We are living through a massive bull run that promises to bring Bitcoin to a new all-time high in the nearest future. Some investors believe that it is crucial to trade BTC manually and avoid making short-term financial decisions. This strategy works for “hodlers” who plan to sit on their BTC assets for a long time. However, many active retail traders will benefit greatly from simply introducing some advanced trading instruments in their investment strategies.
For example, you can run a simple BTC trading bot that uses signals from a custom technical analysis strategy and achieve impressive profitability levels. It is possible to run such a system without having any prior experience with the blockchain industry, automated trading, or financial markets. Let’s talk about some of the best automated Bitcoin trading systems available to BTC traders.
How to choose a Bitcoin trading bot
The trading automation industry has been slowly developing into its current form for a couple of decades. The modern landscape of the domain allows retail traders to afford all sorts of automation tools making the choice of correct bots quite challenging. For example, the WunderTrading platform offers such a wide range of options that newcomers may feel overwhelmed with the diversity in the catalog.
Here are some great options to use if you want to work with Bitcoin and other mainstream cryptocurrencies:
- DCA bots. The Distributed Cost Average method is excellent when you want to buy assets cheaper in the long run. Many conservative investors build their BTC portfolios with the DCA approach and do it quite successfully. If you plan to simply buy as much crypto as possible, this type of Bitcoin trading bots is the best choice.
- GRID bots. These also use the DCA approach to place a series of sequential orders, but they also place liquidation orders individual for each of the opened market positions. If DCA without exit orders is an excellent method of acquiring assets, Grid bots are more about making relatively small profits consistently which can be beneficial for investors building a balanced portfolio.
- Copy-trading. The WunderTrading platform has a massive marketplace with hundreds of experienced retail traders offering their management services via copy trading bots. If you do not have any experience with BTC, it is a good idea to simply follow experts and copy their Bitcoin trades. It is a great way of learning and investing.
- Arbitrage bots. Prices fluctuate in the market across trading platforms and within isolated spot markets. It means that a well-tuned arbitrage bot can generate profits with an impressive level of reliability and consistency! Running arbitrage bots requires some effort and time invested during the preparation phase, but the pay-off is worth it!
Choosing the right tool to trade Bitcoin is hard even for experienced veterans. You should consider various factors. For example, if you want to stay in the market for the long-term, employing DCA bots to buy BTC is a good idea. On the contrary, people who simply want to make money reliably may focus on creating multiple arbitrage bots.
Picking popular Bitcoin trading bot platforms
There are several types of automated trading platforms that allow users to create Bitcoin trading strategies. Here are some examples that you may come across while exploring the world of cryptocurrencies:
- Bitcoin trading bots offered by CEX platforms. Many centralized cryptocurrency exchanges allow user to automate some of their operations. These features are often limited to the native platform and do not allow creativity, but you can make them work if you don’t plan to expand your operations beyond a certain strategy.
- Locally run trading software. Programmers and people with technical knowhow may be interested in building their own solutions in Python, Java, or C#. It is also possible to find various desktop and mobile apps that can trade on your behalf. The issue is that results are often dependent on the quality of your internet connection, hardware, and other factors.
- Automated Bitcoin trading tools from specialized providers. The WunderTrading platform has a massive catalog of trading automation products including DCA, Grid, arbitrage, copy trading, and even AI-assisted Bitcoin trading bots. If you want to utilize the power of automation to its fullest extent, it is a good idea to work with dedicated providers capable of delivering an excellent level of user experience and satisfaction.
It is hugely important to work with not only popular Bitcoin trading bot platforms but also reliable ones. Make sure to choose platforms that have high uptime, provide a nice variety of products, offer flexible pricing, and have a strong customer support system in place. All of these things can be tested without a massive portfolio and large budget.
Do not forget that you can always test multiple platforms simultaneously while looking for the best value!
Should you try using automated Bitcoin trading?
Right now, the cryptocurrency market experiences a noticeable bull run caused by a variety of reasons including rapid global inflation, new regulations, the Bitcoin halving, and others. It is an excellent time to use reliable approaches like DCA, Grid, or arbitrage. Prices fluctuate just enough to allow for some flexibility! With prices of automation tools being as affordable as never before, even people on a tight budget can use Bitcoin trading bots efficiently!
Automation is a way for retail traders to make their well-performing strategies even more consistent. With standard risk management practices and a variety of preset options, retail traders can buy and sell Bitcoin for profit even if they don’t have any prior experience with the market as a whole or Bitcoin as a separate asset.
We strongly believe that retail traders who use the latest trading automation products from reliable providers such as WunderTrading are enjoying great benefits and can earn money reliably during both bullish and bearish sentiments in the market. Go to the WunderTrading platform right now and start using its diverse lineup of products to build fully automated Bitcoin trading systems capable of producing profits with an impressive level of consistency.
Founder Dinis Guarda
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