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The Need for Crypto Trading Robots

The Need for Crypto Trading Robots

Cryptocurrency Trading has become easy as eating a pie after the invention of trading robots (bots). Trading bots have become popular and are used by millions of users in the financial market. Given the volatility of the cryptocurrency market, trading bots navigate the investors/traders by providing them the right route to execute trade effectively.

Trading bots is a software program that interacts with the financial exchanges (as preferred by the investors and traders) using an application programming interface. Through this application, trading bots retrieve the market data, interprets them, apply trend analysis and generate the report to the investors for executing the trade. Besides these features, trading bots also place an order/execute a trade on behalf of the trader depending on the market conditions. Trading bots are flexible and its functions can be customized according to the investors trading preference. While the trading bots sound very useful and profitable, there are trading bots like Infinity App Review that are just a scam. It is essential to conduct plenty of research while buying a trading bot to protect against fraud, your personal data and most importantly, money. Here are the benefits of using crypto trading robots when used correctly and efficiently.

1) Round the clock: As cryptocurrency market is a global market that runs 24*7, it is highly impossible for a human to track the market round the clock and react to the market changes immediately. In this scenario, trading bots act as a boon. They are instrumental as they monitor the market movements 24*7. By constantly monitoring, trading bots react immediately when the market is favorable and execute the trade on trader’s behalf thereby welcoming him/her with an outstanding return.

2) Market Shifts: Market shifts are widespread in the trading platform, and they happen quickly and unexpectedly. A trader must act promptly to these market shifts else he may end-up incurring a loss. As crypto trading bots are advanced machines, they respond to the information faster than the humans and initiate trade promptly according to the market shift.

3) Adieu to emotional trading: Trading bots eliminate the emotional trading issue faced by the traders. Some traders would be hesitant to make a trade or would be emotionally backed to execute the trade. By doing so, this might miss the trade opportunity. Whereas a trading bot performs the trade immediately once the set parameters are fulfilled. Thus, their trade actions result in gaining a huge profit as they ignore any emotional reasons.

4) Backtesting: Backtesting refers to the activity of testing a trading strategy based on the historical data and determining the trading viability. This activity allows the trader to carry out trade based on the records. Performing a backtesting strategy results typically in a gaining a decent profit. All the trading bots now a day come with the feature of backtesting.

The advantages of using the trading bots are many. They also eliminate the human error by performing trade promptly at the right time. Trading bots allow the trader to trade numerous accounts thereby enabling the option of diversification and helping the trader to mitigate the risk factor.

Should You Really Join The Bitcoin Craze?

Should You Really Join The Bitcoin Craze?

Bitcoins and the cryptocurrency segment, in general, have taken the world by storm. There have been many that have become millionaires by investing in these digital currencies. But is it a worthy risk to take? Or is it merely a bubble that would pop anytime? Nations across the world are working towards regulating cryptocurrencies. This has created a lot of tension. When regulations are in place there would definitely be a limit on the growth and it would slow down. So the explosive multiplication of the investment would not happen. There have been several reasons why countries are keen on regulating cryptocurrency trading. One is because this trading has created a huge imbalance in the trading scenario as many traders in the cryptocurrency market ended up taking unreasonably high profits. Another reason is that there has been a spike in the number of scams in the name of crypto trading bots. In fact, scam trading bots in the other markets too have popped up, like Infinity App. Read any Infinity App review and you would understand how this one had made too many unrealistic claims of which most have not been fulfilled. So with the number of scams increasing and an unpredictable situation prevailing here are a few reasons why it is totally alright if you skip investing in bitcoins-

With high volatility come larger risks

Cryptocurrency market is known to be one of the most volatile ones. Though this is used by many trades to make profits this is also the major reason that makes this the riskiest market. And as there are no regulations to govern the exchanges there are higher chances of scams and pump and dump instances.

No one can guarantee the real value

When you invest in a conventional currency trade like Forex you would be working with actual currency pairs. These are currencies that exist in the real world, currencies that you use for payments. But the real value of bitcoins cannot be fully understood. Also, this is a very new currency system and there aren’t many places where you can make bitcoin payments.

Obtaining the currency is not a straightforward method

Most people do not understand the whole system. Investing in ignorance would cause more losses than profits in this system. Mining bitcoins as well as purchasing them for the first time can be a little complicated. Unless you understand how the cryptocurrency system works you might end up picking the wrong currencies.

 

The Dark Side Of Cryptocurrency That Investors Fail To Realize

The Dark Side Of Cryptocurrency That Investors Fail To Realize

Cryptocurrency has become popular due to the media hype and of course its profitability factor. The feature of profitability largely attracted investors to trade in this market. The demand has led to release of new cryptocurrencies. Considering the profit factor, many investors blindly enter to trade cryptocurrency without proper due diligence and basic knowledge of trading. As a result, investors face a huge loss.

Most of the investors are only aware of the positive aspects of cryptocurrencies such as the peer-to-peer transaction, less transaction cost, highly secured transaction due to cryptographic codes and Blockchain ledger, decentralized market etc. However, nothing interesting is ever completely one-sided. Yes, cryptocurrencies do have cons which every user must be aware of before initiating the trade.

1) Variety: As the market is evolving continuously, there are more than 1500 cryptocurrencies in the market today. Half of the cryptocurrencies out of the total lacks marketability and few are not legitimate. Hence, a trader must have a clear vision of the currency he would like to trade. A trader/investor must be cautious before entering this market irrespective of its fame.

2) Widely accepted: While bitcoins are accepted for purchase of goods/services, not all the merchants accept cryptocurrency as a medium of exchange. Thus it is difficult to trust cryptocurrencies for purchasing goods. The value of currencies is also unstable. This causes a lot of chaos while initiating the refund process.

3) Internet/System: To trade in the cryptocurrency market, one would need a stable internet connection. Failure or downfall of internet connection could bring a huge loss. Further, there are chances that you might lose your wallet if your system crashes or a virus affects and corrupts all your data. It is difficult to retrieve your coins from your system in case of any crash. This could bring an investor into bankruptcy.

4) Trading robots: Trading robots are computer programs designed to connect with exchanges to monitor and track the market trends. Based on the observation, trading robots guide investors in trade execution. Increase in demand for cryptocurrencies gave rise to the creation of thousands of trading robots. There are few trading robots like Infinity App Review that is just a scam indented to mislead the investors/traders. Watch out before you purchase any trading bots.

5) Reverse reaction: It is easy to purchase cryptocurrencies, however, selling them and realizing the value is difficult. When the goods purchased using cryptocurrencies are not up to our expectation, returning the goods and realizing the money is a herculean task. As there is no central authority to govern the cryptocurrencies, none can guarantee even the least value.

In addition to the above, there are still pitfalls about cryptocurrencies. One has to look into various aspects before beginning to trade in this market.

Combating Market Risk

The latest trend is the online trading as its benefits as a means to invest for many. The many trading software is created with easy features and is used very frequently by many.some of the best software get more popular with user feedback. Read the bitcoin loophole review to find out more for yourself about its benefits.

Investing in stock, equity, shares, bond or any other form is combined with a lot of risks associated with each of these. We need to first understand what this kind of risk is and how it may affect our money and find out the ways to combat such risk and reduce its effect on our investments.

Market risk:

This is the type of risk that is associated with the stock market investments and their proceedings. This is one of the huge reasons for the losses experienced by investors because of the overall performance of the financial markets. This is also referred to as systematic risk, which cannot be eliminated but is hedged.

Some of the causes of market risk are

  • Political instability
  • Change in interest rates
  • Recession in the market conditions
  • Terrorist issues
  • Natural disasters

These situations need to be kept in mind, prior to their occurrence and remedial measures need to be kept ready for such times. One common and most recommended method to reduce the effect of such risks is diversification of your investments. This means you keep your money in different baskets rather than all in one basket. This makes complete sense in making arrangement to save our hard-earned money.

Types of market risk

Therefore to take optimal decisions and keep aware of such risks we need to look into the types of such risks that might affect our investments. These are classified into 4 types. They are

  1. Interest rate risk: this is the risk which occurs due to central bank regulation changes that happen time to time. Also, changes in monetary policy will affect it. This risk is relevant to an investment in fixed-income securities and bonds.
  2. Commodity risk: this covers the risk associated with a change in the price of commodities such as crude oil and corn.
  3. Currency rate risk: this is also exchange rate risk which arises from a change in the price of one currency to other currency. Investors holding money in different countries are subject to these risks.
  4. Equity risk: when there is a change in stock price, the risk arising from these are called as equity risk.

 

 

 

 

 Know Yourselves In The Trading Market

Mistakes are common and anybody and everybody are bound to make mistakes. Sometimes it might be such silly ones that we regret them after we suffer the heavy blow at the end. This is very much common in the trading field. This is a field that is all about money and only money and the major thing every trader should understand and realise that once the deposits are made, the money that has been spent for this purpose is never seen again and the traders absolutely have no clue about where it goes, how it is getting utilised etc… So in such cases don’t you think it is important and essential for a trader to do a thorough research and study and then try getting into the trading field? Yes, this is very important and it goes without saying especially for those who are new to this field.

Come, let`s learn more and take a look at how generally traders commit mistakes and the probable situations in which they get trapped.

  • The important attraction here in this field is the money that is paid back to the traders in the name of returns and profits. Generally, traders fall flat for these numbers and this is taken as an advantage by some of the fraudulent systems who find it easy to attract and allure innocent traders with huge and big numbers. Now without taking note of whether it is a good and a reliable system, traders plunge into decisions and lose all their money for nothing but just losses.
  • Secondly, it is important to know about the brokers who are associated with each system. Like how we have reliable and genuine brokers following the set rules of trading, we also have fraudulent brokers or agents who follow their own rules of trading. these brokers are generally seen attached with fraudulent systems and their only aim is to help the system make some money out of which they are paid a percentage and absolutely no thought of helping the traders but only cheating them.

The grave truth about this field is that many people lose confidence here mainly because of the existence of such fraudulent systems and they assume the whole market to be the same. It is only when they step a foot here would they really understand its real and original face. So confidently take a step and see what your luck is in this field.

Do you need technical analysis in crypto trading?

 There is no direct “yes” or “no” answer to this big question. Every type of trading would benefit a little from the use of technical analysis. But if there was one method of technical analysis that was really accurate then every trader would be able to become millionaires in a short time. The thing about technical analysis is that the parameters might remain the same but the way the parameters are used and the number of such technical indicators used to take a decision would change.

Crypto trading appears complicated but it is known to be one of the most profitable areas in the recent times. The volatility of a crypto currency market is something that almost every trader knows about. Some choose to invest long-term and use the crypto currencies for other online transactions. And some choose crypto trading bots like Ethereum Code in order to give a great start to their crypto currency trading journey. If you have never used a crypto trading bot before then check this out to read a review about Ethereum Code.

The importance of technical analysis

Finding the support and resistance levels is something that nearly all the traders would do when they choose crypto trading. This would help them set the lowest price the currency can reach and thus the maximum loss possible. Much like the other markets the crypto market too works in cycles. There are ups and downs that sometimes cannot be predicted. But the direction of change can often be found. The fundamental analysis might not be too relevant when it comes to crypto trading as it would be with stocks. So most traders rely on technical analysis.

The limitations

The market doesn’t always progress as the indicators indicate. The influential factors involve real people and trading bots as well, besides the governments and others. Though crypto trading would not be as strongly influenced by the government decisions or political changes as with the stock market, there are still minor effects felt. And with the growing talks about countries imposing rules on crypto trading the situation changes further. So even with those crypto currencies that are identified to be strongly moving in the upward direction, some sudden changes might change the traders’ opinions. This might lead to a few traders taking hasty decisions which in turn might impact the price of not just that crypto currency but others as well. So wise trader would know when and where to use technical analysis.