How to Profit from Automated Crypto Trading Bots

 Do Automated Crypto Trading Bots Make Money?

The advent of crypto trading bots has made the field more accessible to novice traders interested in making a profit. 

With so many trading apps now available on the market, it’s safe to say that crypto trading software is becoming an integral part of day-to-day life for traders and investors alike.

Crypto bots automate trades across large numbers of cryptocurrencies, which means that a human is not needed to oversee every single trade. 

This frees up time for them to do other things like analyzing charts, reading through news stories, and keeping abreast with social media channels related to cryptocurrency investments.

To some traders, bots can be a godsend when they are looking to make money quickly. To others, bots can be an unending source of frustration and confusion. 

There are a few main types that exist right now: auto trading bots, social trading bots, and graphical interfaces (Graphical User Interface).

Crypto Trading Bots - Autotraders

A bot that trades automatically is self-explanatory. An example of this type of robot is a Robo-Advisor, a service that operates by researching the fundamentals of cryptocurrency markets and then making buying or selling decisions based on technical analysis.

Sophisticated computer algorithms can be programmed to predict the future price path of a specific cryptocurrency. In essence, they can make an uncalculated decision about whether they should buy or sell a certain digital asset.

Crypto Trading Bots - SocialBots

This type of robot is similar in nature to auto traders and others, but here the algorithm is programmed with the information gathered by humans via their social media connections. 

Social bots follow exchanges, charts, and other social media channels for information on people who have recently made trades. By analyzing what others have done, they can reconstruct trends and see when markets are starting to trend in one way or another.

Social trading bots are fine-tuned to scan thousands of different markets and make educated guesses on future prices. The technology behind these bots is improving, meaning that novice traders will have a much easier time working with these robots.

Crypto Trading Bots - Graphical User Interfaces (GUI)

A graphical user interface is a more straightforward way to access robot trading. GUI’s offer traders a chance to visually track their trades, check up on performance and get automatic updates as soon as possible. 

This means that you don’t have to spend time learning the ins and outs of a new bot; instead, you can use your web browser to check on your portfolio’s performance every so often.

Most people who use social bots will choose to do so with GUI’s. GUI’s are straightforward to understand and operate by beginners, and they offer almost complete control over how the bot operates. 

GUI’s also allow novice traders to do most of their work via a simple, intuitive interface on their smartphone or other devices.

This is the case of Gunbtot, where you can access your browser-based GUI and set/monitor your bot from a pleasant and easy-to-understand User Interface.

Pros of Crypto Trading Bots

Some of the things that stand out about crypto trading bots include:

• Consistency: An automated bot doesn’t care if you are having an off day, getting sick, or don’t feel like working. So long as it is performing its duties correctly, it will keep performing them. This means that you can rest assured that your trades will go swimmingly even if you aren’t in the right frame of mind to be making them.
• Speed: Aside from obviously being faster than a human when making trades, a trading bot can also operate much faster than other types of software. Most bots can send and receive data in real-time, meaning that they can take full advantage of changing market conditions almost immediately.
• Low Cost: You don’t have to pay anyone to operate your bot for you, although there are fees required to access some services or features. Most commonly, a fee is required for access to the functionality of the bot itself, whether it be through an app or a website.

Even if you perceive the cost as expensive, compared with a "broker," it will save you a lot of money; think about it as your personal broker, but you can use it as you please 24/7/365 for a One Time Payment.

Cons of Crypto Trading Bots

The main drawbacks with trading bots include:

• Security: Your bot must be secure to protect your assets. The problem is that almost no cryptocurrency exchange offers any bot protection as standard. This means that if your computer was hacked or if you were to install malware on your device accidentally, all of your assets could theoretically be at risk. This is an issue that needs addressing urgently by cryptocurrency exchanges.
• Unknown: The crypto market is highly volatile, which means that it’s difficult to predict what will happen in the future at any given moment. You could easily make a fortune by investing in the next big coin or token, only to see your holdings wipe out overnight when nothing goes according to expectation. Cryptocurrency trading bots don’t solve this problem and should not be relied on as a sole source of income.

But in reality, bots are not less secure than any other form of "making money online" where you need to "trust" in a platform to keep your capital. Gunbot is as secure as your PC or Server, the only way a hacker can access it is if he already has control of your device.

Frequently Asked Questions about Crypto Trading Bots

Q: What are some of the main differences between crypto trading bots and other types of financial trading software?

A: One of the most fundamental differences between cryptocurrency trading bots and other types of financial software is that they are purely automated. No human element is required, although an operator can guide a bot.

Q: Which cryptocurrencies are the most widely accepted for trading bots?

A: The most commonly used cryptocurrencies for bots include Bitcoin, Ethereum, and Litecoin, but basically, a bot can trade any coin listed in your chosen exchange as long as there is a market pair to trade it with.

Q: Do trading bots require any coding knowledge? 

A: Most cryptocurrency trading bots do not require any coding knowledge at all. There are plenty of websites available to guide beginners through the process of setting up their bot and trading safely online. 

Q: How much money do I need to start using a cryptocurrency trading bot? 

A: You will need some capital if you want to trade with a bot, but it doesn’t have to be a lot. You will also need to purchase a bot if you want it to begin trading for you, although some bots are free and some are available with a monthly subscription. 

Q: Can I use a cryptocurrency trading bot if I don’t own cryptocurrency?

A: As long as your bot is online, you can use it to trade any of the cryptocurrencies listed above. However, the more popular cryptocurrencies tend to be extremely volatile and can be subject to big price fluctuations at any time, so you may need enough capital to cover potential losses on your holdings.

Crypto Trading Bots - Conclusion

Cryptocurrency trading bots are a new and exciting way to trade cryptocurrency, although they’re not perfect. In the beginning, many people have gotten lucky and made good money with their bots,  but you should be aware that luck alone will not make you rich. 

An experienced trader will always be able to "input" his knowledge into his bot settings and still intervene manually in moments of market insecurity or confusion, based on his experience and trading style. 

Search online and keep learning for automated crypto trading articles and gather as much information as you can from experienced traders with quite a lot to say about crypto trading bots so you can make an educated decision when you decide to jump on the crypto trading bot space.

You're invited to come and read CryptoDROI Gunbot Articles to Learn all you can about Gunbot algo-trading.