Gunbot is a well-known trading bot within the cryptocurrency community. It works well in numerous markets, such as Binance, Bitfinex, Bittrex, Cex.io, Cryptopia, Gdax, Kraken, and Poloniex. This trading bot is designed to trade cryptocurrencies on these exchanges with minimal user input. There is profit to be made using Gunbot, but there are basic precautions to be undertaken first to ensure that you maximize profit and minimize possible losses.
Research the exchange you are wanting to trade on
Most large exchanges have good reputations for continuous uptime but are sure that the exchange you are interested in trading on doesn’t have a reputation for going offline during inopportune times. It’s hard to buy low and sell high if every time the market fluctuates an exchange suddenly puts a wallet in “maintenance mode”.
While trading can be quite exciting and profitable, you should never jump in with both feet on your first few attempts at trading. There are endless streaming videos of traders being bold and wagering thousands of dollars on a big trade, only for red candles to appear and wipe out their investment. Even though doing small trades will only end up with small profits, it’s preferable to have dozens of successful trades a day with some profit than to have one huge trade end with a loss.
Research trading strategies offered by your bot
Most bots have a few main strategies, with various personalization options that can narrow down the situations in which trades will occur. You can make the bot only sell at the profit when it hits a certain percentage of gains, or you can sell as soon as your investment losses a targeted percent, in order to get away from a possibly plummeting coin. These optimizations can set your nerves at ease while you sleep so that your risk is set to acceptable levels and will save you tons of time from checking your phone for random volatile swings.
Keep your entry and exit points
No one likes going home early, for fear of missing out, but in trading, it’s always advisable to make a plan and stick to it. Emotions will cloud judgment, so it’s best to plot your course with the trading bot, and then keep to your plan. Planning on leaving an investment after it gains 10 percent instead of holding out for a 50 percent gain might feel silly after, but so does holding for too long and losing 75 percent on a bad weekend. If a particular strategy seems to work for you, you can save it and use that as your consistent exit and entry points on all your favorite currencies.
Learn to troubleshoot your Gunbot
Technology is only fickle to the impatient. Learning what causes common problems for your bot is the best way to avoid these issues mid-trade. Some days there is lots of money to be made during an overly volatile swing, so having your bot go down due to a bad configuration is always going to sting. Check the FAQ’s and any help content offered by your Gunbot licenser, so that you can go into trading and setting up your bot with a good knowledge base for the infrequent issues that may occur. If trouble occurs, reach out to the support channels and don’t get discouraged.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.