Over the past few months, cryptocurrencies have become one of the hottest investment opportunities. Bitcoin popularity and price surge set the path for altcoins market. Trading cryptocurrencies have now become a full-time job for some. It is similar to trading stocks, but differs in volatility – cryptocurrencies are hyper-volatile. Its volatile nature offers excellent opportunity to earn money and maximize profits if the proper tools are utilized.
The problem with the crypto market is that there are multiple exchanges that list same digital tokens. Prices of these digital assets are based on the trading volume on the particular exchange and vary between exchanges. Crypto traders can make a handsome profit if they can monitor multiple exchanges at the same time.
Additionally, stop loss and take profit features on exchanges are not very effective hence traders do not benefit much from it. The other major issue with exchanges is that they are unable to provide real-time notifications of prices. These are just a few of the drawbacks that restrict traders from maximizing profits.
A revolutionizing tool is designed 3Commas assuring crypto traders can take maximum advantage of the volatile nature of cryptocurrencies. The 3Commas tools address every problem faced by crypto traders.
What is 3Commas?
3Commas is a virtual currency trading bot that offers users the smart tools to manage their cryptos on multiple exchanges. These tools are aimed to maximize profits and curb losses.
EU based company, calls its trading mechanism, SmartTrading. Using 3Commas platform, traders can trade on multiple exchanges at the same time. At present, 3Commas support Bittrex, Binance, Bitstamp, KuCoin, Poloniex, and Bitfinex. It’s stop-loss, and take-profit features limit the losses which traditional exchanges fail to provide.
It monitors the market and notifies all changes to the user. Users will also inform users about placed order condition. One of its key features is the Trader’s Journal, that summarizes trading reports of all exchanges at one place – 3Commas interface.
If a trader wants an additional layer of security, 3Commas offers the possibility to set up a 2-factor authentication code similar to many other cryptocurrency exchanges, wallets, and platforms in the market.
The 3Commas application works with any browser, so there is no issue of it working on multiple devices. Now let’s look at these features in detail and their applications.
How 3Commas Work?
Multiple Exchanges on One Platform
First, a user has to register to the platform using their email ID, and then log in to it. The dashboard will have the facility to track balance, prices of digital assets, and other features like “Connect to exchanges.”
At present, 3Commas will support six exchanges, and all of them can be connected at the same time. Controlling multiple exchanges has never been easy as from a single window one can monitor and control all transactions.
It is essential that the withdraw feature is disabled when creating API for the exchange. The same should be practiced with other crypto trading bots as well.
Modern Stop-Loss and Take-Profit Feature
One feature of the platform allows traders to put conditional stop-loss or take-profit in real time as per the set goal. So in 3Commas, for a particular exchange when a buyer enters the desired price to buy a token, the order will only be placed if the purchase condition is met.
Likewise, when a buyer enters conditional stop-loss, the bot will continuously monitor if the conditions set by traders in real matches with the exchange at the time. So, when a trader places an order from 3Commas, the bot starts looking at the current price on exchanges and compare it to the conditions set by them. So, once the condition is met, the bot will close the deal and result in a profitable transaction.
3Commas also has a trailing stop-loss and take-profit feature. So, for example, a trader purchases 1 ETH for 0.10 BTC, and sets trailing Stop-Loss at 10% (0.09 BTC) and the take-profit at 20% (0.12 BTC). So when the price increases the bot automatically increases the stop-loss prices as well. Referring to the example, if the ETH price surges by 10% (0.11 BTC), the stop-loss will be adjusted to 0.099 BTC.
Trailing take-profit works similarly. Traders can set profit margins at the desired percentage and when it meets the condition, the bot closes the position. For example, if a coin is priced at $5, the traders can set trailing to take profit, at 20%, 40%, and 60%.
3Commas offers traders real-time notifications. Traders can choose to be notified on mobile, email or even browser. Additionally, there are multiple notification types from which traders can choose. Trader’s diary is one of the best features that 3Commas offer. Traders can get a complete report of their transactions from all exchanges at one place.
3Commas charges 0.25% for each Smart buy and sell transactions. For a tool that allows trading on multiple exchanges from a single interface is cheap. It does not charge commission right away when a trader sets condition. However, the commission amount is frozen, and 3Commas will only receive it after completion of the transaction. If an error occurs while the transaction is under process, the frozen commission is reversed to traders account. Enthusiastic traders can register for the revolutionizing tool here.
Crypto trading bots help in making better choices when trading and also cuts out the mathematical complication. Additionally, users do not need to continuously monitor multiple exchanges by switching tabs to ensure their condition to buy or sell is met. With 3Commas, bots do most of the work. However, it is important to note that bots are not a money making a machine, they only operate with the decision a trader makes. With 3Commas trading is easy, fun and more profitable.
BTCManager does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as investment advice.