Crypto trading bots are cryptocurrency trading applications that allows users to trade Bitcoins with minimal efforts because it is automated. In the trading of Bitcoin and cryptocurrencies, the prediction of future cryptocurrencies prices is a very important aspect of making profits in the trading of cryptocurrencies with profits.
The better the prediction, the more profits you are likely to make because you can place orders at prices that are more likely to be fulfilled. And if that price is successfully reached, then you can sell or buy to short and make a profit with a higher probability. By better prediction, we mean a more accurate prediction and a quick action in predicting because there is a high volatility in prices.
Auto trading bots are popular for these and other reasons: They allow you to make quicker and more accurate predictions but there are more reasons for using these apps.
Reasons for using Auto Trading App
1. Accuracy in price predictions: Accuracy in price prediction, in this case, means a prediction such that there is a high degree of similarity between the predicted future buy/sell price and the actual future buy/sell price for which an asset trades.
Why this prediction matters is if you are intending to buy Bitcoin at a lower price currently and sell at a future date at a slightly higher price, the profit you make will depend on whether the future higher price is reached. In other words, accurately predicting the direction of the movement of prices helps place orders in that direction such that you make profits when the prediction comes true. Because the price is shifting in any of two directions (increasing and decreasing) all the time or even remaining stagnant, poor prediction with poor accuracy usually means you do not make that targeted price, not making any profit or loss or even making losses.
Automated cryptocurrency trading bots such as the HaasBot harnesses big data from massive sources, which reflect the factors that are currently affecting price movement. It is very hard for a human doing manual analyses to even do technical analyses or fundamental analyses that incorporate massive data that reflects the nature of the crypto market. Consider that crypto prices are affected by many factors from political to economic ones. The better all the factors are reflected in the analyses, the more accurate the pricing modeled.
2. Quicker analyses: Crypto markets are highly volatile. Humans can make predictions based on manual methods but before they even complete an analysis, the prices are shifted by a huge margin, such that the analyses won’t make as much sense. Unless you are trading in the long term.
Bitcoin Revolution like many other cryptocurrency trading bots will carry out technical and fundamental analyses very quickly and multiple times in a fraction of seconds to reflect a highly volatile market. That means they will not base their trading orders on previously and stale analyses since this can lower the accuracy as stale or old analyses may make no sense once market conditions change.
These auto trading apps are listening to data changes that reflect market changes and then use these inputs to construct new analyses and then construct new orders on the most current analyses. No matter how fast markets are changing, these bots are sensitive to provide with up to date analyses by acting upon new information.
3. Lesser errors in the Bitcoin trading activity: Manual trading processes come with possibilities of making very many errors: whether you are talking about poor reading and using of trading data inputs when doing technical and fundamental analyses, or errors in the formulating and placing of orders for instance when deciding prices, the opportunity for making errors is huge.
These errors can result in losses if not lesser profits.
Automated trading with the Bitcoin Revolution and other tools can help reduce the possibility of making errors in the trading process.
4. Take emotions out of the trading process: Emotions are not necessarily leading to erroneous trading. Whether advantageous or problematic depends on how used. However, crypto prices are highly volatile and the largest cause of trading-related actions – good or bad, and errors – intended or not – are emotions. That’s because, for instance, people might panic when prices are falling or maybe become too elated when prices are rising. Too often people make miscalculations or untimely decisions due to emotions attached to manual trading.
Thus auto trader bots reduce these chances by a huge margin.
5. Automate the trading process: The primary reason for automating crypto trading is to make more and huge profits. But as you will realize, it makes work of a trader a lot easier. No need for analyses or paying attention to crypto markets and news, although these are essential to back up your bot. Further, it makes it quicker to earn profits with some bots earning their users profits within hours of depositing and starting to trade.
6. Lowers cost of trading: Paying a broker or expert to trade for you usually comes at a higher cost even though most do not guarantee profits. Auto trading bots allow you to trade without any costs for the free tools or for very little cost in the case of tools that charge a little commission.
7. Commit to other tasks: Once you start up an auto trading tool, you only need to set aside about 20 minutes for checking performance and resetting the risk profiles and the amount needed to trade. And probably a few more minutes for plowing profits, depositing or withdrawing.