Is it Worth Shorting Cryptocurrencies With Trading Bots?
As the cryptocurrency industry remains subject to a lot of bearish price pressure, it would appear the demand to short these assets is increasing. For most users, this process needs to be automated as well. Some trading bots on the market allow for such functionality, although it is always risky to engage in such financial activities.
Shorting Cryptocurrency Makes Sense
To users who only want to make money with Bitcoin and altcoins, any opportunity to do so will be worth exploring. Even if that opportunity will only create more negative price sentiment, it can still lead to profits for those who time their actions correctly. Shorting Bitcoin and altcoins is a service that is slowly becoming more common across different exchanges and service providers. That is only normal, as demand for such services is on the rise since early 2018.
Even though manually shorting cryptocurrencies isn’t necessarily difficult, the demand for automated services cannot be ignored either. Some of the more popular trading bots’ developers are expanding functionality to accommodate for this need, although it is not necessarily something one should use without a strategy. Automated features are handy, but they will not necessarily yield a profit. For those willing to experiment with bot-based shorting, the following two options may offer some value.
Although most people might not necessarily be familiar with CryptoHopper, the project is positioned as a powerful crypto trading bot with numerous features. Under the hood, users can choose between automatic trading, crypto signals, and even going short on cryptocurrency exchanges which support it.
Among supported exchanges are the likes of Bitfinex, Coinbase Pro, and Binance. Interestingly enough, BitMEX is not on this list, even though the platform is a major source of shorting cryptocurrencies. A bot like this will not come free of charge, although there is a seven-day trial in place. For those who want to explore all options at their disposal, CryptoHopper wills et you back $99 per month. Making that money back may prove to be a big challenge for novice users.
This particular cryptocurrency trading bot has perhaps the weirdest name of them all. One wouldn’t necessarily assume 3Commas is the name of a trading bot, yet it does seem to pack all of the functionality one would expect. It can be sued for virtually all regular trading activity, yet also lets users go short on specific cryptocurrencies as they see fit. There is also an option to go long on trades, depending on how the overall crypto market momentum evolves over time.
Supported exchanges include BitMEX, HitBTC, BitFinex, OKEx, Huobi, and several others. All functionality provided by this solution will, according to the developers, open and close positions automatically, which makes for a fully automated service and solution. 3Commas’ shorting solution is even listed as “good for bear market” on the website itself, which is rather telling. New users will receive a free trial without submitting payment details, thus it could very well be worth checking out to determine if such a solution can work in one’s favor.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
The post Is it Worth Shorting Cryptocurrencies With Trading Bots? appeared first on NullTX.