With the huge influx of people who are interested in cryptocurrencies and the growing blockchain ecosystem, the fact that there are a significant number of newcomers who don’t know how cryptocurrency trading works and what are the best ways to approach it should not be surprising.
Because of this, these traders started to look for ways to make money from crypto without the need of having much experience or dedicating most of their time to this market. As most of these newcomers are not looking to become full-time traders.
They are looking for ways to trade crypto while having time left for other activities, automated trading has become one of the best solutions for them. But what is automated trading, and how can we get started? This is exactly what we will be discussing today.
Getting started with automated crypto trading
Automated crypto trading is when traders set up automated tools that follow certain rules and execute trades automatically when market conditions meet the conditions indicated by the trader in these rules.
When starting with automated trading, the first step traders have to take is to choose which automated trading app they want to use. The selection of these apps is big, with apps such as bitcoineer.de providing high-quality trading tools suited for beginner traders.
Once a trader has selected which automated trading app he will be using, the next step is to choose whether he wishes to trade with his own strategy and rules, or wishes to copy the strategy of more experienced traders.
If a trader wishes to have his own strategy, he needs to go to the configuration of these tools and set up specific rules these bots have to follow. The complexity of this will depend on the app trader has chosen, with some apps being targeted at beginner traders while others are for more experienced traders who know what they are doing.
Once these rules are set and the bot is ready to trade, we would suggest that traders first try this bot on Demo accounts, in order to make sure the bot works as intended. Once we are certain that the bot is operational, we can move to a live account and start trading.
If you are not sure in your abilities to configure an automated trading robot or don’t know what are the best strategies to use, then using copy trading is probably the best option. With Bitcoin showing its lowest price since 2020 and the market being in high volatility, copying the strategies of experienced traders might give you some confidence.
But when doing so, you need to absolutely make sure that you are following a legit and experienced trader as there are many different scammers who impersonate experienced traders in order to scam people out of their money.
Once we have implemented the automated trading system and started trading, we can sit back and relax. But just ignoring this and letting the bot do the whole work will most likely lead to losses instead of profits. Automated trading tools are not perfect, and they are more useful for limiting losses than making profits. Therefore, traders should still keep an eye on the bot and the
orders it executes. The best way to use these bots is to automate more technical parts of the trading and aspects that can be affected by human emotions or errors. While more important decisions should be made by traders themselves and more large or more risky orders should be opened and closed manually instead of giving the bot responsibility for it.
With crypto being a volatile asset, especially nowadays, these bots can make errors and execute wrong orders, so traders should still keep an eye on the market.