Crypto trading market is volatile; the prices of crypto assets can fluctuate in a matter of minutes, and it is open 24 hours a day and 7-days a week. This is ideal for a professional trader as they can trade at all times, no matter where they are. But, this is complicated for a typical trader as they cannot react enough to place trade as quickly as market conditions change. To earn good profits, it requires round-the-clock monitoring. All these factors limit the effectiveness of manual trading in several ways.
This is where; automated trading came into the picture.
Today, automatic trading dominates the cryptocurrency and other financial markets. People use robots, trading software, and bots to optimize the trading process, and to earn profits. According to a recent statistics, more than 70% of the transactions in the financial markets are done with bots and robots. After the entry of automated software, traders can place trades which can respond thousands times faster than manual trading.
Table of Contents
What makes automated trading more attractive?
Why are traders less likely to trade themselves now and trust the machines or automated software for crypto trading? There are several reasons for this:
- Automated software has no human factor. A trader could make a mistake while placing a trade. He may forget to close the trade or something else. But the crypto trading bot or the software reacts to the settings it has set originally. So, there are no chances of errors or inaccuracy.
- When it comes to manual trading, traders cannot analyze or watch multiple trading pairs and markets simultaneously. In addition to this, with manual trading you have to check multiple deals which may take time. But a software or bot can perform such tasks perfectly in much lesser time.
- By utilizing a crypto trading bot, you can easily customize it as per your preferences. The automated software can be reconfigured easily whenever required.
- As we all know, crypto market never sleeps and needs round-the-clock monitoring. We cannot watch the market 24 x 7, but automated software could do. Trades can happen at any time of the day. Bots don’t need any time to sleep. They place trades according to the preset strategy and let traders make profits.
If you have a good understanding of market and not have enough time to watch the trends, using the services of Growlonix is the better option. We provide the best crypto trading bots for experts and beginners that allow them to trade on top cryptocurrency exchanges like Binance, Binance Futures, Binance, BitMEX, etc.
Picking the right trading bot and setting the best strategy is important. Automated trading software has been configured smartly to trade on your behalf. We provide the best crypto trading bots which analyze the market, watch the trends, and interpret the market to place trades. They collect data from the market, calculate risks, and buy or sell assets on your behalf. They are smart and there is no place for error.
What are trading bots?
Trading bots are the computer programs that watch the market conditions and place trades based on the predefined strategy. Within a matter of seconds, they can execute technical analyzes to collect market data, making risk calculation, and buying or selling crypto assets according to your set strategy.
Usually crypto bots work as an API, they work and trade on your behalf on the exchanges you are connecting to. The best part is they respond to your preset conditions which eliminate the possibility of any kind of error. Trading bots come with a price tag and it might be tough for an average user to set up his bot. And, the alternative to buying a crypto trading bot is to sign up with an automated crypto trading platform, i.e. Growlonix. Our trading bot allows you to easily create your own bot with the help of a user-friendly interface.
Once you set up the trading bot correctly, it will save your time, and you don’t have that stress which comes with crypto trading.
The advantages of Growlonix trading bots and automated trading:
- A variety in the bot settings – Growlonix trading bots allow its traders to implement a variety of strategies and different order types like OCO, OSO, Take Profit, Trailing Stop Sell etc.
- Less commission charges – The commission charges at our crypto trading terminal is very less. From the moment the bot receives profit, the commission begins to be charged.
- Operates from cloud storage – Our crypto trading bots can work 24/7 and you need not to turn on your computer, because the bot operates from the cloud storage.
- Fast – The bot connects to different exchanges using the API keys, which further provides the fastest possible update of the quotes.
- Preset bot – We also provide ready-made bot configuration to sell at a profitable price as well as purchasing a mentoring service from the expert trader. The traders can also choose crypto copy trading service.
What are the different types of bots available?
There are as many types of bots available online as there are potential strategies, but some of the most common ones are arbitrage bots, trend-following bots, coin lending bots, and market making bots.
Among these bots, Arbitrage bots attempt to earn profit by taking advantage of the price discrepancies across multiple exchanges. Trend following bots are designed to follow the trends basically automate what a good trader should be doing.
Based upon which way the market is going, market making bots buy and sell crypto assets. They use both mathematics and market data. The modern crypto trading bots can trade cryptocurrencies on your behalf. This has made crypto trading easier for everyone.
How bots work?
Crypto trading bots are a set of programs which are created to automate the trading process. These programs analyze the market data and place trades. Let’s understand how these bots work with an example:
Growlonix is one of the most popular crypto trading bot used by many traders across the world. Using your API key, you can connect to the Growlonix account to multiple exchanges supported by the platform like Binance Futures, Coinbase Pro, Kraken, etc.
There are different configurations which traders can use depending on the market conditions. Let’s say that the crypto market is having a positive momentum, and prices are increasing. In this case, you can set a bot from Growlonix. As the prices continue to rally, the trading bot will sell the crypto to increases profits. The bots are also capable of balancing the risk exposure automatically.
There are many advantages to automatic trading and making use of crypto trading bots. The advanced trading platform helps you set the bot and make the trading much easier. These bots are known for being efficient.
Are there any disadvantages of crypto trading bots?
Apart from the advantages, trading bots are disadvantageous too, but they are minor. One thing is that, sometimes the market is not easily predictable. In such situations, it’s better to stay calm before continuing to trade.
Apart from this, there might be some programming errors at times which may affect your trading. Trading bots have the ability to make things easier, but it’s better to trade with them smartly.
Why should you use a bot?
There are two main use-cases for the crypto trading bots. Firstly, they make whole trading process quite simpler and streamlined. Additionally, they take care of many other factors like portfolio diversification, rebalancing of the portfolio, etc. But automation doesn’t mean that you are free of any task. Rather, you need to take care of the basics and think smartly which cryptocurrencies should be selected by the bot.
On the other side, making use of bots is complicated and advanced at the same time. Where bots are used as a part of an active strategy, automating components may involve some complications. Generally, traders use the crypto trading bots to overcome several issues such as:
- Repetitive tasks like conducting hourly rebalances.
- The crypto market is highly volatile and the prices to crypto assets change around the clock. Choosing a crypto trading bot can help execute your strategies while you are sleeping.
- Achieving a higher degree of accuracy is essential in your trading. Choosing a crypto trading bot can help monitoring the market and execute the trades at the correct time.
Considering automated trading and Growlonix trading bots can be a great way to simplify the process of trading cryptocurrencies and make it more profitable. However, these tools are not for everyone and require a good amount of research.
If you are looking for immediate profits from the short-term trades, or you don’t want to spend time in setting up the strategies manually, then it will not work well for your requirements.
Considering that there is some risk with automated trading due to some security concerns, and volatility of the crypto trading market, make sure to do a proper research before committing to the bot services.
All the major exchanges are overwhelmed with trading bots, and they do offer significant advantages to the expert traders as well as beginners. If you want to know more about automatic trading and crypto trading bots, go through our website: Growlonix.com