Crypto has proven to be one of the best investments of the decade. Bitcoin recently became the fastest asset to hit a trillion-dollar capitalization. Although cryptocurrency adoption is increasing, many investors are still somewhat reluctant to trade or invest in crypto. Some of these investors are concerned about volatility; others lack the technical expertise to pick the best investment strategies. Another challenge investors face is timing. Many people cannot predict the best entry and exit times.
Many of these investors are now turning to automated crypto trading to help them buy and sell cryptocurrencies. Crypto trading bots help you avoid human error or emotions when trading or investing. These bots are designed to study the markets and trade assets at the best prices possible. Botsfolio is one of the best crypto trading bots in the crypto space based on its features and services. To get started with Botsfolio, all you have to do is follow the steps below.
Step 1: Create an account and register.
You can sign up on the Botsfolio official website using a valid email and strong password.
Step 2: Decide your investing goal.
After signing up, you have to decide your investment goals. Botsfolio provides you with a few questions to help you decide how to allocate investment in different cryptocurrencies. Your answers will enable it to formulate a trading strategy that suits your risk appetite.
Step 3: Connect your exchange.
You then fund your cryptocurrency trading exchange and set up the Botsfolio bot. It only takes a few minutes to get it up and running.
Step 4: Trade, get updates and enjoy!
Botsfolio automatically trades from your account so you can relax and track updates on Botsfolio’s visual dashboard. This makes for an incredible trade experience.
As a crypto trading bot, Botsfolio manages your crypto investment like a hedge fund manager does for traditional investors. Botsfolio can effectively execute trades within milliseconds of spotting a trading opportunity. The speed of execution maximizes the chances of making profits, unlike when executed by you.
Cryptocurrency trading strategies
Botsfolio helps you create a trading strategy based on your answers to specific questions during registration. The bot is able to understand your investment goal and risk preference, which it then uses in creating an investment strategy for you.
By creating a personalized strategy for your short and long-term investment goals, diversification is achieved. Diversification minimizes the risk of losses which is vital considering the volatile nature of the crypto market. The trading strategy adopted is influenced by the length of your investment, risk appetite, type of long-term earning, etc. There are currently four strategies ;
Value Investment Strategy
Value investing is a moderate risk strategy. The bot buys assets at prices lower than the intrinsic value. Botsfolio has a system in place to monitor price drop. In value investing, about 80% of your investment is allotted to high-performing assets and the other 20% to growing assets. Value investing is not a short-term but a longer-term investment strategy.
Hedged Trading Strategy
The hedged trading strategy is a mix of spot and futures trading. Spot trading, also called cash trading, is the buying or selling of an asset for immediate payment and delivery on a specific spot date.
On the other hand, Futures trading allows investors to gain exposure to crypto without holding the underlying cryptocurrency. In the hedged trading strategy, spot trading is higher at 80% and futures at 20%. The hedge trading strategy is a moderate risk investment.
Futures Trading Strategy
In Futures trading, 100% of the assets are allocated to futures. The risks are very high and so are potential returns.
Investing for fixed income
Botsfolio provides users with a…