That is why at Bybit, your reliable Crypto Ark, we are always developing next-level products to help you to optimize your trades. In our arsenal of innovative tech solutions, our trading bots perform particularly well in helping you to trade better — specifically our Spot Grid Bot, Spot DCA Bot, and our latest addition, Futures Grid Bot.
But First, What are Trading Bots?
Trading bots are automated tools that leverage the use of one or more smart technologies like artificial intelligence (AI) and machine learning (ML) and execute trades on behalf of their human investors.
Trading bots run on code that is written for specific objectives. Depending on your risk appetite and investment goals, you can employ the use of trading bots that use different trading strategies, such as grid bots for grid trading strategies, or DCA bots if you prefer Dollar-Cost-Averaging.
Let’s look at six ways Bybit’s trading bots can help to optimize your investment decisions.
24/7 Smart Trading
Crypto never sleeps, and unfortunately, humans do. A grid trading bot can perform trades and execute your predetermined investment decisions 24/7, without the need for constant monitoring.
Grid trading is a trading strategy that involves placing orders above and below a set price using a price grid of orders. The price grid consists of orders at incrementally increasing and decreasing prices. Using this strategy, traders would repeatedly buy at the pre-specified price and sell the position when it reaches a predetermined price point.
Grid trading strategies shine particularly in a sideways market, where prices fluctuate within the borders of support and resistance. Bybit’s grid trading bot can make your crypto investments more fruitful, without having to constantly pore through price charts and crypto news.
In it for the long run
If you’re accumulating crypto for the long term, DCA trading bots sit well in your portfolio. As the name suggests, such trading bots help you to automatically invest a fixed amount at regular intervals, regardless of the price of the coin.
This strategy reduces the impact of market volatility and helps you to average out the cost of your trades, thereby maintaining a cost price similar to the market average. In particular, this strategy is ideal for investors who are bullish on an asset and can HODL for a longer time frame.
Read more:, Learn How to DCA With Bybit Trading Bot,
Providing Market Liquidity
The use of grid trading bots provides liquidity for the exchange. Grid trading bots ensure that you pay the maker fee, which tends to be lower as you provide liquidity for other traders, as opposed to taking them. Grid trading bots work best in sideways markets with no clear direction. Such markets are characterized by large and frequent price spikes. The trading bot can then convert these spikes into profit for the trader.
Read more:, How to Use Bybit Futures Grid Bot,
Make More Out of Market Volatility
While market volatility can be a stressor for even the most seasoned of traders, it also presents opportunities for astronomical gains. Grid trading bots eliminate the issues from human factors such as stress and emotion, and give traders the ability to monitor the market and execute well-analyzed trades at any hour of the day. Grid trading bots can be used to reap profits across short- and long-term trading strategies by setting different parameters.
Automate Your Investment Decisions
Let’s face it, humans are not as perfect as we wish to be. Trading bots make up for our shortcomings by being highly logical, precise, and emotionless. Trading bots can handle varying levels of sophistication in trading, be it automating a trading strategy on a single trading pair, or routing trades between assets for a diverse portfolio. DCA trading bots take the hassle out of DCA investing by performing the monthly trade on your behalf, which makes it perfect for investors who prefer a more passive approach.
Learn more:, How to Automate Your Trades 24/7 With Trading Bots,
Diversify Your Portfolio Across Strategies and Markets
Cryptocurrency trading can be complex and requires intricate research and decision-making, all of which can take up a big part of your life. While portfolio diversification is one of the key tenets of investing, it can be a herculean task for the time-strapped. This task can be easily delegated to trading bots, that do well in managing your investment portfolio and maximizing your gains. Spreading your funds across various assets is a good way to soften the impact of market fluctuations.
In Short
Whatever your trading strategy is, there is a trading bot that can make it better. Be it to simplify steps or to take the guesswork out of investing, trading bots are useful tools to wield in your investment journey. They can make up for human factors such as the inability to track the markets 24/7 and emotion-driven trading decisions. These bots are simple to set up and could be vastly time-saving and rewarding in your investment journey.
Make the most out of your trades with Bybit’s trading bots now.
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