What Is Automated Crypto Trading? An Introduction to Algorithmic

Trading is made far less laborious because of the prevalence of automated trading platforms. You can research assets or spend hours poring over technical charts if you use a trading platform that allows you to trade stocks, cryptocurrencies, and other assets without your involvement.

The term “automation” may imply that the process is more straightforward, but there are still certain considerations to address before implementing such systems.

Consider whether you could benefit from using a fully automated trading system. There is the potential to make money, but it may take more time than you anticipate. Would it be better to trade manually? Because let’s face it, these trading techniques may be tricky, and if you don’t have any background, you might end up losing money.

Understand the ins and outs of the system and be sure you know what you’re getting into. That means not getting too bogged down in complex trading techniques before you’ve mastered the basics.

What is Automated Crypto Trading?

A trader can use an automated trading system (also known as a mechanical trading system, algorithmic trading, automated trading, or system trading) to set rules for when to enter and leave a transaction, which can then be executed automatically by a computer. In fact, 70% to 80% or more of shares traded on U.S. stock exchanges are reported via automated trading algorithms, according to several platforms.

Automated trading systems allow traders and investors to program very specific rules for when to enter and exit deals, as well as how much money should be risked on each trade. Since automated trades are executed when predetermined conditions are satisfied, strategy automation has the potential to remove some of the emotion from trading.

Rules for entering and exiting a trade can be somewhat basic, such as a moving average crossing, or exceptionally complex, requiring in-depth knowledge of the programming language of the user’s trading platform. A skilled programmer’s ability can also serve as the basis for such systems.

To use an automated trading system, you need software that communicates with a direct access broker, and any rules you want to implement must be written in the language used by that broker’s platform.

How does Automated Crypto Trading Work?

You will begin by deciding on a trading platform and establishing the parameters of your trading strategy. You will make use of your previous trading expertise in order to establish a set of rules and conditions, and then your individualized algorithm will apply the criteria in order to execute trades on your behalf. The timing of the deal, the price at which it should be opened and closed, as well as the amount, are often the three primary determinants of these aspects.

Also Read : 15 Best Free Crypto Trading Bots in 2023

The automated trading strategy that has been set up will continuously monitor the prices of the financial markets, and trades will be automatically completed if the conditions that have been preset are satisfied. The goal is to complete transactions in the most timely and cost-effective manner possible, as well as to capitalize on certain, technical market events.

What are the apps to buy and sell crypto automatically?

Currently, investors may trade cryptocurrencies on more than 18,998 markets. The vast majority of them have an online presence and mobile software. Many exchanges also allow for the buying and selling of various cryptocurrencies. The most useful features of the top cryptocurrency trading applications are the sophisticated charting tools and the ability to create price alerts in real-time.

Features such as accepting fiat and cryptocurrency deposits, fast deposits, P2P trading, fees and commissions, order books, credit card and other payment method support, and verification procedures might vary widely between apps. Create a wallet with the service that seems to have the features you care about most and sign up for their service.

You can make purchases using a centralized order book with other crypto trading apps. Simply click the “buy” button, choose the cryptocurrency, and enter the desired purchase amount. On cryptocurrency exchanges, traders can place various orders, such as market, limit, stop loss, maker only, immediate or cancel, reduce only, and edit.

Apps like Cash, Gemini, Crypto Pro, Block Fi, Binance, Kraken, Coinbase, and Robinhood are among the finest ways to buy and sell cryptocurrencies today. It’s true that you can trade cryptocurrencies with any of a plethora of available apps, but the most reliable ones prioritize user safety and minimal fees.

The best app for trading cryptocurrencies should offer a variety of deposit methods and have low spreads. The finest trading applications for novices will also support trading with fiat currency.

5 Best Automated Crypto Trading Platform

The world of cryptocurrency trading has witnessed significant growth and popularity in recent years. As the market continues to evolve, traders are seeking innovative tools and platforms to enhance their trading strategies and maximize their profits. Automated crypto trading platforms have emerged as a game-changer, empowering traders to execute trades efficiently and effectively. In this article, we will explore some of the best automated crypto trading platforms available in the market today.

1. Robofi

Robofi is a robust and feature-rich automated crypto trading platform that offers a wide range of advanced trading tools. It supports multiple exchanges and provides users with the ability to design and implement their own trading bots using a visual editor. Robofi offers a vast array of technical indicators, risk management features, and backtesting capabilities, making it a popular choice among both beginner and experienced traders.

2. 3Commas

3Commas is a popular cloud-based automated trading platform that supports a wide range of cryptocurrency exchanges. It offers users a user-friendly interface and a variety of trading bots with different strategies to suit individual preferences. Additionally, 3Commas provides features such as smart trading terminals, trailing stop-loss, and take-profit orders, as well as social trading, where users can follow and copy successful traders’ strategies.

3. Cryptohopper

Cryptohopper is an intuitive and user-friendly automated crypto trading platform that allows traders to create and customize their trading bots without requiring any coding knowledge. With Cryptohopper, users can access a marketplace of pre-built trading strategies and signals, as well as backtest their strategies using historical data. The platform also offers a paper trading feature, allowing users to test their strategies in a simulated environment before deploying them with real funds.

4. Zenbot

Zenbot is an open-source automated trading platform that provides traders with the flexibility to customize and configure their trading strategies based on their preferences. Built on Node.js, Zenbot supports multiple exchanges and offers features such as paper trading, technical analysis indicators, and live trading with real funds. While Zenbot requires some technical expertise to set up and operate effectively, it remains a popular choice among developers and experienced traders due to its flexibility.

Also Read : What Is Crypto Market Sentiment? A Barometer for Investor Confidence

5. Gunbot

Gunbot is a well-established automated crypto trading platform known for its advanced trading strategies and customization options. It supports a wide range of exchanges and provides users with various pre-configured trading strategies. Gunbot also offers features like trailing stop-loss, backtesting, and a user-friendly interface. With its active community and regular updates, Gunbot continues to attract traders seeking a comprehensive and customizable automated trading experience.

Conclusion

Automated crypto trading platforms have revolutionized the way traders approach the cryptocurrency market, offering increased efficiency, precision, and speed. The platforms mentioned in this article, including Robofi, 3Commas, Cryptohopper, Zenbot, and Gunbot, are among the best options available to traders looking to leverage automation in their trading strategies.

It is crucial for traders to carefully evaluate their needs, consider factors such as ease of use, supported exchanges, available features, and customization options before selecting the platform that best aligns with their goals and preferences. Ultimately, with the right automated crypto trading platform, traders can optimize their trading efforts and potentially achieve better results in the dynamic world of cryptocurrencies.

About RoboFi

Robofi is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.

About VICS

VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.

Official Link

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