The cryptocurrency market is one of the most volatile and unpredictable markets in the world. It can be intimidating for those new to trading, but automated crypto trading offers a potential solution.
Automated crypto trading uses algorithms to automatically analyze the market data and execute trades on behalf of traders, meaning that traders don’t need to monitor the market constantly. This article will explain what automated crypto trading is, how it works, and why you should consider using it.
What Is Automated Crypto Trading?
Automated crypto trading is a process where an algorithm tracks changes in the cryptocurrency market and executes trades on behalf of a trader without any manual intervention.
The algorithm is programmed with specific parameters, such as when to buy or sell, what currencies to trade, and at which prices. This allows traders to make money through cryptocurrencies without needing to be glued to their screens all day, tracking price movements.
How Does Automated Crypto Trading Work?
The automated crypto trading process begins with setting up an account with a specified platform or exchange. Once this is done, traders must choose the desired strategy so that it can begin executing trades on their behalf. Once all of this is done, the algorithm will begin executing trades automatically based on its programmed parameters. As long as the algorithm remains active, it will continue making decisions in real time and executing trades accordingly.
Crypto Bots vs. Automated Crypto Trading Platforms
Although you may hear about crypto trading bots that connect to exchange accounts, these are not the safest options for automated trading. Many of these programs are set-and-forget systems that do not have the capability to respond or adapt. Instead, it is better to rely on an automated trading platform managed by professionals and powered by advanced predictive algorithms. One of the best examples of an automated crypto trading platform like this is Haru Invest.
Crypto trading platforms that automate transactions also reduce transaction costs. You will have to pay transaction costs if your exchange account is connected to a bot. By choosing an automated crypto trading platform, you will eliminate this cost since the platform will handle transactions on your behalf.
Haru Invest
With the launch of Haru Invest in 2019, the trading strategy has been driven by algorithmic trading.
They deploy three core algorithmic trading strategies to drive profits for investors:
- Arbitrage trading that leverages the price gap between crypto exchanges
- Market neutral strategy based on the price stability mechanisms at crypto futures exchanges
- Spread trading that focuses on the volatility of BTC/ETH futures contracts
Haru Invest has paid out 4.1M+ separate earnings on time.
Their total transaction volume since launch exceeds $2.11B. They have more than 74,500 members from 140+ countries using Haru Invest. 87.5% of their members continue to use their platform with deposits.
Take a look at the platform and decide if it’s right for you.
Benefits of Automated Crypto Trading
One of the most obvious benefits of automated crypto trading is convenience; traders do not need to monitor price movements 24/7 but instead can leave their accounts running on autopilot and take profits.
Additionally, automated crypto trading eliminates emotion from decision-making; since all decisions are made based on predetermined parameters programmed into the algorithm, there are no psychological biases involved in decision-making, which could lead to wrong decisions being made due to fear or greed.
Finally, automated crypto trading minimizes transaction costs as there are no manual interventions required throughout the process; every trade made is executed automatically by the algorithm eliminating any human errors that could lead to additional costs being incurred by traders.
Conclusion
Automated crypto trading provides a convenient way for traders to remain invested in cryptocurrencies without needing constant monitoring or manual interventions in order for them to make money from these markets.
Ultimately, whether or not you decide to use automated crypto trading depends upon your individual requirements. Still, if you’re looking for a way to remain invested in cryptocurrencies without needing constant monitoring, then this may well be something worth considering further!
