When you trade with bots, you need 3 elements:
- a strategy (this is the part that makes the decisions “Buy when RSI is <30 or Buy when price went down 10%”, etc.)
- an exchange to take your trades (Kucoin, Coinbase, Binance, etc.)
- the actual bot (this is what will go on your exchange and place the order).
Today on the marketplace there are numerous options to get started with bot trading, all with their advantages and drawbacks. It all comes down to what your goal is with trading and what product you will like most on the marketplace.
There are products that have strategy+bot combined, so you go on a website, put in the information of your exchange, and then you watch. There are other products where the bots are already on the exchange, with some strategies, so you literally have nothing to do but to put your money in there and set it up.
Honestly – the simpler it is, the less you will earn. It is like anything in life. I am a big fan of staying simple, but that rule doesn’t apply in this case.
The MOST important part of bot trading is to learn a little bit of stuff (you are at the right place), so that you can UNDERSTAND what is going on and you can make decisions yourself and adjust your bot trading experience (and make tons of money).
If your goal is to learn some basics, do the leg work and understand what is happening under the hood, keep reading you are at the right place.
Instead of searching all over the internet, I will tell you 1 very basic set up you can use to start and learn. This is a set up that I use today, and that many other traders use.