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If you are into cryptocurrency trading you will agree that you have to constantly monitor and take trades to make a profit. 

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For instance, if you’re trading BTC/USDT on Binance perpetual you're going to monitor your trade to take a profit or stop a loss. 

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This comes with a lot of downsides, as you might be caught up with something else that in turn cause you to lose focus on your trades.

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However, because of human flaws, even the most experienced traders struggle to make consistently profitable trades.

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This is where automated trading plays an important role, which involves using trading bots to automate trades.

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Using Crypto trading bots for automated trading is beneficial because human flaws such as emotions are eliminated in trades, making them more likely to succeed.

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What are Crypto Trading Bots

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Bots that are used to automate trades are known as crypto trading bots. In essence, they are trade-specific programs that are run to produce specific results.

You can create trading bots to meet your trading demands, but you can simply just go to a crypto bot trading site like Bitsgap and start using trading bots with pre-defined rules.

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What is Automated Trading

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Automated trading also referred to as Algorithmic trading, enables traders to create specific rules for trade entries and exits that, once programmed, can be executed automatically by a computer. Automated trades are done with the use of trading bots.

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How Do Crypto Trading Bots Work

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Crypto trading bots are tools that help you automate your trades according to setups. They help you manage your finances, and they can also be used by a lot of people who want to invest in crypto without having to do it manually.

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For instance, the Bitgasp crypto trading bot helps you trade on multiple exchanges like Binance, OKex, Kucoin, Bybit, Bitffinex, Bittrex, Coinbase, FTX, and many others without any access to withdraw or tamper with your funds. 

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Trading bots are not exchanges where you can buy coins, they help you connect with an exchange to take trades on your behalf based on your strategic setups. 

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You can do more than just trading using trading bots; for instance, 3comma crypto trading bot has a feature called “HODL” that allows you to buy and hold cryptocurrencies at a lower price.

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All you need to make use of a trading bot is an API key to connect with an exchange that is interoperable with the bot.

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What is an API

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API stands for Application Programming Interface. It is a set of rules and procedures that allow two software components to communicate with each other using a set of definitions and protocols. 

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The main advantage of an API is that it enables developers to create applications that work together easily, even if they are from different companies or organizations.

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They also provide a unified interface for end users, who can access data from multiple sources through one interface.

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Example of Crypto Trading Bots for Automated Trading

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1. 3Commas

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3Commas is one of the most used crypto trading bots. It helps you stabilize your earnings in crypto while taking away some of the emotions that might result in losses.

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3Commas offer features like Grid bots, HODL bots, DCA bots, Options bots, Futures, and full portfolio management from a single and convenient interface. They also have an API that allows you to connect with third-party services such as Metatraders, IDEX, and ForkDelta.

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Their platform enables you to track your trades from anywhere in the world using an API key or your 3Commas account information. The platform has all the features needed for advanced traders who want to manage their cryptocurrency portfolio from an easy-to-use interface.

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2. Bitsgap

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Bitsgap is a crypto trading bot that offers a smarter way to automate your crypto trading. With Bitsgap you will be able to set up effective back-tested GRID and DCA strategies in a few minutes or build your custom trading strategies. With advanced tools, you can switch trade between multiple exchanges, and control your risk/reward ratio.

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3. Coinrule

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Coinrule is an automated crypto trading bot that empowers traders with the ability to compete with expert algorithmic traders and hedge funds without the need to know how to code. With Coinrule traders will be able to automate trades in their favorite exchanges including Binance, Coinbase Pro, Kraken, etc.

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Conclusion 

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Automated trading is a great way to make consistent profits without getting caught up in emotions and losing focus on your trade.  However, there are many different types of automated trading bots available today. 

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So which one should you choose? That’s dependent on the feature you want.

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