These robots are most commonly provided by independent vendors like WunderTrading.
The complexity of the cryptocurrency market is one of the reasons why many active investors find themselves in a peculiar situation of not being able to place any orders decisively. With over a thousand different coins and tokens that can be also paired against one another, creating a sound strategy is a task that may seem close to impossible.
During the last decade, automated bitcoin trading emerged as an answer to the ever-increasing convolution of different assets and derivatives.
What are bots for cryptocurrency?
These are specialized computer programs usually ran by cloud computing. They perform various on-market tasks like analyzing the situation, placing orders, and any other activities that are related to the functionality of any given exchange. These robots are most commonly provided by independent vendors like WunderTrading.
People employ these programs due to a variety of reasons. However, some advantages are quite apparent:
- Machines do not need to sleep. A distinct quality of a modern cryptocurrency market is that it works 24/7 creating a highly competitive environment where traders have to stay active around the clock to make a profit consistently. Computers can work with 99.99% uptime.
- Cryptocurrency robots make decisions without any doubt. Emotions often affect your performance. It is hard to avoid second-guessing and anxiety when dealing with life-changing amounts of assets. It may lead to situations where you miss out on great opportunities or make mistakes. Robots do not have any such weaknesses.
- Bots became inexpensive. You may not believe it, but the implementation of automation in trading was a common strategy in financial markets even three decades ago. Computation was quite expensive back then meaning that only dedicated professionals and financial institutions could afford any type of computerized investment strategy. Today, you can run high-performance bots for $10 per month.
Some companies even have free plans to attract a larger audience of clients. WunderTrading offers you a chance to run multiple full-featured bots without any issues. For example, you can get a Binance day trading bot that will outperform a regular investor for free. You will only need an active account on BINANCE_SPOT and a paid subscription on TradingView.
How to run a free BTC trading bot?
Any robot employed by investors must have three components: a generator of signals, a script that contains instructions, and exchange with API. The latter two are provided by corresponding platforms. The first one requires some understanding of technical analysis.
Technical indicators are specialized instruments used by traders to better understand price dynamics. It is impossible to follow all industry news, relevant personalities, and other news generators that are often used in fundamental analysis to predict the behaviours of certain assets. Also, cryptocurrencies are not dependent on many factors of national economies.
Some traditional approaches to forecasting are simply inefficient or barely efficient in the crypto industry. Technical analysis is the only more or less reliable way to make any kind of prognosis. Fortunately, technical indicators are also computerized and produce valuable inputs for bots when used on specialized platforms like TradingView, one of the most popular terminals out there
There are several simple yet effective indicators you should be aware of:
- RSI or relative strength index is a very powerful tool that generates insight into the price dynamic by showing you the stability of the current trend. It may be employed to identify good moments for reversals. RSI has only one numerical value that can be used for automated scalping.
- A stochastic Oscillator is a commonly used tool to evaluate when an asset is overbought or oversold. It essentially uses support and resistance levels creating a very good indication of when there is a potential for a price reversal. Again, it can be used to power a well-performing crypto profit bot.
- MACD is a great tool that analyses the behaviour of multiple moving averages and creates a complex signal that will indicate the power of the current strength. Implementing it in your strategy can be challenging, but may yield better overall results.
These instruments are used to provide signals for bots that will be interpreted and acted upon immediately. A bitcoin bot free of any external management will receive a signal from RSI (also generated without any human intervention) that it reached the value of 70 meaning that there is a high probability of a bearish movement. The bot will immediately connect to the exchange of your choice and short the asset. All processes are performed instantly.
Should you automate investments?
Bots should be considered a method of active investment that operates within a more complex portfolio. When employed as the only way to activate your capital on the market, they may be a risky endeavour. Hedging risks should be your top priority.
Press Release Distributed by The Express Wire
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