A passive income source is a steady stream of income that comes in without the need for a lot of effort. One of the best ways to earn passive income from digital currencies is by using automated trading bots. You can generate real profits from your investments by employing a good crypto trading bot system. Using bots can save you a lot of time and hassle, so you can spend more time thinking about what you might want to invest in next.
Are bots a 24/7 passive earning machine?
Yes and no.
While the coin market is a 24/7 market, that doesn’t mean it generates money every minute or even every hour.
Factors Determining Bot Trading Success
It isn’t always possible to earn profits every day. This is especially true for HODL investors. There are 3 factors that will determine your success with earning passive income with bots:
1. Your Strategy For Your Funds
2. How The Market Is Behaving
3. The System You’re Using To Navigate The Market
Let’s dig into each one…
Earn from $500/month to Six-Figures in a Few Years With Your Strategy
To begin a bot, you must first decide what your goals are. Do you want to earn $500/month more? Do you intend to retire with six figures in capital in the next few years? Your answer will determine what you do with bots. If it’s the former, then you can get that depending on where you started your bot.
However, the downside to this is that you have to stop the bot in order to capture those funds. In that case, the initial entry price is lost. The workaround may be to go into the exchange you’re trading on and sell off a portion of the token the bot is trading. In the latter case, however, you will need to compound the funds – which might or might not work depending on what you’re trading.
Flow with the Market Behavior For a Successful Bot Trading Experience
Using your bots, you can control what you trade, but you cannot control how the market behaves. Your bot is just a tiny part of the crypto universe. What matters is what the market is doing, not what you think it should do.
You should try to flow with the market in this situation. You should buy if most people are buying, and vice versa. Up until you are skilled enough to spot reversals in the market, going with the flow of the market is the best way to ensure your trading success with bots.
Use a Single System to Navigate the Markets
You can use many systems when trading the markets to determine entries and exits, but you only need one that works. With systems, things become predictable. Systems make profits, not people; people manage systems.
A simple automated trading setup will turn into a world of anxiety if you don’t use a system. You don’t want to fall into that trap. Much of what needs to be done in the market is simple. It is complicated by us. You can increase your odds of success in your favor by getting clear on these 3 factors.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
