Are you tired of monitoring your trades constantly? Worrying about your losses or missing out on your profits? Well, if your answer is yes, then you must try about automated trading feature on Growlonix. If you are a seasoned trader, then you will know that the vast majority of crypto trading market is dominated by automated software, i.e. cryptocurrency trading bots.
The trading bots work according to predetermined rules and algorithms, without any human involvement. The best way to invest in crypto assets is through crypto trading bot. These programs allow you to trade automatically by using historical data. Here, we will first understand what are crypto bots and what is bot trading?
Bot trading
Bot trading is automating the trades using software. Bots place trades to any exchange via making use of APIs. AI Crypto trading bot is a program that executes trades on behalf of the traders on any crypto exchange based on the parameters defined by the trader. It is quite impossible to be efficient in the crypto trading world without introducing some kind of automation into your trading routine. Without using crypto bots, any trader can earn bigger profits.
If you really want to earn money reliably in the crypto trading market, you must think about the crypto trading strategies . And, the best ways to do so is running a bot on the trading platform cryptocurrency, Growlonix 24×7. You can quickly start automated trading on our platform.
These bots use algorithms to buy and sell assets based on certain strategies automatically. The most common algorithms used by the best cryptocurrency trading bots are market-making, mean-reversion, and trend-following algorithms. Let’s have a look at these algorithms:
- Market-making: These algorithms generate market liquidity by buying at low prices and selling at higher prices.
- Mean-reversion: These algorithms look for prices that are high but likely to pull back to rebalance to higher levels.
- Trend-following: These algorithms analyze the market momentum and place trades accordingly.
Let’s understand about bot trading with example:
Suppose a trader decides that he wants to try using automated bot strategies on Growlonixto secure his crypto earnings and to grow his BTC holdings. So, he invests in any crypto bot trading software to earn profit. He decides to capitalize on the daily BTC movements and after setting up the bot on his exchange of choice say, Binance, he decides on a trigger which the trading bot script will act on.
After looking at the charts and technical indicators, he is sure that BTC will at least be trading rather than being flat and then he sets the bot to buy it when the price drops down to 5% and sets it to sell when price goes up by 5%.
Now, the trading bot knows the rules and its’ ready to start trading. He heads off to his other work and the script at bot start trading. Later during the day, the trader checkhow things are doing and sees that the bot’s trading strategy is amazing.
Table of Contents
How does crypto bot trading work?
Well, the bot is actually pre-programmed, and it communicates with the crypto exchanges, and performs trades accordingly. Normally, this could be done via APIs. Once you have set up the permissions, the bot analyzes market data and trade automatically based on the preset instructions. For example, you can deploy a crypto trading bot by connecting your Binance account to Growlonix via provided API keys. The trading bot allows the bot’s AI to conduct an analysis.
Typically, the bot has to go through the below three stages to perform trades:
- Signal generation – In this stage, the bot makes predictions and identifies possible trades based on the current market price movements, and the technical indicators.
- Risk allocation– Here the trading bot distributes risk in accordance with the parameters set by the user. These parameters determine how much money is required to be allocated in the trade.
- Execution– This is the final stage where the actual buying and selling of assets take place.
Why automated trading is profitable?
Compared to traditional trading methods, automated trading is more beneficial. Here are some of the key reasons to prefer automated trading methods like trading bots:
- Improved speed and effectiveness
Trading bots have the ability to study the market trends and execute trades within just seconds. As a result, traders can take advantage of market opportunities without any fear of losing their hard-earned money.
- Scalability
The automated trading systems can handle more than any human trader. All this means that you may be able to improve your profits by taking advantage of more crypto trading opportunities.
- Time-efficient
The most important thing that every trader finds about trading bots is that crypto assets perform full-time gig. To make profits, one needs to watch market continuously but making use of trading bots automates the whole process within minutes.
Automated crypto trading at Growlonix
Automated crypto trading bots are ideal for beginners. Growlonix provides a variety of crypto trading bots for beginners, supported by all the major exchanges with full-range of automated and pre-build strategies. We are one of the best trading platforms cryptocurrency at the moment providing a complete range of trading bots for all the major exchanges catering to the traders of all experience level. For those who wish to build their own trading bot based on the proven trading strategies, Growlonix offers a variety of variables including bull and bear market signals, trailing stop loss, DCA, etc.
Types of crypto trading bots
Cryptocurrency trading bots use time-tested strategies developed by the successful traders. From arbitrage trading to technical analysis, bots can specialize in specific types of trading. Here are some of the popular crypto trading bots types in 2024:
Trend trading bots
Trend trading bots use market trends like price upsurges to make trading position choices such as entering a long position. And whenever, the price goes down, these bots will enter into short position.
Arbitrage bots
These bots utilize arbitrage, or trades which use price imbalances into several markets to make trading decisions. These bots track the difference between crypto assets prices in different markets.
Coin lending bots
These bots make it possible to earn profits on crypto by lending coins to the margin traders. And, at the end, the trader has to return the loan amount with an additional percentage.
Market making bots
These bots actively trade assets to widen the reach and thus, bringing profits. These bots place various buying and selling orders to net in a quicker profit. The bot places an order with a price that is different from market price, and thus, let you earn profits.
Technical crypto trading bots
These bots trade using preconfigured technical indicators to seize better opportunities. Most of these bots offer social trading and customizable signal trading allowing traders to copy or follow the technical indicators of successful traders.
Grid trading bots
Grid trading bots have become a trend in 2023 for the traders looking for quicker profits in both bull and bear markets. Grid trading strategy helps traders in buying and selling assets in a defined range set by the trader. Grid bots attempt to earn profits from price changes within the predefined grid area.
Growlonix is one of the best trading platforms cryptocurrency for the traders providing the right set of rules and tools to help them trade more efficiently. Trading signals are also offered to help traders trade automatically. Choosing the right crypto trading strategies is important and here, you can easily find the right trading bot matching your style. We are the best crypto trading terminal enabling beginner and seasonal traders to trade like a Pro.
Telegram bot
Telegram signal bot is an added advantage here. This bot allows traders to place trades based on the messages from private groups or channels from the Telegram group. If you haven’t yet gone through the Telegram signal bot from Growlonix, make sure to try it once. And, if you face any kind of difficulty, simply get in touch with our support team.
Growlonix trading bots- A better alternative for beginners
Trading bots are the most effective tools for passive and active crypto traders. These tools are beneficial for making smaller profits. Additionally, the day traders can benefit from these bots as they make it possible to trade whenever the trader is busy in other activities. Crypto trading terminals analyze the trading strategy and market data. They eliminate human errors, poor timing to place trades, and more.
Trading tips for beginners
- Before using any kind of automation tool, make sure to read about the best crypto trading bots guide with relevant information. You can find a plethora of in-depth articles on the Growlonix’s official website.
- Make sure to use platforms providing opportunities for the novice traders to learn about different automation tools as well as technical analysis tricks. Here at our platform, you can easily find it.
- Make sure to use user-tested systems. Growlonix offers the best crypto trading strategies for beginners that are already tested and easy to install.
