Crypto trading has become a means to personal wealth creation for many people. However, as with any other types of trading, buying and selling crypto currencies is not risk free. A lot of technical and fundamental analysis is required to succeed as a trader. Also, you need to invest many hours to monitor the market to enter and exit positions depending on how things are going. Then there is the emotion part where you might be prone to trade with your emotions instead of logic and this can be disastrous. This is where having a bot comes in handy.
Trading bots allow investors to automate crypto trading based on selected technical indicators. A crypto trading bot automatically buys and sells cryptos., eliminating the need of human reactions and saving you stress and other less pleasant human emotions that can come with the decline or the rise of crypto prices. ” . And the trading never stops. Crypto owners or other traders choose trading bots because the trading always continues.
The Nature Of A Crypto Trading Bot
There are three parts you should pay attention to when you have chosen to use a trading bot: an executive act, a generator, and a risk analysis.
The generator predicts the price, the essence of the trading bot. In addition to the prediction of the price, the generator advises on whether to buy or sell your crypto. The risk analysis maps out the generator’s risk. And in the executing part, it is determined whether the purchase or sale will take place. These three parts complement each other and thus make the trading bot one whole.
When choosing your strategy, you have to set it up correctly and this allows you to earn whether the price of the crypto rises or falls.
How To Trade Crypto Using Bots
Bots allow users to execute trades when specific conditions for the trade are met. They consider information such as current prices and volatility levels. The goal is to simplify the trading process. Since they are programs, they offer better efficiency than humans and make fewer errors with little room for emotion or sentiment. Some estimates claim that algorithmic trading bots account for 70-80% of the overall crypto trading volume. Below are a few steps you need to get started with your preferred crypto trading algorithm.
1. Create an Account
Visit your chosen crypto trading bot and create an account by signing up. This may require entering your email address and a strong password.
Choose Your Preferred Bot Type
Some platforms will offer a variety of bots you can choose from that enable you to accomplish different trades. Select the one you find most appropriate and suits your needs.
Connect To An Exchange
The bot will allow you to connect to an exchange where trades will be executed. Your account will be connected via API.
Choose Trading Pair and Set Base Trade Size
You will find a drop-down menu that allows you to select a trading pair you would like to trade. Select how much of your preferred currency you would like to use during your initial trade.
Set Target Profit
This tells the trading bot when to sell to secure your profits. The process will depend on the kind of percentages you are hoping to profit from.
6. Choose Take Profit Type
Some bots will provide you with two take profit options, one based on percentage from base trade or percentage from the total volume.
Set Max Safety Trades Count
Some robot crypto trading bots will allow you to set how many safety trades it can make before stopping.
Set Price Deviation To Open Safety Trades
This tells the automated crypto trading bot to begin to execute safety trades. It is set as a percentage. For example, if you set it to 5%, when the price of the chosen currency drops by 5% from the initial price, the bot will begin executing safety trades.
Set Trade Start Conditions
This tells the crypto trading software when to make initial trade, and you will have various options here such as TradingView Signal Buy or Strong Buy and so on.
By following the above steps, you should configure your trading robot in a few minutes, and you are good to go. Also, the process is quite simple for beginner traders, which makes it easy for them to start trading and taste success quickly.
Learn more about keeping your coins safe by reading our latest article about crypto wallets! Do you want to know more about trading strategies? Let us know in the comments! And Don’t forget to follow us on LinkedIn, Instagram, Facebook and subscribe to our newsletter to stay up-to-date!
To Your Trading Succes ❤️🤖