What is automated crypto trading and why is it so popular?
Algorithmic trading, also known as autotrading is the use of an automated system, which is pre-programmed with instructions for executing transactions based on a range of factors, such as trading volume, market volatility, the current asset price and more.
While the emerging crypto economy is changing the way the world does business, automated trading systems are having a significant impact on the global digital currency markets, by increasing volatility, enhancing liquidity and influencing the market rates of a whole range of cryptocurrencies.
Autotrading bots have been adopted so widely by every type of trader because an automated system can identify and react to market shifts faster and more efficiently than any human could.
What type of autotrading software should you choose?
There is a wide variety of automated crypto trading platforms on the market and your choice will depend on your trading goals, experience level and budget.
One of the most common options is a standard bot with pre-coded strategies. This ready-made logic automatically takes effect in response to specific market triggers in various combinations. On the upside, this type of basic bot is straightforward and easy to use, enabling you to verify the usefulness of your strategy, risk-free, before you begin trading. On the downside though, the bot will keep reacting in the same fashion, based on the preinstalled strategies, regardless of changes in long-term trends that demand a different response. If there is a substantial market shift over time, you need the capability to manually alter the code, in order to change the software’s response to certain market conditions.
If you are looking for a passive income that doesn’t require you to lift a finger, your best option is an advanced autotrading system based on Artificial Intelligence. One of the best-known software providers in this field is ArbiSmart.com, an automated crypto arbitrage trading platform that uses AI-based neural networking, big data and machine learning technology. The system requires no human intervention and evolves based on its previous experience, to respond to crypto market conditions with greater accuracy and precision.
Is automated software better than manual trading?
The cryptocurrency markets are in constant flux. They are dynamic and volatile, shifting rapidly, making the use of algorithmic trading a necessity if you want to keep pace. ArbiSmart’s high-frequency tools are able to recognize developing trends and active market cycles and they can identify a trend reversal and alter the bot’s strategic approach accordingly. They enable the system to identify lucrative crypto arbitrage opportunities 24/7 and respond at lightning speed.
In a variety of ways, an automated system is more efficient than manual trading. First and foremost, unlike a human being, software is purely logical and will not make emotional decisions, driven by greed, fear or anxiety. Unlike a human, they also never get tired. If you lack the market experience or free time necessary to do your own investing, an autotrader allows you to sit back while it does all the work for you. It can monitor market activity around the clock to seize market opportunities the moment they arise, performing multiple tasks simultaneously. A bot also has the capacity to process masses of data, analyzing it instantly so as to capitalize on market opportunities.
The ArbiSmart system searches for arbitrage opportunities, 24 hours a day across over twenty exchanges at once and it is able to execute a huge number of transactions at once. It finds where a chosen coin is offered for the lowest possible price and then identifies the exchange where it can be sold for the highest available price, instantly performing all the transactions involved to earn the greatest possible profit on each and every trade.
How safe is algorithmic crypto trading?
Clearly, using the right bot can be incredibly advantageous and can radically minimize your exposure, limiting the volatility of your portfolio and boosting your account balance.
However, it should be noted that algorithmic trading software is not completely risk-free. The markets are unpredictable and even the best strategies have been known to fail on occasion. With automated systems, analysis tends to be performed retroactively and conclusions are often drawn on the basis of positive prior outcomes without accounting for the wider global market context.
Moreover, the digital currency markets present a number of unique challenges. Crypto is an emerging, highly volatile asset class, which has yet to be fully legislated and not all operators in the crypto space can be trusted. For this reason, choosing a regulated algorithmic trading platform is essential. In this way, you can mitigate your risk and enjoy a trustworthy, fair and transparent trading experience.
ArbiSmart is fully EU licensed, meaning that it is monitored consistently and has the available funds to cover all client accounts. The company also implements the strictest technological security protocols, including identity verification to protect against fraud and airtight encryption to guarantee the integrity of your account and the privacy of your personal data.
ArbiSmart, as a crypto arbitrage platform is also focused solely on what is widely considered to be the lowest risk form of investing, exploiting the lucrative opportunities presented by the rapidly growing crypto markets without the high exposure associated with crypto volatility.
As they develop ever more impressive capabilities, smart, automated trading systems are revolutionizing the way we trade cryptocurrencies. With unparalleled efficiency and speed as well as the capacity to execute numerous trades across multiple exchanges at once, bots are limiting risk and making the markets accessible to everyone including those without the experience, time or resources to safely trade the global crypto markets manually. If you are going to trade crypto, without a doubt we recommend you to start with ArbiSmart, an automated system that is the safe stand the smartest way to go.