Cryptobots – they are needed to automate bitcoin trading. Trading robots support one or more strategies. It is important to understand the program settings and the chosen style of crypto trading.
Profinvestment experts conducted a study of more than 50 algorithmic trading platforms and compiled a detailed list of bots for trading cryptocurrency, based on their profitability, functionality and user reviews.
Why do you need cryptobots?
Cryptobots from WunderTrading automate trading bitcoin, ether or other assets. They are used for trading on the stock exchange or over-the-counter market. Automated cryptocurrency trading is an opportunity to make a profit without participating in trading. The bot buys/sells the asset for you. Your task is to set stop losses and take profits.
Stop loss in simple terms is the lower rate, upon reaching which the bot sells the asset. Stop loss protects against large losses.
Take profit in simple terms is the upper rate at which the bot sells bitcoins. This is called profit taking. Take profit is an opportunity to make a big profit before the market goes down.
You can watch the rate changes and the bot's actions in real time from anywhere in the world.
What tools do crypto bots use?
Cryptocurrency trading bots offer different strategies and focus on different indicators.
What strategies do crypto bots use? This could be arbitrage - buy bitcoin cheaper on one exchange, sell it more expensive on another. Or scalping - buy/sell crypto assets with the slightest fluctuations. Or reversion to the mean - the idea is that an asset can move up or down, but at some point it will return to its old value. This is market psychology.
There are many more strategies - they came from the stock market.
What does a crypto bot consist of?
Backtesting is a module where the selected strategy is tested on historical market data.
Strategy - here the logic of the bot's behavior is selected and the formulas that it will follow are written. Have you written a strategy? Check it out on backtesting.
Execution – test the strategy on exchanges. It is advisable not to risk real money, but to use exchanges with a demo account. In this section, the written logic is “translated” into a language understandable to the exchange.
Scheduler – after you have “translated” the logic into a language understandable to the system and tested it, start real cryptocurrency trading.
Does a crypto bot fully automate trading or not?
Cryptocurrency trading robots automate routine tasks. Advanced crypto bots with AI are able to analyze news or sentiment on Twitter. But it is better to monitor such events yourself and adjust the program's actions.
Final thoughts
Crypto bots relieve traders from routine, and in some cases, analyze fundamental events.
A crypto bot may have a simple interface. But it is important to understand the strategy it uses.
Before using the robot, study the basic concepts of crypto trading, set up stop losses and take profits, test the program, watch the market and the bot's steps.