Since the crypto market never sleeps, using automation that allows a trader to stay active around the clock is a logical extension of any strategy that involves scalping or day trading techniques. Cryptocurrencies are highly volatile assets meaning that they often present opportunities to make money, but you have to be ready 24/7. A contemporary crypto trading bot is a cloud-based script that trades on your behalf without ever stopping or making a mistake.
What is a crypto trading bot?
You can imagine a robot as a combination of several services that work together to ensure that you can be active at any given moment. A typical bot is a program that runs on a cloud service and works tirelessly. One of the best providers in this industry is WunderTrading, an advanced platform focused on automation and copy trading products targeting retail crypto traders from across the globe.
Here is a simple explanation of how to use crypto trading bots:
- Go to the WunderTrading official website and create an account.
- Connect your crypto exchange account using the corresponding form.
- Go to the “bots” section of the dashboard and create a new bot.
- You can choose a template (DCA or GRID) or start building a script.
- If you want to use TradingView, connect your account to the analytical platform.
- Insert string codes from the bot page into the PineEditor on the TradingView platform.
- Launch the bot and allow it to start trading on your behalf on the exchange of your choice.
While the setup process is a little bit more complicated, the steps above neatly summarize how Bitcoin trading bots and other automation products work in essence.
Are crypto trading bots profitable?
Profitability wholly depends on your strategy. An automation tool is only there to facilitate uninterrupted execution of orders based on inputs that are automatically generated by an alert system (TradingView) or by the internal logic of the bot (templates) that often derives information from exchanges directly.
If you want to make your bot profitable, you need to ensure that the strategy that you are planning to use is sound. The TradingView platform has a plethora of interesting technical analysis systems that provide promising signals. These trading systems are often tested by users meaning that you will have collected feedback from a large community of retail traders. Combined with your personal experience, reviews from users can create a good picture of what you can expect from a strategy.
Use specialized crypto trading bot indicators like standard RSI and more sophisticated HashRibbons that were designed to specifically evaluate Bitcoin’s price based on the hash rate and other mining metrics.
Additionally, all automation programs that you deploy on the WunderTrading platform can be back-tested using the historical price data and other information available on the TradingView website. The testing is a very useful tool that allows you to evaluate a strategy before you start using it in real settings.
What is the best crypto bot?
It may sound trivial, but the best bot is usually the one created by you based on the data that you can gather from various open sources like forums and communities. Since the overall performance of any bot depends on a plethora of factors including some external ones, it is important to build custom strategies and implement them with automation solutions.
It is a long process, but you can create a well-performing bot by using a complex strategy and adjusting various parameters along the way according to your expectations. For example, you can use an RSI strategy and set initial values for buy and sell as 30 and 70 respectively. If you see that the bot underperforms by placing orders too early, you can shift these values to 20 and 80 increasing the threshold at which the bot will attempt to place orders.
On the other hand, the quality of a bot for crypto trading depends on the quality of the platform where it is deployed. WunderTrading is a very reliable vendor with a resilient web infrastructure that ensures no downtime and high performance meaning that your automation programs will be active 24/7 and never miss an opportune moment to enter the market.
Do you have to pay for automation?
Incredibly enough, no. You can sign up for a free plan at WunderTrading and start using up to 5 bots without any other limitations. It is a great way to test a crypto trading bot for free and test various technical analysis strategies while avoiding any unnecessary costs. When and if you will need to expand your investment endeavors, you can think about upgrading to a paid plan. In many cases, having 5 bots is enough.
WunderTrading is offering possibly the best free crypto trading bot considering that you get to use all available features and enjoy the advantages of employing integrated platforms like Binance, FTX, TradingView, and many others without paying a dime. If you are new to the crypto industry and want to try out some botting systems, you should take a closer look at this platform.
Conclusion
A crypto bot is a great tool in your arsenal. A contemporary retail crypto trader must focus on being consistent, ever-present, and reactive while engaging with the ecosystem of cryptocurrencies. It is a sophisticated domain, but it can be navigated successfully if you use advanced automation solutions offered by established vendors like WunderTrading.
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