While everyone today seems to be taking to trade bots like ducks take to water, a smart Bitcoin trader will want to know beforehand whether automated trading will assure him of higher returns than manual trading. Bots are typically associated with algorithm trading or automated trading where traders will come up with a strategy related to buying and selling. Once the system is in place, the computer alone can manage to execute the trades on behalf of the user.
So, crypto trading bots are actually software programs that will automatically trade crypto coins on your behalf. They are designed to work 24×7 so that trades can continue even when you are sleeping or away from the computer. The idea behind using trade bots is to ensure that trades are executed faster and done more efficiently compared to manual trading by a trader.
Are trading bots more profitable than manual trading?
- Trading bots can be configured to run according to your preferred trade strategies. It will be responsible for interpreting market movements, like prices, volumes, and orders. They can be customized and programmed specifically to cater to your needs and specifications. In this sense, using a trade bot can be rather lucrative. Because of the unprecedented rise in crypto coins, there had been a corresponding rise in the use of crypto trading bots.
- Earlier however these bots used to be very costly and only a handful of investors could afford them. But now, crypto trade bots are also offering free and open source versions. So, if you are someone who can deploy create and effective trading strategies, you can earn higher profits using crypto trading bots.
- Bitcoin automated bots are meat for professional traders while newcomers can also benefit from these. A newbie will understandably lack sufficient trade experience and skills; it is here that the trading bot can be of much help to him. He can choose one of the most optimized and updated Bitcoin trading bots that can work on multiple exchanges. Moreover, using bots appears to be more profit-generating since trades are no longer decided by emotions.
- Another useful advantage of using trading bots is that it can save traders a lot of time and effort. When trades are automated you no longer have to spend hours coming up with trade algorithms that can work, or sit in front of the computer screen to monitor market movements round-the-clock. The quality bots are designed to process huge volumes of trade data much faster and execute orders at lightning speeds. They can analyze multiple technical indicators and take appropriate decisions to assure of high returns.
- When you choose to use a trading bot, you can set your own limits in keeping with your risk profile. The only problem is that technical indicators will work on the basis of historical data, but the crypto market may not behave the way as expected always. It is highly volatile and trading bots may not be successful every time. It is useful for people who already have other jobs and treat Bitcoin trading as a pastime. When you have enough crypto funds to start off with, trading bots may be the best solution for you.