Automated Cryptocurrency Trading: Does It Really Work?


The fame of cryptocurrency trading has resulted in the availability of crypto trading bots, either for free or in exchange of flat fees. However, it is tough to know which of them will work and which will be an absolute waste of time and money. 

What is automated cryptocurrency trading? 

An automated cryptocurrency trading is a software program which is linked with financial exchanges to place buy and sell orders, when you are unavailable depending on the market data interpretation. 

These bots make the decision by working on the price movement pattern and react as per the pre-defined and pre-set rules. Usually a bot analyzes the market action like orders, trading volume, price and then performs the trade accordingly. You can set it according to your preference and requirement. 

Automated cryptocurrency trading has been popular for a number of years now. With so many traders trading crypto coins passively, they fail to dedicate all their time to market. Hence, the automated systems allow users to establish a better and more reliable trading without having to look at the charts and market movement all the time. 

Different kinds of automated cryptocurrency strategies 

Though the crypto market is in its infancy, yet it has taken very low amount of time to integrate algorithmic trading. The technology as offered by StsRoyal.com has helped investors to get access to plethora of trading strategies. Some of them are given below: 

Arbitrage 

During the start of cryptocurrency trading, traders used to buy assets in one market and sell at a higher price and earn their profit in the difference. But because these cryptocurrency exchanges are unregulated, they often have huge difference between the prices offered on different exchanges and hence a large amount of profit can be made via arbitrage. 

Though the spread between exchanges may be smaller, but they happen often and the bots know how to make the most out of it. 

Market making 

Trading bots permit traders to apply their market making strategy. In this technique, the bot has to go for constant buy and sell price on different spot virtual currencies to capture the spread between the purchase and sell price. 

Does automated cryptocurrency trading work? 

Trading bots like Crypto Comeback Pro work according to market reactions. It accumulates the data it requires and executes a trade depending on its analysis. However, trading platform technical analysis is just half the story while the other half is based on the other sources which cannot be programmed in the bots. 

Hence, this has narrowed down the usage of automated cryptocurrency trading. A lot of bots use EMA (exponential moving average) to analyze the market. If you program the bot wisely, you can actually earn a lot. However, the EMA only works on past history and is not indicative of any future actions, especially in the crypto world where volatility is extreme. 

Automated trading has plethora of benefits and one of them is continuous interaction with the market. However, it also has a negative point which is if you just use one wrong strategy, then you may end up losing everything because of your poor automated trading decision.