The Benefits of Using Cryptocurrency Trading Bots.

Trading bots are programs that connect users crypto exchanges and do trade on their
behalf. Bots talk to an exchange and can place a sell or buy order for you.
There are many different kinds of bots to suit different market conditions and individual
needs. Different types of bots are known as different strategies.
For example, scalping is a strategy for making small but consistent profits in a sideways
market. A scalping bot would be designed to automatically place the trades required to
shave those profits out of the market. Scalping could be the right strategy for a
sideways market, but wouldn’t be ideal in a more bullish or bearish situation.
So the first challenge is to know which kind of strategy to use at different times. The
second challenge is to find a bot that can effectively execute that strategy based on
market activity and signals.

Some of the examples of trading bots are:
1. 3Commas.
2. Autonio.
3. Cryptohopper.
4. CryptoTrader.
5. Gekko.
6. Haasbot.
7. Gunbot.
8. ZenBot.

Benefits of using trading bots.

1. 24/7 trading.

Unlike stock exchanges with their regular trading hours, global
crypto markets are open 24/7. Humans have to sleep eventually, but a bot can
keep trading 24/7. With cloud-based trading bots, your computer won’t even
need to be on for the bot to keep working.

2. Fast execution.

Cryptocurrency markets can shift extremely quickly, and some
opportunities last only seconds. Bots can automatically process and act on
information that humans can’t.

3. Reduced human error.

Manually entering trade details yourself always
introduces the risk of human error. By automating trade execution via a bot, this
risk is reduced. Just make sure you don’t make any mistakes while setting up the
bot.

4. Take the emotion out of trading.

Effective trading is about having a plan and
sticking to it, rather than running with gut feelings. Crypto trading bots take
emotion out of the equation and react to pure data only.

5. Ability to diversify.

Using a bot can allow you to trade across numerous
accounts or try out various trading strategies. This can help you spread risk
across a variety of crypto assets.

6. Backtesting.

Want to test a trading idea? Use a bot to backtest, which is where
you test your strategy using historical market data to see how it would have
worked. You can also paper trade, which is when you use a bot to trade pretend
money against the markets of today.

Cryptocurrencies are speculative, complex and involve significant risks. They are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past
performance is no guarantee of future performance. Consider your own circumstances,
and obtain your own advice, before relying on any information on websites and bots.
You should also verify the nature of any product or service (including its legal status and
relevant regulatory requirements) and consult the relevant Regulators' websites before
making any decision.