There has been a rise in the number of individuals who use AI-driven crypto trading bots to increase their potential for long-term success in the cryptocurrency markets

In order to be successful as a trader or investor with a market-based strategy, you must be ready to seize any opportunity that arises at any given moment.

Crypto trading bots can help you automate buying, selling, or holding crypto assets, allowing you to focus on other aspects of your investment strategy or simply take advantage of market opportunities.

How automated crypto trading botsactually work

All crypto trading bots are built around the same fundamental principles; they all use artificial intelligence (AI) to carry out specific tasks in accordance with a set of rules. The following three core components of all crypto trading bots share a common goal: to better equip the user to seize market opportunities.

Generator: It is the job of this piece of software to make predictions. Information is taken in by the bot and used to make decisions about buying and selling cryptocurrency.

Risk allocator: By analysing order information, this module can determine how assets should be distributed. Options for selling or purchasing assets are considered at this stage.

Execution: The final module completes the transaction by transferring the holdings and executing the purchase or sale order.

Can automated tradinghelp you make profits in a bear market?

The market is having trouble breaking out of its bearish mood amid the ongoing crypto winter. Since the FTX collapse, trading volume on leading Indian crypto exchanges has dropped by 35-50%. As a result, you might wonder if trading bots can help you make money in a bear market.

Bear markets are often interpreted by novice cryptocurrency traders as a signal to avoid the market entirely until the hype dies down.

Consider the following – even professional hedge fund management companies, including the ones with the highest claimed success rate, are only able to carry out trades as fast as their human staff allows them to. Meanwhile, some automated trading algorithms, designed and developed specifically to employ the latest in machine learning technology and improve its market-predictive accuracy with each single trade, are able to carry out trades at a speed rate of 0.01 seconds. This is why a proficient crypto bot could easily gather small amounts of wealth with every single trade carried out, which – over a period of time and considering that the proficiency of the software improves with each passing trade – could very well lead to substantial gains which would otherwise not be possible from manual trades during a bear market.

Immediate Edgecomes to mind as one of the oldest and most renowned crypto trading bots on the market. Even though set up to only trade Bitcoin, it is consistently singled out by professional reviews as one of the world’s most reliable. This is because, its developers have embedded onto it a risk-aversion mechanism which would allow the robot to instantly terminate all planned trades during moments of high volatility and danger, even without any manual input. It is also entirely transparent with all trade activity, constantly notifying and updating users. But even should a notification be missed, the assigned trading funds will be kept secure by this mechanisms employed to avoid periods of extreme financial danger  – the ones leading to massive drops.

Unfortunately, the market is still unregulated and flooded with myriads of options purporting to be legitimate brands. In fact, when searching for the crypto trading bot brands, you might stumble upon several versions, all purporting to be the same trading software. However, pay heed that many of them are not the legitimate tools which they impersonate. They are merely fake copycats attempting to divert unsuspecting customers from the real brands.

CoinBharat explains how many of these sites employ deceitful and black hat digital marketing tactics (anything from cloaking content to scraping the text from the legitimate sites) and teaches its users how to immediately spot the fake, illegitimate bots from their authentic counterparts. It is of absolute importance to always take the time to read the reviews before choosing a crypto trading bot to deposit with, as otherwise you face significant risk. 

While it may seem risky to invest in a declining market, doing so could pay off when the cycle shifts the momentum and the charts turn green again.

How effective are automated crypto trading strategies?

Free or not, choosing a crypto trading bot requires looking at its track record, the reputation of its developer, and the opinions of other traders.

It is common knowledge that algorithmic trading, which has grown rapidly over the past decade, accounts for the vast majority of Wall Street’s trading volume. The same is now true of the cryptocurrency markets, with institutional investors’ trading activity gaining steam and far outstripping that of retail investors.

As a result, there has been a rise in the number of individuals who use AI-driven crypto trading bots to increase their potential for long-term success in the cryptocurrency markets.

Closing Thoughts

There are a number of crypto trading bots that make bold claims about how they can maximise your profits, but you should do your own research before putting any stock in those claims. Find out what other traders think of using trading bots after they buy Dogecoin with PayPal, and consult with industry professionals.

CoinBharat is currently India’s only review site which routinely evaluates and ranks various automated cryptocurrency bots and trading services. The technology has been around for a long time and the biggest investment companies have been using it to their advantage for a very long time (BlackRock’s Aladdin).Now, this technology which has helped the world’s elite churn even more astounding profits is finally made available to the wider public. You just need to know where to look for it!