Bitcoin Trading in 2024: Leveraging the Latest Features of BTC Trading Bots

WunderTrading

MAKE YOUR CRYPTO WORK

Some of the more optimistic predictions for 2024 is that Bitcoin will reach a new ATH. While guessing the prices is never a good spot to engage in, one thing is certain: the Bitcoin market will certainly enjoy higher liquidity and trading activity thanks to the introduction of ETFs and the increase in general awareness of this incredibly valuable digital asset.

According to multiple surveys conducted in the finance industry, we can expect that the share of fully automate trading operations will reach its absolute peak in the nearest future. The arrival of capable expert AI systems will speed up the integration of automation technologies and various trading bots into the $BTC market. With over 65% of all individual retail traders already using automated trading systems in their investment activities, it is impossible to imagine a world where bots are underused by the community of crypto investors.

We will discuss some of the most important developments in the crypto market and which automation industry trends you should think about when contemplating which bitcoin market trends in 2024 will be influential and potentially profitable.

Great automated Bitcoin trading strategies to use in 2024

Automation provides a wide range of tools to inventive crypto retail traders who want to use a variety of approaches to build efficient automated trading systems. Since you can easily employ already existing products and still be quite successful in 2024, we think that it is important to inform you about some interesting ways to utilize bots profitably while trading Bitcoin.

  • Engage in high-frequency Bitcoin trading. Modern automation platforms offer a rich selection of trading tools to all their customers. You can run a complex GRID bots network and conduct thousands of operations per day without risking too much. While using such approaches to trading, you should avoid unnecessary dangers and take exchange commissions into consideration.
  • Use DCA buying to acquire assets. Bitcoin is the best cryptocurrency to hold for extended time. Distributed Cost Average is a time-tested method of buying assets. While you may use this system to trade crypto (i.e., DCA bots at WunderTrading), there is always an option to simply purchase and hold coins without selling them.
  • Run a custom Bitcoin Trading Bot and trigger it with signals from your technical analysis strategy. The TradingView platform is a great place to deploy advanced technical analysis systems that can trigger all sorts of bots. Picking the right strategy and appropriate indicators is essential for the long-term success of your automated trading system.
  • Use social trading products. Copying trades of experienced investors is the best way to make money in the crypto market for newcomers. The best bitcoin trading bots are often systems that simply copy what other retail investors do. It can be quite hard to find someone really good to copy, but it can pay off massively.

These are staple offerings from the trading automation domain and can be used to a great success. However, developers do not spend time idling and have new ideas that can dramatically change the landscape of the industry. Let’s talk about some of them.

AI-driven Bitcoin Trading Bots in 2024

If you haven’t been living under the rock for the last two years, you are aware of the excitement in the tech world as we improve machine learning for Bitcoin trading and other applications to design extremely efficient expert AI systems. Introducing artificial intelligence to the world of trading automation promises to deliver even more efficient and profitable products.

Here are several ways in which AI enhances many automated bots and change the way we think about using automation for crypto investments:

  • AI-assisted statistical arbitrage. Companies like WunderTrading experiment with the idea of allowing expert artificial intelligence to run sophisticated portfolio management systems. Statistical arbitrage is not the most complex of what is often employed by large investment institutions, but it is labor-intensive and requires dedication from a team of human traders. Artificial intelligence can run such systems without any significant oversight allowing even single investors to enjoy all the benefits of running a large statistical arbitrage model.
  • Improvements to GRID bots. DCA buying is an excellent strategy and can be automated quite easily. Grid bots are based on this approach and create multiple buy orders with predetermined sell orders down the line. With the addition of delayed stop loss and take profit orders, you can create an intricate network of lines on the chart (hence the name “Grid”). This approach can be further improved with some oversight from advanced AI systems. Companies like WunderTrading and Cryptohopper are trying to build efficient grid bots enhanced with artificial intelligence.
  • Trading signal generation with AI. Some scientists and financiers experiment with artificial intelligence to try and build new-age analytical approaches that can identify patterns better than humans. You can find exciting discussions on TradingView forums with experts and power users talking about the implications of using machine learning and expert AI systems to build advanced analytical methods that can perform better than average human retail traders.

We are nearly certain that the automation industry will evolve alongside the AI trend in the tech world. The most profitable Bitcoin trading bots of tomorrow will be powered by extremely capable AI systems with those who will be the first to adopt them reaping all the rewards. We strongly suggest all retail traders and crypto enthusiasts to learn more about the potential of artificial intelligence to change the way we understand trading.

Interesting Bitcoin bot features to use in 2024

We strongly believe that upcoming years will be quite tumultuous for the Bitcoin community. The introduction of crypto ETFs and the elevated interest from the financial community to $BTC promise incredible highs, but may lead to new ATHs through periods of insurmountable volatility and chaos caused by various events in the world of finance.

Focusing on building automated trading systems that can withstand the unpredictability and the chaos of the market in 2024 is the main priority for all retail traders. Here are some tips for those who want to create a robust automated trading system for Bitcoin:

  • Do not trade during periods of high volatility. You can employ a variety of tools to identify when market conditions are unfavorable for automated trading systems that may suffer from increased volatility. Make sure to have a technical analysis strategy to determine when to disengage bots and put them on pause.
  • Use delayed orders. Strategically placed stop loss and take profit orders can be incredibly beneficial for your automated trading system by helping you avoid unnecessary losses and securing optimal profits. Any automation vendor that allows to build and launch bots will give you an opportunity to adjust bot settings and choose where to put delayed orders.
  • Diversify your investments across multiple bots. Whether you want to focus on DCA buying or statistical arbitrage, it is a good idea to protect your investments with bots that have the opposite risk profile. For example, have a relatively safe grid bot to hedge against risks associated with running an aggressive custom bot.
  • Pay close attention to position sizes. Depending on your strategy and market conditions, different position sizes work better. You should adjust them and allow bots to place optimal orders. Do not allow bots to place orders that can compromise your portfolio by exposing it to unnecessary risks.

It is important to work with automation vendors that allow you to tinker with many parameters while you are looking for the perfect combination of settings. Since the market for Bitcoin is quite volatile and changes frequently, you should be also able to make adjustments in real time quickly. Choose vendors with simple and intuitive interfaces to not waste time.

Risks of Bitcoin bot trading in 2024

We may have optimistic views of the cryptocurrency market due to inherent biases of investing in Bitcoin and other tokens. If you put faith in the concept of decentralized finance, you will be willing to invest in all sorts of tokens. We strongly suggest sticking to the largest players in the industry, namely Bitcoin and Ethereum.

There are many risks associated with trading Bitcoin. All these risks directly translate into risks associated with using automation to trade cryptocurrency.

Here are some things to consider:

  • The economic uncertainty. The year 2024 is quite exciting for many crypto investors. We have seen the immense explosion of the interest toward Bitcoin from financial institutions as Bitcoin ETFs were approved by the US government. We can expect that other tokens will also follow suit. However, the increased regulation does not mean stability. Many things like the economy of scarcity, increased demand, and various events in the global economy can shake the market.
  • Technological risks. Many people are cheering up artificial intelligence and its potential to make everyone rich. However, we should not forget that expert AI systems are still untested technologies that can break down in many unforeseen ways. Until we have figured out everything there is to figure out about the technology, we cannot really say that there are no risks in running Bitcoin trading bots.
  • Safety of funds. The sudden influx of new players in the crypto industry marks it as a very lucrative target for many scammers and hackers who have been previously preoccupied with other things and ignored the crypto industry. With the arrival of such large capital holders as Fidelity Investments, BlackRock, and JPMorgan, we can expect a wave of new cyber attacks that can disrupt the market.
  • Regulatory risks. The last issue that we must consider is the fact that the introduction of Bitcoin ETFs did not make it safer to invest in crypto from the legal point of view. The US government is still debating about how to approach the issue if decentralized digital money. It is entirely possible that lawmakers decide to forbid cryptocurrencies in the US setting a precedent for other western countries to follow.

When it comes to Bitcoin bot trading, you should also remember that automation vendors can have technical difficulties which may result in losses. Centralized crypto exchanges also face technological challenges and security risks that often result in unexpected breaches and losses of funds. Automation is not all flowers and candy.

On the other hand, millions of retail traders are excited about trading the biggest crypto asset in 2024. It became slightly more attractive to average investors thanks to the ETF approval and will be traded with more vigor and intensity allowing many bot operators to benefit from the overall excitement and engagement in the $BTC market.

Should you start Bitcoin bot trading?

While it is impossible to correctly predict the direction in which the industry will take off in 2024, we strongly believe that it is impossible to avoid using automation to at least some degree if you want to create a profitable investment system. Bitcoin is the most promising of all crypto tokens and has the potential to reach new amazing heights.

If you do not want to risk your funds while practicing, consider using paper trading Bitcoin bots to test how your analytical methods work in real market conditions. After practicing and reiterating many times, you will comfortable to trade with real money. Without any automation, you will fall behind the competition and fail to reach profitability goals reliably. Learn more about new trends in automation and use bots effectively.

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