Litecoin Trading Bots
Cryptocurrencies have been enjoying increased popularity in recent years, and there is every indication that this is set to continue. Litecoin was one of the earliest of the cryptocurrencies, appearing in 2011, and despite literally thousands of other coins launching in the meantime it remains in the top 10. People who were previously unconvinced about cryptocurrency investing have woken up to the possibilities, and that may be what has brought you to this article on Litecoin trading bots. You want to trade and you want automation to help you do that successfully.
LTC trading offers the potential for significant profits, but it isn’t for the fainthearted or the underprepared. It’s important to know how to analyze the market, how to execute trades, and how to protect your investments from volatility, and one of the best ways to improve your chances of success is to use a Litecoin trading bot. These are robots of the software variety rather than the metal and plastic kind. They offer sophisticated data analysis and can execute trades on your behalf, doing as they’re told (even while you’re off doing other things) and responding to changing conditions in line with your instructions.
Although a bot can make LTC trading a lot easier for you, it’s no substitute for a proper understanding of trading principles and practices. New traders will find it somewhat challenging to adapt to this new environment and should be wary of the pitfalls. Training is essential, and that’s why we’ve written this introduction, to point you in the right direction. As trading veterans, we know that we can offer you the benefits of our experience and help you get up to speed while avoiding certain rookie mistakes.
How to Choose a Litecoin Trading Bot
Trading bot security
If you’re going to trust your money to a piece of software written by a team of strangers then you need to be sure that it’s going to do that safely. Only use a trading bot company that you know has earned a good reputation for transparency and integrity. Their policies should clearly state how your data will be handled and their approach to security should be clear and verifiable. That means that you should be able to type their name into a search engine and find only good reviews on established sites, and with no horror stories Of unscrupulous practices and disappearing funds. A free trial is always a good sign too.
A reliable level of performance
Most people prefer to buy products or services from companies that they trust, and that trust was usually established through human interaction in a store or on the phone. These days, so many companies appear to be faceless entities on the internet that it’s hard to know who you can rely on.
Once again, you will probably have to look to established review sites and read third-party recommendations on user forums to establish trust.
One element affecting trust is performance, so one of the things to also look out for is how a particular Litecoin trading bot responds to technical issues like slips in connectivity. You want to know that your bot is up to the challenge of making trades uninterrupted and can safely navigate outages.
User satisfaction
A Litecoin trading bot is the same as any other piece of software offered for sale these days, in that it must be user-friendly. The interface has to be easy to understand and self-explanatory. It should be easy to customise and make setting up an LTC trading strategy straightforward.
Beginner-friendly
A good Litecoin trading bot will suit users of all abilities and experience levels, not just the veterans. Newcomers will find that they can get to grips with the software without needing an IT degree.
Adequate security
You can’t afford to use a Litecoin trading bot that leaks your money to hackers. Your account will need to be protected by industry-standard (or hopefully industry-leading) security protocols, so ensure that they offer them.
Making money is your main concern
The only reason to trust your money to the whims of an LTC trading bot is to make it pay for itself and then pay you handsomely. You’re in it for the profit, right? So, look to the reviews, and to the message boards and take your time finding out which platforms are trusted to be effective profit makers. You want to understand the good and the bad before you sink your money into an automated helper.
Free Litecoin trading bots
If you see an offer for a free Litecoin trading bot then be wary, but don’t necessarily discount it. There are lots of open-source LTC trading bots available, and two of the names you might come across are Gekko and Zenbot. These are dependable solutions, but you’re going to need some technical understanding to get anything out of them. If you do have that kind of aptitude then they could be just what you’re looking for, and if you run into difficulties there are enthusiastic Litecoin communities where users are often happy to share information.
How LTC bots work
LTC bots work by monitoring indicators which trigger their activities. When certain conditions are met the bot places a buy or sell order at whichever exchange you selected. It does this without emotion, so it’s a great way of trading based purely on moving data points. And if the ideal conditions for a buy or a sell position show up in the middle of the night, or when you’re busy, then you don’t need to get out of bed to place it.
Litecoin has held its place in the top 10 cryptocurrencies for a long time, but its continued popularity means that doing your due diligence is more important than ever. Wherever you see an opportunity to make money there will be unscrupulous software developers trying to hoodwink investors. There’s no substitute for careful research so don’t be tempted to skimp on your background checking.
How Does a Litecoin Trading Bot Help?
Faster execution of trades
Even the fastest manual trader is slower than the slowest trading bot, and moving slowly in the volatile cryptocurrency markets can mean the difference between making a profit and taking a loss.
No more human error
We humans have many great attributes, but consistency is not one of them. A trading bot is always accurate, can’t be swayed by emotion, and doesn’t get tired. It won’t bet the house on a hunch or hold back because its horoscope told it to be cautious that day. It executes trades using the instructions that you gave it to guide every decision it makes. It never gets bored of watching the market and when it places a trade it does so instantaneously. You can tell a bot which cryptos to analyse and which exchanges to cover, freeing you up to study the trends and research future trades.
The Downside of Using LTC Trading Bots
You can’t avoid manual input completely
Like any other automated device, you shouldn’t leave it completely unattended. You don’t want to return from vacation to find that a technical blip derailed your whole trading strategy two weeks ago. Computer crashes and dropped connections happen to everyone, but with trading, the potential consequences could be far greater than losing a term paper or your photos.
Check in on a regular basis to ensure that everything is running smoothly with your bots, and because things change, to make any necessary tweaks to their instructions.
It’s hard for novices
You are inevitably going to make mistakes as a beginner to LTC trading, and in a way, it’s essential to your growth as a trader. Mistakes help us to learn, but by relying too much on trading bots you may never get the chance. You may learn a lot about using bots, but not so much about how to trade LTC.
Cost
An LTC trading bot could set you back $10 per month at the low end, with the better ones costing far more.
Ever-present dangers
Litecoin trading bots are a likely target for hackers, so be sure to only use the ones with the most provably robust security.
How about free trials?
Yes, they are out there. Take a look at Zignaly, introduced in 2018. Users rate its performance and you can integrate it with Tradingview. It’s free and you can select unlimited coin pairs.
Zignaly can operate various trading strategies on multiple exchanges (including Binance and Kucoin) when using Tradingview. The company is clear bout who’s running it and includes other reassuring background information.
Other popular LTC trading bots include Cryptohopper, 3commas, Gekko, Haasbot, Gunbot, Shrimpy, Tradesanta, and Kryll.io.
There is no one size fits all solution, so take the time to compare features and choose the one that’s going to best suit your particular needs.