The 4 Ways a Crypto Trading Bot Can Help You Earn Money
To say that 2021 has been a good year for crypto would be an understatement.
Two months into the year and Bitcoin, the world’s most popular cryptocurrency, has already reached all-time-high after all-time-high. More and more skeptics are now warming up to the idea that crypto is here to stay. Meanwhile, long-time believers are doubling down on their investments in hopes of taking full advantage of the incredible run that most major coins are currently having.
Although bigger cryptocurrencies like Bitcoin and Ethereum (and even the infamous meme coin $DOGE) have recently hoarded much of the spotlight, many traders and investors have experienced massive financial gains through altcoins as well.
The future of crypto trading
Without a doubt, crypto is taking the world by storm. And whether you’re new to or well-versed in how cryptocurrencies work, you’re probably on the lookout for new ways to maximize your gains.
This ever-growing demand for an easier, smarter, and overall better way to do cryptocurrency trading has given rise to technology-backed trading tools in the form of crypto trading bots.
If you’re curious about what they are and how they can help you make more money from crypto, you’ve come to the right place!
What’s a crypto trading bot?
A crypto trading bot is essentially a program that uses artificial intelligence (AI) and machine learning to determine the best times to execute specific cryptocurrency trades. These bots then automatically perform these trades on your behalf according to predefined algorithms.
In a nutshell, these trading bots are designed to maximize returns by leveraging AI to know what trades to do and when to do them.
Now, a lot of people think that entrusting the fate of their crypto on a bot sounds like a huge risk. But trading bots are not new tools that only came into existence because of crypto.
In fact, trading bots have been around since the early 2000s, when they were first developed to handle Forex trades. The underlying concept of automated trading was established in the 1950s when applied to create rules to buy and sell funds.
Obviously, automated trading and trading bots have been consistently popular, which explains why they are now being adopted into the world of crypto.
The four ways a crypto trading bot helps you earn more money
Still not convinced? Here are the four ways a crypto trading bot can help you earn more money.
1) It helps you transition from buy-and-hold to active trading.
A huge chunk of people who dabble in crypto use the buy-and-hold strategy. These people, who are typically referred to as “crypto investors” rather than “crypto traders,” rely on the long-term growth in the value of a coin to earn money.
There are many reasons why people opt to employ this passive strategy, the most common being lack of time and knowledge. Being an active trader requires you to actively focus on crypto’s frequently volatile markets. This is impossible to do for many people with day jobs outside the crypto realm.
And while there’s nothing fundamentally wrong with the buy-and-hold strategy, the fact remains that active trading brings more earning opportunities than passive investing. If you can consistently make profitable trades most of the time, you’re bound to make a lot more money than someone who chooses to buy and hold.
The solution? That’s right: a crypto trading bot!
A crypto trading bot helps you capture as many cryptocurrency upswings as possible while trying to reduce your exposure to downswings, and all of this is done autonomously. This means you don’t have to sit in front of the computer all day to time the market. Everything is done automatically by the bot.
You can go on with your daily life and have the crypto bot execute trades for you. So if you’re looking for a convenient way to transition from passive investing to active trading, this tool is definitely worth checking out.
2) It takes emotions out of the equation.
Ask any seasoned trader about the most important things to keep in mind for crypto newbies. We’re sure avoiding FOMO and FUD will be one of them.
Getting your emotions under control is fundamental to profitable trading. But of course, this is easier said than done. It can be hard to stay calm and collected when you see your hard-earned money getting eaten by paper loss.
Controlling one’s emotions is a skill that can be perfected over time. In the meantime, you can use a crypto trading bot to help you take your fears and worries out of the equation. As a result, your portfolio will benefit from being managed completely using well-founded, strategic, and non-emotional decisions.
3) It leverages AI for well-founded investing decisions.
AI is taking over pretty much every aspect of modern life for a reason. Massive amounts of data are now available for us to process, use, and take full advantage of. Developments in machine learning have allowed us to significantly improve our lives, from the way we shop to how we manage our day-to-day tasks.
There’s no reason not to apply the same developments to crypto, and crypto trading bots are designed to do just that.
For example, Stoic rebalances top-20 crypto assets by analyzing forecasts from 156,000 analysts registered with Cindicator in addition to AI algorithms. This is something you can’t do on your own. When you start using Stoic, your crypto trading decisions become exponentially smarter. You’re able to harvest the power of thousands of experts in a fully-automated way.
4) It makes your investments easier to scale.
Let’s say you manage to learn everything you need to know about crypto trading all on your own, and you’re able to dedicate several hours to it every single day. A variety of factors will still limit your earning potential.
For one, the human body can only do so much in one day. Even if you make crypto trading your full-time job, you’ll still need to eat, sleep, and do other daily activities. Realistically, the most anyone can consistently spend on crypto trading is 8-12 hours per day.
However, the beauty of the crypto market is that it’s open 24/7. This means earning opportunities can arise at any time. With a crypto trading bot like Stoic, you can rest assured that trades can be made whenever necessary, therefore maximizing your gains even further.
Topping up your investment through a crypto bot is also as easy as adding more money to your account. The bot automatically takes care of deciding where to spend that money. In effect, scaling your investments becomes easier than ever before.
Artificial intelligence and machine learning have transformed the way we live our lives, and they’re bound to get even better as the years go by. Any smart trader knows that AI and machine learning can offer a wealth of insights that can help them maximize their earnings -- and this is done best through crypto trading bots.