Cryptocurrency trading is tricky. Because of its erratic price fluctuations, it requires tons of guts and a risk-accepting mindset. Even the adept traders couldn’t escape from losses.
Recall the American business magnate and a wall street celeb, Warren Buffett, who lost $23 billion in the 2008 market recession.
However, it’s an old trading story. Nowadays, technology has been booming. Investors can leverage several prediction technologies to understand the market movements. Although predicting the crypto market is quite challenging, there’s an absolute way to maximize profits– It’s nothing but using trading bots.
If you’re wondering whether the trading bots are still profitable, here’s the simple answer.
Dig deeper into the article to know more about the trading bots and how they’re still effective in maximizing the return rate.
Why Aren’t Most Investors Hitting Huge Bucks In Trading?
Most newbie traders lose colossal money despite having immense theoretical knowledge. The major reason is due to a lack of impulsive decision-making. On the other hand, a few traders dump huge bucks due to a lack of education and leveraging outdated strategies.
The typical trading course looks like this:
Trade money you don’t care even if you lose, choose the best brokerage, apply a strategy with a 1.5/1 reward to risk ratio, and follow a single strategy for tons of trades.
Simple. Right? But if crypto trading is as simple as it sounds, everyone would have become a billionaire. Although the above plan gives you 18% to 25% returns, most people fail to do it.
The newbie investors are highly prone to losses due to a lack of proper knowledge. That, in turn, leads to frustration or makes you emotionally weak. Did you know you master three-fourths of investing if you control emotions?
Remember, every cryptocurrency isn’t Bitcoin that’s up all the time. The undeniable fact is cryptos are highly volatile. So, whether you use trading bots, ensure you strategically trade cryptos. Or else, be prepared to lose 30% or even more of your portfolio overnight.
What Exactly Is A Crypto Trading Bot & How Does It Help You Overcome Emotions?
In simpler words, trading bots act as your trading assistant that automates buying and selling of cryptocurrencies at the right moment. Thus, all you get is fruitful returns. There are colossal bots in the market, and not all of them are great.
In reality, most bots are awful. However, there are pretty reliable bots you can use to automate trading. Click the given link to learn more about the top-notch trading bot in detail– https://www.bitconnect.co/bitiq/.
Since 2017, the cryptocurrency craze has been increasing incredibly. Hundreds and thousands of cryptocurrencies have evolved, new crypto marketers have emerged, and many more traders entered the market.
Crypto markets allow you to trade throughout the day. This means the prices continuously fluctuate day and night. Did you know the co-founder of Apple, Steve Wozniak, sold his bitcoins as it’s tiresome to check the crypto prices all the time?
If you’re a day trader, then it’s tricky to monitor the cryptos the entire day. This is where you can embrace the trading bots.
Most significantly, the bots are emotionless. Since robots don’t deal with fear, greed, or insecure feeling, they quickly sell or buy the orders based on the market fluctuations. So, all you need to do is provide the right input and monitor your crypto account.
Why Are People Using Crypto Trading Bots?
Who wouldn’t love a comfortable trading environment, especially when it comes to cryptocurrency? Crypto trading is stressful and tiresome due to erratic price movements. The human body craves rest. On the other hand, bots work 24/7, even when you’re sleeping.
As discussed earlier, the best thing about bots is they don’t have a fear of losing something or greed to earn more. Also, never get tired, feel inconvenient, experience stress, or other emotions that affect trading.
Here Are a few pros of using trading bots.
Bots work 24/7(Even While You Sleep!). It sells and buys the order at the right moment based on the predefined value you’ve set.
Processes Orders In A Blink Of An Eye
By the time you think about whether to buy or sell digital currency, the market trend might have changed. The crypto market is super-fast, and it’s impossible to catch it if you take a longer time to execute.
However, this isn’t the case for bots. They reach faster and cope with the market trends within a fraction of seconds.
Reduces Entry Barrier
Although cryptocurrency has evolved long back, only a few people can understand it. It’s a bit complicated to work for novice traders.
Although bots don’t ensure long-term success, they do definitely decrease the entry barrier. Since they automate the entire trading process, it minimizes risks.
As an efficient trader, you should frequently monitor the prices and market insights. Every crypto trader knows entering the crypto world is no less than a 24-hour gig. One should watch the prices while sitting in front of a desk for hours and hours.
However, bots eliminate the strenuous monitoring as they take care of everything. All you need to do is strategize the trade plan and let your bots execute them at the right time.
Are Crypto Trading Bots Profitable?
Trading doesn’t merely depend on how fast you buy or sell orders. It relies on various factors, including media, updates, investors, the right strategies, and more. Due to market losses, the trading bots ensure either huge return rates or dump you in the financial crisis.
Moreover, no one can guarantee the strategies that work all the time. But having trading bots ensures higher securing and minimizes the financial crisis to some extent. There are several professional investors leveraging bots to maximize profits.
For instance, Stefan James, the founder of “Project Life Mastery,” made over $17,000 using trading bots. The key is you should have a strategic trading plan.
A few best ways to increase returns from trading bots are choosing the right trading bots, such as Bitsgap, CryptoHero, Reality, Axion Crypto, Coinrule, Cryptohopper, Pionex, etc.