The cryptocurrency market is awake. Global and open to all, trading between asset pairs is always active. But you, a human, have been condemned by nature to sleepiness: you sleep at least six hours a day, losing investment opportunities in this volatile market. Why not use trading robots to earn bitcoins and cryptocurrencies 24 hours a day?

You must not stop sleeping. Prolonged sleep inhibition can play tricks on the mind. And while The Wolf of Wall Street seems to teach us the opposite, it's wisest to trade with a cool head, not an altered state of consciousness. These days, when software is king, you don't even need to use your own head to invest, you just need to choose the best trading robots or bots for Bitcoin and other cryptocurrencies.

What is it and why should you use a cryptocurrency trading robot?

What is a trading robot? Well, a worker, more efficient and dispassionate when investing. In particular, this software. These are programs that buy and sell cryptocurrency at the most profitable times, because they monitor the market and react according to certain predetermined rules.

How effective are these bots compared to manual operations, the person asks? Well, these bots are punctual and accurate; they don't hesitate, they don't fear, they don't eat, they don't sleep, they don't go to the bathroom. In fact, they are like a colony of clockwork ants or the realized fantasy of da Vinci about having an automaton that does unpleasant work for him.

A bitcoin and cryptocurrency trading robot can have two main purposes. First, simplify and automate the investment process. The robot can be responsible for diversifying your portfolio, building indexes, rebalancing your investments, etc. Second, a trading bot can compete in the market, seeking to maximize profits.

When and how to use a bitcoin trading robot

One of the best ways to take advantage of a trading robot is when you need something or someone to do repetitive tasks that require a lot of time and effort. That's when the trading robot reveals its potential and makes predictions on bitcoins and reveals crypto trading strategies.

Then most bitcoin and cryptocurrency trading robots work by linking software to an exchange. Therefore, it is necessary to conduct a proper investigation on the robot that we are going to use because it will have access to our funds. Do not forget that there are a lot of hackers and scammers on the Internet.

Here are some examples of functions that trading bots can perform, although it depends on the service:

• Schedule the robot to balance your portfolio every hour (adjust the relative weight of your investments);
• Analyze the market and, according to pre-set parameters, automate the opening of operations of a certain risk and potential profit;
• Monitor price fluctuations between exchange institutions during arbitration;
• Simplify routing strategies between different currency pairs.

"Can you trust a trading bot?" you may ask. Well then: the fact that the robot works automatically does not mean that you can choose any one and ignore the work.

In reality, a trading bot is nothing more than a "guidance boost" of your own brain, and while it may know some trading strategies that you don't (such as buying when the MACD indicator shows bullish movement), said bot will be as as good as you can make it.

Therefore, the trading bot is not without risk. Even though they are more precise and disciplined than a human, they still have a margin of error. Many scams are also disguised as cryptocurrency bot services. Just because a bot isn't listed doesn't mean it's a scam, but be suspicious and investigate. Also check: What are NFTs and what they mean for the video game industry

How to choose and configure a robot for cryptocurrency trading

There are different types of trading robots useful for different currency markets like Forex or capital markets like stocks and even derivatives markets which include futures trading. Cryptocurrencies are, of course, assets that can be traded by bots. These bots can perform different functions, depending on the purpose you want to give them:

• There are specialized in arbitration;
• Some engage in market making and place multiple buy low and sell high orders for the same asset;
• Some automate portfolio management;
• Others engage in technical trading, using indicators and signals to predict future price movements;
• There are also trading copy bots that mimic the investment strategies of other traders.

The settings of the trading bot depend on the chosen type of robot. Some platforms have services for beginners, such as signal bots (a tool very similar to copy trading), which do not require technical knowledge.