Automated Bitcoin Trading as an Option for Investment

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by Susan Tindol · 5 min read
Automated Bitcoin Trading as an Option for Investment
Photo: Pixabay

While high volatility and never-closing markets may make Bitcoin trading tough, Automated Bitcoin Trading is providing a working solution for maximizing the returns in such circumstances – presumes our guest author, Susan Tindol.

The cryptocurrency market is booming with new Initial Coin Offerings (ICOs) being launched every day. Though the market is highly volatile, people are opting to invest in cryptocurrency due to the high amount of profits that can be made. Bitcoin, since the point of time it was launched, has come way ahead, both in terms of popularity and price.

Even though its price is highly fluctuating, it has become a hot favorite for investors. Among all the cryptocurrencies launched, bitcoin firmly holds the top spot and is one of the most preferred investment instrument. However, owing to its highly volatile nature, a trader needs to be aware of the market trends every now and then. Within a short span of time, it can become highly stressful and frustrating plus takes a toll on personal life as well.

Since the cryptocurrency market never sleeps; imagine one day you wake up from your deep slumber and found yourself in losses. So what is the solution? The answer to this question is Automated Bitcoin Trading.

What is Automated Bitcoin Trading?

Automated Bitcoin Trading involves automated bitcoin trading bot, which is a software program, that automatically scans the market for you and places the trade as and when the pre-set parameters are matched. This way, you don’t require to constantly keep a tap on the changing market. The automated bitcoin trading bot will do the task for you. Moreover, there is no scope of sleeping in it.

These bots have become increasingly popular as it allows the traders to be in control of their cryptocurrency investments all the time. Moreover, a bot, when the parameters are specified correctly, can perform the trades at a much faster rate as compared to manually doing the same thing.

Benefits of Opting for Automated Bitcoin Trading

There are plenty of benefits associated with automated bitcoin trading bots; some of which are outlined below:

  • Emotions Won’t come in Between: There had been plenty of cases when we are hesitant to open and finalize a trade though it could be very beneficial for us. At most times we are afraid to pull the trigger. With automated trading, there is no scope of emotion to get involved at all. When all the trading rules are met; the deal will take place automatically. Besides this, automated trading even curbs over-trading.
  • Improved Speed of making the order: The cryptocurrency markets are highly volatile. Even seconds can make a huge difference. Trading bots, since being a software, can respond immediately to the changing market trends and help you to catch on the profits which you could never have gained manually.
  • Can be backtested: The set of rules written for an automated training bot can be tested with historical data before placing the bot on real money. This feature enables the traders to fine-tune and upgrade their trading data according to the changing market conditions.
  • Consistency in Trading: There could be times when a trader has to suffer from losses 3-4 times in a row. This is enough to induce a psychological trauma over the trader and he/she may refrain from trading anymore, even though the next deal could have reversed all his/her losses. An automated bitcoin trading bot will be consistent in placing the trade and this way a trader can’t miss on that positive life-changing moment.

Now, you must be thinking that there would be certain disadvantages as well associated with automated bitcoin trading. Well! There are a few but with careful planning, the disadvantages can be eliminated once and for all.

  • Monitoring: It is not the case that automated bitcoin trading won’t require monitoring. There is always a probability of issues such as connectivity failure, power loss or computer restart or computer crash. Due to these, the automated system might build up certain anomalies and if the system is not monitored for long, could result in huge losses.
  • Codes Require to be changed: It is not the case that the code written once for a trading bot will hold for a lifetime. These set of codes are time-based and can work in one condition while in others they may not work as expected.

These disadvantages are not enough to take over the advantages that the system has. Periodical monitoring of the system can prevent mechanical issues. As far as the second disadvantage is concerned a system for automated bitcoin trading via machine learning algorithms is the solution. These machine learning algorithms can analyze and interpret the market on their own and suggest the best trading option to the user. Moreover, they learn from the trades that have been made as well as from the current market happenings.

Conclusion

If you are just beginning out in bitcoin trading you must opt for an automated bitcoin trading system. But this doesn’t mean that you can rely completely on the system and start without knowledge. Knowledge is a must. Moreover, you can monitor the trades done by the bot and learn from them also.

Overall, I recommend going for automated bitcoin trading to all bitcoin investors out there.

Bitcoin News, Cryptocurrency news, News
Alexandra Sayapina
Author: Susan Tindol

Susan Tindol is an experienced financial markets analyst, who is sharing her experience with people looking for effective tools and strategies to earn money online. Her main fields of competence include: online investment, online trading and income diversification.

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