Loop Bot: A Long-Term Spot Strategy for Earning in Both Currencies

Trading bots are already known for handling routine tasks like tracking price movements, placing orders, and automatically applying stop-loss. But Bitsgap's LOOP trading bot goes even further: it also accumulates and reinvests your profit into next trades. Read on to learn more about this long-term crypto trading strategy.

What Is Loop Bot

LOOP is a positional spot crypto trading bot. It continuously places buy and sell orders across a defined price range as the market moves up and down:

• When price drops, the LOOP Bot buys, accumulating more of the base currency (for example, SOL or BTC). 
• When price rises, it sells, earning quote currency (typically USDT) as profit. So, both directions are covered and can be profitable.

LOOP Bot works regardless of which way the market moves, be it a bull run or a downtrend. As long as there is price movement within the range, the bot is executing trades. Among the most popular trading pairs for Loop Bot are SOL/USDT, XRP/USDT, and BTC/USDT. All of them are widely traded and therefore provide consistent price movements needed for the LOOP bot to work efficiently.

Now, let's get deeper into its unique mechanisms.

How Does LOOP Bot Work?

LOOP Bot is designed to run long-term without intervention. It's a compounding machine that gets more effective the longer you keep it running. Here is what happens step by step:

• Choose LOOP as your next automated trading bot.
• Set a price range: an upper and lower boundary where you expect the bot to trade. 
• Within that range, LOO Bot places buy and sell orders. It aims to accumulate base currency when price dips and collects quote currency when price grows.
• As orders execute and you profit, the bot continuously recalibrates deposit size without any manual input from you.

Also, you don't need to reinvest all at once. You can set a bot profit percentage to be reinvested, or you can adjust this setting afterwards.

Watch a quick tutorial to see how it works in reality:

Profit Reinvestment in the LOOP Bot

Reinvestment is where LOOP Bot earns its reputation as a unique crypto trading tool. Profits generated by the bot are not withdrawn but are reinvested back instead. As each cycle completes and profits accumulate, the total capital available for your bot grows. Eventually, bigger capital means larger order sizes and more profit per successful cycle.

This is what makes long-term passive crypto trading so powerful. The longer your LOOP Bot runs, the more capital it has to work with, and the more efficiently it generates returns. 

Due to these compounding mechanics, a LOOP Bot running for 90 days isn't just three times a 30-day bot. It's potentially far more, because each cycle builds on the last. So, patience is part of this automated crypto strategy.

How Effective Is LOOP Bot?

The performance data makes it clear: when it comes to LOOP Bot, longer runtime equals better results.

A typical LOOP Bot cycle generates around 3.13% over approximately 3 days. That is already looking like a strong baseline, but the real effect is visible at extended timeframes.

For example, a LOOP Bot running for 30 days or more achieves an average PnL of around 11.46%. In the 7–30 day window, PnL is near 5.97%. And even shorter runs of 3–7 days show returns of around 3.7%.

Interestingly, deposit size matters less than you might have expected. Even smaller investments in the $100–$500 range see win rates near 98.8%, while if traders use $5,000–$10,000, they can push that figure up to 99.5%. Since crypto markets are almost never completely still, the bot can generate profit consistently.

LOOP is a spot trading bot, and you don't need to be a highly experienced trader to run it. In fact, it's a good starting point for beginners who want to delegate both trade execution and deposit revision.

More experienced investors who prefer a passive, hands-off approach will also appreciate the bot handling everything once configured. Finally, those whose strategy is long-term holding can use LOOP Bot to get additional yield on top of their existing positions, accumulating more base currency during dips.

5 Practical Tips: How to Make the Most Out of LOOP Bot

Setting up the LOOP Bot is simple, but setting it up in a way that actually raises the chances to profit takes a little more thought.

1. Choose liquid pairs. Stick to high-volume assets like BTC, ETH, SOL, or XRP. More liquidity means orders fill faster and more consistently.
2. Don't make the price range too narrow. A tight price range might seem more precise, but it creates the risks of price breaking out of these limits, leaving the bot idle. A wider range often keeps the strategy running through normal volatility.
3. Give your bot some time. You've seen the statistics above: LOOP Bot's best results come at the 30-day mark and beyond. However, your judgement about the situation in the market is what influences the final decision.
4. Resist the urge to interfere too often. Constant tweaking disrupts the compounding cycle. Once you've set your parameters, let the bot work. Intervention is suitable when something has fundamentally changed or isn't showing promising results.
5. Start with a realistic deposit. Even $50 is enough to get meaningful results. As you grow comfortable with the strategy, scaling up is possible.

Summing Up

LOOP Bot is one of those rare tools that handle even more than you expect. Its mechanism is transparent: it earns in both currencies, reinvests profits automatically, and compounds value the longer it runs. On Bitsgap, you can use this trading bot for Binance, Bybit, OKX, and 10+ more exchanges.

Whether you are new to automated trading and looking for a low-maintenance entry point, or if you are experienced and want your assets to work harder, LOOP Bot offers a proven path.

Set up your LOOP Bot on Bitsgap today and let it do what it does best: profit for you while you focus on anything else.