Ever since crypto trading has become an acceptable option among the larger populace due to increasing awareness about the currency or asset (as you like to refer to it), traditional methods of trading have fallen short.
While there are those that prefer to do their own research not just on the cryptocurrency but also on the trading strategies to be adopted, there are also those that have neither the time nor interest to do so. It is here that automated crypto trading can make a huge role in attracting more traders to crypto.
Staying true to their name, automated crypto trades are executed with the help of software. The process that a crypto trader interested to go in automated crypto trades has to follow goes something like this. First, you need to create an account with an automated crypto trading platform. These trading platforms use their own bots or algorithms to execute automated trades in crypto for your account.
An important step in the whole process is to select a strategy that you wish to employ. The trading platform that you selected will offer you a host of strategies for crypto trading. Once you have selected the strategy, the platform will automatically execute crypto trades for your account based on the strategy selected.
Here are some pros of automated crypto trades:
They are faster –
A machine is any day faster than human beings. If you are looking to execute crypto trades based on trading signals and have a predetermined strategy in place, then it is more than likely that using a bot for automated crypto trades will result in faster trades for you as compared to you placing the order manually.
Like with stock trading, time is of the essence here. Suppose you see that the crypto that you are looking to buy has hit the lower price range that you want. In this scenario, a bot will notice the price sensitivity much better than you and at the same time will most probably ensure that the trade gets executed at your price range.
They are available 24*7 –
While there are a lot of similarities between crypto markets and stock and bond markets, there are also fundamental differences between the two. For instance, stock and bond markets are functional during limited working hours in a day and trading is restricted to those hours.
However, with crypto, it is seen that trading can continue all through the day and even at night. There is constant price fluctuation and the best traders make sure that they utilize this to their advantage. But it is also a reality that a human being cannot stay active for 24 hours and thus automated crypto trades help traders achieve their trading goals as they are bots or algorithm-based and can stay active 24*7.
They help you diversify –
The crypto market is ever-expanding. Lots and lots of new cryptocurrencies are coming up and it is difficult to keep track of the same. Again, machines come with their advantages.
With the help of automated crypto trading applications, you can select a strategy that trades in multiple cryptocurrencies depending on prices. This way you can diversify your crypto holdings without much effort on your part
They are disciplined –
Crypto trading requires consistent attention. There are times when we may not be able to follow the pricing trends either due to sheer exhaustion or a family emergency. Automated crypto trades take away the human fallacy as they will never be lazy or tired. Disciplined trading yields better results.
While there are numerous advantages of automated crypto trading, it needs to be remembered that using such platforms or strategies is no guarantee that you will be at the market when it comes to returns. All it can ensure is that human shortcomings can be taken care of.