What is a crypto automated trading platform? Do they have advantages? You will find the answers to these questions in this article. Moreover, you’ll be able to decide whether it’s convenient for you to use one. But first, let’s answer the questions.
Trading on cryptocurrencies is not so simple. The crypto market is very volatile. Hence, investors need some knowledge and experience to make the right investment decisions. This is why some experts in the crypto market have created computer tools that automate the decision-making process. Such tools use sophisticated algorithms to analyze the market. This way, they find good investment opportunities.
But relying on a computer program to make investment decisions is somehow risky. Thus, automatic trading platforms use such software to assist in decision making. Investors can customize the software to regulate the risk involved. This means that human oversight is possible to the degree that the investor decides. An example of such a platform is Bitcoin Revolution.
The software at the core of an automatic trading platform generally uses an API. The software performs trading operations automatically. These trades have effects on the investor’s exchange account. The software will perform a trade only when it can meet the conditions set by the investor. There are many market parameters that the software takes into account. But it is the investor who ultimately decides the rules to follow.
Should You Use a Crypto Automatic Trading Platform?
If you use one of these platforms, you can trade 24/7. This is an advantage. Another advantage is that you can adjust your trading strategy as you deem more convenient. You must choose the right platform for you. This depends on the level of experience and expertise you have. Some platforms are more suitable for experienced investors. They offer all types of customization to create a complex trading strategy.
But if you don’t have much experience, you can opt for a simpler platform. Some of them are so simple that you can give the necessary information to the software. Then, you just wait for the software to make some profit for you. In such cases, you don’t have much control over the trading strategy, though. You have to trust that the software developer knew what he or she was doing. As a consequence, the quality of such platforms can go from very good to very poor.
Some platforms don’t take into account some unexpected factors that can impact the market. This may lead to losses if one of those events happens. That is why human supervision is still necessary. Hence, it’s better to choose a trading platform that allows the customization of your strategy.
Advantages of the Most Popular Platforms
If you choose the right crypto automatic trading platform, you’ll enjoy the following advantages:
- You can trade 24/7 without watching the market fluctuations;
- The software can identify good opportunities and act immediately to profit from them;
- There is no stress associated with trading. Often, stress leads to unwise decisions.
There are some risks involved with crypto automatic trading platforms too. Hence, to minimize such risks, try to choose one of the most popular and reliable platforms. The following are some of them.
This is a very versatile platform. It is suitable for both inexperienced and experienced traders to make a profit. You can customize the software to follow your strategy. Once configured, the software can make investments automatically.
This platform is cloud-based. It allows investors to operate with several trading accounts. The platform integrates many exchanges, which allows users to monitor all their holdings easily. The platform offers a large number of features and trading tools.
This is another cloud-based platform. The main feature of Cryptohopper is the so-called Strategy Designer. This allows investors to create their most convenient trading strategies. You can use many indicators (up to 30) to craft your strategy.
This is another cloud-based automatic trading platform that you can access via desktop or smartphone. The main feature of this platform is the so-called SmartTrade terminal that allows the customization of your trading strategy over several crypto exchanges.