Bot trading
Using a trading bot to trade cryptocurrencies can be very profitable if implemented the right way. The problem with crypto trading bots is that simple bots only work in a very specific market. Most crypto trading bots make a profit in a very stable market, but the crypto market is never stable for a long time. Just like trading strategies, the better strategy applied, the more profitable it becomes. Most simple trading bots can work during stable times, but will lose money or reduce profits during volotile markets. More complex trading bots might equip better in that case, but you have to truely understand how it works as there are many scam bots out there.
Complexity
The chance is very slim to find an affordable trading bot that makes big profits. In most cases people create their own complex trading bots to follow their own trading strategies. So first you have to understand what trading strategies work, which is complex by itself, and secondly you have to figure out how to build a trading bot around that strategy. This makes it one of the most complex methods there are.
Bot trading
Complexity
Time
Risk
Profitability
Time
Although setting up a highly complex trading bot will take a lot of knowledge and time, once it is up and running it can be fully passive.
Risk
The risk depends on the strategy implemented into the bot. But for most starting traders a big risk comes from their emotions as they influence trading decisions often in a negative way. With a trading bot it is easier to leave emotions out of it, which can make it less of a risk. That said, a lot of trading bots give a worse result during volatile markets. That is the most complex problem to solve when creating your own trading bot.
Profitability
As a trading bot can work 24/7 profits can be very high. This ofcourse differs per trading bot strategy.
Bot trading platforms
Most quality exchanges implement some form of trading bot options. Some exchanges like kuCoin offer free simple trading bots within their platform. And most platforms give the option to connect an external trading bot to your wallet. It can be good to try the simple trading bots with a small amount of money to understand how they work and experience its flaws.
EarnCrypts is working on adding more information on different bot trading platforms and adding examples of trading bots you can try or create.
