Using multiple BOTS trading Bitcoin? Here's what you should know
I'm Simon, a comedian and so-called crypto hobbyist. And just like you, I'm learning about trading as I go. In these videos, I do my very best to tell you as much as I can about trading apps, cryptocurrency, starting with trading, and much, much more.
It’s always good to spread your risk when investing. The same goes for when you use cryptocurrency trading bots. But what if you choose multiple bots that all trade in the same crypto, like Bitcoin? I’ve gathered information and expert advice on the dos and don’ts of automatic trading.
Sit back, relax and enjoy the story!
Spread those assets
Spreading your assets over several trading bots helps you avoid risk and get a steady return on investments. But how useful is this when all these bots invest their money in the same thing? You’d probably think that having 5 bots trading in Bitcoin, and expecting different results, is insanity. If the price of Bitcoin goes up, the bots follow. Does the price drop? Then so do the bots.
Right?
Automatic trading by algorithms
But it’s not that simple. You see, every bot is driven by a different algorithm and unique trading strategy. These algorithms are based on many more factors than just the currency. Where one bot might buy Bitcoin when it’s dumping — another might just buy-in when Bitcoin breaks out. This means that you could get completely different results from bots that share in the same crypto.
Spread the risk: get stability in return
Conclusion? Diversifying is a good thing! When you combine all the different behaviours of these algorithms, you get stability in return. Each bot behaves differently within the market. So, if the market seems a bit flat, some bots might do extremely well, while others just lie low. The more bots you have working for you, the bigger the chance there’s always someone performing well.
Would you like to learn more about the BOTS app or get some more trading in cryptocurrency tips? Just continue reading below.
See you soon!
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.
