Using a cryptocurrency trading bot is the best way to trade crypto if you plan on doing anything other than buying and holding. The bots never sleep and they can execute your strategy 24/7 so that you are not stuck at a computer inputting a lot of manual commands. Using a bitcoin trading bot, for example, allows you to automate buying the lows and selling the highs when the market is dynamic. Using bots to trade crypto allows you to have your assets working for you to make profits and increase the value of your portfolio rather than sitting in storage.

Automated trading has already been proven to work over the course of millions of bot trades. The key thing is to choose a reliable trading platform that features cryptocurrency trading bots with proven track records. The platform should also be very transparent with performance data so you have the information you need to create a solid trading strategy. Automated trading works well when users pair a bitcoin trading bot or altcoin trading bot with a good strategy and third party signals on a crypto exchange with reasonable fees. There are many market conditions where holding is not a good strategy. If the market is rapidly going down, a bot that sells your assets and then buys them back at a lower price will result in significant gains to your portfolio when the market recovers. When the market is flat, a Grid bot can take advantage of daily fluctuations to grow your portfolio slowly over time rather than having your coins in cold storage doing nothing.

To set up a cryptocurrency trading bot, a trader needs to make a few decisions. First, which type of bot do you want to use? Then you need to pick which crypto exchange you want to use. Next, you need to decide which trading rules to configure the bot with. This includes the creation of a strategy that will determine how the bot trades, as well as choosing signals that determine when the bot trades. Alternatively, you can choose a preset template that has all of these trading rules locked in already, greatly simplifying the experience for the user.

Bots trade crypto by automating the manual commands a user would normally make. They rely on triggers, referred to as signals, to tell them when to execute the buy and sell commands based on conditionals you select. Think of it as "if X, then Y." These signals monitor the price movement of coins based on API connections with the crypto exchange, and then follow your commands when the market conditions are met. Multiple signals can be used to create complex trading strategies that are very difficult to execute manually. Common automated trading bots are DCA bots, Grid bots, Futures bots, Options bots, Arbitrage bots, and HODL bots.

A trader can make considerable profits conducting bitcoin trading or altcoin trading if they're using the right strategies and settings. A proficient trader measures success by profit percentage earned from their average trades, rather than raw totals. It’s not uncommon for experienced traders to average between 15-25% profit over the many crypto trades they do each week. New users will likely experience lower profit percentages as you learn more about how to do technical analysis of the market and how to fine-tune your bots to get better performance.