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Automate Your Crypto Trading: Build Crypto Wealth on Budget

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by Andy Watson · 4 min read
Automate Your Crypto Trading: Build Crypto Wealth on Budget
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Incorporating automated crypto trading into your strategy may be the missing piece to building crypto wealth on a budget. 

The old adage, “it takes money to make money,” while not always accurate, is, in most cases.

When it comes to certain ventures, like trading, it certainly helps, but there are different strategies within the sector that even the smallest of account sizes use to maximize their capital truly.

If your goal is to build crypto wealth while on a budget, and you haven’t considered automating your trading by using a crypto trading bot, then you’re missing out, especially for those looking for passive income opportunities.

There are a lot of misconceptions about this process, but here’s the truth.

It’s Not So Bad

It can sound intimidating, especially if you’re like most traders with no previous experience coding or operating trading bots.

Some years ago, this process was nearly exclusive to programmers, and indeed a deep level of technical understanding was needed; however, times have changed, and now, there are automated trading options to accommodate even the greenest of traders.

Currently, many platforms provide automated trading services, and most have different “levels” of options for their products, attempting to meet the various needs of such a diverse market.

Though there are trading bots that require a fair bit of user input before they can function correctly, those are usually like that for a reason, where the trader can input their own trading strategies to automate it.

There are also automated bots that come pre-set with a specific trading strategy and can be deployed with a few clicks of the mouse.

And for those who may be looking to experiment by using strategies that proven professional traders use, they can always implement “copy trading.”

Copy trading is when experienced traders publish their personal winning strategies to the public to replicate and automate for a fee. It allows newer traders to maximize their accounts without blowing them up while also providing the publishing trader with additional revenue streams.

It’s a Little Different…

Although trading with larger account sizes usually makes it easier to make more money compared to trading with smaller accounts due to sheer volume and buying power, this stigma was created around the traditional markets, and, well, crypto is a bit different.

Firstly, the traditional markets are only open five days a week from 9:30 am EST to 4:00 pm EST, except for some holidays. In contrast, the cryptocurrency market is ongoing; it never stops, and it never sleeps.

Additionally, when placing trades in the traditional market, every trader usually has to deal with something called “T+2” or trade date plus two, meaning the trading transaction’s funds cannot be accessed for two days after the trade date.

This can be a huge inconvenience, especially for those trading with smaller accounts, as it ties up their working capital.

Since the T+2 rule doesn’t apply to crypto and it’s always open, it allows traders more chances to profit as they “scalp” or enter trades with the goal of making very small percentages, exiting quickly, and repeating the process.

Small gains made consistently, repeatedly, and for extended periods adds up – but one person can only devote so much time to this process; that’s where automated trading steps take over.

1% profits on trade may not seem like much, but imagine being able to do that five or even ten times in a day, over a week. That’s 35-70% profit a week.

Not to mention that the speed these bots operate is far superior to the results that any human can produce.

Making Money While You Sleep

It’s perhaps the ultimate goal for anyone who considers themselves to be any bit interested in money, how it works, and is interested in accumulating it.

Albeit there will likely be a learning curve at first (as with most new ventures in life), once finely tuned and optimized, automated trading bots indeed have been making traders money while they sleep for some time now – it’s by no means a new concept.

How often the bots need to be checked is solely up to the trader using it; however, daily check-ups may be a wise practice, especially due to the nature and frequent changes in the market.

It’s common to find traders running multiple bots simultaneously and for small amounts. Usually, it’s a process of elimination as they filter through the bots, seeing which ones are most effective and then honing in or even deploying multiple of those.

Platforms that offer these services usually provide many resources such as guides, tutorials, and sometimes even customer support to ensure that their customer is getting the most out of their product and trading experience.

Incorporating automated crypto trading into your strategy may be the missing piece to building crypto wealth on a budget.

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Andy Watson
Author Andy Watson

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