How a crypto trading bot reacts to the drop in Bitcoin BTC price
by Eric Martin 
The fall of the Bitcoin price or a violent crash of the price of BTC is feared by any trader or holder of cryptocurrency.
If many people are trading Bitcoin, the drop in the Bitcoin price leads to the fall of altcoins prices with often even larger figures.
Like on March 12, 2020 when the Bitcoin price fell by 24% to $5550 on Binance but altcoins like Link or Tezos XTZ lost more than 30% of their price!
Bitcoin robots and crypto trading bots are increasingly used by traders in order to be able to deal with this type of situation with flash crash in Bitcoin price or other cryptocurrencies.
One of the benefits of automatic cryptocurrency trading is that a trading robot watches over you and is faster than humans to place a buy or sell order if market conditions are met within trading strategies programmed for this crypto bot.
Whether you do your trading strategies yourself or use copy trading or social trading, there are crypto trading bots and Bitcoin robots programmed specifically to deal with a falling Bitcoin price or other cryptocurrency prices.
Crypto bots that will be programmed to sell or buy Bitcoin according to what has been set in advance on the control interface of the Bitcoin robot.
So we looked on the automated crypto trading platform Kryll if crypto trading bots and Bitcoin robots reacted positively after the fall of the Bitcoin BTC price.
Kryll has a marketplace where it is possible to rent trading strategies from professional traders, so you can see the results of these strategies in specific trading situations and in particular a crash in the Bitcoin price.
A strategy shows good results following the fall of the BTC price, the trading strategy Gekko Bot (which has nothing to do with the famous bot Gekko crypto trading bot) has thus detected the start of the fall of the Bitcoin price and started buying Bitcoin at different drop points of the BTC price.
With the crypto trading robot programmed to detect price drops and buy the dip, the lowest prices for Bitcoin or a cryptocurrency that has dropped sharply.
We notice that the crypto bot accumulates BTC during these price drops, Bitcoin which it will sell later when the Bitcoin price goes back up.
All this is done automatically without the trader needing to be in front of his computer or smartphone.
Especially since the crypto markets never stop and if you sleep while the Bitcoin price is collapsing, the crypto trading bot or the Bitcoin robot will watch the prices and place orders for you.
There are of course various possible strategies during a Bitcoin price drop, in this case, the crypto bot is programmed to “Buy the dip”, buy Bitcoin in its price drop in order to resell it later with a profit.
A Bitcoin robot can also be programmed to detect a price drop and sell Bitcoin that you have on your account.
Armed with a stop loss, the Bitcoin robot will sell BTC by detecting the fall in the Bitcoin price.
Example of crypto bot and stop loss with the FireStarter strategy on Kryll.
Armed with a stop loss, the kryll trading robot sold DASH when it detected the rapid fall in price.
Thanks to the stop loss, the crypto bot made it possible to avoid a much greater capital loss knowing that the fall was brutal.
A very big advantage knowing that a trader cannot always be in front of a screen constantly monitoring prices, the crypto bot takes care of monitoring the markets and taking action if necessary.
These trading strategies of course apply to other cryptocurrencies like Ethereum, Ripple XRP, Link, etc.
We can therefore understand the growing interest in automated cryptocurrency trading with ever more efficient and intelligent crypto trading bots as in the example above of a Kryll crypto bot which buys BTC by progressively following the fall in the Bitcoin price.
See our ultimate guide of the best crypto bot 2020: click here.
