Berkins
Watching a downturn in the market is always very disturbing, and even the most optimistic trader can change his mind to a pessimistic one. However, it is not necessary to be in the red if the market turns red – there are ways to profit even in a bear market.
To do this, you will need cryptocurrency trading bots and the guide below that will help you understand the features of their details of their use. So let's get started!
How can cryptobots help in a bear market?
Those traders who do not have much experience in trading cryptocurrencies usually see bear markets as a sign to stay away from cryptocurrencies until the hype subsides.
However, there is a chance to make potential profits during both bullish and bearish cycles, but first you need to understand such features as what strategies you choose when using cryptocurrency trading bots.
Buying in the market during a depreciation period may pay off later when the cycle reverses and the charts turn green again. Of course, no one knows if this particular drop is the last one or if the price continues to fall further. In this case, you should build positions over time, continuing to add new positions as prices fall, rather than going all-in just once. With this, you can take advantage every time the price hits a new lower level.
Another common strategy that can help you when a bearish cycle starts is short trading. This principle means selling a cryptocurrency at a high price and buying it back when the price hits a new low.
So we've covered the strategies, but what about the bots themselves? How can they help you?
A trading robot, TradeSanta supports both long and short strategies, which can come in handy when the market is bleeding, plus the number of tools already available is impressive.
Let's take a look at the ones that can help you during a bearish cycle:
technical indicators. Traders can use Bollinger Band, MACD or RSI signals to trigger the bot.
Stop loss and trailing stop. Whether you are using a short or long strategy, a trailing stop or trailing stop is a kind of trade order that gets executed when the price no longer moves in your favor.
Trading terminal. This tool allows you to trade on multiple exchanges with just one easy to use user interface. Highly recommended for traders with multiple exchange accounts and those who want to apply different strategies on different accounts.
TradingView Signals and Customized TradingView Signals. These signals can be used to enter and stop a trade at the best time.
Demo trading. This tool allows you to test the strategy in real market conditions without investing real money.
DCA and Grid strategies that can work with both long and short strategies at the same time.
To do this, you will need cryptocurrency trading bots and the guide below that will help you understand the features of their details of their use. So let's get started!
How can cryptobots help in a bear market?
Those traders who do not have much experience in trading cryptocurrencies usually see bear markets as a sign to stay away from cryptocurrencies until the hype subsides.
However, there is a chance to make potential profits during both bullish and bearish cycles, but first you need to understand such features as what strategies you choose when using cryptocurrency trading bots.
Buying in the market during a depreciation period may pay off later when the cycle reverses and the charts turn green again. Of course, no one knows if this particular drop is the last one or if the price continues to fall further. In this case, you should build positions over time, continuing to add new positions as prices fall, rather than going all-in just once. With this, you can take advantage every time the price hits a new lower level.
Another common strategy that can help you when a bearish cycle starts is short trading. This principle means selling a cryptocurrency at a high price and buying it back when the price hits a new low.
So we've covered the strategies, but what about the bots themselves? How can they help you?
A trading robot, TradeSanta supports both long and short strategies, which can come in handy when the market is bleeding, plus the number of tools already available is impressive.
Let's take a look at the ones that can help you during a bearish cycle:
technical indicators. Traders can use Bollinger Band, MACD or RSI signals to trigger the bot.
Stop loss and trailing stop. Whether you are using a short or long strategy, a trailing stop or trailing stop is a kind of trade order that gets executed when the price no longer moves in your favor.
Trading terminal. This tool allows you to trade on multiple exchanges with just one easy to use user interface. Highly recommended for traders with multiple exchange accounts and those who want to apply different strategies on different accounts.
TradingView Signals and Customized TradingView Signals. These signals can be used to enter and stop a trade at the best time.
Demo trading. This tool allows you to test the strategy in real market conditions without investing real money.
DCA and Grid strategies that can work with both long and short strategies at the same time.