Automated cryptocurrency earning is the future of crypto trading. As the industry rapidly takes the world by storm, both green-horns and well-versed traders are on the lookout for new ways to maximize gains.
I have developed this article to primarily demystify the technicalities, profitability, and process of leveraging Automated crypto earnings, especially for newbies who are not vast in how trading bots work.
As a bonus, this article will also introduce you to the best crypto trading bots currently available in the Cryptorobotics industry that can help take your trading earnings to the next level as they did for mine.
If you own any crypto wallet, chances are you are searching for an easier, smarter, and overall better way to do cryptocurrency trading. Of course, the rise of technology-backed trading tools in the form of crypto trading bots has allowed this upgrade. But there is more to just knowing that these tools exist.
If you’re curious about what automated crypto trading bots are and how they can help you make more money from crypto, this is the right page for you!
What is automated crypto earning?
In simple terms, automated crypto earnings are the ability to make a profit from trading cryptocurrencies without human intervention. The process is facilitated by the use of crypto trading bots.
Trading robots are programs that use artificial intelligence (AI) and machine learning to determine the best times to execute specific cryptocurrency trades. By the virtue of this automation, the bots can perform trades on your behalf, automatically, based on preset algorithms, perhaps modified by the trader.
In other words, unlike other traditional crypto traders, you are maximizing returns with the aid of trading bots by leveraging AI that knows what trades to do and what time is best to implement them.
Is Crypto bot an illusion?
In the world of complex technology advancement, especially in financial technology, nothing is impossible. Investing in cryptocurrencies is a risk on its own, but more people believe that also investing their crypto in a bot sounds like a huge risk.
The good thing about automated trading is that it is not a new development. In fact, the advent of crypto is not what ushered in the invention of trading bots.
In the early 2000s, trading bots were developed to handle Forex trades. As automated trading and trading bots remain popular, they are now being integrated into the world of trading cryptocurrencies.
The apparent and conceivable risk factor in this AI is the rapid introduction of trading bots made by many artificial companies around the world, some of which are perceived to the scam. And so, finding a reliable one can be time-consuming but after you find the best one, you’re likely to record a drastic trajectory in your income from crypto.
Nevertheless, the use of automated crypto bots remains one of the quickest ways for many young crypto traders are using to earn income by trading cryptocurrencies.
How profitable is automated crypto earning?
When the conversation of automated crypto earnings comes up, one of the frequently asked questions people project is “How much can you earn with crypto bots?”
The average record of crypto bot users on giant review platforms on their earnings using variations of this AI technology ranges from $2000–3000.
But these vary for different traders. Many people have the ideology that everything will be good and bullish forever when they start using crypto bots but it does not always work that way.
How much you can amass from automated and conventional trading factors on your Knowledge, proper strategies, and experience?
Realistically, various factors are crucial to answering this as it varies for every trader. To begin with, the reaction of the market to certain incentives can not be determined aptly always.
While the use of these robots gives leverage over humans in terms of emotions, how much you are willing to stake in utilizing these tools can also reduce your earning capacity, compared with those who trade with thousands of dollars.
Reasons why experts use automated crypto trading bots
As cited earlier, even a newbie should know that the cryptocurrency market is characterized by high volatility as the cost of digital coins fluctuates within minutes.
This, coupled with the generality of the nature of trading, requires investors to participate in the cryptocurrency trading process continuously and can dramatically reduce the effectiveness of investors’ cryptocurrency trading at the end of the day.
It is for this reason that many smart investors consider integrating with a reliable and effective trading bot that will give them an edge.
1. Personally as a trader, I don’t always have the opportunity to respond promptly enough to price movement. But this constraint has prevented me from getting t successful and profitable trades in many cases. Many experts face this challenge and so the adoption of an automated trading bot is a solution.
2. In addition, to obtain the best result in cryptocurrency trading, one must have enough time to give due attention. This is why you see many investors monitor crypto exchanges 24 hours a day. This can take a toll on the time needed to be invested in another aspect of your life but the adoption of a good automated trading bot can eliminate this challenge.
3. Automated tools are made available to start trades and execute transactions instead of it being done by real traders. And so, Crypto trading bots do the automated buying and selling of cryptocurrency.
4. The automated trading ability of crypto bots is based on key technical indicators that allow them to implement different crypto trading strategies and bring traders a high percentage of profitable trades.
5. Some crypto trading bots allow for additional income streams that help expand the coffers of traders in terms of earnings.
Types of the crypto trading bots
The common type of crypto trading bot is the simplest one that earns money by buying and selling cryptocurrencies through the use of indicators of technical analysis such as SMA, RSI, MACD, etc.
They are the ones offered by many cryptocurrency trading platforms to ensure an efficient trading process. However, there are other categories of crypto trading bots which are:
- Advanced crypto trading bots
- Arbitration bots
- Market-making bots
- Crypto bots that have statistical arbitrage
- Crypto signal bots
Advanced crypto trading bots
Unlike the simple trading bots, tools that claim to offer advanced crypto trading bots have no established strategy. This means they are only ideal for advanced users as they can be configured from scratch on their own according to the specifications and preferences of the trader.
Arbitration bots
Here, automated revenue is made in the change in prices between a particular pair or different pairs on the same exchange platform. Traders also use this type of automated crypto bot to derive money from the rate fluctuations that occur between exchanges.
Market-making bots
The investment strategy of bots that are market-making is used to actualize liquidity due to filling up the order book with buy and sell orders. This function of the trading tool executes orders at any time without the intervention of market participants.
Crypto bots that have statistical arbitrage
This tool is specifically designed to identify the price tally between coins. Either low or high, the coin is either longing or shorting as they are ascribed to a certain rating. Crypto bots with support for statistical arbitrage are not ideal for green-horn.
Crypto signal bots
It facilitates the collection of trading predictions from different sources including social networks, blogs, media, and Telegram channels, among others, and then send the signal about changes in the market.
The received data can also determine the trading recommendations that the tool will proffer to the trader.
The bottom line is that there is no all-in-one automated crypto trading bot, as they are all uniquely functioning by the virtue of their programming. However, the success of any bot in maximizing your profit is how you have been able to configure it correctly and your understanding of the cryptocurrency trading bot’s actions.
Hence, one thing you should prioritize, especially when trying bots for the first time is to try trading with the robot in Demo or Test mode on the trading platform to be sure it is worth using.
Pros and Cons of the cryptocurrency trading bots for beginners
The speed of decision-making is a dominant advantage when it comes to using automated crypto trading that is facilitated by trading bots. Even experienced traders take some time to analyze the market situation, not to mention the speed of beginners. But the adoption of trading bots levels the playing ground.
While there are other advantages, it is not to deny the fact that there are downsides to adopting trading bots. Let’s look at these angles one after the other.
Advantages of the Crypto Bots
1. There is a wide gap between the efficiency of analyzing an unlimited number of crypto pairs by yourself and when the task is provided by bots where there are only ready-made results from the work.
2. Also, we may make mistakes during market analysis before we execute trades due to fatigue or psychological state of mind, but there is no room, for error in the algorithm when trading bots are deployed.
3. Aside from that, the trading bot gives room for 24-hour trading. So while you rest (which you need) the crypto bot works around the clock, which ensures a continuous process of cryptocurrency trading on exchanges.
4. Again, trading bots are not characterized by excitement. It works only within the framework of its algorithm. This is what every trader needs to eliminate emotion and encourage discipline.
Disadvantages of Crypto Bots
Cryptocurrency trading bots are not suitable for everyone. Some of the general downsides associated with using these AI tools:
1. Although many cryptocurrency trading bots products out there will claim that they provide users with predefined settings and templates, using these tools to maximize profit requires you to know how to customize such bots and how they function. You can record losses if you don’t set them correctly.
2. A lot of beginners in trading bots make the mistake of forgetting to control their bot after customization. Given the Volatility of the crypto market, bots can bring losses during periods of high volatility so they should not be left for too long without re-modification.
3. There are man replica and knock-off AI tools out there that claim to be crypto trading bots but are scams of pyramid schemes in real life.
4. The subscription of original and authentic trading bots for usage can be a discouragement. The ones with the free plan are recommended options for starters.
How do I choose a reliable cryptocurrency bot as a beginner?
If it is going to be your first time using a trading bot, chances are you will be referred or introduced to one by a friend, in a forum, on social media, or through ads. The primary things you should look out for before investing in any automated trading bot are The strategies to be implemented, ease of use, number of exchanges it can function with, price, profitability, and security.
The best crypto bots for beginners are ones that offer available editing parameters, support for certain technical indicators, and market information. There should also be an easiness of settings and using a crypto trading bot, depending on your skills and knowledge.
A golden rule of thumb is that the tool should be able to trade on all famous and popular exchanges. You also want to pay attention to the reviews of people who have already used this bot in their cryptocurrency trading.
The price of using the crypto trading robot, which is presented as a subscription plan should also be considered. Some are free, but not efficient, while some are too high which is a red flag.
You should also be able to calculate how profitable the trading process will be by using a crypto trading bot and compare it with the cost of using that tool. Most importantly, the Security of your data and funds, as well as the opinion of right-thinking developers society about the trading platform should be considered.
What are the best crypto trading bots for beginners today?
Today, the best crypto trading bots for beginners are ones that tick the boxes of strategies to be implemented, ease of use, number of exchanges it can function with, price, profitability and security, and brand trustworthiness.
Easy bot is one of the best-automated crypto trading platforms that help traders implement various strategies, increase the chances of making a profit and minimize the risks of losing funds.
The Easy bot company and the team have developed the 1 click strategy to help beginners in trading 24/7 and instantly make deals on exchanges at the best prices.
The software was inspired by the idea that crypto appeared to be hard to learn, confusing to understand, and laden with risk for too many people. The digital solution company, EazyBot, was established in 2021 and founded by Mohamed Ali who is also the CEO of the AI trading software company.
Offered in a Free and paid plan, the Easy bot crypto trading bot is designed for algorithmic trading and can independently analyze price fluctuations in the market as well as make a decision about entering or exiting a transaction.
Finally – How to get started with EasyBot crypto trading bot for beginners
Easybot trading robot works pretty much the same way as most competent bots out there, only that the software has been developed with a more user-friendly and simple-to-use approach.
To get started, one will need to create an account, create the bots, then configure the bot with the built-in winning strategies. Users also have the option to develop their strategies.
Check out my recent Ultimate guide article where I explained in depth how you can scale your crypto earnings from the scratch as a beginner to the zenith by using the Easy Bot crypto trading bot HERE
