The Benefits of Crypto Trading Bots

Automated trading is one of the trends in cryptocurrency trading that emerged several years ago. The auto trading software keeps on evaluating while more and more investors start using trading bots to get the maximum from crypto exchanges. From this article, you will learn what are the main benefits of automated trading. We will use an example of trading via the TradeSanta software on the markets of the HitBTC exchange.

What Is Automated Trading?

Automated trading is trading via special bots designed to place trade orders in accordance with a plan/strategy configured or chosen by the user. Usually, the companies that produce trading bots offer you to buy a subscription and use the bot as long as your subscription is not terminated.

To configure a bot the right way you should understand where the prices of specific currencies are heading to. Then, following the potential trajectory of the prices, you should set the types of orders that will be posted by the bot. The frequency of trades should be automated, too.

Platforms providing trading bots usually offer you to choose preconfigured strategies. However, you can adjust these settings yourself. You should be aware that once the situation on the market changes, the configuration of the bot can become unprofitable. That’s when you should interfere and reconfigure the bot so it will continue to bring you money. If you fail to reconfigure the settings in time, you risk losing your money as the trading bot will continue selling/buying tokens at the price chosen before the trend change. If the strategy is configured wisely, you won’t likely lose money so you’ll have enough time to spend it off the computer monitoring the graphs and charts.

What are the Pros of Automated Trading?

What is the use of trading bots? Well, there are many reasons why automation has great potential for crypto traders. First off, unlike human beings, bots don’t make mistakes. They read the data accurately and cannot get distracted by something, they can’t take one crypto for another or confuse numbers, etc. That’s quite obvious.

The second thing is similar to the first one — as a trading bot is nothing but a piece of software it doesn’t need to sleep or rest. Crypto markets are active 24/7. Unlike us, trading bots can easily stay up all night and keep trading without compromising their abilities. You can configure your bot and mind your own business most of the time. Just don’t forget to monitor the market from time to time so you won’t miss the right moment to update the trading strategy. It can save you much time and nerve.

The third reason to rely on trading bots is human emotions — bots lack them. Experienced traders have strategies or plans that they follow while trading. But sometimes they feel fear or greed. When these emotions enter the trader’s heart, the plans and strategies can go down in flames. Along with the money. Where we do impulsive moves that violate our initial plan and create new risks, trading bots follow the plan as accurately as it’s possible.

And, finally, the last but not the least — bots can trade at incredible speed. Bots can trade on several markets simultaneously or post many orders in just one second. As trading bots have no physical limitations that human beings have, they can get an advantage from the market situation whenever it’s possible (if you set the strategy right).

These are the main pros of automated trading. Of course, there are some cons, too. First off, you shouldn’t think of automated trading as passive income. Even if your strategy is good you should stay involved in what your bots are doing and keep the track of the market trends. Configuring the bot can be a problem for some people. If you do that wrongly you might end up losing money much faster than you usually do. A trading bot is just a tool, if you use it the wrong way, it will harm you.

Using TradeSanta on HitBTC

One of the most popular trading bots platforms is TradeSanta. It was launched in 2018. This platform offers several paid subscriptions. The more expensive the bot you choose, the more opportunities you get. HitBTC is a crypto exchange operating since 2013. It has one of the biggest selections of cryptocurrencies. The platform supports around 600 cryptocurrencies and over 1,200 trading pairs. Also, the exchange is notable for low trading fees (below 0.1%), decent security features, good liquidity, and multiple “extra” features whether it’s margin trading, futures trading, and so on. These features are supported by TradeSanta, as well, which makes these two platforms a perfect match. No wonder, HitBTC has been among the supported exchanges for the TradeSanta trading bots from day one.

Another important feature that makes HitBTC fit in the TradeSanta bots’ strategies well is that HitBTC supports many types of orders. It helps to set a flexible trading strategy for the bot, decrease risks, and maximize profits. You may use a Grid Bot which places buy orders while the price goes down and sells coins gradually as the price recovers and reaches or crosses the take profit level. Another option is a DCA Bot. It places buy orders gradually as the price declines and then sells everything at once as the price reaches the take profit level. You may learn about the rest of the options on the TradeSanta website.

Lots of indicators and signals are available on TradeSanta. If you wish you can always post orders manually while the bot keeps on working in the auto mode. Both HitBTC and TradeSanta have such a feature as a demo mode. In demo mode, you can perform all the regular actions available on the platform while using virtual money instead of real ones. So you can get practice, get acquainted with the exchange and the bot empirically, and then invest your funds if you feel confident. All in all, both brands are well-established and fit different types of traders including beginners.

Conclusion

Automated trading is one of the most comfortable ways of boosting your profit. It requires less nerve and skills than margin trading. Technologies change our lives and offer new opportunities so if you feel confident in trading why not try to use an algorithm-based helper? Thankfully, you can start with a demo mode with TradeSanta and HitBTC and then start trading and earning real money if everything feels right. Yes, trading bots don’t come without new risks but you can use risk management tools such as limit orders or manual control. No one will make you invest more than you can afford to lose so it’s up to you to decide whether you should give a shot to automated trading.