Newsilike
Digital Stories

How you can Maximize Profits with Automatic Crypto Trading Software

Crypto Trading Software

Numerous reports indicate that approximately 80% of cryptocurrency trading is conducted via algorithmic-based automated programs. On the other hand, private traders use algorithmic trading in relatively small numbers, in part due to perceived complexity and costs. While not everyone is a skilled Python programmer or financial expert, trading bot platforms such as Bitcoin Code are doing an excellent job of levelling the playing field and providing retail traders, both beginners and advanced, with an edge in the crypto markets.

 

Trading without emotion

You’ll frequently read that over 80% of private traders lose money for a variety of reasons. Trading volatile cryptocurrencies is an emotional endeavour, and emotions inevitably result in errors of judgment. Our emotional states can influence up to 39% of manual trades, causing us to make irrational decisions. It’s straightforward human psychology. Rather than that, join the 20% of intelligent traders who profit from trading bots that ensure a non-emotional, systematic approach to trading.

 

Increased trading speed

Time is a valuable commodity. And when it comes to speed, bots outperform humans: millions of computations and thousands of transactions per second across multiple time zones and markets. Trades are executed in a fraction of a second – much faster than an individual trader can. In the time it took you to read this sentence, a trading bot could have executed several profitable trades on your behalf.

 

Backtesting and paper trading are two terms that refer to the same thing

Pilots learn to fly using flight simulators, and traders should do the same when learning to trade. We learn through experience, but we don’t want to waste money. Trading simulators can be beneficial to even the most seasoned traders. In conjunction with trading bots, backtesting and paper trading allow to simulate the effectiveness of a trading strategy based on historical data. The objective is not to forecast the future but to determine how well (or poorly) a particular trading strategy is likely to perform in the future based on historical data. With a dependable backtesting tool and an accurate set of data, you can experiment with new strategies, develop expertise, and gain confidence before putting your money on the line.

 

Diversification of risks

Trading bots are all about reducing risk by not placing all of your eggs in one basket. We are all aware that cryptocurrency markets can be highly volatile, which is why risk diversification should be a part of any prudent trading strategy. One strategy for risk diversification is to run multiple trading bots. And, while diversification is not foolproof, it can help balance risk and reward to limit exposure to any single asset. This is age-old advice that holds even with cutting-edge technology such as trading bots.

 

Disciplined trading

Despite this, by automating the trade process, bots are able to ensure consistent trading, where fear may tempt you to sell, or fortune may tempt you to purchase. Because bots operate according to pre-defined trading rules, they optimize long-term performance without incurring the short-term costs of human emotional intervention.