That You Will Outperform The Market: Automated Crypto Trading can be used for automation. It does not add any convenience to your trading process. It does not guarantee positive results.
API Issues: Some platforms you use to automate crypto trading may have connection or server issues. This could cause the order to be delayed. This can lead to missing market opportunities.
Bots And Trading Strategies: Methods Used
Different trading bots use different APIs. Some bots for crypto trading employ an internet browser plug-in. This allows the trader to send instructions to the bot via the browser interface. Other trading bots have their operating systems. The trader must download the crypto trading app as a desktop or mobile app. You may also need to use a separate software program specifically designed for crypto trading platforms.
The trading strategies used by crypto trading bots can also differ:
- Bots use exponential moving averages as one of their most popular methods. You can set moving averages for 20, 30, 50, 100, 100, 200, and 20 days. The moving average tracks the price average over the relevant period. When the moving average exceeds a certain price point, some bots can execute a specific type of trade.
- Some bots use a variant of the exponential moving mean (EMA) to track price movement trends. The triple EMA and double EMA are two examples. Double or triple EMAs combine data from more than one moving mean to determine when to buy or trade a crypto asset.
3 Commas
3Commas allows you to easily make money by creating bots that never stop working. 3Commas will enable traders to make money regardless of market conditions, whether you use one of their proven templates or your custom bot.
The wide range of DCA, Grid and Options bots, and HODL and HODL bots can manage long and short positions, options and futures using any strategy you may have in mind. 3Commas Marketplace gives you access to templates and signals with a clear track record of success so you can choose the one that best suits your goals.
Moreover, 3Commas provides strong trade orchestration and portfolio management options. This allows you to manage all your crypto wallet activity from one interface. SmartTrade will enable you to trade on major exchanges with greater control and more votes than the exchanges. Profit quickly with the scalping terminal.
WunderTrading
WunderTrading offers a platform for crypto automation that allows you to mirror trade and manage your crypto portfolio. They can also manually follow highly skilled traders and marketing using the sophisticated Trading Terminal.
Due to its extensive selection of trading choices, WunderTrading is distinctive. WunderTrading offers Trailing-stop, Swing-trade and Stop-loss functionality. Trading techniques can be improved by using sophisticated features like Take-profit and Stop-loss. You can include a variety of trading algorithms and technical indicators in your bots by integrating TradingView. Their integrated terminals can also be used to develop DCA or Spread tactics.
WunderTrading allows you to manage multiple exchange accounts from one Dashboard. Once you have added your exchange accounts via API, you can replicate trades across all charges in a single click. On the platform, users can access the detailed statistics provided by the Dashboard. This enables traders to monitor their profits and carry out trades more effectively.
Coinrule
Coinrule offers the largest selection of pre-set trading strategies, making it one of the most widely used bots. Users can customize they're investing with more than 150 predefined trading templates. Coinrule constantly adds new templates to its platform. They cover stop-loss settings, accumulation, and long-term holding techniques.
The number of templates you can access depends on which plan you choose. Advanced charting features and limitless use of templates are included in the subscription plan.
TradeHub
TradeHub, a complete crypto trader platform you can use for free during their 14-day trial, is available. You can choose from various trading strategies based on the three main principles of DCA and Grid.
TradeHub is highly secure. TradeHub doesn't store your money; instead, use API keys from your exchange to encrypt trade data. You also get a complete breakdown of your trading portfolio, including performance matrixes for individual strategies.
You can connect your exchange's API keys to get started and choose your preferred trading strategy. Three subscriptions are available depending on how many Telegram integrations you have. All you need to get started is $15
Mizar
Mizar is the only bot that doesn't require a subscription and allows unlimited access to all features. This includes scaling your trading and diversifying your portfolio.
Mizar's most significant advantage is its all-in-one platform that allows cryptocurrency trading. It will enable users to create low-risk strategies, execute orders across multiple markets (spot and futures), and pair from a simple interface.
Mizar users can create and manage long and short robots and other systems. They can also trade using Mizar's Smart Trading Terminal. Mizar offers many trading features, including multiple entry zones, stop loss, take profit and trailing, and DCA.
Mizar also provides a platform where users can exchange their strategies. Users can copy-trade the most profitable method with just a few clicks and trade like a professional. Traders are paid monthly through a profit-sharing system.
Mizar allows novice traders to trade unlimited paper to build their confidence and not have to invest in tangible assets. This will enable users to learn how trades are made and test their strategies without risk.
Bitsgap
Bitsgap, one of the most popular bitcoin trading bots, can help you manage all your crypto assets and create a strategy in just a few clicks. This tool can analyze up to 10,000 pairs of cryptocurrencies and identify the ones with the highest potential. Bits Gap allows you to view your trading via a chart and test settings before trading. You can also download it by clicking here.
Read More: Everything You Need to Know Regarding Cryptocurrency and Blockchain Technology
Gunbot
Gunbot is the best trading bot on the market. It was launched in 2016 and has been continuously updated with new features. This software is reliable, automating crypto trader for more than 25000 users.
Gunbot is easy to use, simple to set up and offers many customizable strategies that can be used for any trader/risk profile. You can find profitable, free 'plug-and-play strategies on their marketplace. Gunbot hosts tournaments frequently, allowing its users to make a little more. Gunbot allows you to trade for as low as 9.99$. Gunbot is a one-time payment that works instead of a monthly subscription, unlike many other competitors.
Pionex
Pionex, a cryptocurrency exchange, has built-in trading robots. You also have 12 training bots for no additional fee. These trading bots can automate your trading strategy so that you don't have to monitor the market constantly.
This tool is an excellent option for high-volume and mobile traders. Phoenix's main product is its trading bot selection. It does, however, also facilitate manual crypto-to-crypto trading. This bot executes traders' buy and sell orders without manual input but according to predefined market conditions.
Pionex employs a maker-taker fee structure. You only pay when your trades make liquidity in the market. This also means you don't have to pay if the market takes liquidity from you. If your trade does not match an active order, the maker charge is due. If your order is accepted, the taker fee will be applied.
Tradescantia
You can save time by using Tradesanta, a cloud-based trading platform that handles trade execution for you. It's easy to set up, and it allows you to automate trading across multiple exchanges, and you can choose your preferred setting when creating the bot. Tradescantia will enable you to create as many bots as you need to scale your trading. The majority of the current bitcoin exchanges are also supported by it.
Cryptohopper
This bot uses the cloud to host all of its services. This allows you to catch any downtime without affecting your profits. The bot is always up and running with no downtime. It also updates without interrupting trades or putting an end to your account. Your Cryptohopper account will continue to work even if you're offline. This bot is intuitive and straightforward to set up without needing credit card information or platform installation.
Botcrypto
This platform allows you to automate trading cryptocurrencies and save time. This platform does not require any coding skills. Also, you can design and control trading robots that carry out your strategy. Botcrypto, a bot trading platform for free, offers 24-hour support and a visual editor.
Axion Crypto
This revolutionary, user-friendly cryptocurrency trading bot was created to let you create intricate trading indicators and algorithms. Axion crypto can be used on many cryptocurrency exchanges. You can also create your strategies using the Code Editor. Prices start at $15 per month and go up to $90 per year.
This tool allows you to backtest new strategies and monitor custom trades. You can also use the trading view or manual system to send signals directly. The bots are hosted in the cloud via a secure enterprise network, so downloading and installing them is unnecessary.
Trality
Anyone who wants to design intricate, original algorithms in a setting that fosters learning and growth can use this platform. Trality is a popular trading platform for both advanced and beginner crypto investors.
Trality provides a Rule Builder tool that enables the coding of sophisticated trading algorithms. This is a state-of-the-art graphical user interface that you can use to create your trading bot's logic using simple drag-and-drop indicators and strategies.
Crypto Hero
It offers a beautiful user experience. The Crypto Hero app is simple to download, does not heat your phone, uses very little memory, and loads quickly. Users can choose between a basic (free) and an excellent platform. The mobile app has a tutorial that helps traders create their first bots and start trading. To check active orders, win/loss percentages, realised profits, and total transactions, go to your dashboard.
Hodlbot
Hodlbot, a cryptocurrency trading bot that allows you to manage your trades from a simple dashboard, is among the best. This software will enable you to create a portfolio with more than 350 crypto coins and customize it according to your needs. The price for this bot starts at $3 per month and allows you to rebalance portfolios quickly. This crypto bot will automatically keep your portfolio on track. This bot encrypts all your data with SHA 256 and allows you to conduct marketing indexes with less effort.
Streak
This cryptocurrency trading bot allows you to backtest and deploy your trading strategies. The Streak bot doesn't require coding skills and is suitable for retail traders. This bot is a streamlined trading platform that employs an algorithm to assist traders in conducting methodical bitcoin deals.
Conclusion - Guide To Automated Bitcoin Trading
Automated Crypto Trading can be a great way to improve your trading skills while you sleep. We hope you found this article helpful in cracking automated crypto trading. Did you try any Bot Trading Platforms? What was your experience with the Bot Trading Platform? Please get in touch with us if you require any advice on crypto trading. This post does not constitute financial advice. Before making any financial decisions, please consult your financial advisor.
