Popular cryptocurrencies for automatic trading
Coin bot is a special software that allows a crypto trader to set up automatic trading. This is a great way to free up time, trade more efficiently, and remove the emotional component from trading. If you are easily succumbed 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 from the exchanges used. Further, the coin bot will trade according to the specified algorithm.
What is automatic trading
With the help of special automatic platforms, cryptocurrency trading has never been so easy. 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 an asset.
- Get profit.
It should be understood that coin bots will not do absolutely all the work for you. For each pair, it is necessary to select the optimal trading strategy that will help maximize profits. 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.
Also, you should not ignore such functions as Stop Loss and Trailing Take Profit. They allow you to fine-tune the trading algorithm in order to reduce possible losses if the asset starts to lose value.
Best Coins for Auto Trading
As a rule, for automatic trading, traders select the most liquid coins, which will allow them to conclude transactions as quickly as possible. Of course, this is only one of the parameters, you can set up automatic trading with less popular cryptocurrencies, but not all coin bots support them.
The most popular coins for automatic crypto trading include:
- Bitcoin. The first cryptocurrency in the world with the largest market capitalization. It is not surprising that for many traders it is on the main source of income.
- Ethereum. It is a cryptocurrency and a platform that is used to create decentralized online services. The popularity of Ethereum is growing every year, as is its market value.
- Litecoin. This is a fork of Bitcoin, which is also often an investment among traders. Creation and trading of Litecoin without centralized administration, while the coin is created on Bitcoin technologies.
- Tether. Another coin that is created on blockchain technology. Its main difference is the binding to the value of classical currencies: the dollar, the euro, the yen, etc.
- Ripple (XRP). Most often, this coin is used in tandem with Bitcoin. The project was designed to compete with international payment systems such as SWIFT.
- Dash. By capitalization, Dash ranks 24th. Traders continue to trade the coin, although high volatility often gets in the way.
- Dogecoin. A meme-cryptocurrency that has become very popular over the 7 years of its existence. The cost of the cryptocurrency is very small, however, in terms of capitalization, the coin takes 33rd place.
- Stellar. The coin is an excellent instrument due to its medium volatility and low price. Good for getting started with crypto trading.
Automatic cryptocurrency trading can be organized with other coins. However, before that, you should make sure that the selected bot supports it.