Trade bots can have good performance when set up to use a trading strategy appropriate to market conditions. Using an automated crypto trading bot requires a basic understanding of current market trends and then matching a strategy to those trends. 44hills offers a variety of proven templates created by professional users that can help new traders make well-performing crypto trading bots.
Bots trade crypto by automating the manual commands a user would normally make. They rely on triggers, referred to as signals, to tell them when to execute the buy and sell commands based on conditionals you select. Think of it as "if X, then Y." These signals monitor the price movement of coins based on API connections with the crypto exchange, and then follow your commands when the market conditions are met. Multiple signals can be used to create complex trading strategies that are very difficult to execute manually. Common automated trading bots are DCA bots, Grid bots, Futures bots, Options bots, Arbitrage bots, and HODL bots.
Using a cryptocurrency trading bot is the best way to trade crypto if you plan on doing anything other than buying and holding. The bots never sleep and they can execute your strategy 24/7 so that you are not stuck at a computer inputting a lot of manual commands. Using a bitcoin trading bot, for example, allows you to automate buying the lows and selling the highs when the market is dynamic. Using bots to trade crypto allows you to have your assets working for you to seek opportunities and increase the value of your portfolio rather than sitting in storage.
A trader can make considerable portfolio growth conducting bitcoin trading or altcoin trading if they're using the right strategies and settings. A proficient trader measures success by percentage earned from their average trades, rather than raw totals. It’s not uncommon for experienced traders to average between 15-25% in the green over the many crypto trades they do each week. New users will likely experience lower success percentages as they learn more about how to do technical analysis of the market and how to fine-tune their bots to get better performance.
Most crypto trading softwares offer a free option that includes 1-2 DCA or Grid bots. This is a low or no-cost way to learn the software, but most traders will want to upgrade to a paid plan that offers more bots so you can execute your trading strategies more effectively. Typically you can sign up for paid subscriptions using a credit card, debit card, or even pay with Bitcoin, Ethereum or some other stablecoin or altcoin.
Automated trading has already been proven to work over the course of millions of bot trades. The key thing is to choose a reliable trading software that features cryptocurrency trading bots with proven track records. The software should also be very transparent with performance data so you have the information you need to create a solid trading strategy. Automated trading works well when users pair a bitcoin trading bot or altcoin trading bot with a good strategy and third party signals on a crypto exchange with reasonable fees. There are many market conditions where holding is not a good strategy. If the market is rapidly going down, a bot that sells your assets and then buys them back at a lower price can result in significant gains to your portfolio when the market recovers. When the market is flat, a Grid bot can take advantage of daily fluctuations to potentially grow your portfolio slowly over time rather than having your coins in cold storage doing nothing.
This depends on several factors, such as the trading fees imposed by a supported brokerage such as Coinbase pro. Using an altcoin trading bot on a trading platform will typically require a monthly subscription fee depends on the number and type of bots you will be using. Trading fees on a crypto exchange are charged with each trade, which can make some high-frequency trading strategies unviable on exchanges with higher fees.
