Since the crypto market is highly volatile, this field became attractive for traders, who make a profit on the price changes. For intensive trading, they often use an automated cryptocurrency trading bot. Such programs help traders track market changes and be on time when a profitable deal comes across.
Since a human is not able to track the situation 24/7, trading bots cope with this task better, simplifying a trader’s experience, saving time, and bringing a profit.
Automated cryptocurrency trading allows configuring a bot to buy or sell an asset when its rate crosses a certain level. That is, a bot enters and closes the positions following the conditions you have set for it beforehand.
Cryptocurrency automatic trading can be of the following types:
- Arbitrage bot is able to make deals on different platforms simultaneously and make a profit on the rate differences.
- Trading bots are meant to analyze tech indicators and proceed with trades, operating within a single platform.
- Signal bots – another popular bot that sends signals following analysts or experienced traders, so the user may follow that advice, repeating the deals of successful traders.
- Marker-making bot adds orders to the order book, increasing liquidity.
- Script bot is customized by a user manually depending on the user’s requirements.
- Advanced bots can be configured from scratch by a user; they are suitable for experienced traders.
How To Get Experience In Automated Crypto Trading
For a beginner, it might be challenging to handle trading bots. So we recommend learning and practicing automated crypto trading using a demo account. The WhiteBIT exchange offers such an option where only domestic coins are used. You cannot cash them out or lose them – you only practice different trading bots and receive valuable experience. To learn more on how to register a demo account and start trading, check out the White Blog. Also, you will find comprehensive information on how to deposit accounts, trade with fiat currencies, a guide on buying cryptocurrency, and much more helpful information to help you make a profit with crypto.
