How to Automate Crypto Trading with Bots?

Trading crypto assets is a demanding task associated with high stress and anxiety. However, it is one of the most profitable endeavors for any retail trader interested in earning as much money as possible by trading alone. You can leverage the power of crypto automation solutions to make sure that your strategy continues working even when you sleep.

What is crypto automation?

Contemporary CEX platforms have an Application Programming Interface allowing external services to connect and act on behalf of their clients. It is a powerful tool that became immediately popular among many developers who found various ways to apply artificial intelligence, scripting, and other new technologies to financial markets.

When we say automation, we mean a script executed in the cloud and commanding an exchange on what to do. The script follows a very simple set of instructions and can be utilized to trade any financial instrument. It just so happened that crypto is the most suitable domain for this particular product. 

Here are some reasons to automate crypto trading:

• Crypto markets do not have any downtime. You can trade cryptocurrencies and NFTs around the clock. It means that opportunities may present themselves when you are asleep. Crypto automation tools allow you to stay active 24/7.
• People tend to make mistakes when overworked, anxious, or under stress. One of the reasons why so many retail traders started employing various types of scripts is because they often hesitate or succumb to emotions when trading.
• You can get reliable performance. It means that the instructions that you give will be followed in the letter. To explore the potential of crypto automation, trade confidently and rely on stop loss settings to reduce risks.

How to automate crypto trading

All modern exchanges that offer spot trading and derivatives deploy API to ensure that they can attract as many customers as possible. The crypto industry is one of the most technologically advanced financial ecosystems in the history of humanity. The implementation of crypto AI automation seems to be natural and logical.

The demand drives the market and leads to surges in supply. We have hundreds of companies offering various ways to use cloud computing in finances. However, only a handful deserves your attention by providing a truly valuable service and excellent user experience. We will focus on a respectable company that offers a wide range of automation solutions to individual and institutionalized investors from across the globe.

WunderTrading is an established brand in this industry. It has many interesting products, but we are interested in just a couple:

• DCA bots follow the principle of distributed cost average strategy that instructs traders to buy smaller amounts of assets across a long period to reduce the average price. It is a good strategy when you need to accumulate assets. DCA at WunderTrading can be used to gain short-term profits on the spot market or build up a solid portfolio.
• GRID bots can significantly increase your productivity by following your instructions to buy and sell according to the settings during periods of market volatility. It can be extremely effective if you have a portfolio that allows for placement of many consecutive orders without being margin called.
• Arbitrage bots look for price discrepancies across several exchanges to make a profit on minute differences between platforms by purchasing on one and selling on another. You can also use triangular arbitrage when the bot looks for discrepancies between different asset pairs.

These preset solutions can be edited and adjusted according to your requirements, but you can also build custom solutions using external analytical platforms like TradingView, a powerful online terminal that has a bunch of useful tools like HashRibbons and Stochastic. You can use TradingView to generate signals that activate your scripts. It is a great way of using trading automation for crypto.

Here’s a simplified version of how you can set up a custom bot:

1. Register at WunderTrading and choose your plan. Note that this provider has a free plan that allows you to run up to 5 bots simultaneously.
2. Connect your account to one compatible exchange. The list of such platforms is quite long and includes Binance, CoinBase, FTX, and more.
3. Create a new bot and use TradingView as the source for signals that will be utilized by your bot. Follow the instructions on the official website of WunderTrading.
4. The bot will start running. It will receive signals and act on your behalf on the exchange. You won’t need to do anything.

If you have a good strategy based on technical analysis, you will be able to create bots that execute it without your intervention. WunderTrading offers powerful crypto automation software that does not need any supervision to perform excellently.

The main takeaway

You won’t need any technical know-how or programming skills to set up your bot. If you want to test a couple of strategies, use WunderTrading’s free plan and the cheapest plan on TradingView. You will be able to start using advanced solutions without paying much. Contemporary retail traders can access incredibly powerful instruments and pay pennies. Take advantage of the competitiveness in this industry!