With the daily advancement of technology and financial markets, crypto trading is the new currency in town. Due to their volatility, digital assets are listed on crypto exchanges just the same way shares of limited companies and state corporations are listed on Wall Street.

The crypto market runs 24/7, with prices never stopping fluctuating depending on market forces across the world. With a huge number of active cryptocurrencies in the world and taking other considerations into perspective, no human can keep efficient track of the price changes.

This brings automated bots into the context. These bots are algorithms that are aimed to ease the trading process by providing accurate and efficient data on the cryptocurrencies a user trades with.

They are tools designed to gather and analyze market data and execute trades on behalf of traders, which basically means profiting from tiny price fluctuations.

Due to their ability to convey accurate and prompt changes in the crypto market prices, they are desirable to investors who are immersed in the trade. There are several types of automated bots for crypto trading that are available in the market.

TYPES OF BOTS 

1. Arbitrage bots. Taking advantage of the existing market inefficiencies, arbitrage trading makes profits through the simultaneous purchase and sale of the same asset in different markets at different but close-range prices. Arbitrage relies heavily on execution speed, since it is crucial to buy an asset on one exchange and simultaneously sell it on another, but at a higher price.

Among all providers of automated trading solutions which have incorporated this feature into their platforms, the one offered by Bitsgap clearly stands out. All thanks to a variety of tools that allow analyzing data from 25 crypto exchanges around the world to find the best opportunity to strike a deal.

2. Grid bots. Grid bots place multiple buy and sell orders within a predetermined price corridor. The orders form a grid above and below the current price — the higher the number of levels, the more intense trading will be. The rising number of grids leads to decreasing price differences between them, which reduce from each trade.

Users should be careful reducing grid spaces since some bots do not take into account exchanges’ fees when calculating profits. Bitsgap is among few platforms that include all commissions into profit calculation and simply won’t allow bots to perform a trade if it won’t make any profit for the user.

3. Futures bots. The main advantage of futures trading is leverage, which allows traders to open positions exceeding their initial investments, thus multiplying profits. This advantage, however, is the main danger of futures trading, since it can dramatically impact the size of the portfolio and lead to a partial or even total loss of the investments.

Controlling emotions is especially hard when trading futures and this is the point where the Bitsgap Combo bot steps in. It completely automates the process by combining grid and DCA technology and uses trend reverse for maximizing profits when the trend turns in your favor.

BENEFITS OF TRADING BOTS

Just as there are demerits of using bots in blockchain trade, so are the merits. Which surpasses them by miles. This has been harnessed through the launch of the Ethereum London Hard fork. It includes:

1. Owing to the analysis of the cryptocurrency market prices by chart patterns and trend lines, the interpretation of data becomes simplified. Investors can therefore easily read and understand graphical representations and afterwards make sound execution decisions like in trend trading bots.
2. Non-stop trading. Bots operate 24/7 as they scale the fluctuations and variations of cryptocurrency prices. This allows investors to secure time and focus on analysis and high-profitable smart trading.
3. Time-saving. Automated bots constantly analyze prices and trading volumes of over ten thousand trading pairs and are capable of executing thousands of trades per minute on dozens of exchanges. This kind of precision cannot be achieved by any human being, while bots perform it with ease.

MAKING PROFITS USING BOTS

Making and maximizing profits is the main investor concern. It goes without saying that the bigger the risk, the higher the profits. Similarly, the smaller the investment, the lower the return margins.

Crypto is maturing year after year. It has evolved into a prominent asset class attracting investors with promises of high returns and relatively low entry barriers. Since 2017, Bitsgap has matured with the industry and turned into one of the leading companies offering a one-stop automated solution for crypto trading.

Compared to other platforms, Bitsgap offers an unmatched set of tools across 25 crypto exchanges to build a solid trading strategy that may generate stable returns regardless of the market trend.

The company’s blog provides users with articles and ready-made automated trading solutions that allow newcomers to avoid the most common mistakes and start benefiting from crypto at once.

Source Code:Plato Data Intelligence