So far everyone knows what trading is all about. Most of you probably see trading as a second source of income and you have probably dabbled with it a bit already.
Trading is a neat way to earn some cash on the side but only if you know what you are doing. Less experienced traders and those who are just starting can’t expect huge, or any profits for that matter until they manage to learn the trading basics and find their footing in the market.
The topic we have today will be interesting mostly to those that are just starting in the trading business because this method is your sure thing when it comes to passive income from trading with little to no experience. Today we are talking about crypto trading bots (robots) and what are their benefits. To find additional info about this you can go to bitcoindigital.io and look for anything we possibly missed and you are interested in.
So, crypto trading bots, are they good and are they worth your time and money. Well, the opinions are divided on this topic mostly because there are so many bots out there and most of them are being made from inexperienced people, causing you to lose money and have a very bad experience. To have any sort of return and to make some passive income from a crypto trading bot you have to find the best one and pay well for it.
Now before you do find one, read through these pros and cons of owning a trading bot and then make an educated decision whether if it is even worth venturing in something like this.
Page Contents
Pros
1. Trade 24/7
source:pexels.com
Probably the best thing about crypto trading bots is the all day long trading 365 days a year. Since the crypto market is not one of those that has time when it opens and when it closes, this feature that the trading bots offer means you can earn money while others are sleeping or waiting for their particular market to open. Imagine there is a huge spike up or down sometime in the early morning and you were sound asleep and missed that great opportunity to pile some cash.
This is where these bots come in real handy and this is where they shine the most. You can activate them and forget about them and you will still have cash floating in.
2. No emotions
img source: cryptopotato.com
Bots have no emotion in trading and there will be no FOMO no panic selling. This is probably the second-best thing you can wish for. We as humans tend to be emotional and that emotion can cause us to lose money especially if we show them while trading. How many times your trade has gone sour and you wanted to make it straight went into a new one that went even worse. Crypto trading bots do not do this. They have parameters set which they abide and no matter what happens they will execute the deal according to those parameters.
3. Backtesting
img source: insights.dice.com
Another great feature of the trading bots is the ability to perform a backtest of your trading strategy and improve it before you hit the real market. Backtesting allows you to take your strategy and compare it to the historical data within the market and by doing so you will be able to see how it would do. This is a level of security to you as an account owner that your bot wouldn’t be just running blind in the market and willy-nilly go buying and selling whatever it comes across. You can now test your strategies in bear cycles, at bull markets and sideways markets. This allows you to know which strategy to implement when you have a certain trend in your market.
4. No need for big and expensive setups
img source: financialstand.com
Professional traders have a lot of cash invested in their setups where you have one or more PCs and screens that allow you to follow everything tied to your trade or market. With trading bots, none of this is needed because they can access and simultaneously carry out trades across multiple trading pairs on different exchanges and all of this is done from a single PC and single screen. Everything is done in the comfort of your home and you really don’t have to think about much or even observe much.
Cons
1. Scams
Source: alphr.com
This one shouldn’t surprise anyone of you. Scams are everywhere where money is and this is no exception. It is hard to find a legit bot because everyone is acting like a pro and trying to get to your money. What you also have to be careful of is even if you find a legit trading bot, they may have been poorly coded and that fact might end up costing you more than you want to.
2. If it sounds too good to be true, it probably is
Source: unsplash
When you start looking for trading bots they might be advertised something on the line of “this trading bot is awesome it will make you 150% return on investment and more” than you have to know that something is off. Mega profits for a short period and one of cheap pricing is probably a bad deal to head into. This is very unrealistic and you should know that nothing that sounds this good could be true.
3. Look at other people’s experiences
Source: pexels.com
The best idea when looking for a good trading bot is to hit forums and sites that deal with this topic and see what they have to say about a particular bot. user experience is important here and if you see that someone has had a problem with a particular trading robot maybe you should also steer clear of it. These forums and pages are also a good source of other information and you will find them helpful. Also, be careful of users praising a particular bot too much because those can be paid comments and reviews and you might get conned again.
4. Hardware issues
Source: freepik.com
If you run a trading bot on your desktop at home, you may occur problems like power outages and the wear and tear of your desktop PC. These are the problems that might make you lose out on the trade and that is not all. You might also be hit with internet outages, router or Wi-Fi problems and all of those might stop you from trading and eventually lead you to loss.
