Popular cryptocurrencies for automated trading
Coin bot is a special software that allows the crypto trader to set up automatic trading. It’s a great way to free up time, make trades more efficiently, and eliminate the emotional component from trading. If you easily succumb to momentary decisions that often break your strategy, a special bot will solve this problem. You just need to enter the appropriate indicators in the settings and connect your account to the exchanges you are using. Then the bot coin will trade according to the preset algorithm.
What is automatic trading?
Cryptocurrency trading has never been so easy with the help of special automatic platforms. To make a profit, a trader needs to perform the following actions:
- Connect an exchange account using the API.
- Select a trading pair.
- Specify at what values to sell/buy the asset.
- To get a profit.
Please note, that coin bots will not do absolutely all the work for you. For every pair, it is necessary to choose an optimal trading strategy, which will help to maximize profit. A bot is just a tool that helps automate the trading process. Although, certain platforms also offer their own strategies. They automatically calculate the technical entry point so that the user gets the maximum profit.
You should also not ignore features such as Stop Loss and Trailing Take Profit. They allow for more fine-tuning of the trading algorithm to reduce possible losses if an asset starts to lose value.
The best coins for automatic trading
As a rule, traders choose the most liquid coins for automatic trading, which will allow them to make deals as quickly as possible. Of course, this is only one of the parameters, you can set up automatic trading and less popular cryptocurrencies, but not all bots coins support them.
- Some of the most popular coins for automated crypto trading include:
- Bitcoin. The first cryptocurrency in the world with the largest market capitalization. No wonder that for many traders it is the main source of income.
- Ethereum. This is a cryptocurrency and platform that is used to create decentralized online services. Ethereum’s popularity grows every year, as does its market value.
- Litecoin. It is a fork of Bitcoin, which is also a frequent investment target among traders. Litecoin is created and traded without centralized administration, with the coin created on Bitcoin technologies.
- Tether. Another coin that is created on blockchain technology. Its main difference is that it is tied to the value of classical currencies: dollar, euro, yen, etc.
- Ripple (XRP). Most often, this coin is used in tandem with Bitcoin. The project was developed to compete with international payment systems such as SWIFT.
- Dash. Dash ranks 24th in terms of capitalization. Traders continue to trade the coin, though high volatility often gets in the way.
- Dogecoin. A meme cryptocurrency that has become very popular in 7 years of existence. The value of the cryptocurrency is very small, but the coin ranks 33rd in terms of capitalization.
- Stellar. The coin is an excellent tool because of its medium volatility and low price. Good for getting started in crypto trading.
Automatic cryptocurrency trading can also be organized with other coins. However, before that, it is necessary to make sure that the chosen bot supports it.