If you’re a seasoned trader in the traditional financial markets, then you’ll know that the vast majority of the industry is now dominated by automated bots. With that being said, it was only a matter of time before automated bots made its way to the ever-growing Bitcoin trading scene. Typically, these are designed, built, and managed by top-tier financial institutions, with the underlying algorithms so advanced that the average joe has no chance of knowing how the bot operates in practice.

However, Bitcoin continues to crash, meaning that that emotional trader lost significantly more than they would have done had they exited the position at the -7% mark. As such, a Bitcoin trading bot completely alleviates the threats of adverse emotions and irrational thinking, which is crucial. So now that you know some of the many benefits that Bitcoin trading bots can offer, in the next section of our guide we are going to look at some of the key trading strategies that an automated bot can execute on your behalf. With that being said, a Bitcoin trading bot would not have made the same mistake. Don’t forget, trading bots do not have the capacity to ‘think’, rather, they simply mirror the actions that you program within the software algorithm.

Bitcoin trading bots are not only useful when the markets are on the up. If the bot has been programmed correctly, then it should be able to differentiate between a bull and bear market, meaning that it can execute sensible trades as and when a key movement occurs. Once again, the bot will only perform trades based on the underlying software that it has been programmed to follow, so do bear this in mind. On the contrary, they also have the capacity to execute orders when the markets are going down.

Alternatively, you might decide that you want your bot to trade multiple pairs. Some will offer various subscription packages, with the more expensive plans offering a higher number of tradable pairs. Take note, some providers will limit the number of pairs that you can trade at any given time. Once you have decided what pairs you want to trade, you then need to determine whether you want to build your own custom bot from the ground-up, or simply purchase a pre-programmed algorithm that is already active in the market.