Trading cryptocurrency has become common in the past several years. While many people still buy and hold as an investment, others have taken to trading to try and profit off of price fluctuations. That’s a big reason why trading volume has grown by 127%.
The question is, will you perform trades yourself or use an advanced trading robot to trade for you?
Do you want to learn what trading robots are and if they’re worth using when cryptocurrency trading? Keep reading to learn the answers to your questions.
What Are Trading Robots?
A crypto trading bot is a software program that trades cryptocurrency for you. You give it a set of parameters, fund a trading account, and allow the bot to trade on your behalf.
This is a great way to make trades you may not otherwise be able to make. The bot monitors the price of a coin and automatically makes trades based on your input. It’s a great way to automate a strategy instead of looking at trading charts daily.
Benefits of Using Robots on Cryptocurrency Exchanges
Now that you know what trading bots are, the question is, are they worth using? Keep reading to learn when it makes sense to automate crypto trading.
Make Precise Trades
Trading windows don’t always open for long. The price of a coin drastically drops, only to immediately recover. It’s not easy to nail those trades when you do things manually.
A trading bot like MetaTrader 4 app for mobile will help you make those trades. It can see the instant a cryptocurrency’s price gets into range and will make the trade for you.
One problem many traders have is making decisions based on emotion. A situation doesn’t go as planned, and people panic and make rash decisions. This leads to a lot of lost money since you cement your losses when you sell.
You won’t have this problem when trading with AI. Since it’s a set-it-and-forget-it process, you can go about your day and return to see how the bot did. If it doesn’t do a good job, you can refine your strategy until you see better results.
Use Pre-Built Strategies
Many crypto trading strategies are already well-defined. You don’t need to do much research yourself to follow them. However, you do need to know how to execute them correctly.
Many trading bots have these trading strategies built-in. You can research the best parameters to execute these strategies instead of inputting the information yourself. It still pays to understand how these strategies work, but that doesn’t mean you can’t use them out of the box when you begin using a trading bot.
Try Crypto Trading Bots Today
Engaging in the crypto trading strategy you want to use is not always possible. Some require you to sit on an exchange and make trades at the most opportune moment. The problem is finding the time to make this happen.
But you don’t have this issue when you use trading robots. Look into AI-powered trading robots today to see if you can use automated crypto trades properly.
Head back to the blog to find more tips that will help you create a financial strategy to grow your wealth.