A crypto scalping bot is an automated trading bot designed to offset trading issues in the cryptocurrency market. To understand what crypto scalping bots are, we have to know what scalping in crypto is in itself.
What is scalping in crypto?
The crypto market is popular for its volatility and the unpredictability of trading. This is why a system called crypto scalping is quite popular in the industry. Crypto scalping is a trading strategy that involves the trader taking advantage of small price changes to make a profit. The small and recurrent gains they make over time can become substantial at the end of a trading day.
How do crypto scalping bots work?
A scalping bot is a software designed to automate cryptocurrency trading. Based on the scalper’s defined strategies, the bots can initiate and perform trades or issue trading signals.
Crypto scalping bots offer several advantages like risk mitigation, constant market coverage and efficiency. In addition, owing to the volatile nature of crypto, the ability to trade quickly and at the best price is another plus for scalping bots. Traders don’t need to worry about much asides from putting their desired strategy in place.
With crypto scalping bots, the trader does not have to monitor the crypto market every time. Since everything is automatic, the scalping bot only executes the necessary tasks.
As a trader, you can develop your scalping bot or use a free or paid version from a third party.
Several platforms offer crypto scalping bots. Some of the popular ones include
Pionex:
With Pionex, you can access 16 free inbuilt trading bots. The bot is free to use, making it one of the most popular scalping bots. In addition, they offer trading with various bots, and you can trade with the U.S Dollar.
Coinrule:
This platform offers access to multiple crypto exchanges and allows you to automate your trading rules around the clock. They also access up-to-date market indicators so you can make accurate decisions while setting up your strategy.
3Commas:
3Commas makes it easy to participate in the crypto market through crypto exchanges. In addition to being connected to several trading platforms, 3Commas also offers you the option of setting up your strategy for trading.
Cryptohopper:
With Cryptohopper, traders can trade multiple currencies easily. The scalping bot offers its users three different scalping strategies: volatile trend scalper, pure trend scalper and momentum trend scalper.
Bitsgap:
The Bitsgap bot is designed to ensure stability within the buy and sell trade range. Thus, your small gains for every trading day are guaranteed. The bot also allows users to set alerts for notice of price fluctuations.
Although we highlighted only five scalping bots, several other bots provide crypto scalping services. The overall feature of most of these scalping bots is that you don’t need any technical knowledge to set up a crypto scalping account. However, you might have to pay to access the full features of some of them.
Bottom line
Regardless of the ease and efficiency that crypto scalping bots offer, it is still crucial for every trader to minimize the risk of loss. Therefore, understanding how trading bots work and reading reviews about scalping bots is necessary before you start trading.
