Do bots earn passive income 24/7?
Yes and no.
It is true that the coin market is open 24/7, but that does not mean that it generates money every moment.
It’s possible that you won’t earn profits every single day. Especially if you’re a HODL investor.
There are 3 factors that will determine your success with earning passive income with bots:
- Your Crypto Funds Investment Strategy – Long-Term Goals & Objectives
- Follow & Trade the Market Order Flow
- The System You’re Using To Navigate The Market
Let’s dig into each one…
1. Your Crypto Funds Investment Strategy – Long-Term Goals & Objectives
Before you start one single bot, you have to decide what your goals are. Are you looking for an additional $500/mo? Or are you looking to retire with six figures in capital in the next couple of years?
Depending on what your answer is will determine what you do with bots. If it’s the former, then you can get that depending on where you’ve started your bot.
The downfall however is that to capture those funds a lot of times, you have to stop the bot. Which means you lose the original entry price. One work around might be to go into the actual exchange you’re trading through and sell off a portion of the token the bot is trading.
If it’s the latter however, then you’ll need to compound those funds – which might not work depending on what you’re picking to trade.
2. Follow & Trade the Market Order Flow
You can control what you pick to trade using your bots, but you cannot control how the market behaves. Your bot is just a small speck in crypto universe. So the only thing that matters is what the market is doing.
Not what you think it should do.
The best thing to do in this scenario is to try and flow with the market. If most people are buying, then you should buy and vice versa.
Until your skills become advanced to the point where you can spot reversals in the market, flowing with the market is the best way possible to ensure your trading success with bots.
3. The System You’re Using To Navigate The Market
There are MANY systems available to use with trading the markets that helps you determine entries and exits…however you only need one that works.
Why? Because systems make things predictable. Systems are what makes profits, NOT people.
And people MANAGE systems.
If you don’t use a system, you’ll be all over the place and what should be a simple automated trading setup will turn into a world of anxiety for you.
Don’t fall into that trap. A lot of what needs to be done in the market is simple. Yet, we complicate it.
If you can get clear on these 3 factors, then you can exponentially increase the odds of success in your favor.
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.
