Keeping up with volatile cryptocurrency markets is a round-the-clock task. Seconds, minutes and hours can present valuable trading windows, meaning that some investors rarely step away from their PC or laptop.
Yet even the most avid traders cannot stay switched on all the time. Eventually, people need to take a break: be it to sleep, take a vacation, recover from illness or simply to relax.
Bots, on the other hand, can work without pausing. Many crypto enthusiasts are thus turning to automated assistants to keep their trading activities going whilst they clock off for some much needed rest. The bots use various indicators to spot trends in crypto markets and automatically execute trades, and function even when a trader has their computer switched off. When it comes to picking a service, traders have myriad options. Some bots are free, whereas other require expensive subscriptions.
It sounds like a straightforward way of making money, but unfortunately just picking a bot service and sitting back is not enough to guarantee a passive income.
Users must be cautious of signing up to potential scams or faulty software, as doing so can entail severe losses. In addition, the success of automated trading services depends greatly on a trader’s ability to set detailed parameters for guiding a bot’s activity. Without this there is a serious risk of incurring financial losses, as automated decisions will likely be carried out with minimal information on a user’s preferences.
Popular crypto bots online include Gekko, Cryptotrader, Gunbot, Haasbot, Profit Trailer and Gimmer. In a recent blog post on the Gimmer’s website, the founders outlined a new Virtual Private Server (VPS) tool, which give traders the opportunity to set specific “trading preferences, upload them to the VPS and let the bot handle the rest.” The platform uses advanced algorithmic trading bots that require no programming skills, making the platform “the perfect solution for beginner traders and full-time investors alike.” The decentralized structure of Gimmer’s VPS service, which uses a dedicated IP, also offers traders the assurance that their cryptocurrencies are secure.
The company views the VPS service as “something the community wants and needs” [link to blog] and aims to use their product to lower the entry barriers for prospective cryptocurrency traders, making trading available for all [insert link to blog]. A further advantage of using crypto bots is that they also dramatically reduce the high energy consumption costs incurred when running electronic devices around the clock.
Of course, traders should not assume that bots will guarantee profits; they by no means eradicate the need for human input. But with the right technology, both beginner and seasoned traders can enjoy more time away from their computer screens, without losing any trading time.
Disclosure: This article includes a client of an Espacio portfolio company