In crypto, prices move non-stop, which means waiting around isn’t an option. Markets are open 24/7, making it impossible for traders to keep up with every market shift.
Enter crypto trading bots – a way to automate your trades based on market movements. Grid trading bots in particular, are a popular choice as they take advantage of market volatility by automatically placing buy and sell orders at intervals around a set price. All without human errors or emotions involved.
What is Grid Trading? Grid trading sets up a series of orders, both buys and sells, above and below a set price. It’s simple—buy low, sell high. Picture this: you place buy orders every $500 below Ethereum’s current price, and sell orders every $500 above. As the market moves, your bot buys dips and sells peaks, all while you do… nothing.
Grid trading bots especially thrive in sideways markets, allowing traders to profit from fluctuating prices. It’s highly automated, customisable, and ideal for reducing risk while boosting liquidity and diversification.
Let’s break down the top reasons why any crypto trader can benefit from using trading bots.
Top 5 Reasons Why You Need Trading Bots
#1: Always buy low and sell high
How many times have you missed buying the dip? Or timing the top? We’ve all been there.
The key benefit of grid trading bots is that they time the dip and the top for you. What’s more, they remove the manual trading aspect by entering these positions when the highs and lows are hit.
You’ll be saying bye to continuous monitoring of price fluctuations. You’ll have orders at several low entry points, as well as ones to be executed at higher selling levels.
#2: Fully customisable and code free
BitMEX Trading Bots are plug-and-play. You don’t need to be a market wizard. All you have to do is set your desired trade parameters, and hit play.
With no coding knowledge required, you can configure any trading bot to your liking: set your grid’s upper and lower limits, the number of trades, and the space between the orders.
#3: Automated trades
Trading bots operate logically – meaning they’re free from emotions like greed or fear. They’re designed to perform predetermined tasks separated from market sentiments or trends. Once its parameters are set, it executes without bias, which make it optimal for volatile markets.
It’s the perfect starting point for traders who don’t have the time to monitor markets constantly, and wish to eliminate the chances of impulsive decision making.
#4: Remove emotions from trading
It’s common for crypto traders to sell too early, too late, or vice versa. With trading bots, you can forget the emotional rollercoaster.
Trading bots are purely rule-based and operate on predesigned algorithms, ensuring full discipline and consistency – unlike most human traders.
Reason #5: Profit in quiet markets
Quiet markets in crypto are especially hard to navigate.
When markets are slow but seem to be fluctuating within a particular range, you can look to trading bots to continue trading and turn the market lulls into profits. This could be especially useful for traders who are unsure where to look for amping up their portfolios during quieter markets.
Looking for more information? We’ve got a range of educational resources to guide users through topics such as the types of Bots on BitMEX, how to choose the right Bot for you, and more. You can find them under the Trading Bots section of this page.
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