With the vastly growing popularity of cryptocurrency, it is easy to say that the digital asset industry is making its way into the mainstream.
Those traders who once exclusively dealt in conventional assets are now either in the process of treating crypto as an alternative investment, or are seriously considering the thought to do so. Whereas, those who have never traded any kind of assets are also enamored with the many gains and benefits which digital asset may bring to users.
But regardless of the fact that you might be an expert or potential trader wanting to benefit from cryptocurrency trading, diving into the nuances of digital assets and their exchanging mechanisms could take some time on its own.
With that being said, not everyone has the time to dedicate to the learning curve that this market asks of them. They would rather learn on the job, so to speak, even if it means operating with only basic knowledge during the initial days of their trading. In simple terms, anyone turning to crypto wants to earn more than they want to learn – which presents a very interesting requirement.
If you are one such conventional or aspiring trader who wants to start the journey with just some basic knowledge, then you are in luck. With cryptocurrency bots, you can pull
How Trading Bots Can Help You?
When any users turn towards digital asset trading automated options, they could make use of sophisticated mechanisms such as technical analysis and complex market indicators. This way, they can perform successful trades even without having a deep knowledge of crypto assets.
Tools that are made for users who want to trade in technology oriented way can help you when you don’t have time to learn complex mechanisms but still want to reap the benefits of digital asset exchanges.
Instead of having to set up your individual strategies, you could choose from preset strategies that are already associated with the automated trading tools themselves. Depending upon your fancy and type of the option that you might turn toward, you could also choose and ethically copy the digital asset movement strategies of other successful traders.
This way, your trading bot automatically analyzes the current conditions and makes buying and selling orders all by itself. Just remember to keep an eye on the end result, and adjust your tactics in case they are not working in your favor.
How to Choose the Easiest to Use Automated Bot Solution?
While cryptocurrency automated bot solutions come with the utmost simplicity, not all of them are built with the notion of pressing a button to start. You may not need to learn detailed trading strategies with an automated bot, but you still need to put in the time to choose a solution that is reliable, trustworthy, and secure.
This might seem like an extensive task especially when aiming to place in minimal time in terms of setup, but it is essential if you want to hold on to your initial capital and increase it several times.
When it comes to choosing the best beginner friendly crypto bot, make sure to keep a couple of aspects in mind. By doing so, you are able to choose an option that will likely not demand much from you while still providing the essential benefits that you seek from an automated trading vehicle.
Mobility
An easy to start trading bot must be one that is in the clouds. This means that it doesn’t need to have any installation on your system. It provides you with the simple access your dashboard from all computing machines, as compared to being able to run it only from a single computer.
It’s because installing a software as sensitive as a bot without the proper safety measures could leave you exposed to many security risks. When you do install the trading software, you often have to run it through a virtual private server (VPS), which is quite technical to set up and requires additional funds from your end.
Keeping this in mind, make sure that you move forward with options that are flexible, in the clouds, and will not require any extra effort from your end in terms of installation. Cloud-based solutions are all ready for use. You just will tap into the solution, register, and connect them with your exchange to start trading.
Free Plan
You also need to ensure to opt into a zero cost plan, or do yourself a favor, and go for the trial version of the automated bot solution. This lets you try it before you buy it.
This is also needed because most of these tools charges one for, in most cases, the entire month, with some of them selling annual or lifetime licenses only.
Being able to try the services and seeing how they are properly do the job lets you have the option of choosing one that is correct for you without having to spend additional funds on subscriptions or licenses. Some bots also come with a demo mode, which lets you simulate your trading tactics without having to spend any money.
Supported Exchanges
Look into this very crucial requirement, as it lets one to determine if an exchange is compatible with the automated tool or not.
Most beginner friendly crypto trading bots give access to prominent exchanges. This gives you the freedom to either operate with your existing account or create one easily with a user-friendly exchange.
Customer Support
Since you will utilize the automated solution as a new individual, it is essential for you to have the best customer support from the service while utilizing it.
Check for a propitiously setup knowledge base or FAQ section, as well as the availability of real, human support through live chat or phone/voice. While most do not offer voice support services, you would still find some that offer live chat support.
Doing so lets you seek help when you need it the most without feeling stranded amidst any issues. That is why, it’s essential that you select a trading bot that has substantial customer support services available.
Strategy
While the whole point of using a beginner friendly cryptocurrency bot is to not go through the whole learning curve that comes with different strategies, you will still need to have basic knowledge to understand what kind of strategy is being used by the platform.
Make sure to not go the whole nine yards and studying everything about speculation, but having some basic knowledge would let you make informed decisions about using a specific trading solution for your funds.
What Risks There Are for a Novice Trader?
Whenever you are about to trade cryptocurrency as a novice trader, you would be running into a few issues while also having to manage a number of risks. Understanding these nuances is essential to being able to earn off of your funds.
High Expectations
Understand that while these new options are extremely helpful in making beneficial transactions, they are in no sense a shortcut to unprecedented wealth.
Even while being highly accurate and very targeted, trading options can only do so much in terms of generating profits. Just like any other earnings generation mechanism, there would also be a few hits and misses on a daily basis whenever you make trades through a bot.
The crucial point here is to manage your expectations accordingly to understand that speculation tools are not a surefire way to a vault of gold, but a roadmap of slowly being able to generate consistent profits.
This way, you are able to manage expectations accordingly and make financial decisions that are beneficial for you.
Near to Zero Budget
Cryptocurrency trading is perhaps the best example of needing funds to make more capital. Similar to how you wouldn’t be able to delve into conventional trading without any funds to invest, you wouldn’t be able to make use of automated tools with only a few dollars worth of crypto in hand (that kind of amount often goes to exchanges in terms of fees).
Having more funds to play with gives you higher chances of making profits, while also diversifying your portfolio among different cryptocurrencies. In the long run, this helps you make beneficial trades while also protecting your funds from larger fluctuations in the market.
That is why, you need to make sure that you have substantial funds at hand before you start crypto trading or sign up with a bot.
Scam Projects
Just like any other financial sector, cryptocurrency isn’t free of charlatans who are out to get others’ money by any means necessary. You need to be very careful of trusting other entities with your funds.
That is where vigilance comes in. Before you hand over your exchange account’s information to a bot, make sure that it is only connecting with your account for trading and isn’t asking for any withdrawal access. With it, also make sure that you aren’t falling prey to a “pump and dump” scheme, where malicious parties use others’ funds to buy and sell crypto that will benefit them through manipulated market conditions.
The best option here is to choose those bots that are popular within the crypto community, and which have earned a certain kind of credibility through their services. Check online reviews on our website, niche forums, and even your friends and families’ comments if they are into trading. Afterwards, select a platform that seems to be reliable for its users.
Lack of Knowledge
Once again, lack of knowledge regarding basic trading aspects would be your downfall. If you are not aware of basic security mechanisms, strategies, and best practices, you would have a higher chance of running into issues.
Conclusion
As a beginner, the best way to go about choosing an automated trading bot is to keep the following aspects in mind, and go ahead with selecting a tool that comes with a free trial.
From there, you could move forward with testing out the services and see how beneficial they might prove to be for your specific earning mechanisms.
Services such as Bitsgap even have a Demo mode, which will allow you to test out everything without spending a penny. By using such a service, you will not only be able to determine the service’s ability to be a good fit for you, but you will also gain some much needed confidence with your strategies.
Remember, trading bots might not be a shortcut to immense wealth, but they definitely make the path of earning profits way easier. As long as you operate them with an air of vigilance, you would be able to keep your funds safe.