Cryptocurrency Trading Bot And its Trading Strategy

What Is Cryptocurrency Trading Bot?

A CRYPTO TRADING BOT is a computer protocol that is automated to trade crypto coins in the platforms on behalf of humans.

Every bot has its unique trading strategy, and the crypto trader can decide to build their bot with customized strategies. It’s not mandatory that every crypto bot must be used for trading purposes, some may be utilized for monitoring the crypto market volatility too!

The crypto trading bots can compare price volatility of multiple coins across multiple exchange platforms within seconds and conclude the profitable deals for you. The aspiring feature of crypto trading bot is that it can increase your crypto assets with multiple small trades. It can be tiring for the human mind to compare price volatility and conclude trade for just small differences, but crypto trading bots can be customized as masters of small profit trade deals! The small profit rates may seem tiring, but the cryptocurrency trading bots development with these strategies can earn a heap of crypto assets in your wallet over time!

What Is All About Grid Trading Strategy?

Grid trading strategy is executed when there is the desired degree of price volatility in the specified crypto coin pairs. The crypto trader can set the desired profit and loss rates in the bot and automate the trading process with a grid trading strategy. The grid trading strategy works efficiently in the crypto markets that are stable to an extent and fails when there are extreme fluctuations. The crypto traders can set their monitoring bots to notify the extreme price volatilities and could stop the grid trading bot to prevent losses. 

Also read: https://blockchainkicks.wordpress.com/2020/06/09/the-ultimate-beginners-guide-for-using-crypto-trading-bots/

The crypto traders must set their profit rates and stop-loss in grid bots by taking the transaction fee into account. The transaction charges must not suck your profit rates completely; it must be negotiable! A penny earned today would be a big residue in your wallet in one or the other day!

The customized cryptocurrency trading bot strategies can help you conclude lucrative trade deals throughout the day, and you can maintain immense liquidity in your crypto portfolio!

Source : https://blog.blockchainfirm.io/crypto-trading-bot-and-its-strategies-for-better-profit/

Published by Katrin Kunze

blockchain and crypto trader

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