Crypto Trading Bots
A cryptocurrency trading bot is a software that is programmed to automate investment operations in search of profits, speculating on the value of these digital assets. They can automate all processes. From the most basic and straightforward orders to complex procedures of entry and exit decisions in the markets, according to defined profitability and risk parameters.
How a trading bot works for the user
Let's imagine a user interested in making money trading cryptocurrencies. He would acquire a license to use a trading bot in any of the companies that offer it. Afterward, he would have to configure a series of essential parameters, which will determine:
- The risk that the user is willing to take.
- The amount of money he wants to invest.
- Whether or not he has some preferred cryptocurrencies, in which he prefers to risk his money.
- Expected profitability.
- Time in which you want to obtain the set profitability target.
- Based on these parameters, the bot makes autonomous decisions, trying to meet the given objectives. Generally, the best software is compatible with the leading cryptocurrency exchange platforms.
I am trying a new thing on Kucoin. I am trying my luck doing arbitrage with a trading bot. I took a shot creating a buy sell on Mana against USDT. I got really luck and Mana shot up about 100% while I owned the bot. I think that accounts for most of my 60% daily gain. I only used $300 but it says that I am up 60%. It isn't really mine until I cash out, but this is the first time I have ever been positive using a bot or even trying arbitrage. Kucoin has given me access to futures trading where I lost $6.00. It is alowing me to use an arbitrage bot which I am up a little. It also allowed me to leverage with 96% of my trading using margin.
While I realize this is also super risky, everything kind of works when the market goes up. When the market goes sideways, I stake Cake. It might be time to make the Cake work for a few months as the market reaches new peaks. I just need to get it back into Cake before the big crash. I think Bitcoin will get to 84K and then back down to 30K. All of us who were in before the two big rallys will be fine. All the new entrants will either quit or add more. We will see which is which.