Building a strong crypto portfolio takes time and effort. On the one hand, moving funds into the crypto market is easier than ever, thanks to better onramps and a broad range of ways to buy. Account verification is quicker than ever, making signing up for a crypto exchange and trading within 15 minutes possible. But it’s not as simple as picking a few crypto assets, hitting “Buy,” and waiting for your investment to be 10x.
Timing the Market Beats Time in the Market
Even if you’re smart or lucky enough to buy the right cryptocurrencies, the odds of entering at the perfect moment before sitting back and watching the profits accrue are slim. Timing is everything when entering the market ? just as when exiting. No asset goes up only: even if its price increases over time, its gains will be punctuated with dips. Professional traders aim to profit by timing their buying and selling, using indicators that can help indicate when an asset is overbought or oversold.
But what about traders who lack the time or experience to “baby” their portfolio, watching the chart and trying to catch every leg up and mitigate every leg down? For such investors, automated trading solutions hold significant appeal. By automating the arduous part of repeatedly buying and selling, it’s possible to liberate yourself from the daily grind of trading. By harnessing a good crypto trade bot you can maximize your profits, growing a modest portfolio into a serious stack.
Efficiency Through Automation
Bots are code-programmed to execute trades when specific market conditions are met. When this occurs, the bot is triggered to enter or exit a position. Some bots are programmed to copy the trades of others, allowing experts to share their trading setups with amateurs. Other bots are designed to execute small buy and sell orders over and over, thereby profiting from the price movements that are a daily and hourly occurrence. Numerous other crypto trading bots are on the market, designed to handle everything from arbitrage to high-frequency trading.
Some people want to build a crypto portfolio through constant trading, but others favor a passive approach. Once again, a good bot can prove its worth here. For example, you could set up a DCA bot to make small buys of a specific asset when it moves down in price and to make sales when it moves up in price. Leave a DCA bot to do its thing, and you can build a crypto portfolio without sweating every market move.
Machines were conceived to free humans from the drudgery of repetitive tasks. While trading comes naturally to a select few, it is a means to an end for most people. And if that means can be outsourced with greater results, so much the better. Assign the grunt work to an auto trading bot, and you’ll be free to view the bigger picture while watching your crypto portfolio grow.
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