Cryptocurrency trading and the beneficial factors of automated crypto trading
Introduction to cryptocurrency trading
You may know the fiat currencies like dollars and euros. However, these are paper currencies currently being used for transactions around the world. But a cryptocurrency is a digital unit that will not be physically present. These cryptocurrencies are still in development and you should understand the blockchain technology to know their working. However, you can consider cryptocurrencies similar to fiat currency as of now. As they are not currently in daily-life usage, their values will be constantly fluctuating. So, people started to trade these cryptocurrencies. In a stock market, you will trade the shares of a company with particular values. However, the same will happen with the cryptos replacing the shares. You can buy any cryptocurrency from virtual exchanges and can sell it in the future to make profits if the value increases. However, there will be some platforms online to help you in this process. If you log in to the website btcrevolution.cloud/no/, you will get to monitor the market and deposit money to start trading cryptocurrencies. However, the selection of these platforms will be in your control and they should be reliable. The trading methodologies are of two types in the crypto trading world. Let us discuss them in this article.
Types of trading with cryptocurrencies
Depending on the manual interference in the trading activities, the crypto trading methodologies are as follows,
- Manual crypto trading – Manual trading is nothing but the live trading activity in which you would have to monitor the market closely to buy and sell currencies at the right time. You should analyse the market factors yourself and all the decisions will be yours. So, you should be ready to face profits and losses at once.
- Automated crypto trading – As the name suggests, these trading activities will happen with the help of computer programs and trading bots. You will have only a little interference in terms of trading decisions. Almost all crypto trading platforms online will have an option to automate your trading activities. There are several advantageous factors of letting the computer system take care of the trading activities. Let us discuss some of these beneficial factors of automated crypto trading in this article.
Beneficial factors of automated crypto trading
Emotional decisions will not be there
Let us assume that a trading bot is taking over your place as a decision-maker in the trading session. So, the bot will have the only goal of executing the trading strategy regardless of sudden changes in the market conditions. The bot will exit the trade once the predefined profit is attained and it will also leave the trade when the loss reaches a specific point. However, if you think of trading on your decisions, you would change your strategies in the middle of the trade due to emotional factors like fear and greed. You would either extend the trade unnecessarily with hopes of getting more profit or do multiple trades to get the lost amount. This will not happen in terms of automated trading.
You may have personal commitments and should sleep during the night. So, you can’t trade continuously with a constant focus on the market. As the drastic changes in the market can happen at any time unexpectedly, it is almost impossible to catch all those high points and make profits manually. Instead, if a bot is trading for you, it will be constantly monitoring the market. Whenever a change happens resembling a predefined high point, the bot will take necessary action even if you are not there. So, you will not miss huge profits due to your absence in the market at that moment. Your trades will happen 24X7.
Quicker entries and exits
Sometimes, you may wish to enter the trade at a specific point due to the particular value of the cryptocurrency. However, as the market of cryptocurrencies is highly volatile, you will not be spontaneous enough to grab that opportunity. You may enter the trade at an altered position. However, this will not happen in the case of automated trading. There, the bot will be spontaneous and will take action right away once a condition is met.