Contemporary investors enjoy a much wider spectrum of trading tools compared to investors who worked with traditional financial markets just three decades ago. The accessibility of cloud technologies and the internet made it possible for independent individual investors to start using advanced tools like crypto automation and social trading.
Modern automation platforms are versatile services that offer diverse instruments for financial activities. Whether you want to slowly accumulate resources or start a scalping strategy, you will find a good product that suits your requirements perfectly.
Automate crypto trading today!
Why should you consider implementing automation solutions in your strategy? Robots have massive advantages compared to humans. There are many reasons why so many institutions and individual professionals employ them on a large scale. Machines can easily outperform a trader and usually do not have typical weaknesses that all humans have.
Here are some of the advantages of using crypto automation software:
- Robots do not need to sleep, eat, or rest. The crypto market works around the clock without any pauses making it a very intense environment for scalpers and day traders accustomed to business days. When opportunities to make money appear 24/7, it is crucial to constantly remain active. Humans have to pause and take time off. Machines work tirelessly with over 99% uptime.
- The best crypto robots perform better than traders. Humans often miss out on valuable opportunities due to hesitation, doubt, and slow reaction time. Bots place orders instantly, never overthink positions, and behave decisively.
- Even top crypto tools are accessible by the masses. Many automation platforms have plans suitable for individual investors who do not want to go big on crypto. If you are interested in the domain or want to create passive income, you may be interested in limited plans offered by some vendors like WunderTrading and 3Commas.
These advantages make contemporary automation platforms quite popular among newcomers and veterans of the industry. However, choosing the right tool is also a very important aspect of building a reliable money-making strategy. The market offers very specific instruments that should be used correctly.
Developed for both spot markets and margin trading, DCA (distributed cost average) bots can slowly accumulate a massive portfolio by purchasing small amounts of assets over a long period to reduce the average price of purchasing. It is a great choice for people who want to buy popular coins while spending less than those who buy in bulk.
DCA bots allow users to use the spare money to invest over time and risk only a small fraction of their net worth. It is also a great tool to capitalize on price volatility which is an inherent characteristic of most crypto assets.
These scripts are designed to reliably earn money in markets with increased volatility. They place to buy and sell orders with regular price intervals to always sell at a profit. However, they can be risky if a trend becomes too strong. These bots work on spot markets and allow users with large portfolios to reliably gain profits.
Some exchanges have such products in their lineups of features. For example, ByBit and Pionex are two exchanges that offer grid bots. Many traders prefer using external platforms that specialize in automation. Pionex also has one of the best AI software for crypto trading that recommends optimal parameters for grids.
Arbitrage is a style of trading where bots analyze prices across several exchanges and put opposite orders when they find discrepancies. For example, ETH may cost $2000 on Binance but $1950 on Coinbase at the same time. The bot will purchase the asset on the latter and sell it on the former.
There is also triangular arbitrage that involves two different assets traded against a common third asset. Such bots are complex solutions offered by a handful of vendors.
Another form of automation is copy trading. It is a simple strategy that allows users to find well-performing traders and follow them. Bots track selected traders, wait until they place an order, and repeat their actions on the same exchange. If you find a good trader to follow, this strategy will quickly become your main source of income.
There are different solutions in social trading. 3Commas allows its users to download preset templates rated highly by other users and copy other aspects of strategies employed by top-performing investors.
Where can you find the best software for crypto trading?
The market created a great environment for automation vendors to flourish. Several companies offer a wide range of automation tools. One of these companies is WunderTrading, a versatile platform providing a rich variety of automation tools including every instrument described above. If you need a platform where you can find DCA, GRID, Arbitrage, and copy trading bots, you will be more than happy to work with WunderTrading.
Another great advantage of this company is that it offers a free plan to those who want to try contemporary cryptocurrency automated trading software, but may feel intimidated by expensive plans and the novelty of these instruments. Go to WunderTrading if you would like to test different strategies involving bots without paying a dime. You can run up to 5 bots simultaneously. If you like your results, you can upgrade to a paid plan.