Cryptocurrency has attracted a lot of attention since the famous bull run of 2017 when the value of a single Bitcoin increased to $5000 to $20,000 by almost 300% in just three short months. Bitcoin now is making the front page nearly every day after a recent investment of 1.5 billion USD made by Elon Musk, the CEO of Tesla along with other big investors such as PayPal, Greyscale and Square Space but trading cryptocurrency is hard!
Ok, some will disagree with that stated ‘trading cryptocurrency is hard’, I get it, some are killing it. But for how long?
In this new crypto bull run, you can literally pick a coin outta a hat and the probability of you making money is high. Nearly everyone that bought Bitcoin and held it is in profit as Bitcoin is close back to $60,000 dollars as of March 31st 2021. Now that you are reading this blog is 100% out of date on price but keep reading the overall message that will last a lifetime.
Let’s get back to why trading crypto markets is so hard…
I want to get this out of the way. If you buy and hold Bitcoin, Ethereum, Litecoin or other altcoins on an exchange like Binance or Coinbase you are not a trader. You are an investor speculating that the price of that asset is going to rise.
A trader is someone who trades with a short term goal of catching moves in the market to lock in profits. Day traders swing traders or scalping traders etc.
One of the ways a lot of people today is by leverage trading. Leveraged trading is where you borrow more funds than you have to make a trade. 5x, 10x up to more than100 times on your capital. This can be great if the market goes in your favour as if you go 10x you will make 10x the profits you would have. A 1% move would be 10%, so as you can see a lot of money can be made faster. Although, if the market goes the other direction you can lose money 10 times fast and be wiped out, wreck, liquidated, so many terms for losing all your money but please, try to avoid this with proper account risk management.
There will be another blog post on leverage trading soon but just so that you know there are trading bots that support this.
Common ways people trade
One of the most common ways to trade with crypto bots is by Spot Trading 1 for 1 with no leverage on your trading capital. Spot trading is an agreement by two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called a spot exchange rate.
Crypto bots make the whole process of trading manually easier not just because of the tech and that the trading bot buys and sells bitcoin for you but because it removes emotion out of the trade.
You know what I’m talking about, chasing a losing trade and the losses becoming even more, or you lose and your stop loss hits so you quickly add another trade in the opposite direction to make up the losses but then the candles go the other direction and you lose even more. Or you are making a profit but you hope to make more and suddenly a big fat red candle appears and wipes all your profits out instantly.
When you decide to start implementing bots into your trading strategies you remove some of these human flaws we all have. The bot executes on set parameters and never gets FOMO, FUD is disciplined and sticks to one thing. The aim of making profits!
There are 100s of crypto bots to choose from and finding the right one for you can be daunting. That’s why Automated Crypto Bots was built. One place to show all crypto bots on the market to make the decision process easier. You can simply search for the type of features you are looking for, supported exchanges or compatible devices and more. You can find a breakdown of the bots listed, check reviews, leave reviews and check the pros and cons of crypto bots.
Automated crypto bots are changing the way we trade. We are busy and are getting busier, we want to spend our time doing the things we love with friends and family, not spending all day in front of a computer screen looking at green and red trading candles.
Crypto bots give us our time back as we do not need to monitor the markets 24/7 they are also helping the less experienced or knowledgeable trading get started.
Crypto bots are not getting rich quick schemes. Don’t go into creating a crypto bot with the mindset that you are going to make $1000s overnight! Can you get rich using crypto bots? YES, of course, but that comes with proper portfolio management and building your portfolio consistently each day. Imagine 1% on $100.
This is what a 100 dollar investment would look like if you made 1% a day for 30-days:
This is what a $100 dollar investment would look like if you made 1% a day for one year:
This is what a $100 dollar investment would look like if you made 1% a day for 10-years:
So as you can see, even if you 1% a day on $100 the gains can be outrageously crazy unbelievably high. This is how crypto bots are changing the game.
Choose your crypto bot now by visiting our Explore Bot page.
Before we go, here is what your $100 would look like if you only made 0.1% a day for 10 years using a trading bot.
All these projections we calculated using https://www.thecalculatorsite.com/finance/calculators/daily-compound-interest.php