No matter you’re sleeping, traveling, or buried in office work, in no way would you like to miss out on profits or simply incur losses, while cryptocurrencies act as unpredictable as the weather and you can’t be monitoring the global changes round-the-clock. If you have no time to continuously check the crypto markets, we have crypto bots to take care of your trades, automatically.
Bots in trading sound a foreign concept to you? Striking but tough to get acclimated to?
After you are done reading this article (based on a video we made for you!), you’re sure to find yourself surfing the web for the best bots to buy!
Crypto trading bots are automated software constructed to enable you to buy and sell cryptocurrencies at an opportune time. Not only do they boost earnings and lessen losses and risks, as they react quicker, but you can also organize all your crypto accounts in one place all the while trading for Ethereum, BTC, etc.
Robots we all know are emotionless, implying that fear or greed is unknown to them. And the amount of data they can process in seconds is crazy!
“They are essentially software that places orders on behalf of you based on the strategies that you set up or are set up by someone else.” says Naimish at Coin Crunch.
Types Of Crypto Bots
Currencies that delay changing their prices are preyed upon by the bots voraciously, especially by some bots who critically examine the history across changes and make use of the discrepancies.
Other types of bots employ historical data and provide testing strategies. Some even use Machine Learning for placing orders!
The Coin Crunch team used two platforms – Stacked and FTX for trading.
Using an exchange account like FTX lets you create sub-accounts for every bot. Mind you, only FTX allows accounts like these on a granular level. You can also trace the performance of each bot separately.
Psychobot, a swing trading bot already being used by us gave good results.
Trading with bots employs 3 major steps as shown:
Purchasing the Crypto Bots
While Investors can subscribe to free bot programs, many bots have user fees, sometimes quite steep.
Generally, investors seek out the bot or bots that will be most beneficialle for them and then download the code from a developer.
Each bot includes various requirements in terms of software and hardware.
To maximize the effect of a bot, however, an investor must know how to best utilize the tool.
For instance, investors must have the proper accounts set up across digital currency exchanges.
At Stacked, all you need to do is:
- Open and check the strategy of bots available on the stack marketplace
- Once you like a bot, decide and pay monthly or annual fees using PayPal or credit card. The subscription then starts.
- All bots can work with a different coin or cryptocurrency or crypto asset
- For this step, you need API keys from the exchange you are using for trading.
- Find the API keys, enter them on Stacked to start your exchange, give it a unique name to remember what exchange is for what bot.
Connect With Dots
- Open the bot, click manage.
- Add the exchange you setup here and adjust the settings of the bot, like how much leverage should the bot take, how much equity it must use from your friends.
- You don’t have to set up any stop-loss targets.
- The bot will send its signal and take the trade on its own and close it when it hits a stop-loss mark and closes it when it hits a certain target price.
In case you don’t want your bot to trade independently, simply enable the “only show notification” setting. It lets you trade, with the signals from the bot as assistance.
Put Funds to Trade
Funds should not only recover the cost of the bot but also make some profit.
- Bots execute orders based on the signals they provide and take positions based on the settings you did.
In the case in point, we lost 85,000 in 2 weeks, other than the 80,000 we had already used in bots(while purchasing them).
As a corrective measure, we identified the bots that made losses, emptied their balances, canceled their subscriptions, and moved funds to bots that were making profits.
Are Crypto Trading Bots Worth it?
Trading bots are merely software guaranteeing profitability. You need to understand not every bot is profitable most aren’t. So, the bots generate a profit and ideally, that profit is greater in risk-adjusted terms than had you have just bought the same coins and held them throughout
To answer this question, you have to :
- Check the history of the bots.
- If a bot has done well in the past, there is a chance it will do well in the future also depending on how long you used both, the market stability, etc.
Case in point:
After 15 days:
As is visible, we lost thousands of rupees within 2 weeks.
Now, if you know what you’re doing and have configured your bot to the right strategy, then you will make a profit.
However, remember that the bots also vary in quality and a hiccup somewhere along the process could generate disappointing results.
Here are some links you might find useful:
- To sign up on FTX: https://www.youtube.com/watch?v=6NOldhc4shw&t=0s
- Buying bots on stacked: https://stackedinvest.com/?via=naimish
Here’s a detailed video:
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