Crypto Bots – How can traders earn passive income?
There are people who claim that you can trade profitably if you follow simple rules. You all remember those times when people shouted about cryptocurrencies from every iron! “Bitcoin has renewed its highs again! It’s already worth $10000, $20000, $30000!”
It seems that then it was simply impossible to stay away from this topic. Cryptocurrency exchanges have given access to trading tools to a very wide audience, and the overwhelming hype has forced many to learn how to use them.
How to trade profitably?
A bunch of experts on the Internet will be happy to answer this question. There are articles, books, and even instructional videos. People argue that there are simple rules that can be followed to predict price changes and make a profit.
You’ve probably heard terms like Fundamental Analysis and Technical Analysis, where the first one involves an in-depth study of the company, its market position, financial flows and products. Meanwhile, the second one is mostly utilized to search for patterns on the chart of the price of an asset or a currency pair.
Since everything is so simple, it is obvious that you need to write a program that would follow these rules and generate income!
We apply professional algorithms
One of the strategies used by algorithmic trading companies is Arbitration. It consists in exploiting the imbalance that can occur on the exchange between different currency pairs.
For example, sometimes you can buy 10 ether coins for 1 bitcoin, buy 100 litecoins for 10 ether coins, and buy 1.1 bitcoins for 100 litecoins. If the commission is less than 0.1 bitcoin, you have earned.
The short time span of the imbalance is called the “Arbitration Window”. Usually, its size is in units of milliseconds.
One of the best ways to earn income by trading cryptocurrencies is to use automated crypto bots. A fully automated crypto trading bot is a mechanism that trades automatically without the involvement of a real person. According to experts, it is effective, powerful and safe to use. When you want to earn some additional money from crypto trading it is a good idea to consider crypto bots. Finding one could be difficult but for sure after you find a proper crypto trading bot, it will do a lot of things for you.
Crypto bots started to appear with the development of artificial intelligence in trading. As the Internet and modern technology develop rapidly, it is essential to have automated trading systems to ensure the maximum efficiency of your work.
How Much Can You Earn with Crypto Bots?
This is a question that is different for every trader, and various factors can be crucial. First of all, you do not know how the market will react to certain incentives. Robots are of course better than humans in terms of emotions, but the absence of these emotions could sometimes be harmful. A lot depends on the size of your budget as well. If you have low amount of money, you are going to make less than the ones, who trade with thousands of dollars.
On average you are going to make roughly $2000-3000 but once again these numbers are individual for every trader. Some think that if they start using crypto bots everything will be good but it does not always work that way. Knowledge, proper strategies, experience are key pillars of success in crypto trading.
There is no easy money in algorithmic trading. It is an endless struggle in which those with the most resources win.
On December 18, 2017, the Great Bitcoin Crash occurred. By this time, some people realized they were not one step closer to success, and they decided to spend a lot of resources to improve their positions. With algorithmic trading, it was possible to manage a project that would benefit people.
This point of view is still close to many people: if you are going to use high-quality product the success will come soon. Money, time and effort are best invested in projects that will be beneficial.