Business

5 Reasons Why Automated Trading Matters to Investors

5 Reasons Why Automated Trading Matters to Investors

The cryptocurrency market is currently experiencing a boom, characterised by a high influx of investors who are willing to stake their hard-earned cash into the volatile marketplace in anticipation of earning substantial returns. However, being a never-closing ecosystem, investors are finding it a challenge to leverage the 24-hour trading environment, thanks to the bots which are now automating the buying and selling process of virtual currencies.

Outlined are the key reasons as to why automated trading counts big to investors.

 

  • Making every second count maximizes returns

 

Since the inception of the pioneer cryptocurrency Bitcoin, hundreds of other cryptocurrencies have been launched, and more are still being introduced into the market. Keeping an eye on the top 10 cryptocurrencies, let alone other potential coins that existing among the 1000 plus virtual currencies for a period of 24 hours is beyond the human scope.

Automated trading presents a working solution to this human limitation, automatically scanning and analysing the market round the clock, and only executing trade according to parameters set by an investor. Traders can, therefore, make the most returns out of their investment.

 

  • Backtesting before staking

 

The fact that cryptocurrency bots automate the trading process does not give room for a vague understanding of how the ecosystem operates. An in-depth comprehension of the markets is required in order to maximize returns from an automated trading process. That is why robustly built trading bots such as gunbot don’t allow traders to blindly jump into the bandwagon; instead, they offer traders with an opportunity to experiment their various trading strategies and fine-tune them accordingly, before exposing their real money to risk.

 

  • Better insights from statistical data hence better trading strategies

 

The quality of any trading strategy is dependent on the quality and quantity of data collected on relevant  past trading activities. Analysing such voluminous data is not only tedious but also impractical. With an automated buying and selling system, investors have ready access to both open source and premium powerful analysis tools that yield reliable insights hence highly informed trading measures. Since accurate analysis and predictions are not cheap to attain as a result of the resources required, premium trading bots have proved useful than their open source counterparts.

 

  • Elimination of human bias

 

As human investors, we can be hesitant to open or close a trade that could have earned us some significant profits as a result of the negative experiences we have suffered during our past trading histories. With an automated trading bot, buying and selling are automatically executed based on the set of instructions provided by a trader. This eliminates panic that leads to human error as well as executes profitable deals if a proper understanding of the market is incorporated.

 

  • Speedy execution of orders

 

Finally, since every second count in the cryptocurrencies markets, it would be difficult for human beings to respond immediately to changing market trends lasting within seconds that could have minted enormous profits. Automated trading processes, being made up of software, can give immediate responses to market shifts, depending on how well they have been developed.

 

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Business

Love to write about entrepreneurship and Technological solution in the World.

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