I’m sure you are thinking I’m currently trading a small amount/portfolio, why should I use a bot?
The reason is simple; it’s important you know about it now so that when you start trading large sums you don’t lose it all within a few days.
You see, bitter occurrences happen regularly in crypto. Off recent, I heard someone lost $400,000(#280,000,000). He made a lot of profit from crypto and started feeling like is the best investor.
Also, Africans are lacking behind in terms of automating their investment. The majority of us still have to log in to a computer before placing any trades. That’s different in the developed world.
Basically, it’s as if we are competing with computers, and it’s important we know how to make computers work for us. It’s painful staying online watching your computer screen and at the end of the day still losing money due to a small mistake in position sizing that a computer will never make.
Here are more reasons you should automate your crypto investing
To avoid losses due to emotional trading or investing(FOMOing)- a bot can minimize the impact that overreaction or wrong reactions can cause to your portfolio.
Computers can help us maximize profit in a very volatile market like crypto
It would help us to not suffer a great loss – if you have suffered one before then you’ll understand this.
Finally, to avoid unnecessary mistakes – humans are prone to mistakes. We can only reduce the amount we make.
How to automate your crypto trading and investing?
Things you can do:
- Dollar Cost Averaging(DCA): buy a specific amount at a particular date over a period of time. $100 weekly or $1000 monthly. It’s the simplest and basic automation. It brings objectivity to your investing.
- Binance Auto invest option: Instead of timing the market, auto invest buys crypto for you over time at set intervals.
- Trading bot: Crypto trading bots are automated software that helps you buy and sell cryptocurrencies at the correct time. The main goal of this software is to increase revenue and reduce losses and risks. It all depends on your strategy.
- Trust: a commercial bank or other enterprise organized to perform trustee functions. You can give them your funds and grant them the right to invest it for you objectively and automatedly. It’s mainly for high-net-worth individuals. Common trust platforms are Paxos.com & Gemini.
Platforms to automate your crypto investing?
Here are a few of the crypto bot websites that make it easy to automate – especially for non-coders.
- Binance.com: You can use:
- Auto invest: DCA – highly recommended
- Strategy trading – for spot and futures market: (arbitrage) less recommended.
- Pionex.com: Grid Bot, Arbitrage Bot, DCA Bot – support Binance and other top exchanges – Free plan for life.
- Cryptohopper.com: Arbitrage, Copy trading, etc – support Binance and other top crypto exchanges – have a free plan
- Bitsgap.com: High-frequency Algorithm Trading – support Binance and other top crypto exchanges – have 7-day free trials.
- Trality.com: 120+ rules – support Binance and other top exchanges – Free plan for life($5000 trading volume).
- Coinrule.com: 150+ rules – support Binance and other top exchanges – Free plan for life($5000 trading volume).
- Tradesanta, 3commas, and many more have plans from $8 – $15.
We still have other trading bot platforms out there. I will suggest you do more research to figure out the best and most affordable platforms among them.
I hope you’ve gained more insights on why you need to use trading bots in your crypto trading and investing.
Wishing you the best of luck, and should in case you have any questions, kindly drop them in the comments below. 👇
