Using Trading Bots In Bearish and Bullish Markets

Automated Trading

Currently, HitBTC is full-packed with features that can satisfy the demands of different types of traders. Now, we want to speak about the way you can maximize your profits no matter how experienced you are and what your favorite trading strategies are. In this article, we will speak about taking your trading process to the next level via automation and the use of trading bots.

Automated trading can enhance trading in extremely different market conditions and benefit traders of all levels, especially with multiple features supported on HitBTC, whether it’s leveraged trading, futures trading, a huge set of supported types of orders, etc. Some traders prefer to invest in a bear market, while others prefer activity in a bull market. On HitBTC, with the help of trading bots, you can take advantage of both situations. Automated trading in these markets is especially good, as in the bear market, bots are free of fear, and in the bull market, bots don’t feel greedy.

A bearish market is a long period in which the price of a certain asset or class of assets is constantly declining. Yes, there can be short spikes, but they don’t change the whole trend. Many traders feel uncomfortable buying the assets that drop in price. Experienced traders feel confident investing in assets in the bear market, hoping to buy some coins low and then sell them when the price finally goes up. More than that, the strategy of “short selling” suggests that you buy an asset while its price is down to sell it at a higher price and then buy it again when the price drops. Usually, traders short sell using borrowed money to maximize the returns. The common recommendation is to open new positions in a bearish market little by little as the price goes down. It allows you to benefit from each new low instead of investing all your money at once. Automated trading makes the execution of this strategy much easier and more precise. More than that, it safeguards your plans from your own FUD. 

A bullish market is the opposite of a bearish one. The long period (2 months and more) of an upward trend on the market is usually called a bullish market, bull market, or a bull run. One of the usual trading strategies in the bull market is riding the trend, which means buying cryptocurrencies that are already going through the uptrend in order to sell them after the price reaches new heights. It is hard to calculate and predict the future peak price of this or that coin. The attempts to guess the right time for selling the asset can lead to a catastrophe. Experts advise you to sell portions of the growing assets you hold in order to gain some profits from it. This process is much easier with a trading bot. 

Here we can offer crypto trading bots that were supporting trading on HitBTC from the very start is, TradeSanta. Just like our exchange, it allows you to use multiple types of orders; it supports margin trading, futures trading, and many other features that can be used on HitBTC. It makes HitBTC and TradeSanta a good match. Another good feature of TradeSanta is that (just like HitBTC) it has a demo mode. You can explore the capabilities of a trading bot without investing real money. If you rely on trading indicators, you will find them on TradeSanta. There is also a trading terminal allowing you to make trades yourself while bots continue to perform automated work. You can also set the trade signals from HitBTC to keep track of the market state and interfere timely. On top of that, TradeSanta supports DCA and grid strategies that can help to avoid losses in margin trading when the price trend changes unexpectedly.

How can bots help out a crypto trader in bearish and bullish markets? 

When the market rises and falls continuously, it can be difficult for traders to determine the right time to buy and sell digital assets. And here is when the bot comes into play. Its trading bots can be helpful when identifying and executing cryptocurrency trades with less manual effort.

With automated trading features, traders can benefit from different algorithms. The software scans for trading opportunities based on market analytics and works remarkably faster than manual clicking. 

During a bearish cycle you should also consider buying the dip using DCA strategy. This strategy implies dividing your reserve funds into smaller chunks and making several trades multiple times. 

Conclusion

The use of trading bots is not equal to getting a passive income. Automated trading requires attention to the market trends and timeous actions aimed at adjusting the strategy if it loses its efficiency. Even so, automated trading can still save you much time and money. As HitBTC and TradeSanta are long-time partners, you have a great opportunity to try automated trading right now. 

Сrypto wallet App

The HitBTC crypto wallet is a free and simple solution for beginners.

App on Android and iOS.

Fees and Limits update

We have recently updated our fees and limits. For the latest updates, please visit the fees and limits section on our website here. 

HitBTC Mobile App

Don’t forget that you can trade on our platform from your mobile device. Start today by downloading the HitBTC App on Android and iOS.