Unlike traditional stock market in which trading can be done for approximately 8 hours per day, cryptocurrency markets run 24 hours and 7 days a week. And unlike traditional stocks, cryptocurrencies are highly volatile and there can be huge fluctuations in prices in hours or minutes which can be really stressful for traders.
As a result of this, trading bots have become popular today among frequent traders.
What are bitcoin trading bots?
Trading bots can be defined as a computer program that interacts with the cryptocurrency exchanges and places buy and sell orders for a trader by interpreting market data. You can also program them according to your own preferences.
These bots help traders by constantly interpreting available market data such as volume, orders, price, etc and place buy or sell orders by analyzing it. Due to these bots, you don’t have to constantly monitor the market charts and you can indulge yourself in some other works.
Factors to look when choosing a bitcoin trading bot
If you are going for a trading bot that can give you 100x leverage on bitcoin pairs while multiplying fees with leverage than these are the few factors to consider:
The biggest concern while trading of cryptocurrencies is of hacking. So, it is utmost important for you to research well about the bot you are going to use. As the bot will have the access to your funds so in case of a hack you yourself will be the one to blame.
You want to use bots in order to generate profits from your investment that is why it is also important to go for a bot that has trading expertise and that can generate profits.
- Ease of use
If the bot you are going for is not user-friendly than its better to look for another one as the whole point of using a bot is automated trading.
Trading bots are best for the traders that are regular but don’t have too much time to sit and interpret market data. You can automate your trades and generate huge profits by choosing a good trading bot.