Maximizing Profits: The Benefits of using Bitcoin Trading Software

Photo byBastian RiccardionUnsplash

The biggest question any investor must ask themselves is how efficient they are at making money. It is impossible to have just enough profit for an ambitious man. Result-oriented retail traders know this and focus on employing as many potentially profitable techniques in their investment endeavors as possible. For example, using contemporary Bitcoin trading software to stay ahead of the competition and using advanced technical analysis strategies.

Cryptocurrency trading bots are excellent at maximizing your efficiency. While they do not generate value without your initial input, they can make any strategy much better.

Can you automate Bitcoin trading?

The progress of technology made one thing clear — humans can automate everything. Putting aside the dangers of introducing automation to every single industry which may increase the level of unemployment and derail some national economies, there is no doubt that machines reduced the amount of effort one must dedicate to any mundane task.

Retail trading became an important target for automation efforts at the end of the 1960s when the first algorithms were introduced to financial markets. However, there was still a long road ahead. By the beginning of the 1990s, many financiers had powerful tools at their disposal: automated trading systems, computers analyzing the market, and the first fully digital infrastructures to make trades instant.

In the 2010s, the technology reached the masses with many companies offering their clients software that could be used by anyone. When Bitcoin arrived in the mainstream, we already had a variety of specialized instruments that made automation possible.

Many centralized crypto exchanges take custody of the client’s money and can process many trades immediately without any additional confirmations. This speed makes the whole market dynamic and fast which is a perfect environment for bots.

How can I start Bitcoin trading with bots?

While some forms of individual software exist and you can use applications to automate some of the processes, many experienced retail traders prefer using online automation vendors such as 3Commas or WunderTrading. The latter is a versatile provider of various services related to automated trading including:

• Preset bots like GRID and DCA. These solutions are aimed at creating a consistent system that follows signals from the online analytical website TradingView. The advantage is that these bots execute a strategy excellently without any delays or hesitation.
• Social trading. You may be interested in one of the most liberating forms of trust management where you control risks and choose who will manage a certain portion of your portfolio. The key benefit is that traders that you follow are interested in making you money because they are making money for themselves while receiving your commission as a bonus on top.
• Advanced scripting. If you are interested in creating a very specific bot that will use a sophisticated strategy that you developed yourself, WunderTrading gives you a whole lot of opportunities with its powerful customization suite.

To create a functional Bitcoin robot, you need several things:

1. Find a reliable centralized crypto exchange where Bitcoin is traded against other assets digital or fiat. Examples of such platforms are Binance, Kraken, KuCoin, and many others. It is important to inquire whether an exchange that you like has an API.
2. Find a good automation vendor. WunderTrading is a good choice for those who are looking for a good opportunity to start using bots. This company offers all its customers a free plan allowing you to run up to five bots without spending a single cent.
3. Create a consistently performing strategy on TradingView. This analytical website generates signals and instructions for your bot. The vast majority of automation providers work with this platform and can be easily integrated with it.

What is the best Bitcoin trading software?

Identifying which platform is the best can be quite challenging. Many companies in the industry provide similar services and do not differ, on the surface, from one another. It makes selecting a good provider of automation tricky. However, there are several important factors that you should pay attention to:

The level of stability. In a market that operates around the clock, reliability becomes hugely important. Companies like WunderTrading work with cloud services that guarantee 99.9999% uptime for their servers which means that you can expect a bot to run without hiccups 24/7.

Pricing is important. A smart investor tries to cut corners everywhere to ensure that they extract the most value. It is a critical trait that defines your overall efficiency. You need to look for exchanges with the lowest rates and providers that give you the best quality for the lowest possible price. Having something for free is even better.

Versatility. Maximizing your efficiency also comes down to making sure that you are in full control of your risks. Diversification is crucial for the success of your investment operations. Make sure to work with automation providers that have a wide range of financial products to offer.

A modern Bitcoin trader wants to focus on making money most efficiently. Since the price of BTC is unlikely to double or triple overnight, gains are much lower compared to a decade ago. Nevertheless, with enough short-term trades made using bots, you can generate money reliably. What you need is a good strategy.

The right strategy for Bitcoin auto trading

The key word here is consistency. You need to focus on choosing the right strategy. TradingView is not just an analytical website. It is also a huge social network where thousands of retail traders share experiences and ideas. You can find extraordinary trading systems that can be tailored to your liking with some tinkering.

Test these strategies against the history of price action and find those that work well. You can also use bots on WunderTrading to test these strategies against market history.

Automation has several distinct benefits, namely:

• The speed of execution and decision-making;
• Consistency in following the strategy;
• Decisiveness and determination when making a trade.

These qualities make bots excellent for strategies that rely on opening many market positions with strategically placed take profit and stop loss orders. Scalping or other day trading techniques work well with automation.

Note that some advanced long-term strategies like using Hashribbons or 3-week-long moving averages may not be suited for automation since such market positions are best handled manually.

The main takeaway

Bitcoin trading is not a completely new frontier for financiers. It is a new form of asset and it can be quite tricky to use and understand. However, BTC behaves like any other stock, currency, or commodity when traded between people. It means that increasing your profits and efficiency regarding crypto is often a question of learning how to be a better investor in general.

Automation is a perfect avenue for retail traders interested in creating consistently performing strategies and extracting as much value as possible from repeating market positions insured by stop-loss commands.

Combining your knowledge of financial markets with the power of automation can produce incredibly high profits. However, you should always remember that even the most profitable approaches to investment require you to diversify and focus on protecting different portions of your portfolio from excessive risks.