Is it worth Investing in Bitcoin using Crypto Trading Robots in Germany?
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Loading... - Chiara Accardi
- 27 Jun 2022
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To be a profitable crypto investor, you must be able to buy crypto at low prices and sell at high prices. Therefore, having a well-planned and proven strategy is important to make profits in the crypto market.
In this guide, we will discuss different strategies to invest in Bitcoin using crypto robots or bots.
Main Crypto Trading Robots in Germany
There are many crypto trading robots available to German traders, but they are not all the same. Trading bots can help you automate your trading processes and enhance your chances at making profits.
According to the positive reviews received from Bitcoin traders in Germany, we found that the best crypto trading robots in Germany include:
â— Bitcoin Pro
â— Bitcoin Motion
â— Bitcoin Prime
In relation to Bitcoin Prime, we found a review from the German crypto site Cryptomonday.de, where it says that it could be a good entry point for new traders, as it has a demo account and access to a video tutorial that explains everything you need to know to get started with the robot, “Bitcoin Prime ist ein guter Krypto-Handelsroboter zum Ausprobieren, und basierend auf unseren Bitcoin Prime Erfahrungen, wenn du auf der Suche nach einem automatisierten Handel bist, der den Handel mit Krypto-Trading nicht verkompliziert, ist dieser Krypto-Trading-Bot eine lohnende Anlaufstelle”
This translates in English as “Bitcoin Prime is a good crypto trading robot to try, and based on our Bitcoin Prime experience, if you are looking for a crypto robot that does not complicate the cryptocurrency trading process, Bitcoin Prime is a worthwhile place to start.”
Additionally, other robots such as Bitcoin Pro, have really gained a wide user base in Germany because of their efficiency.
Best Bitcoin Trading Bot Strategies in Germany
Based on goals and risk tolerance, here are some Bitcoin trading strategies for German investors:
1. Arbitrage
An arbitrage strategy allows traders to leverage in an unstable and fragmented market like cryptocurrency. Since prices across marketplaces can vary wildly due to time, geography, and regulations, arbitrage can come in handy.
For instance, let’s say a coin’s price value is $3 in Kraken and $3.05 in Binance. If you apply this strategy to your trading bot, you may buy the coin at Kraken and sell it at Binance at the same time. This way, you make $0.05 per coin in an instant if the market goes either way.
The arbitrage crypto trading strategy is independent of market performance and is fairly low-risk. It just requires speedy buy and sell trading actions that must happen simultaneously, to exploit price differences before they close up. This makes arbitrage one of the simplest and most effective strategies for Bitcoin traders in Germany.
2. Mean Reversion
The mean reversion Bitcoin trading strategy is built on simple assumptions. The assumption is based on a market psychology that believes that if the price of a coin varies from its mean, it will eventually revert to its mean. For instance, if the price of a coin rises by 70 cents from its lifetime average of $2, traders may sell in bulk until it goes back to $2. However, if the price declines down to $1, then the market recognizes this as a bottom and begins to accumulate until the price goes back up to $2.
This strategy may be developed on the simple principle of “buy low, sell high.” Therefore, having a crypto trading robot that can evaluate prices and perform trades automatically can save you time and lower risk.
3. Momentum Trading
The volatility in the cryptocurrency market is like waves in the ocean; they never stop. A trader using the momentum strategy will hold Bitcoin on the short-term and sell them at the apex of the wave before it crashes. This strategy works based on the speculation that prices will continue to rise and the trader must sell before it falls again.
The most crucial element in the strategy is knowing the entry timing (when a trader buys in the market) and exit timing (when to sell out). Traders who are able to ride the wave to the peak successfully often make a fortune from the crypto market.
There are many instances where people have been lucky to ride such waves, even when they didn’t know it was possible for them. To use bot for this, your trading robot needs to be able identify momentum by analyzing market information and sell your position at the peak of the momentum. The momentum could be an upward momentum or a download momentum, the most important thing is to know which token to buy and which one to sell and ride the wave wherever it goes.
Crypto robots are sometimes good for this because they do not work based on emotions, unlike human traders that might succumb to greed or fear emotions.
4. Natural Language Processing (NLP)
In the cryptocurrency market, speculative information like news, tweets, events, and other content can affect a trader's view on a certain project. With the Natural Language Processing LP Strategy, you can program your trading bot to react to certain news with some keywords. NLP programming gives your bot the ability to analyze important information found on the internet with given keywords and make decisions on the right time to buy or sell assets according to the news.
For example, when there is news that “Coin Y is booming after the fund manager buys stake,” it may alert your bot to buy coin Y because of keywords like coin Y, booming, and buy.
Most cryptocurrency trading bots use the NLP because information is power within the crypto trading market, and you may be able to make lots of profits if you act on information in a timely manner. Trading robots can help you monitor, aggregate, and assess information throughout the day without stopping, giving you an edge. Read More...
