Cryptocurrency trading operates similarly to conventional foreign exchange trading. The only difference is, instead of trading with fiat currencies such as the U.S. dollar or the Japanese Yen, you trade using recognized cryptocurrencies such as Bitcoin, Litecoin, Ripple or Ethereum.
Professional traders rely on strategies to make profits. For instance, they perform extensive market analysis, draw analytic charts, and only trade when the market conditions are favorable. It is a manageable process for traders who only are interested in trading through exchanges. However, the manual process becomes a burden for advanced traders who are accustomed to using terminals rather than exchanges. This is where automation comes to the rescue.
It goes by different terminologies; automatic trading, system trading, algorithmic trading or mechanical trading. It is simply a system of trading that saves everyday traders the burden of conducting market analysis and placing the specific trades manually. Automated trading platforms, such as Superorder , rely on the universal rules of cryptocurrency trading.
A qualified programmer with extensive knowledge of cryptocurrency trading develops the automated trading software which is based strictly on trading rules and strategies. The programmer breaks down the rules of crypto trading to the most basic level, such that every set of rules can be executed by a set of commands. The software then trades on behalf of the actual person; buying and selling when the desired trading parameters are met.
In today’s era, most professional crypto traders prefer automated trading. Its advantages over manual trading are discussed below;
1. Automation Is Its Core Strength
Cryptocurrency trading is like any other investment is a game of strategy. You don’t wake up one day and decide to place all your savings on cryptocurrency trade. A trader needs to create a cryptocurrency portfolio, allocate their funds to the portfolio, diversify it, and track its performance over time.
First-time traders need to research the cryptocurrency market, understand the various types of exchanges and trading terminals available, perform a comprehensive market analysis, and learn when to trade and when not to. In retrospect, crypto trading is a repetitive activity. Some of the processes, such as portfolio tracking, market analysis, and arbitrage, are complex. They change with the dynamics of the trade, making it almost impossible to manually track them over multiple crypto trading platforms.
Automated trading software takes this burden from the traders by following pre-programmed parameters for decision making. The software performs all relevant analyses in the background and only places a trade when the favorable parameters are met. It does not get any better than that!
2. Helpful Analytics
Automated trading platforms store portfolio and market data over time. Besides, they use their built-in backtest protocol to simulate the programmed trading strategy against the historical data. What the trader gets is a reliable statistical report that represents such data in the form of analytical charts and graphs which are easy to comprehend.
The purpose of the simulation is for forecasting how certain trading strategies would perform in the real market. It then generates a detailed report of the risks and returns from that strategy. The trader can rely on the backtest report to understand their trade volume as well as their win/loss ratio for decision-making purposes. The report also helps traders know how to minimize their risks and maximize their gains. Such powerful analytics aids professional traders at bettering their trading strategies for more accurate trades in the future.
3. Better Tracking Capabilities
Professional crypto traders prefer diversifying their portfolio by trading across several exchanges. Each exchange is influenced by its own market dynamics. The sell or buy prices fluctuate differently, resulting in different arbitrages. Since timing and speed are key, traders often have to log into the different exchanges and analyze them concurrently. It can get quite difficult even for advanced traders to keep track of each exchange and place each trade at the opportune time.
Automated bots and programs run round the clock analyzing the different exchanges for you. They improve the chances of executing your trade on time; raising the odds of realizing profits.
4. Machines Eliminate Emotion
Crypto traders are human. Emotions sometimes play a role in the decision-making process. Often, a trader may be tempted to place higher stakes to off-set a previous loss. Other times, they might decide to continue trading past their predetermined profit target in a bid to make more, only for the entire strategy to fail.
Automated trading systems are programmed with pre-determined parameters that protect you from making emotional decisions which may harm your trade. For instance, traders can set their stop-loss parameter, which instructs the system to halt all trades once you lose money up to a certain point. They also have predetermined profit targets, which instruct the trading bot to stop trading once the profits are realized.
Automated Trading with Superorder
Now that you know how automated crypto trading works and the benefits you enjoy from it, the real task is in choosing the best cryptocurrency trading software. There are quite a number of cryptocurrency platforms offering automated crypto trading. However, none of them matches what Superorder offers.
For starters, Superorder is a comprehensive crypto trading terminal. It offers more advanced features and analytics compared to exchange platforms. While a lot of other systems require decent coding skills, Superorder provides for completely codeless automation.
Here is how you stand to benefit from trading with Superorder:
- Superorder is a trading terminal, which gives traders access to trade across multiple global markets. The reliable analytics give you a better chance at placing multiple profitable trades.
- It is a fully automated multi-trading platform with extended chart time frames generated by TradingView. The chart time frames allow you to track your key trading statistics in a unique defined range.
- It has an advanced strategy builder. You simply have to drag and drop your analyzed data, and the strategy builder will create the appropriate classic buy or sell orders, the stop-loss parameters as well as trailings.
- It has powerful portfolio tracking capabilities across multiple markets and the ability to place hidden orders for traders who prefer to operate anonymously.
- As a multi-platform trading terminal, the Superorder team stays on toes to keep the trading platform up to date with the dynamic trading market environment.
Read more on Superorder and learn how to make your first trade with us!
Acquiring a wealth of experience in writing articles on trends and prospects for the development of the game industry in the world I I've found myself as a Freelance Journalist. I am writing now about blockchain and cryptocurrencies trends, sometimes covering importance of bitcoin for various other industries.