Johanes Ribli Gorilla Motivation:
It is impossible to be efficient in the crypto industry without introducing at least some automation in your trading routines. Without a bot, you will quickly fall behind other traders who do not shy away from using hundreds of bots running on various crypto exchanges. Beginners do not have the same luxury, but you can always start small and build toward a much larger portfolio and bigger profits!
If you want to start earning money reliably in the crypto market, you should think about using a crypto trading bot to enhance your ability to stay active even when other human traders are asleep. One of the best ways to do so is to run a bot 24/7. You can quickly start your automation script on the WunderTrading platform, one of the best providers of automation services in the crypto industry.
Why does automation work?
The crypto industry is an incredibly complex ecosystem with thousands of different financial instruments, new decentralized finance platforms, and novel concepts like NFTs and dApps. It means that a person who is just at the beginning of their investment journey will be quickly overwhelmed by the sheer volume of information. It is close to impossible to conduct meaningful analytical work when you cannot fathom the size of the industry and all factors that may affect the price.
Thankfully, technical analysis provides enough tools to deal with uncertainty and increase your chances of making a correct prediction. The main philosophy of this approach is that all the information required to conduct analysis is already included in the price. What it means is that prices are moving because investors are placing orders informed by the information that they have. So their decisions to sell or buy are based on what they know. Together, these investors form a consensus in the market and form a price that you see on the chart.
Automation leverages this idea by utilizing simple patterns that the market follows quite closely. For example, after each surge, the price will go down a bit to “correct” the sudden Bullrush. It happens in both directions quite reliably. It is also the foundational idea behind systems like DCA, GRID, and trend reversal strategies.
Why do these approaches work reliably when used in crypto bot trading strategies? There are several reasons:
Bots can outperform human traders because they can stay active around the clock while constantly searching for opportunities to enter the market. It is a great advantage in the industry that never sleeps.
A crypto trading bot for beginners is a great way to start learning about the intricacies of the crypto market by simply tracking the performance of the bot and making corrections.
Contemporary bots use data from services like TradingView and receive alerts from strategies that are tested by users and experts.
Robots never lose focus and place orders decisively without ever giving in to doubt, anxiety, or any other strictly human emotion.
There are other advantages of using automation such as low price, accessibility, ease of use, and more. However, these four reasons are quite enough to explain why automation solutions are so effective in the crypto market specifically.
The best way to learn crypto trading
Using platforms like TradingView in conjunction with automation vendors like WunderTrading is the best way to quickly learn how the market works. Technical indicators are excellent tools that allow you to gauge the market situation and make predictions about price movements. There are several indicators that you should pay attention to when dealing with crypto assets:
The relative Strength Index allows you to evaluate the strength of the current trend and identify a good moment for a reversal which is often the best entry point for a long-term position because the trend may continue for a long time. The general rule is to sell when RSI reaches the point above 70 and buy when it goes below 30.
HashRibbons is a unique indicator designed by a crypto specialist. This indicator is used to analyze Bitcoin specifically based on the available information about mining difficulty, hash rate, and block generation. It can also be used to analyze some other Proof-of-Work coins.
MACD is another indicator that can predict when the trend may change by showing you the probability of moving averages converging which will indicate that the market is ready to reverse the current trend in the opposite direction.
These three indicators are quite powerful, but you can further fine-tune how you use them by implementing these tools in the script and tracking their performance. You should also refer to the crypto trading bot tutorial on the WunderTrading platform to learn how to implement signals from TradingView in your script.
Some crypto trading tips for beginners
There are several basic rules that you should follow if you are new to the industry and have never used a bot before.
Use platforms where you can get something for free. Newcomers rarely have money to spare. Platforms like WunderTrading offer free plans that allow you to use the power of automation without paying a dime. It is a great opportunity for a novice to learn more about automation and various technical analysis tricks.
Before using an automation tool, read a crypto trading bot guide with relevant information. You can find a plethora of in-depth articles on the WunderTrading official website. Read how to set up bots and use them to great effect.
Use only user-tested systems that are featured by the TradingView platform. These are the best crypto trading strategies for beginners — already tested, easy to install, and cost nothing. At the same time, using such systems is a good way to learn more about the crypto market in general and advanced trading techniques in particular.
Always use stop-loss markers when setting up bots. It is one of the most important rules for any beginner because you must learn to cut losses first and how to make money second. Any Bitcoin trading bot tutorial will stress the importance of using stop losses to manage risks and reduce the probability of losing money on bad trades.
Johanes Ribli Gorilla Motivation