In the context of trading, consolidation periods actually offers a number of opportunities to make gains. In fact, these opportunities are further amplified by utilizing a Bitcoin trading bot. Market movements are going to be minute, so you would constantly need to open and close trades as you go along. As we have noted throughout our guide thus far, taking a manual approach to Bitcoin trading over prolonged periods of time not only leads to fatigue and irrationality, but you will only be able to trade for a certain amount of time. Ordinarily, you would need to sit at your device for a significant number of hours to scrape the small gains that are available in a consultation period.

Crypto Trading Hours

CryptoTrader is somewhat different from the other Bitcoin bot providers that we have discussed thus far, not least because it operates on the cloud. Moreover, if in certain situations you want to take over from the bot and trade an event manually, CryptoTrader can send you notifications when a particular price-point is triggered. We also like the fact that you can pre-test your strategies on all of the exchanges that the platform supports. Not only does CryptoTrader give you the option of building your bot from the ground-up via coding, but you can also purchase a proven strategy via the marketplace. As such, there is no requirement to run the bot on your system.

After all – and unlike the traditional stock markets, Bitcoin is traded globally around the clock. Ordinarily, the sophisticated nature of the financial and cryptocurrency markets means that we can only trade on one platform at a time. By this, we mean being able to trade on multiple third-party cryptocurrency exchanges concurrently. The second key – and equally as important metric to consider when assessing the benefits of a Bitcoin trading bot is having access to multiple markets. By programming your bot to operate on a 24/7 basis, you will never miss a key market development again!

Six Methods Learn Crypto Trading Will Show you how to Get Extra Business

However, when Bitcoin goes through a period of parabolic activity – meaning that its price goes up or down extremely quickly in a very short period of time, the disparity in pricing between exchanges can be significant. The great thing about arbitrage trades is that – if utilized correctly, they are 100% risk-free. What this means in the context of Bitcoin trading bots is that you stand a really good chance of making gains in the form of an arbitrage trade. For those unaware, an arbitrage trade is where you profit from the price difference of a single asset across two or more platforms.

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. For those unaware, this is where you have the chance to protect your gains when the markets are going in your favour, but at the same time, keeping a percentage of your order open to ensure that further gains are not missed. A trailing stop loss is one of the most powerful features that the Bitcoin trading bot can implement.