Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.
Topic: Automated Cryptocurrency Trading for Beginners (Read 287 times)
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.
At least the service is not free. There is a subscription for beginners to pay $19/month, and after I check on the help page, I found that there are so many commands that I am not sure beginners will understand how to set the bot for the first time. It needs programming knowledge to arrange everything so the bot can run properly. But I am not sure how we can set the command since I can the service because I only register on that site. But the bot is looking promising because if we can set the bot with the right set up, it will search the profitable coin, and it will work as your command.
So it isnt really good to rely fully with bots if you dont know on what you are doing.
Isn't that up to the people running them? I mean, institutions are monitoring their bots every single second and allow human input to adjust settings so that their bots don't buy or sell into an unexpected price movement.I think your point refers more to those who pay a service for a bot and then sit and wait hoping for a profit. In that case you are right, but that's a problem with the people who bought these bots and not necessarily the bots themselves.
As long as you know what you are doing and have full access to that bot, there isn't much that can go wrong IMHO. At least, not more wrong than when people make mistakes trading manually.
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that. I know there are a number of people here who have been looking for simplified ways to automate aspects of their portfolio.
As a result, I would like to suggest the following guide:
https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/
This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.
I think it's worth a read for everyone to explore this new concept.
I highly suggest anyone not to use any automation when it comes to your hard earned money. Best strategy which can guarantee you long term profits is choosing good coins yourself by doing thorough research and investing in them. or use some bot only if you have yourself created some bot which could help you in trading. I have seen people burning all of their hard earned money using these softwares. Even if they aren't shaddy they generally would end up with some glitch which would cause you a lot of money. As a result, I would like to suggest the following guide:
https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/
This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.
I think it's worth a read for everyone to explore this new concept.
But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.
A bot can easily adapt to the changed market dynamics, much faster so than a trader can trading manually.... another advantage is the fact that a bot has no emotions and therefore has no such a weakness to deal with.Why do you think the stock market is being traded almost entirely by bots? That wouldn't be the case if bots sucked and traders trading manually would be better. In crypto that ratio is likely a little lower, but it will get there eventually.
Bots are not perfect by any means, but they get the job done faster and better than humans do.
are just following on what are being ordered by the trader itself.Yeah they dont have emotions but there were circumstances
where bots do failed to do so because human reaction and intuition do still have edge when it comes to decision making.
So it isnt really good to rely fully with bots if you dont know on what you are doing.
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
I think if automatic trading, you can still see a big risk because we can not be sure when it can make a profit and asset we always will face many security so I don't recommend it this way. You can analyze this market yourself and choose to invest if it is a good coin for profit. I have encountered many cases when using bots and they often complain a lot about their profits.Of course I never use automated trading because if you have entered the crypto market your chances of making a profit are huge and it does not take too long to wait if you are a good trader.
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
I think if automatic trading, you can still see a big risk because we can not be sure when it can make a profit and asset we always will face many security so I don't recommend it this way. You can analyze this market yourself and choose to invest if it is a good coin for profit. I have encountered many cases when using bots and they often complain a lot about their profits.Of course I never use automated trading because if you have entered the crypto market your chances of making a profit are huge and it does not take too long to wait if you are a good trader.
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
One of the thing that we are able to control using bot is emotion which one of the greatest enemy of emotion is actually greed, which is why bot is still very much reliable in managing this aspect for people and I think that people may still not lose out in all these surge if they are very smart in thinking about business. Anyone using bot ought to have thought far and out two and two together to actually not miss out of any of the train. When I was using bot to trade, having out this challenge into consideration, what I did was just to split my fund into 3 parts, one for the bot trading, another for long term investment and the last of it for a moment like this when we will experience suddenly surge, then I pull out, at least this one does not require much staying on system to monitor price, people will definitely announce it.
But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.
A bot can easily adapt to the changed market dynamics, much faster so than a trader can trading manually.... another advantage is the fact that a bot has no emotions and therefore has no such a weakness to deal with.Why do you think the stock market is being traded almost entirely by bots? That wouldn't be the case if bots sucked and traders trading manually would be better. In crypto that ratio is likely a little lower, but it will get there eventually.
Bots are not perfect by any means, but they get the job done faster and better than humans do.
Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price. And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is
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For example, say you have a portfolio of 50% BTC and 50% LTC. You want the percentages to stay at those values. So, in order to keep them at those percentages, as the value of those assets change, you can periodically trade to reach those target allocations again. If BTC goes up to 60%, a rebalance would then sell BTC to bring it back down to 50%.
I read the article and the Rebalancing got me curious.This kind of feature, the Rebalancing one is something like covered by some Bots? Like what was explained in the example(quoted one).
So if it's done by bots, how we can assure if the bot will perform it accurately? Because I'm a little bit afraid because maybe the bot will make mistake or any misconfiguration on your account settings/bot settings.
Yes of course! Rebalancing is covered by https://www.shrimpy.io/. I would encourage you to check it out. You can be comfortable knowing there are tens of thousands of other traders using Shrimpy and it accurately rebalances the portfolio of these users. This service has been around for almost 2 years. Let me know if you have any questions.
Interesting. The rebalancing idea got me but there are still a few questions lingering like is the performance done by the automation accurate? Is it possible that it may not be able to rebalance? Like when BTC goes to 40%, where would it get funds to retake it to 50%? From the previous example lets say, it would take it from the LTC one? but then it would make the LTC balance go down right? So doesn't that mean that it would need my funds to maintain the balance? Does that mean that I would leave a certain amount of balance in the automation that would automatically be used whenever the coin is imbalanced? What if a market crash happens in a slow amount of time? could that possibly lead me to a loss instead? Not gonna lie it sounds an interesting idea but I'd rather have beginners study how to trade themselves before using such bots. Imo, such bots are better used by those professional traders since they could think up of many complicated situations that would require more assistance than what a bot can provide.
Generally, rebalancing is effective and accurately completes each time. The premise is pretty simple, so it's a pretty safe strategy to execute.
everyone will want a simple trade, but I don't recommend novice traders using bots, the most important for beginners is to learn the basics of trading, what's interesting to me here is the rebalancing strategy, I will try to learn it.
Shrimpy is really designed to be perfect for novice users. It's simple to select the percentages and begin automating without much overhead. I think if you dig into the details a bit you will see how simple and powerful the idea is.
Please let me know if you have any other questions! Happy to help.
I think it's impossible to make own trading automation or trading bots if we're a beginner, and also beginner trader is not recommended to use any trading bots becase they have to know what they're investing and know the basic of the trading itself.
Using the bots made by someone can be tricky also and we're not always get profits from it.
Using the bots made by someone can be tricky also and we're not always get profits from it.
If that is related to trading, I think I prefer to do manual trading than to use automation. With manual trading, I can learn many methods that will help me to have skills, and I can improve my skills to be better than before. I know that using manual trading, I will need to have time to learn the methods, but that will be worth it for me if I can master one or two methods. If I decide to use automation, then I don't think that I can learn more methods because what I need to do is how I can set the bots to run as I want, but the market will not run as I want. There will be a time for the market to go up and down. Besides that, it will need more time to set the bot.
I suggest beginners not to use trading bots, this will be dangerous for people who use them. Because you will not get any knowledge
related to trading, and trading skills will not increase. It's better to learn manual trading, it is a hassle at the beginning because you
have to understand various strategies. But if you have mastered it will get maximum results compared to using trading bots. The problem
is there when it uses bots, it actually makes our capital run out, because the bots may experience errors.
related to trading, and trading skills will not increase. It's better to learn manual trading, it is a hassle at the beginning because you
have to understand various strategies. But if you have mastered it will get maximum results compared to using trading bots. The problem
is there when it uses bots, it actually makes our capital run out, because the bots may experience errors.
Even with automation we cannot succeed in trading of different altcoins. Here also what gets priority is the choice of altcoins, very few altcoins have the regular price fluctuation. This means the stop loss can be achieved only on these altcoins. Apart from this when a beginner starts to use automation from the beginning, it'll not let the user learn further about trading. This is a negative thing, with trading once after learning for convenience using automation is different from using automated services from the very beginning.
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For example, say you have a portfolio of 50% BTC and 50% LTC. You want the percentages to stay at those values. So, in order to keep them at those percentages, as the value of those assets change, you can periodically trade to reach those target allocations again. If BTC goes up to 60%, a rebalance would then sell BTC to bring it back down to 50%.
I read the article and the Rebalancing got me curious.This kind of feature, the Rebalancing one is something like covered by some Bots? Like what was explained in the example(quoted one).
So if it's done by bots, how we can assure if the bot will perform it accurately? Because I'm a little bit afraid because maybe the bot will make mistake or any misconfiguration on your account settings/bot settings.
Bots are going to act strictly the way you set them up or configure them. They cannot act outside how you wanted them to act. This is both an advantage and disadvantage. Bots are not aware of what's happening around beyond their limited settings that is why they could be defeated and played with by manual traders. But it takes a lot of patience to play with bots. In the end, I prefer to do my thing manually and step by step rather than relying on bots.
Security is one of the main reason to don't using a bot. I mean how can i know who made that for which purpose. So in my opinion it's better to stay way from that kinda bot no matter how much they offering to you.
That's a rational fear, but most exchanges allow you to control what an API key you create which is linked to your account is capable of doing; for example, you can set the API key so that the bot's only able to make trades and not withdrawals from the key and vice versa, though there is still a very small chance that a bot could just wreck your account through making you lose money on purpose, though I've never seen this before and more reputable trading bots such as Gunbot shouldn't do this. Pretty low risk in my eyes, but I could see how you think this way especially with trading accounts with larger balances.
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