Since thousands of people already are engaged in - or are planning to try - Ethereum trade, bot solutions are in great demand. And it’s no surprise.
In a nutshell, an Ethereum bot is nothing more than a piece of specialized software. It connects to a certain exchange; then it automatically sells and buys ETH, according to the instructions you have set beforehand, as well as to the signals generated by technical analysis. It’s as simple as that.
However, you should bear in mind that such bots aren’t money-making machines. Contrary to a belief, popular with newbies, they are only tools, so much depends on how you configure and use them.
There are a few reasons for taking advantage of this kind of software.
It won’t overlook an opportunity due to being tired or distracted. It’s emotionless and has no opinion of its own. In fact, it’s nothing more than a bunch of algorithms.
It means that from the moment you launch an auto bot for Ethereum, it will do what you ‘told’ it to. Although it places buy and sell orders on your behalf, it is you who chooses the strategy, that is why your success or failure depends on your choices.
In fact, bots come in a of types, such as DCA bots, Grid bots, market maker bots, arbitrage bots, to name a few. The latter fall into two types, namely, market arbitrage and exchange arbitrage bots. The number of strategies they employ is countless; you can well come up with your own.
For those who use a crypto trading bot, Ethereum (ETH) certainly is just one of numerous cryptocurrencies available, yet one of the most popular. By the way, there now are two blockchains and two crypto coins related to Ethereum: ETH and ETC (Ethereum Classic). It is so since 2016, when the DAO, i.e., the decentralized autonomous organization launched on the Ethereum blockchain, suffered a massive hack. The founders forked the initial blockchain into two distinct ones, with a separate token each. Almost every cryptocurrency exchange offers both.
If you are keen on automated trading and don’t want to limit your activity to just one resource or waste plenty of time logging in multiple sites, WunderTrading is what you need. This platform offers easy access to as many as thirteen well-known and reputable exchanges. Its excellent interface is so user-friendly that even a beginner is unlikely to make mistakes when using it.
WunderTrading specializes mostly on automated buying and selling crypto. Here you can easily set up unlimited number of bots. With a trading bot, Ethereum or any other currency will be bought or sold according to the strategies you pick or build yourself. Nevertheless, if you prefer trading manually, you are welcome here, too.
One more feature that enjoys extreme popularity is copy trading. Beginners appreciate it because it relieves them from making choices all the time – and make them quickly, because this market is extremely volatile. It is stressful indeed, especially at the very start. Experienced users love this function because this function can bring them profit without much effort.
All you need is to subscribe to trade signals from a so-called signaler and configure your bot accordingly. Signalers are traders, whose performance record is available to all – at least at WunderTrading it is so. Whenever this person purchases or sells cryptocurrency, your automated tool will receive a notification about it and can make the same transaction. Therefore, you will be following the actions of a professional, who has better odds to succeed than, say, a novice who came to the exchange a few days ago and hasn’t yet learned how it all works.
But please remember that there is no such thing as some ‘one-fits-all solution’ or ‘the best strategy’ in automated cryptocurrency trading. Cryptocurrencies’ prices oscillate; it is extremely difficult or even impossible to accurately predict how the situation changes in an hour or two, not t to mention longer periods of time. The same is true for placing orders manually.
So, setting up your bots and choosing strategies is no joke. At the outset, you can use one of the available templates and adjust them later, fine-tuning them according to your needs.
And, of course, it is always recommended to take time and do your own research. Armed with the knowledge, you will be able to compose your own strategy, taking into consideration such factors as the market situation, your trading volume, the cryptocurrency pair you selected. and many more. It is hard, but it will pay in the future. And who knows, maybe in a few years you will become a signaler whose actions are followed by thousands of subscribers?