What to Look For in a Crypto Trading Bot?

After spending over 13 months on a much-frenzied run, Bitcoin has been on a bit of a decline for a while now.

19:32 12 December 2021

And, sure enough, the critics have come out of the woodwork slamming the crypto pack and saying they’re overvalued and way too overbought. Well, the market may go into a deep correction and shed more gains or go through a passage of lull to settle into a state of consolidation. Either way, the early backers don’t seem to be concerned at all.

 

They remain unmoved in their “HODL” stance, which allows them the luxury to not bother about the frenetic movements in the market. The way they see it, it is just a minor bump on the road. And there’s quite a lot of crypto pundits nodding in agreement- and that includes former critics who recently switched allegiance. Despite the short-term slide in price, the overall mood among market participants is still upbeat, allaying concerns around a prolonged bear market in the crypto space.

 

Unwilling to read too hard into the cause behind the sharp correction, they are just looking at this as another chance to ‘buy the dip’ and add to their tally- a clear indication it won’t be long before the crypto market picks up steam and launches into another booming run that sees it scale new heights.

 

If you’re pretty optimistic about the medium and long-term prospects of bitcoin and other cryptocurrencies, you’re certainly not alone. According to Google Trends, search interest in crypto trading hit a multi-year high early this year. The appeal of the crypto pack is now hard to ignore, as more people are now starting to look at them as an alternative class of investment.

 

If you’re still sitting on the fence, now is the right time to step in the world of crypto trading. Your inexperience might put you at a disadvantage only if you believe so. There are several automated trading bots out there to help novice traders begin their crypto journey. All you need to do to get started is find a good crypto trading web application, sign up with all the details, make an initial deposit, pick out the currencies you want to trade, and set some parameters for the trade to kick in, and let the algorithm work its magic.

 

A google search on ‘crypto trading bot reviews’ throws up hundreds of results telling you a dozen different things that make the best automated crypto trading system. But which bot to choose?

 

No Two Bots are Same

 

Sifting through the top results makes one thing clear: most automated trading systems might seem to be one and the same. But that’s not true.

 

While on the outside trading bots may seem like they have plenty of similarities, no two bots are equal. Each one is different in the way it is built and designed to perform. Two trading apps with identical layout and user interface may still be diametrically opposite to each other, with their own set of features. But don’t fret. Help is on hand. You can zero in on one if you have answers to questions such as these. `

 

What features in a trading bot hold the key to a profitable trading experience?

 

• How do you determine which is right for you?

 

Finding the right bot for you might be a little daunting, but you will do well to seek answers to these questions.

 

Here are some key things you should consider about choosing the right trading software, before diving in.

 

Profitable Trades in your Reach

 

The success or popularity of a bot, though, largely rides on its ability to generate profits consistently while mitigating the risk involved. A successful bot would keep scouring the market for opportunities and execute a trade only when the specified parameters are met. For any trading bot to do that across multiple cryptocurrencies, the core of its algorithm should be intelligent enough to analyze the different conditions in different markets, see if they are in line with the rules laid out, and then execute trades (long or short) accordingly.

 

But Then… It’s Just Not All About Profits

 

Realizing good returns on the money you invest in the market is important but making consistent profits is a hard thing to achieve unless you find your edge in the market. That, at least, is how top traders in the circuit tend to think about it. As the 1k daily profit review lays out, achieving higher profits than the average trader is possible when you know what you’re trying to accomplish and have a system that works for you. And to find the right one, you are going to need to develop an understanding of how to evaluate the different bots out there, identify all the key features on offer, and weigh the pros and cons of each one. This helps you pick the one with the right set of features that can help you make it big in the crypto market. Formulate a trading plan, identify the key levels and lay down the parameters for the trade to go through and let the bot do all the heavy lifting for you.

 

Simple and Easy to Use

 

A cutting-edge trading bot may have the algorithmic smarts to pick up on favorable trading signals and execute trades rapidly with high accuracy and precision, but its user experience may still be a letdown and leave a lot to be desired. What use do you suppose a poorly designed intelligent bot would have for you? Working with such a bot means navigating between screens in a complex manner and losing track of key things that could make the difference between raking in a sizable profit and losing it all. Ultimately it could affect the way you set up trades in a bad way and your trading performance will suffer.

 

Highly Secure and Reliable

 

Crypto trading bots ranking high in security and reliability will be best equipped to endure the threats of hacking, which is a serious challenge facing the world of crypto now. Lapses in security often leave millions of crypto assets and tokens stored on the blockchain exposed, making them a soft target for hackers to exploit. And with large security breaches becoming frequent in the crypto world , it is important that you opt for a trading platform that guarantees a high degree of security to all your assets and funds. Leading trading bots are designed to use special API keys for establishing connection with a crypto exchange, so they cannot seek and obtain the permission required to transfer out the assets or withdraw the funds deposited in your account.

 

Pick a bot that brings in a steady stream of good trading opportunities that increase the odds of generating maximum profits with minimum risk. Remember it is not just about making profits but also keeping them. All the money you made from a string of wins will vanish into thin air when you slip up real bad. Follow sound position sizing and basic risk management principles if you don’t want to end up giving back all your profits to the market.