Trading cryptocurrencies can be quite a challenging, risky and difficult endeavor. Not only is there a steep learning curve, but there is also the fact that traders make mistakes that can be avoided.
The decision-making aspect of business is absolutely critical, and automation tools are gaining considerable momentum in this regard.
What are the risks of manual cryptocurrency trading?
When people succumb to the idea of trading cryptocurrencies, the first thing they have to live with is the learning curve ahead. The market is complex, and even though it presents a lot of opportunities, it also hides a lot of risks that not everyone is quite comfortable with.
Every entry can have consequences – whether for better or worse – and timely decision making is paramount. Unfortunately, all of this is easier said than done when there are thousands of markets and trading pairs at one’s disposal.
Manual trading can be quite risky as market conditions can change at any time, and traders may not always make the best decisions at the best of times. Because the crypto markets are so volatile, there is a lot of data to consider, and market conditions can easily invalidate one’s recent findings, even after performing a thorough technical analysis. As a result – it is very common to see traders consistently losing money instead of being profitable.
This is why there are so many stories of people getting liquidated or losing a lot of money in an instant. After all, it is normal to make mistakes when trading by yourself. There is a growing checklist of different considerations including multiple order types, current market conditions, rebalancing the portfolio, releasing liquidity at the right time, and so forth.
Taking care of all of the above is paramount, and not everyone is able to do it, but perhaps only a select few are able to. This is also one of the reasons why various tools for trade automation are gaining some traction among cryptocurrency traders around the world. They are already quite popular in traditional finance, and it appears that the time may be ripe for them to foray into crypto as well.
Enters Bitsgap: All-in-One Automation Platform
One way to avoid mistakes caused by emotion or lack of focus (and knowledge, sometimes) is to start using an automation tool.
There are many ways to go about it, and Bitsgap is an all-in-one automation platform that tries to keep everything under one roof. It strikes a balance between cloud-based support to make trading accessible on a variety of devices, automation, as well as proper order execution – even when the front-end of the exchange will freeze. This last bit is very important because the backend of the exchange remains operational even if the frontend interface becomes congested and jammed.
The automation nature of Bitsgap makes it accessible to bots operating on a grid-based approach. Users can set up their preferred grid (or a trading triangle for that matter), and the bot will start buying cheap and automatically selling high.
Any market offers the potential for profit, no matter how small. Manual trading may not be able to achieve these continuous small wins because we as humans are unable to act fast enough.
The solution brought to you by Bitsgap is accessible via any device, and orders will be executed on behalf of the user – whether one trades on a tablet, phone or computer. Bots can run 24/7, which can also provide a certain peace of mind.
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