Since the end of 2017, the use of cryptocurrency trading bots has been on the increase. As more people look to crypto in a trading capacity, we are seeing traders gravitating towards margin trading and many new users utilizing the latest crypto trading bot applications.
Have you been considering using cryptocurrency trading bots or are looking for a way to get involved with crypto trading on exchanges? Many people are thinking the same as you. Here are five reasons why trading bots are so popular.
1. Cryptocurrency trading bots are great for newbies
Since the bitcoin price surge in December 2017, the numbers of people now interested in crypto and trading has gone through the roof. If you are new to crypto and want to get a foothold in trading, a cryptocurrency trading bot is an ideal way to test the waters and to start understanding how the crypto markets work.
In this day and age, trading bots are less complex than they once were. Trading bots such as Profit Trailer, Gunbot, HaasBot, Cryptohopper, and Gekko are highly recommended options for newbies or those searching for a reliable and easy-to-use trading bot. If you have never traded before on the crypto markets, a trading bot could be your best option. This is the main reason why so many newbies are making their first soiree into the market via a trading bot.
2. Trading bots are efficient
One of the main reasons why cryptocurrency trading bot use is on the increase is that bots work much quicker and more efficient than a human being. It is already a well-known fact that cryptocurrency trading bots make up 99% of the trades on Wall Street, which shows you just how important they are to the industry as a whole. Trading bots of today can make vast mathematical calculations in a split-second. You can purchase special settings from crypto experts that can be used by the bot to trade amidst all manner of market conditions. The efficient nature of a trading bot is one of the major factors why so many people are now using one.
3. Time management
If you are physically trading cryptocurrency on exchanges, it takes a lot of time and patience constantly watching the moves of the market on a minute-to-minute basis. It can basically take over your life and be a massive cause of stress. Using cryptocurrency trading bots limit the time you have to sit in front of your computer. The automated nature of a trading bot is simplifying the life of a crypto trader, giving them more time to spend on other things and not constantly fretting over market movements.
4. Trading 24 hours per day
One of the limitations of physical trading on crypto exchanges is time. Nobody wants to be sitting at 3 am in the morning watching candle graphs rise and fall. It can cause immense stress. One main advantage to using a trading bot is you can continuously trade 24/7.
The main aim of trading bot strategies is to make small purchases of altcoins and wait for them to rise by a couple of percents before cashing them back into BTC. To make the most of this tactic, it is important to keep your trading bot on 24-hours a day, which the vast majority of traders using bots do. You can either keep your PC on 24/7 to facilitate the use of your cryptocurrency trading bot, or you can purchase space on a virtual server which will allow you to leave your bot on all of the time without the need to burn out your computer.
5. Looking for extra income
Many people use cryptocurrency trading bots to make some extra cash. This is possibly the main reason why we have seen an increase in bot usage over the past several months. If you had some crypto experience and wanted to stretch your crypto knowledge beyond purchasing BTC and sitting on it for eternity, using a trading bot is an inspired move.
Not only will it help you to make a bit of extra cash, but will also help you to understand the markets on a deeper level. You will learn more about the varying amounts of altcoins in the marketplace and will get a better understanding of the emerging patterns and trends of the altcoin industry, which will give you invaluable trading experience and know-how without having to study analytics for days on end.
As you can see, the increase in the use of cryptocurrency trading bots is mainly down to the ease of use and the simplicity of modern bots. They can help to generate some extra income and will give you a clear insight into the market, its trends, and the myriad of altcoins now dominating the marketplace.