How can you make money in falling markets with crypto bots

It's always hard to spot an opportunity when the market is bleeding, and even a mad optimist can easily turn into a hardcore pessimist. However, we don't need to be negative when the market is red as there are ways to profit even in a bearish market. All we need is trading bots and a short guide to help you understand the key issues regarding their use. So let's start!

The benefits of auto trading

Before we get into the useful tricks and tips, it's important to understand the overall benefits of using crypto bots in your trading routine.

First of all: trading through vending machines allows you to approach trading with a clear mind, without emotions. When you see the chart going south, you are subconsciously reacting emotionally, and no wonder - it's part of human nature. However, when you trade emotionally you are always doomed to failure - all carefully selected strategies and plans can be thrown out the window as you start to act impulsively. Crypto bots have no emotions and always follow the algorithm that has been embedded in them before.

Second, it is a matter of time management. It is not always possible to be chained to a laptop or smartphone 24/7 because you have your life! You may be distracted by something and miss the right time to buy or sell. Automated cryptocurrency trading bots can monitor the market day and night, allowing you to focus on time spent with friends and family.

Third, automated crypto bots can make trading easier and lower the barrier to entry. Trading the cryptocurrency market, which is known for its high volatility, can be exhausting and requires a lot of analysis (as long as we want to do it wisely) regarding the latest trends, current market conditions and upcoming events so that you can keep an eye on the current situation. But even meeting all these requirements does not guarantee you immediate success. Even though using crypto trading bots also cannot provide a 100% chance of profit, it can certainly lower the barrier for traders with little experience or for those looking to minimize risk and save time researching the market.

TradeSanta is an online platform with a crypto trading bot and professional tools that can provide all of the above-mentioned benefits and make trading more accessible to both beginners and professionals. The platform supports major exchanges such as Huobi, Binance, Binance.US, OKEx, HitBTC, Upbit and Coinbase Pro. Traders can also manually place orders and test their ideas by trading on demo accounts using the comprehensive terminal.

Risk management tools, DCA bots and grid, TradingView signals and other features are also available on the TradeSanta platform (with other features coming soon). They can help both beginners and professionals in their routine trading activities.

How can cryptocurrency trading bots help you in the bear market?

Those investors who aren't very experienced in cryptocurrency trading tend to see falling markets as a sign to stay away from cryptocurrencies, at least until the dust settles. However, it is possible to make potential gains during both upside and downside cycles, but first you need to understand elements like strategies that you should choose when using automated solutions. Buying when the market is bearish may pay off later when the cycle reverses and the charts glow green again. Certainly no one knows if this particular low is the last, or if the price will continue to decline in the future. In this case, we can build positions over time by adding more new orders when prices are falling, rather than going all-in once. One idea is to move into a position when a new lower trough appears.

Another commonly used strategy that can be effective when the bearish cycle starts to roar is short selling. This game plan means selling cryptocurrencies at a high price and buying them back when the price reaches a new low.

We've covered the strategies, but what about the bots themselves? How can they help us?

TradeSanta bots support a lot of long and short strategies that can come in handy when the market starts to bleed, and the number of tools already available is impressive. Let's take a look at some that can help you during your bear cycle:

• Technical analysis indicators. Traders can use signals generated by indicators such as Bollinger Bands, MACD or RSI.
• Stop Loss and Trailing Stop Loss. Whether you are trading low or high, trailing stop-loss or trailing-stop, this is the type of order that is executed when price no longer moves in your favor.
• Trading terminal. This tool allows you to trade on multiple exchanges with just one user-friendly interface. Highly recommended for traders with multiple trading accounts and for those who wish to apply different strategies to different accounts.
• TradingView Signals. These signals can be used to enter and complete trades at the best possible time.
• Trade on a demo account. This solution allows you to test your strategy against real market conditions without investing real money.
• DCA and Grid strategies that can work simultaneously with long and short positions.

DCA and grid strategies

A bot set up to trade with a DCA strategy places the first buy order first and more additional (also buy) orders in case the price is against the expected trend. For all completed orders, the bot submits only one Take Profit order for all orders placed by the bot. With each new buy order placed, the take profit price and order size are recalculated to get the desired profit for the entire sum of the purchased tokens.

A bot set up to trade with a grid strategy places the first buy order similar to a DCA. It also places more orders in case the price goes in the wrong direction. The main difference is how the grid strategy makes a profit. Unlike DCA bots, the Grid bot will place Sell orders for each buy order separately with a specific take profit. And yes, both of these strategies can be used for either an uptrend or a downtrend.

Summation

Automated crypto strategies can be extremely helpful in our trading routine. In any case, without knowing the basics, this tool won't be of much help on your crypto journey. A crypto trading bot can be an effective tool in terms of saving your time and nerves. Allowing the algorithm to observe the market can ensure that we do not miss any trading opportunity. Besides, crypto bots can trade hundreds of times faster than any professional trader, providing the edge we need to get the most out of this market. However, you should always remember that the bot is only a tool and it is always the trader who has to make it work successfully.