When it comes to crypto trading, every trader has her or his own personal techniques and tools. Some of them rely on crypto signals, others use technical screeners… Certainly, none of these tools can replace a trader’s mind and heart, but they can surely help optimize your trading routine.
Today, we would like to talk about how automation and crypto trading bot can help you to benefit from using them in your trading, and also what are the risks of using these tools and what are the crucial details you should know before you start using them.
How does trading bot work?
A cryptocurrency trading robot is a software program that executes transactions according to a specific trading strategy: simply put, the trading bot places buy and sell orders on the crypto exchange on your behalf. They work even when you’re sleeping and aren’t driven by fear or greed, so they’re more accurate in following the strategy.
All you need to do is to connect your HitBTC account via API and then choose a trading pair and set up a strategy. After a crypto trading bot is connected to an exchange, it starts to monitor the market and opens and/or closes deals according to the parameters of strategy you set when the market conditions meet the requirements. So the bot acts based on the rules that have been set and do the needed action (buy or sell) on your behalf.
The benefits and risks of using crypto trading bot
The best thing about using crypto trading bots is their flexibility. It doesn’t matter if the market is bullish or bearish: with the right strategy and tools it is possible to make potential profits regardless of the market condition: you can always adapt them to your own trading style and approaches. However, there are certain risks that you may encounter when you start using them in your trading routine. Let’s take a closer look at pros and cons of the crypto trading bots:
There are many reasons why you should consider using crypto trading bots. Here are just a few of them:
Deals with routine you do not need
Crypto market is notorious for its high volatility and trading in it can be exhausting. Crypto trading bots, on the other hand, can make your trading routine simpler. You do not need to place all your orders manually to close the deal at the best rate, since the bot can do that for you ten times faster. Moreover, the bot will make sure your order stays at the top of the book so it gets executed first, which done by you manually would just exhaust you to the core.
Multiplies your trading speed and increases number of deals you can run at once
Let’s face it, none of the human beings can trade at the pace of a software program that was designed to place multiple orders at a fraction of a second (one 64 millionth of a second if we are talking about HFT bots). Allowing bots to trade for you increases your trading speed and “reaction” hundreds of times and it is definitely an idea worth considering when you trade multiple pairs at once. And again it’s a matter of time management: while the bot trades, you can live your life without the need to check the charts all the time.
Works 24/7 and saves your time
Unlike traditional markets, the crypto market does not have open and close hours and is working 24/7, and so should you. At the same time it is simply not possible to be chained to your laptop or smartphone 24/7. Here where the bots can definitely come in handy. They can monitor the market day and night, thus saving you a lot of time, and you can just check up on them from time to time, and manage or create the new ones once you see the need.
Saves you from emotional moves
When you see that things go south, you unintentionally become emotional. And trading emotionally almost always leads to losing, because you stop following your carefully selected strategies and game plans and you start acting recklessly. Crypto trading bots do not have emotions and always keep following the algorithm that was embedded earlier into them.
Nothing is perfect, and even automated trading has its own risks and cons. Let’s take a look at the problems you might encounter when you start using bots in your trading routine:
Bots are not your passive income machine – you do need to play your part
No one is safe from a sudden drop in cryptocurrency prices. But if your bot is programmed to buy and sell only in one direction and that situation happens, you are risking losing money and not profiting. So you should never look at the bots as your passive income source, it is your automation tool and a helper, but you still need to decide what and when to trade, and what strategies to use, you still need to do your research.
Wrong bot settings
Bot is merely a tool and it will do whatever settings you decide to use. So, in case you’ve set your bot to trade only in the bullish market and never thought about making it more flexible to operate in both bullish AND bearish cycles, then you won’t see any profits, only losses. That means you should always double check your settings and do some research about the trading strategies first.
Supervision is still needed
Yes, the bots can trade on their own, and you don’t need to be chained to your PC or phone. However, you still need to supervise the current situation on the market in case it starts to suddenly move in the direction you don’t need, so you could change the settings quickly or move to another trading pair.
Be wise in what bots platform you use
If you ever encounter a bot that promises you profit after depositing your digital assets into their “smart contract”, don’t even think about doing that. The real bots operate through your crypto exchange account, and you are able to see all the deals your bot makes. Moreover, your API keys shouldn’t allow the bot to make withdrawals from your account.
Use only the trustworthy and reliable crypto trading bot providers. Always check how long this company has been on the market, how many users they have in their social media accounts, and what and if the media writes about them. If something is shady or you feel that something is off, then it is better to find another bot provider. Remember, it’s better to be safe than sorry.
What are the most well-known crypto trading platforms worth checking out?
There are many reliable crypto trading bot software companies that support HitBTC, like Haas online, Trality, TradeSanta. Each of them has been on the market for several years already and has their own pros and cons, so before choosing any of these companies, it is important to study them and their products first. For now, let’s take a closer look at TradeSanta and the tools it has that can help the trader in pursuing the potential profit.
TradeSanta is a crypto trading bots platform that has been operating since 2018, and since its foundation TradeSanta has been supporting HitBTC exchange. It has already helped hundreds of thousands of people to simplify their daily trading: currently, it has more than 210,000 registered users and over 22 million executed deals.
So what tools does TradeSanta offer that can help you to improve your trading on HitBTC? Let’s take a quick look at TradeSanta features:
- TradeSanta bots can trade on both futures and spot markets.
- TradeSanta offers a wide choice of signals, like TradingView custom signals, as well as pre-built signals based on TradingView Screener, and technical indicators like Bollinger Bands, MACD, RSI, etc.
- Risk management tools, such as stop loss, trailing stop loss and trailing take profit.
- DCA and grid strategies that are very popular among crypto traders.
- Demo trading that allows you to test your strategy against the real market conditions without investing real funds.
- Telegram notifications plus real time tracking to be aware of what your bots are doing.
- TradeSanta also has a great feature that allows you to quickly close all positions and move all coins in your portfolio in USDT or BTC. It can be quite handy and a real time saver if you need to do it quickly when for example the market starts to crash or you just want to fix your earnings.
- TradeSata also has a trading terminal that you can use if you wish to place manual orders. It is especially handy if you run trades on several exchanges at the same time, and you want to place all orders in one place instead of opening each exchange separately.
The mobile app for iOS and Android is also available for you so you can manage your bots on the go.
It is worth mentioning that TradeSanta constantly evolves and adds new features all the time to make the trader’s experience more fruitful and comfortable.
Crypto trading bot can be an effective tool in terms of saving time and boosting your trading power so to say. Allowing the robot to keep an eye on the market can ensure that you don’t miss out on the right moment for your trade deal. In addition, crypto trading bots can trade dozens of times faster than any human being, giving you the edge needed to make the most of the crypto market.
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