Limit Orders vs Trading Bots?
Limit Orders vs Trading Bots?
I am looking to make profits from the constant fluctuations of cryptocurrency.
I am tired of just HODL’ng, it seems like nothing but stagnancy and indefinite waiting for no guarantee.
But it occurred to me, there are constant dips and rises, especially with Bitcoin, not just day to day but hour by hour, minute by minute, second by second really.
I thought, surely there is a possible way to make money from these constant fluctuations?
I noticed Limit Orders, I knew it was there before, but always ignored it and only HODL, but that doesn’t seem to be doing anything for me.
I need to make more money in the short-term, long-term doesn’t even matter for me right now, there is no good long-term without a successful short-term, after all.
Yes I know it’s “risky” and “volatile”, but it also seems like untapped potential (for me, I already know other people day trade crypto).
Bots sound potentially better, more automated, and can work while you’re, well, working, and sleeping.
But are trading bots actually good? If they’re not even outright scams, do they earn decent profits?
I have no technical skills whatsoever, so I’d be reliant on a subscription, and since know that’d probably cost a monthly fee (MAYBE with a free trial) AND there are fees just to buy, sell, and convert, it has to make more than it costs, otherwise it’s a waste if time, and money.
I’m sick of only making money by wage slaving though, and I’m not counting on becoming the next Elon Musk or Jeff Bezos or Bill Gates, or going viral on YouTube or TikTok or something like that.
On the other hand, why would anyone offer something to help you make money, instead of keeping it to themselves? Sure, they might be charging a fee, but why would they even do that if they could just make all the money for themselves?
Example, I found put $1-$2K into Bitcoin, set it to only buy when the prices drops to say $60-$65K, and then to sell when it reaches $70K-$75k, and most likely it’d hit these price points in a matter of weeks if not months. But I’m not sure if this is very feasible or efficient for the small profits I’d net, and still have to pay short-term capital gains tax on that.
Government makes it even harder to make money…..
You cannot just get a bot and consistently profit like you’re describing. Eventually it will get caught out by the market.
The closest thing i can think of to what you’re describing is a standard grid bot. It will place the limit orders for you after you define a price range.
Again, this isn’t going to work like you’re thinking
If you need short term money, sell your coins
In theory you are 100% correct. In practice not so much.
If you are serious, send some eth to Base and practice catching the waves with nice, cheap fees. There is a constant rotation of shitcoins pumping and dumping 50% or so within an hour.
If you bet small and shoot for a modest 10% gain, you’ll be pleasantly engaged, kind of like penny machines at a casino. But anticipating the pattern is virtually impossible. You’ll always sell too early and buy too late. But pulling 10% out of a 50% swing is good. Don’t let greed get you.
In the end you’ll be about even, but it’s fun to do.
Aw man, I sense some big loses coming to you in the near future with this mentality. It happens to soo many people that are fairly new to crypto who are growing impatient with holding.
First of all, $1-2k into Bitcoin isn’t going to do anything for you. Like have you not done the math on this? Even if you were able to sell higher (you won’t, not without trading knowledge and time/dedication put into it), you’ll end up losing money anyway come tax time.
Your first mistake was thinking (or being lead to believe) crypto was some get rich quick scheme. It is not. You’re either going to take a risk and be patient holding or spend countless hours learning to trade profitably. You will 100% get rekt if you think you’re going to buy coin and time the market in order to sell it for profit. You might get away with it a few times, but I promise you it will not last. Take this from someone who currently makes a living on-chain trading and other defi shenanigans. I eventually made a risky decision to quit my job becuz i just didn’t have enuff time in the day to work on learning things to help perfect my craft.