The New Age In Crypto By CoinEdition
Algorithmic trading is a form of automated trading where execution depends on a set of predefined conditions. In the cryptocurrency industry, algorithmic trading is done using robots, which are tested over time to deliver specific results under certain conditions.
Although not a foolproof way to make money, these robots can easily improve a winning strategy, because you can configure the robots to execute the trades you want to see, but without having to check the market conditions. So it can trade 24/7, potentially while traders earn another form of income.
The rise of crypto trading fines/t2
There are a number of reasons for the rise in popularity of crypto trading robots. The first, and most obvious, is profitability. The stock market is full of high frequency traders, big banks, whales, institutions, hedge funds and experts. It is virtually impossible for traders to beat the industry when it comes to legacy trading. The Gamestop saga was as close as it got, and it was shut down.
But this is not the case when it comes to crypto trading. Cryptocurrency is not as well established and has less established patterns and historical datasets. It experiences more volatility for traders to profit from. The lack of regulation actually makes it friendlier to retail investors and more hostile to large institutions.
Another reason bots are on the rise is because of the type of returns. You get paid in cryptocurrency when you use an automated bot. This is in contrast to the traditional markets, where profits and losses occur in fiat. This means that small profits in bear markets can yield more lucrative returns when the inevitable bull market arrives. The price of crypto assets will increase. It is a great way to gain access to cryptocurrency for those looking to invest.
The development of crypto trading robots/t2
Algorithmic crypto trading robots are made by software-as-a-service (SaaS) providers that typically have expertise in trading. The same charting patterns and technical analysis tools in traditional financial markets have similar uses in the crypto market. However, the robots can be customized to take into account certain unique patterns that are particular to crypto trading, especially the increased volatility.
Crypto trading bots are developed by advanced programmers under a specific set of criteria. The robots are tested over time, and those with a good track record are placed for hire. The strategies of the robots are open for all to see and there are many different types of robots to suit different traders, new or advanced. Popular crypto bots include Cryptohopper, 3Commas and HaaS.
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Crypto trading robots have become so popular that the Bybit exchange has even launched its own, with Dollar Cost Averaging (DCA) and copy trading functionality. However, such bots do not have the speed, security or functionality compared to standalone SaaS providers, who have been offering these automated trading bots for many years.
In recent times, Bitsgap has stood out a bit from other automated crypto trading platforms. Since its inception in 2016, the algorithmic trading platform now has 4 million monthly visits with over 3.7 million launched robots. The aim of the platform is to provide smart automation tools that enable all styles of investors to earn passive income from cryptocurrency. Available on 15 major exchanges, it is one of the safest providers that is rapidly expanding internationally.
Advantages of algorithmic trading/t2
There are other reasons why algorithmic crypto trading is on the rise again. Compared to trading robots in the traditional stock market, these cryptobots are designed to be intuitive and easy to use for beginners. They easily connect to crypto exchanges through API keys, and the SaaS providers do not have access to funds.
A number of small, simple strategies are available for use. In contrast, automated trading robots in legacy finance can be confusing and difficult to use, due to too many features. The fact that many new crypto robots offer DCA trading strategies shows that they are eager to accommodate existing market preferences. DCA is a proven and simple strategy that anyone can use, investing specific amounts at regular intervals to ensure that risk is minimized.
At the same time, there are several customization options for users who want to try out different, more advanced strategies. Traders can also look at the history of robots to see how they have performed over time, and conduct their own backtesting to gauge future returns.
More than just hype/t2
Nothing is guaranteed in trading. And cybersecurity remains a serious concern, so it’s important to use trusted providers with strong authentication procedures. Past returns are not an indicator of future performance, and cryptocurrency is notoriously volatile.
However, algorithmic cryptocurrency trading is one of the best ways to learn how to trade while potentially earning crypto returns. It is easy for all classes of traders and operates 24/7, devoid of emotional decisions. It also enables bots to run across crypto assets, providing an investment vehicle for a variety of tokens – XRP, LTC, ETH, BTC, XMR, etc.
While there is hype surrounding a possible bull market, cryptocurrency bots are a viable means of automated income, with huge customer bases and strong online reviews.
The post Algo Trading and Crypto Bots: The New Age In Crypto appeared first on Coin Edition.
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