From its very inception, cryptocurrencies have been highly volatile with prices fluctuating within seconds. However, when it comes to investing outside the traditional system, most people fear the potential ups and downs that they may experience.
The crypto trading market runs 24/7, making it difficult for most traders to keep track of the market at all times. As a result, traders and investors often wake up to see a big fall in prices, and they could also miss an excellent opportunity to buy or sell if they are not watching the market 24/7.
There are several trading strategies for the human mind to process and most traders lose money due to emotional trading decisions. The volatility of the crypto market limits the effectiveness of human crypto trading in several ways. There are solutions to these challenges. One of the solutions involves using automated crypto trading bots to analyse and execute trades. Let’s see how crypto trading bots can help eliminate emotional decision-making in trading.
The Commonwealth Bank of Australia (CBA) is known to be the first bank in Australia to adopt cryptocurrency services. Some analysts predict that Bitcoin could surge above US$100,000 as the digital currency continues to gain traction from institutional investors.
According to El Salvador President Nayib Bukele, legalising Bitcoin could increase investment opportunities in the country. Notably, El Salvador is the first country to accept Bitcoin as legal tender. These adoptions are pointers to a possible new era of decentralised finance (DeFi).
The question is, how can you take advantage of this wave in crypto without being too emotional about your trading decisions?
To be successful in the crypto market, investors or traders require various trading skills but none is as essential as the trader’s mindset. Research has shown that experienced traders detach their emotions from the constant fluctuation of prices in the financial market.
You might be thinking of how to control fear and greed in trading the financial market, right? Automated trading bots can help you eliminate emotional decision-making and increase your profit potential.
Automated crypto trading bot explained
Automated crypto trading bot uses algorithms to help you trade cryptocurrency without you having to spend much time on your computer watching the market. Based on predefined data, trading bots can analyse and interpret price movement. They can buy/sell any asset for you.
Having a crypto bot is like hiring an expert to trade for you while you sit and watch your portfolio increase. While a human investor might find it challenging to analyse the market constantly, an automated trading bot is most likely to execute good trades since it works 24/7.
You can automate entry and exit rules and allow bots to monitor and execute trades on your behalf. Also, one of the attractions of trading bots is that it reduces emotional decision-making in trading since most of the trades are taken when the market meets predefined criteria.
Advantages and disadvantages of automated crypto bots
Below are some advantages of having a computer monitoring the market and executing trades on your behalf.
- Unlike humans, the bot trades round the clock.
- The bot can process vast amounts of market data and instantly execute orders according to defined parameters.
- They save time and prevent traders from making careless trade decisions.
- Lack of emotional trading and strict adherence to a trading plan.
Disadvantages of Automated Crypto Bots
- It might be difficult for a trading bot to quantify market sentiment. Hence, it still requires monitoring.
- Technical glitches can occur.
It is worth noting that while the advantages of using an automated trading bot outweigh its disadvantages, it’s not a get-rich-quick scheme. However, it can be a source of passive income for an investor.
Let automated trading bot take care of your trading
Most people are not aware of their emotional approach to the market. Therefore, you might want to use automated trading instead of allowing your emotions to get a better hold of your trading decisions. Analysing and predicting the crypto market can be difficult. However, controlling your emotions is necessary for successful trading. An automated bot can take care of the emotional burdens and make profits for you.
Best bot for traders: GTAI Trading Bot
Galaxy Trading Artificial Intelligence (GTAI) is a world-class AI trading plus arbitrage system designed to help crypto traders maximize trading profits while minimizing risks and losses. Galaxy Trading Analytics (GTA), the leading regulated Fintech company founded in 2022 by a team of AI and Deep Learning experts that created the Bot. They have constructed a clear and transparent system that conducts trading transactions according to the parameters set, and have connected investment tools and financial protection algorithms to it. There are currently 4 proprietary trading and arbitrage strategies implemented, with more trading strategies that are currently being developed and will be added to GTAI once more stringent tests are being done.
Traders can choose between two Packages, A or B in their user-friendly App, where in Package A, the only thing traders need to do is set perimeters of the AI Bot and let the Bot do its work, while traders control 100% of their funds in their crypto exchange accounts. GTA claims that traders’ monthly estimated gains could be between 2% to 8% depending on crypto market conditions.
Traders can also go for Package B, where traders will get access to a dedicated team to monitor their trading on their behalf, deploying the right strategies according to the market movement. There will also be active risk management in place, 24 hours a day. Package B also grants access to higher leverage using liquidity pools, which means higher and more consistent profits by more powerful AI bot, going between 3% to 36% monthly gains. Both options can be selected at the same time, they are suitable for beginners, advanced or expert traders, and participation start from as low as $100.
The high volatility of the crypto market makes it very difficult to take trades without being emotionally attached. However, you can avoid chasing futile gains or selling your cryptos in panic by using an automated crypto trading bot.
Every investor seeks to make a profit even during a bearish market. However, research has shown that following a defined strategy and staying on course through market volatility increases profitability. Automated trading bots help investors stick to a trading strategy and eliminate emotional trading decisions.