The world experiences pandemic crises not only in terms of health & environmental aspects but also in the economic decline. Financial experts believe that the impact of the Corona Pandemic may seriously affect all industry's growth graphs for at least years. The unexpected, negative scenario of COVID-19 is addressed as a “Black Swan”, and the investors swap their funds for stable investments. In this digital era, investors are interested in purchasing cryptocurrencies in exchange for other assets to maintain stability. Hence, financial experts have coined cryptocurrencies as “Gold 2.0!” With the intense rise of cryptocurrencies, exchanges are busy with trading deals. Therefore, let’s scrutinize all about crypto trading today!
In this blog post, let’s go through why crypto bots are employed for trading, what are crypto trading bots, the best crypto trading pair, and the grid trading strategy!
Why are crypto bots employed for trading in the crypto market space?
Investors are always fond of making money out of assets rather than holding them in wallets ideally. Cryptocurrencies can also earn lucrative profit rates by trading with distinct coin pairs. But, in the case of cryptocurrencies, it becomes tiring to analyze the price volatility between distinct coin pairs. Moreover, the price ups and downs are observed every second in the crypto market space. This sudden rise and fall of cryptocurrency values across multiple exchanges make it tiring for human to perform trading. A human requires at least a minute to scroll through multiple exchanges and conclude the trade decisions, even if he/she is an expert.
For this purpose, the crypto traders who have technical knowledge developed their personalized crypto trading bots with unique strategies. An Automated trading bot development service will be sufficient to create such highly-performing bots.
Let’s peep through these crypto trading bots in brief now!
What is a cryptocurrency trading bot?
A cryptocurrency trading bot is a computer protocol that is automated to trade crypto coins on the platforms on behalf of humans. Every bot has its unique trading strategy, and the crypto trader can decide to build their bot with customized strategies. It’s not mandatory that every crypto bot must be used for trading purposes, some may be utilized for monitoring the crypto market volatility too!
The crypto trading bots can compare the price volatility of multiple coins across multiple exchange platforms within seconds and conclude profitable deals for you. The aspiring feature of the crypto trading bot is that it can increase your crypto assets with multiple small trades. It can be tiring for the human mind to compare price volatility and conclude trade for just small differences, but crypto trading bots can be customized as masters of small-profit trade deals! The small profit rates may seem tiring, but the crypto trading bots with these strategies can earn a heap of crypto assets in your wallet over time!
Now, let me guide you on choosing crypto coin pairs for better trade deals!
The best crypto coin pairs for trading!
Professional crypto traders are fond of utilizing the BTC and ETH as base coin pairs to perform trading strategies. Most of the exchange platforms offer these coins as base coins to trade other crypto coins. Popular cryptocurrencies have a huge trade volume, and traders earn reasonable profit rates with these coin pairs.
It’s up to the crypto trader’s decision to conclude the trade deal with small profit rates. If the crypto market is found to swing in price volatility, then holding small trade deals can be a wiser choice!
Let us move on to the grid trading strategy and then sign off on the discussion!
What is all about grid trading strategy?
A grid trading strategy is executed when there is the desired degree of price volatility in the specified crypto coin pairs. The crypto trader can set the desired profit and loss rates in the bot and automate the trading process with a grid trading strategy. The grid trading strategy works efficiently in the crypto markets that are stable to an extent and fails when there are extreme fluctuations. Crypto traders can set their monitoring bots to notify the extreme price volatilities and could stop the grid trading bot to prevent losses.
Crypto traders must set their profit rates and stop-loss in grid bots by taking the transaction fee into account. The transaction charges must not suck your profit rates completely; they must be negotiable! A penny earned today would be a big residue in your wallet on one or the other day!
Wrap-up!
You’ve come a long way from cryptocurrencies to earning profits from them, just through swapping and trading in platforms. As a bonus, you’ve earned a trading strategy too! A good Trading bot development company can help you create a bot that concludes lucrative trade deals throughout the day and maintain immense liquidity in your portfolio!
