Can a Crypto trading bot really generate money?
Purchasing Bitcoin years ago has led many people into a better financial situation than they expected. People getting into the cryptocurrency ecosystem now are also hoping for the same parabolic growth, but not everyone has disposable income to consistently invest into their cryptocurrencies, so most people try their hands at trading. The main complaint people about actively trading is that there is a learning curve, and it’s also time consuming. This is when the question of “Can a crypto trading bot really generate money†appears. Thankfully, the answer is and has been, yes. Automated trading can trade 24 hours a day, making you money while you sleep, and it can also monitor market conditions that fluctuate in ways that you might not notice.
Arbitrage trading with Bitrage
Fortunately for cryptocurrency enthusiast, Bitcoin exchanges are unified in their constant up-time, regardless of geographic location, although there are still plenty of problems that can stop you from doing arbitrage trading manually. Due to the fees associated with purchasing assets on crypto exchanges, as well as the confirmations required by miners on the networks, sometimes you can initiate a request for what you think can be a profitable trade, but by the time you begin the process, the prices have flipped and you might end up trading at a loss if you didn’t notice the price variation.
Bitrage works by engaging in arbitrage trading between different markets, looking for prices fluctuations on various cryptocurrency pairs.
If you are unfamiliar with what arbitrage trading, the best example would be that prices and volumes between different pairs vary, sometimes quite wildly , so if you had bought a cryptocurrency for 1000 dollars, but on a different market the same amount of cryptocurrency was valued at 1500 dollars, you could very quickly make an extra 500 dollars by simply being able to quickly trade that asset between markets.
Where can I buy Bitcoin
Bitcoin is widely available now, for even the most novice of technology users. There are grocery stores where you can cash in your change jar for actual Bitcoin, as well as phone applications that you can also use to easily purchase Bitcoin. The phone applications will also make it simple for you to send and receive Bitcoin, as well as a few other altcoin currencies. By browsing the web, you can also find local technology enthusiast that are also available for face to face exchanges as well.
Gunbot v12 - Bitmex edition - Installation on Windows box
Day trading is expensive
Day trading became a big part of my life for a couple of years, especially as the market was progressing in a meteoric way. A lot of people have spent years taking classes, buying books and studying in private support chats in hopes of gaining an edge, but this can become expensive really quickly and there is no guarantee that this will result in any profitable bitcoin trades. Also, the learning curve of going from a complete newbie to a proficient trader is time intensive, meaning a ton of sleepless nights staring at screens and watching charts while still possibly losing money. There are professional traders that have also became involved within the cryptocurrency realm, so trying to out maneuver professionals can at times work, but it’s going to be a huge uphill battle. Also, there are entities known as whales, which are people with vast resources that use their deep pockets to manipulate prices, and trying to decipher their movements within a particular trading pair can lead to some losing a lot of their investment as they panic sell, or try to chase a skyrocketing asset.
Learning to trade through a trading bot
An unexpected yet positive result of trading with an automated bot is that you will inadvertently pick up better trading habits, as well as have a better understanding of trading strategies. By being able to change your settings with minimal effort, you can see how changing a percentage here or there will change the amount of trades that occur, as well as your profit margins. Instead of profits being an abstract idea, you will be able to see profit percentages, as well arbitrage trading bot as BTC and USD gains within a click of a button. Gunbot has a wide variety of trading strategies available and with the amount of personalization also available, your possibilities become near endless. You can use a conservative strategy on a coin with relatively steady movement and make small gains, while also using a strategy that will lower the overall cost of coins that you have that might have lost a significant amount of value, with little to no experience in configuring stop-limits or market buys. By seeing profits stacking up, you can slowly but surely gain confidence in your trading experiences, as well as find comfort in being able to minimize risk you undertake by deciding what percentage of loss is acceptable for you. As your trades take place, you can learn through experience how market sentiment affects trading volume and possible profits, as well as valuation. All of the knowledge that you gain will be valuable and applicable to even manual trades if you decide to trade on an exchange that you choose not to use an automated trading on, so being able to transfer that knowledge is really useful, especially if you are trying to explain to a friend or co-worker why they should also possibly take a similar position on a trade.
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