{"id":4850,"date":"2022-11-29T11:24:50","date_gmt":"2022-11-29T03:24:50","guid":{"rendered":"https:\/\/blog.btse.com\/?p=4850"},"modified":"2023-03-07T03:23:57","modified_gmt":"2023-03-07T03:23:57","slug":"3-types-of-trading-bots-to-take-you-to-the-moon","status":"publish","type":"post","link":"https:\/\/www.btse.com\/blog\/3-types-of-trading-bots-to-take-you-to-the-moon\/","title":{"rendered":"3 Types of Trading Bots to Take You to the Moon"},"content":{"rendered":"

Trading cryptocurrencies can be challenging as there are so many different variables involved. Even the most experienced traders struggle to make profitable trades consistently because of market volatility and the way it shapes human behavior.<\/span><\/p>\n

Automated trading programs, which use bots to execute trades automatically, can help eliminate the emotional elements that come with trading and strictly follow strategies set up beforehand.\u00a0<\/span><\/p>\n

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What Are Trading Bots?<\/b><\/h2>\n

Trading bots are computer programs that connect to exchanges via APIs and execute trades for users. Many traders program their own bots to execute complex strategies and hedge their bets. For users with no coding background, platforms such as <\/span>BTSE<\/span><\/a> offer trading bots whose strategies are pre-defined. Users only need to determine how much money to allocate and when to enter\/exit the market.\u00a0<\/span><\/p>\n

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BTSE’s trading bot interface<\/em><\/p>\n

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Benefits of Crypto Trading Bots<\/b><\/h2>\n

For users who want to take their trading game to the next level, trading bots are great tools to utilize. Here\u2019s why.<\/span><\/p>\n

Emotionless Trading<\/b><\/h4>\n

Emotions are what make us human. However, when it comes to trading, they often make us lose our nerves and screw up our positions. \u201cSuccessful trading is 80% psychological and 20% methodological\u201d, said Mark Douglas in his book, <\/span>The Disciplined Trader. <\/span><\/i>Douglas clearly stated that emotions are the enemy of successful trades. That said, how a trader handles the emotional and psychological aspects that come with trading can either make or break him\/her. <\/span>To prevent recklessness and lack of discipline, the best way for novice traders is to utilize trading bots to automate their strategies.<\/b><\/p>\n

Smarter, More Efficient<\/b><\/h4>\n

Trading bots are simply faster than human traders. In the time it takes you to place an order, a crypto trading bot could have executed hundreds, if not thousands of trades. You can also backtest your strategies with historical data to see how well your bots may perform before actually putting them to work. BTSE is one of the few crypto platforms out there that enable you to backtest trading bot strategies.<\/span><\/p>\n

24\/7<\/b><\/h4>\n

Yes, trading bots don\u2019t sleep and that\u2019s important because neither does the crypto market. With trading bots working 24\/7 for you, you won\u2019t have to worry about missing trades or opportunities.<\/span><\/p>\n

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Three Trading Bots to Build Your Portfolio<\/b><\/h2>\n

DCA Bot<\/b><\/h4>\n

Even for the most experienced traders, it is nearly impossible to time the market and figure out when to buy an asset at its lowest price. Therefore, for many, one of the most popular ways to accumulate wealth is through <\/span>dollar-cost averaging (DCA)<\/span><\/a>. This strategy aims to buy assets periodically at fixed time intervals. While everyone\u2019s entry conditions may vary, the most common method is a Regular Savings Plan (RSP) model \u2013 simply buying an asset after every fixed time interval, such as the first day of each month.<\/span><\/p>\n

With a DCA bot, users can automatically enter a position based on fixed time intervals or technical indicators. The DCA bot is designed to mitigate the risks of short-term price fluctuations.<\/span><\/p>\n

Grid Bot<\/b><\/h4>\n

Grid bots automate <\/span>grid trading<\/span><\/a> \u2013 a technique where orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. When you notice the market is trending sideways and assets are bouncing within a certain price range, this is an ideal situation to set up a grid bot and capitalize on price volatility.\u00a0<\/span><\/p>\n

Quick Start Bot<\/b><\/h4>\n

If you are a total beginner who is not familiar with the two strategies above and want to try trading bots out, don\u2019t worry. Quick Start Bot is a type of trading bot offered by BTSE that follows a pre-determined, long-biased strategy where the bot purchases an asset at multiple time intervals. Users only need to decide how much money to allocate to this bot.\u00a0<\/span><\/p>\n

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How to Set up Trading Bots on BTSE<\/b><\/h2>\n

Setting up trading bots on BTSE is easy. All you need is an email-verified BTSE account with sufficient funds to start. We encourage you to complete the <\/span>Know Your Customer (KYC) verification<\/span><\/a> on the platform so that you can use credit cards and bank transfers to move fiat funds into your account.<\/span><\/p>\n

Watch the video below for a complete guide on how to set up trading bots on BTSE.<\/span><\/p>\n