When it comes to cryptocurrency, seems like we are back in 2017 when Bitcoin hit the $20K USD milestone for the first time. Currently, bitcoin is at the all-time high of $24K. Hence this is an interesting era for crypto traders. More so if you are into automated crypto trading.
Automated crypto trading involves the use of crypto trading software/bot. The software is a piece of code that executes trades on the user’s behalf. Crypto signals guide the moves of automated crypto trading software. The automation makes the whole experience more efficient, unbiased, and hassle-free. The successful traders are the ones who leverage the services of the best crypto trading platforms.
Automated Crypto Trading: The Benefits
Cryptocurrency came on stage in 2009. It has been roughly a decade of cryptocurrency trading. There aren’t many investors in the crypto market. So, the decisions of a few can change the market dynamics. This brings a lot of volatility to the crypto market. The trade becomes a sort of roller coaster for small investors. You can get overwhelmed and emotional by trading on a bad day. Therefore it is crucial to use algorithmic trading software for peace of mind. Nonetheless, automated crypto trading has perks beyond mental peace. Some of them are mentioned below:
The crypto market never sleeps, but you do. What if you lose a great trading opportunity in your sleep? Well, if you are doing automated crypto trading then you never will. The automated trading software run on the trading platform 24/7. The cloud-based software doesn’t even need a running system to operate. You can enjoy life while the trading bot takes care of your portfolio.
Humans can get tired or fatigued, sitting in front of the computer all day. Besides, you have to make an instant decision with available knowledge & mathematical calculations for figuring out the trade. As a result, productivity, and efficiency decrease. The user of automated crypto trading software hands over all this arduous labor to the trading bot.
Crypto trading bot makes swift decisions and does necessary maths in the split of a second. It can easily cram the knowledge of the crypto industry. Additionally, trading software have the capability to analyze crypto market more accurately than humans.
Secure and Transparent
The best trading bots have transparent services. The execution of orders is done carefully while keeping the user in the know. Moreover, trading software come with the built-in features of secure and protected trading. You can keep your funds in the cold storage and decline withdrawal permission on exchanges to stay in full control. The bot takes the burden off your shoulder.
You trade cryptocurrency to make profits. An efficient algorithmic trading bot will earn you a significant amount of profit in a decent amount of time. There is no get rich quick scheme here. The automated trading platforms claiming unrealistic results are just scams. Hence, invest your money wisely. Past performance is no guarantee for future results. Don’t invest with the money you cannot afford to lose.
Automated trading software either come with built-in strategies or user can set ones themselves. There are a plethora of crypto trading strategies that can minimize the risks and increase the odds of success. Pick the one that suits your portfolio. The trading software will then work on it without assistance.
Sticking to one strategy is a key to success in the volatile crypto market. However, humans get too emotional and might change strategy based on whim and fickle. The trading bot, on the other hand, stays on track and doesn’t get pressurized into changing the strategy.
Risks Attached with Automated Crypto Trading
Automated crypto trading makes your trading journey smooth. Nevertheless, you cannot set and forget it. Here are some of the risks involved with automation:
Computer software are vulnerable to bugs. A trading bot may already have a bug or get infected while running on your computer. The resultant operations can be devastating for your trades. Hence it is important that you check all bugs before employing an algorithmic trading software. Furthermore, join the community of traders already using the particular software. Consequently, you will learn about issues and bugs before experiencing them yourself.
Some crypto trading platforms are a total fraud. They promise big returns but end up taking your hard-earned money. Beware of such scams. Do complete background research before trusting someone with your portfolio.
Also Read: 7 Common Bitcoin Scams and How to Avoid Them
Strategies Can Fail
Sometimes the built-in strategies fail and if you aren’t monitoring the performance, the bot could incur significant losses. Hence, keep checking your trading set up. If a strategy is no longer useful according to market condition then change it. The emotionless bot will not know what it is doing until it’s too late. Therefore, you should stay vigilant.
Should I try Automated Crypto Trading?
Automated Crypto Trading is worth giving a shot. It is easy to use and even a novice trader can earn profits with trading bots. With copy trading, you can trade like a professional without the essential knowledge or expertise. It helps you improve skill slowly and at your own pace. So, we suggest that you try trading crypto with the help of automated trading software.
Digiebot is the best cryptocurrency trading platform for beginner traders. It requires zero experience and comes with 20 plus built-in algorithms. Users can execute the t 20 trades without paying the membership fee. It is a free algorithmic trading software for experimenting with your skill. Sign up for digiebot here
Automated trading is a growing trend. 90% of the trades on wall street are done with automated trading bots. It is profitable and easy to start. So what is stopping you from embarking on the journey of automated crypto trading?