Since the end of 2017, the use of cryptocurrency trading bots has been on the rise — more people are discovering digital currency trading, many of them using the appropriate trading applications, and in this context, traders often switch to trading with the leverage. Have you also thought about trying to trade manually on the stock exchange or with the help of a bot? Congratulations, you are in a trend. Why are bots so popular? Here are five reasons.
1. They are perfect for beginners
With the Bitcoin price soaring in December 2017, crowds of people rushed into cryptocurrencies and trading, and for a novice trading, the bot is a great way to “feel” the market and understand how it works.
Nowadays it is very easy to use trading bots. In particular, Profit Trailer, Gunbot, HaasBot, Cryptohopper, and Gekko are perfect for beginners — they are convenient and reliable, and if you have never traded before, it is a good way to start. And that's why so many people are starting to explore the cryptocurrency market from the bots.
2. Trading bots are effective
Bots are much faster and more efficient than people — in a fraction of a second they perform the most complex calculations, playing a huge role in trading; thus, bots make 99% of all Wall Street transactions. You can buy a special package of settings for bots, compiled by the Expert Advisor and allowing you to trade in different market conditions.
Trading with cryptocurrency manually, you are forced to constantly monitor the market situation, and this not only requires time and patience but also often turns out to be a serious stress. With a trading bot, you have to sit at the computer significantly less, so you can spend your free time on other things or rest.
4. Round-the-clock trade
If you trade manually, the time when you can devote yourself to the market is inevitably limited — few people want to monitor the movement of charts at 3 a.m., and if you do so, it can affect your health. And the bot does not sleep and does not get tired — and this is one of its most important advantages.
The main strategy of trading with the help of a bot is to buy small amounts of alto-coins, wait for the growth by a couple of percents, and then go back to the BTC. To make this tactic effective, it is important to monitor the market around the clock, so that the vast majority of traders use bots. To keep the bot running, you can either keep the computer running or buy virtual server space and not waste electricity at home.
5. Additional income
For many people, bot-based cryptocurrency trading has become an additional source of income, and it may be thanks to these people that we have seen an upward trend in bot popularity over the past few months. If you already have some experience with cryptocurrencies but want to try something more interesting than just buying Bitcoins as a long-term investment, getting a bot is a good step.
Firstly, additional income will not hurt anyone, and secondly, trading in this way, you will understand better how the market behaves, learn the features of different altcoins and learn to feel the new trends.
As you can see, bots are becoming more and more popular, and this phenomenon has a simple explanation: they are simple and effective, and with their help, you can not only make a profit but also learn a lot.