As we know, more and more people want to invest in crypto coins, and most of them are complete newcomers. For such people, the cryptocurrency market offers special automatic trading systems – trading bots, that are about to make your cryptocurrency trading very convenient.
Today we will talk about the advantages and disadvantages of bots, and will shortly discuss if you need to use it.
Why are bots better than manual trading?
First, you need to know that crypto trading bot can’t act without the person behind it – a trader sets all the important parameters (entry prices, target prices, stop-loss, etc.).
But all the other activities bot can do on its own.
The benefits of crypto trading bots:
- The absence of emotions.
As we know, emotions are one of the biggest problems of most traders. Sometimes you are afraid to open the position because you are not sure if it will bring profit? Or you are afraid to wait and close the deal for no reason?
Yes, it is a common picture – and the bot doesn’t think like that, fortunately. It will follow your strategy, and that is it.
- Bots don’t have weekends, they don’t sleep.
People are not programs – we need to sleep, to spend some time with the family, etc.
And, again, the bot doesn’t need it. It can trade 24/7 without stops.
- Quick decision-making.
I think you used to trade manually, right?
Every time you see that it is time to close the deal, for example, you need to change the pages, set the amount you want to sell, etc.
And, as we know, the crypto market is very volatile, and prices can change every second.
A bot reacts quickly and sells/buys everything at the price you set before.
Now you understand that crypto bots are very good and convenient – they provide you the chance to use 99% of the trading potential, saving your time.
What rules do you need to follow to use your bot successfully?
Watch your bot.
As I told you before, bots can’t work without a trader. That is why you need to set all the parameters very attentively because your mistake will mean that the bot will trade incorrectly.
Use Stop-Loss.
This is important not only with automatic trading but for manual as well. You need to set stop-loss every time you open the deal because the bot can lose a lot of your money if the price will decrease and there will be no stop targets.
Be aware of scammers.
Unfortunately, the crypto market is full of scammers that exist to steal your money. That is why you need to check every service you are going to work with.
As we know, there are many “trading bots” that offer you high profits just after you deposit the money to the account. This scheme is impossible to exist.
We advise you to work with popular crypto bots that are developed by experienced software development services and reviewed by crypto platforms like Safetrading.
So, trading bots can save your time and make your trading strategy very profitable and successful, but only when you control it.