“What coins should I invest in?” is a commonly asked question.
The answer to that question changes with time. As far as cryptocurrencies are concerned, the first half of 2022 has been filled with surprises. Bitcoin and Ethereum have experienced one of the biggest market crashes in the last few years, and Terra has collapsed completely. However, when it comes to picking the ideal coin for automated bot trading, there are some key factors that you need to consider.
Here are a few tips that will help you along. Let’s dig in:
Focus on The Top 30-40 Tokens While Avoiding USDT & USDC
If you’re not one for taking risks, stick with coins that have quite a bit of money circulating through them and don’t have large explosive movements. These are available on coinmarketcap.com or coingecko.com.
You can look up the top coins online:
USDC and USDT do not fluctuate much, so you’ll want to stay away from them. The top 30 to 40 coins are usually more stable.
Lesser Known Coins Yield Greater Profits When Listed on DEXs
Kucoin and Bybit are always listing new tokens on their exchanges. When these coins are first listed, they tend to have explosive moves, so you might be able to profit from them. However, you may encounter difficulty closing that coin for profits and converting it to a more stable coin if there isn’t as much money moving in that token (liquidity). To consider trading with a bot, I would need something with at least $500k in it.
Diversify Your Crypto Investments to Reduce Risk & Maximize Gains
Spreading the risk around is the best option if you’re unsure. Divide your funds and use one part for more stable coins and the other for riskier coins. Make a plan before you begin trading. Know where you want to get in and where you want to get out. Don’t put all your eggs in one basket.