Automated Crypto Trading- A Trending Trading Method Among Crypto Traders

Automated crypto trading has become a buzzword in the sphere. Some people think that it’s a kind of magic that will let you earn huge profits, but there are some who believe it’s a scam.

So, now the question is: what is this heck?

Well, this is a kind of trading method/strategy which helps traders execute trades automatically. Time never waits for anyone, and this is also true for the crypto trading market. Keeping up with the faster changes in the prices of assets is the key to the most successful trades. There are a plethora of tools available in the crypto trading market, along with numerous strategies which could confuse any trader. Fortunately, there are different automated trading processes available at the best crypto trading platforms, like TrailingCrypto that help traders execute trades automatically by predicting market trends and market analysis.

Automated crypto trading

Well, the answer to this is obvious: trading that is automated. But that’s not enough about it! The answer to automated crypto trading is a style of trading that involves making use of specialized software/computer programs like trading bots to automatically buy/sell cryptocurrencies when some predefined conditions are met.

The software programs allow traders to take advantage of price movements without monitoring the market. Whenever you trade without using any automated crypto trading method, you have a lot of tasks to do, like watching the charts, analyzing market data, using different tools or indicators to find the best opportunities to enter the trade. All of this could be quite stressful for anyone to manage at the same time. Different kinds of automated trading methods involve using bots, copy trading, signal trading, and more.

So, it’s quite simple to understand that automated trading is when a trader uses an automated system to implement different trading rules. TrailingCrypto is one of the best crypto trading platforms, allowing traders to use different trading methods/rules to automate their trading. Automated trading is a web-based system, allowing people to trade conveniently without watching the system 24x7.

Basics of automated trading

The first thing which you will need to do while automating trades is choosing the right trading platform. Set up an account and make some test investments. Once everything is running smoothly, it’s time to choose the strategy and right trading bot. TrailingCrypto allows traders to choose from a variety of different trading bots to automate their trades. You can even customize your trading strategy here.

The crypto trading bot will trade on the behalf of trader based on the algorithm. Most bots make transactions automatically. The advantage of automated trading is that there will be no delay in transaction. Crypto markets move very quickly which means you must be ready to respond to the market conditions. The bot executes trades based on what’s happening in the market.

Automated crypto trading strategies

There are a variety of trading strategies which traders can apply to the automated trading system. However, it’s important for a trader to backtest their strategy before implementing. Backtesting shows whether a strategy is strong or not.

Let’s have a look at some of the popular strategies that you can incorporate in your trading:

1. Grid trading

This trading method refers to a bot trading strategy which involves choosing multiple pricing levels to execute trades. Once the price touches one of the price levels, the bot initiates the trade automatically. Each buy order will have a corresponding sell order resembling a grid.

2. Momentum trading

This trading strategy revolves around trading with the current market trends. The trading bot gathers data about market volatility, volume of traded cryptocurrencies, etc. If the data shows that the trend hasn’t lost momentum and moving in the same direction, the bot will place the trades until the momentum is lost.

3. Arbitrage trading

The trading bots working on arbitrage trading strategy monitor different exchanges and capitalize on differences in prices. This strategy involves making the fast and frequent trades, and is associated with lower risks.

In crypto trading world, it seems like an abundance of trading strategies are waiting around the corner. Apart from using trading bots, the traders can place trades according to signals. Let’s have a look at automated trading signals. TrailingCrypto offers signal trading bots to the traders that help traders to place trades automatically by using signals.

Automated trading signals

Signals are the best way to buy or sell crypto assets on expert trader’s advice. What differentiates automated trading signals to the normal trading signals? Well, automated trading signals are used by the beginners as well as skilled traders which help them to learn about analysis. In this trading method, the provider also notifies the trader when the trade is complete.

Automated trading signals are when a service provider buys or sells on your behalf via your trading account. These signals also notify traders about other factors too like high or low volume, volatility, etc. Crypto signals are the kind of alerts or recommendations which are sent out to the traders regarding current market trends, price movements, and the potential trading opportunities. These are generated by expert traders or via some automated algorithms which are intended to help traders make decisions about buying, selling, or holding cryptocurrencies. These signals are based on a wide range of factors like technical analysis, current market trends, etc.

Automated crypto trading signals have become a popular and profitable method providing new ways to the traders to get involved in the cryptocurrency world. Make sure to choose the right crypto trading signals provider like TrailingCrypto as they offer genuine signals to place trades. There are many crypto trading signals providers offering signals for free, but make sure to join the paid ones.

Signal trading bots are the additional advantage helping traders to automate their trades via signals provided by expert traders. You can automate your trading strategy by capturing telegram signals from TrailingCrypto. This trading platform also offers telegram signal bot that places trades based on the signals received.

In Automated crypto trading via signals, the signal provider’s software is linked to the crypto trading platform of the trading account of the trader. The automatic software will generate the signals which will be executed in the market simultaneously. Automated signal trading ensures that the trader will never miss out any kind of quality trading opportunity which surfaces at any given time in the market.

Another automatic trading method used by crypto traders is copy trading. Let’s understand about copy trading:

Automated copy Trading

Copy trading is a kind of simplistic strategy of copying the positions or portfolios of the experienced trader by a beginner or novice trader in market. Copying trades is the best way to automate your investments. In this trading method, the traders can copy the positions opened and managed by the expert traders that you are copying to generate same rewards.

Making use of copy trading bots is the best automated crypto trading strategy allowing traders to diversify their portfolio. Before copying the trades, make sure to carry out the right analysis on a particular market or position before investing. Traders can simplify their strategy by making use of copy trading bots.

Copy trading bots give traders the flexibility to use them on several supported and popular crypto exchanges like Binance, Kucoin, etc. The copy trading bots allow the traders to earn profits/benefits from the success of expert traders by mirroring/copying their trades exactly. But at the same time, this kind of trading is risky too. In this kind of trading, there are chances that the expert traders face losses in their trades; you will also face same losses as you are exactly copying what they are doing.

To start copying the trades, make sure to follow the below steps:

• Choose the right copy trading terminal/platform like TrailingCrypto
• Open an account and deposit money
• Choose the expert trader whose trades you wish to copy after complete research
• Choose how much money or percentage of the capital you want to invest
• Start trading

Automating the trades by using copy trading strategy is beneficial for beginners and it is less risky too.

Benefits of automated crypto trading

With automated crypto trading, the traders can:

· Preset their trading strategies to execute trades automatically at any time of the day/night

· It allows traders to identify the latest or more profitable opportunities and analyze current market trends with a wide range of technical indicators

· Execute multiple trades in real-time while eliminating the needs for manual execution

TrailingCrypto is the best and highly-recommended crypto trading platform allowing traders to use the market-beating strategies while identifying the most profitable investment opportunities. The platform offers the best crypto trading bots and advanced order types to create amazing trading strategies. Traders can even rely on the crypto trading signals or copy trading bots to make profitable trades.

Conclusion

Automated crypto trading is not a kind of magic which keeps volatility in check and frees a trader from any kind of risks. But it’s actually a solid working tool/strategy to simplify the crypto trading process. This kind of trading strategy optimizes the whole trading process. TrailingCrypto’s automated crypto trading software is 100% flexible and can be customized according to the crypto trading strategies used by the traders.