Bitcoin has stormed the world by surprise.
No one in 2009 expected that there would be so much interest in this amazing digital cryptocurrency and if someone had assumed so and made sure that they had a large stash of bitcoins, they are probably millionaires by now.
How so? There was a time when one could purchase a bitcoin for only a few bucks.
The price was very low so imagine that someone had bought 100 bitcoins at that price with, say, $300 investment.
Now, there was a point in the beginning of the year when a bitcoin’s price was around $1000, meaning that if our hypothetical person sold their bitcoins, they would make $100,000 out of a $300 investment.
Now imagine if someone had bought more. Of course, like we said, very few people could’ve predicted that Bitcoin was here to stay.
However, this basic principle of making a profit by buying at a lower price and selling at a higher one can still be used today, albeit on a much smaller scale.
The price of Bitcoin still experiences great fluctuations, and even though they’re not as great as in the beginning of the year, they still leave you with enough space to make a profit. However, in order to do so you need to trade at the right time.
Here’s the problem though – since Bitcoin is a decentralized currency, it’s being traded around the clock. There are no weekend limitations, bank holidays or other such down times. This makes it that much harder to be at the right place at the right time so you can buy at low prices and sell at high prices.
This is where a bitcoin trading bot comes in. A bitcoin robot can be programmed to purchase or sell at certain prices based on your overall trading strategy. For example, there is a very nice bot for BTC-E – the BTC-E Trade Bot.
It allows you to trade on BTC-E without even being near a computer.
Depending on your level of expertise, you either want a robot that has more options, or one that comes basically preprogrammed.
If you don’t know much about trading but you want to try it anyway, you need all the help you can get so a bot that comes with lots of options is what you need.
If you’re an adept trader, then something you can tinker with will do the job. However, we would still advice you to get familiar with the whole trading concept before you start making investments.