The first question any contemporary trader must ask themselves is which strategy will yield the most fruitful results. A well-designed crypto auto trader generates money during periods of volatility and allows investors to accumulate assets when the market is calm.
Automation products fit any modern trading method nicely and cost pennies compared to advice from so-called professionals and social media influencers.
What is crypto auto trading software?
The simplest way to describe this type of tool is to say that an automation tool can perform a simple trading algorithm without your involvement. Many types of auto traders exist and most of them work similarly. The main difference is usually in nuances and presentation. The latter matters since having a good interface are often defining the quality of user experience and make your strategy more efficient.
Any automation tool requires three key components to function:
- A platform that distributes, hosts, and deploys products. There are many great examples of a neatly packaged automation suite for retail traders. It is a website where you can design your bots, deploy as many as you like, and manage investments.
- An analytical service that provides inputs and data for the bot to work with. TradingView is a highly popular charting instrument offering a wide range of technical indicators, complex strategies, and market data.
- A connection to exchange. Contemporary services have a variety of CEX platforms with which they can easily integrate. Whether you work with Binance, Kraken, KuCoin, or a host of other companies, you will be able to effortlessly connect with any of them.
These three components work by conducting a fairly simple process that looks easy on paper but requires a lot of smart engineering to perform. A retail trader uses the automation platform to create bots or use preset solutions. Bots fetch data from TradingView and decide what to do in the immediate future. Then, an exchange receives commands from bots to place market orders according to their instructions.
Do I need a sound trading plan?
Even the best crypto trading bot won’t produce results without a good strategy. In the end, these solutions are patterns of actions executed in accordance with your initial instructions, meaning that you need to provide something to work with.
You can turn a mediocre instrument into something capable of generating money consistently. However, having a great strategy is the number one requirement for this to happen. We won’t describe traits that make a chosen trading routine great because it depends on a variety of factors, but we will give you several tips on how to come up with one:
- Look for well-performing systems on forums where specialists and enthusiasts gather to discuss their trading results. Reddit or TradingView are good places to seek inspiration and advice from veterans.
- Back-test each system by using corresponding services. There are few platforms that have a powerful price history tool where you can use a strategy and test it on the pricing chart retrospectively and determine its efficiency.
- Learn how to use scripting languages. Scripting is not coding. You don’t need to have a degree in computer science to quickly grasp at the basics. TradingView has its own language, one can learn in a single evening. Understanding how to write scripts will greatly improve the quality of your automation tools.
- Look for a crypto trading bot for free! Testing and tinkering with strategies can be expensive if you do not focus on cutting costs by using demo versions of tools. What is the best trading bot for cryptocurrency?
Finding the right tool for any purpose is a challenge even for professionals. The cryptocurrency industry is complicated beyond comprehension and requires a lot of research from a retail trader to fully understand its inner workings. While you do not need to be a guru of investment to get a grasp on which coins have the potential to shoot up in price, using robots demands some creativity.
It is impossible to single out the best bitcoin auto trading platform that will consistently bring in profits. Finding a place where to start building one is easier. There are several factors that you should consider when choosing the right automation vendor from the variety of options presented to you in the market.
Versatility is integral to the success
Flexibility often defines the quality of instruments. Take a closer look at the catalog showcased by an automation vendor. It should have different options to choose from DCA, GRID, Arbitrage, custom scripting, and more. Build the best auto trader for crypto using your personal experience and advice from seasoned enthusiasts.
The interface must be comprehensible
If you cannot figure out how to use scripting tools or set up a simple GRID system, something is wrong with the provider. The interface must be complex enough to allow for sophisticated scripting yet remain understandable, functional, and effective. When all buttons and links are neatly categorized and work as intended, you will have a blast tinkering with various automation products.
User reviews shed a light on the reliability
It is never a good idea to base your opinion on what the crowd says. Testing things personally is the way to go. However, testimonials can be quite revealing and provide some clarity when you need a piece of advice. The best automated crypto trading toolset will have rave reviews, favorable opinions from experts, and plentiful successful use cases.
The main takeaway
The effectiveness of each trading platform depends solely on your ability to extract value from it. A smart retail trader can turn any tool into a money-generating machine that performs well at all times. The only thing you need is a platform that will give you everything you require to achieve success.
There are few good choices for people without any prior exposure to the market since it has a great catalog of powerful tools that can be easily integrated into any trading strategy.