Topic: How an Algorithm facilitates Bitcoin Investment to achieve our target (Read 113 times)

Like i said i am aware that is mostly found in traders and with the look at things there is a good advantage if an investor taps into the idea. The point is clear, an investor will have the opportunity to buy automatically through the bot. And if they are finding a way t avoid holding in the CEX which is not advisable then after buying through the CEX they can transfer the Bitcoin to their wallet. After all it is still the same process we pass through when we don't use the algorithm.

Inasmuch as algorithms helps to make command Swift whenever it's initiated, just as swapping and buying of Bitcoin, let's not forget that this can only be done only on centralized exchanges, which offers the general full trading features, and not on non custodial wallets where it has been proven for majority to store their Bitcoin, due to its safety and access to have full control over it's private key. However, while using algorithms, it still need the presence of humans to initiate another command when the market going to a certain direction. So it's something that can not be entirely independent on its own

Algorithm is more of implementations structure of  how a code functions or should function and mostly used to solve problems for example Facebook uses a specific algorithm for solving problems of posts interaction, Algorithm can  come in Flowcharts and most especially Pseudocodes...it's always a sequence implementation  not the code itself,always In a human readable form unlike a code itself.
Thus, both Flowcharts and Pseudocodes have their way of writing
Flowcharts use some particular shapes which has meaning like process,start/end ,input/output and so on ...
Pseudocodes are just like a human readable form of writing code, it uses some CASE format just like a normal code.

Those trading bots use a specific algorithm to tackle the problem given, either you want to initiate a trade or close a trade there's a need to tackle the problem of when and how to tackle it...
Algorithm is more than this actually just as @Amphenomenon said so we can all do our OWN research
This will mainly depend on how the algorithm is been written, if it is programmed to follow the Fear or Greed index then it will...
You can decide to develop your own algorithm if you like 

You are right dude but this algorithm is mostly used by traders and not investors and the reason why some trader used it,  is because of emergency for instance,  a trader will place a trade and something important will come up I mean something that needs his/her presence In this case they can't be able to stay and watch their trade so this is why they have to use that program to watch the trade. Secondly, you made a very nice point when you said the program can be used to be DCAing that is for people that always use that strategy but aside this I don't think investing in Bitcoin need a program to monitor or watch anything because Bitcoin investment is a long term investment though people invest for short term and some people even trade it because they need quick cash. we already know our coin can not be loss except account is been hacked so there won't be need for that program and one of the disadvantage of this program is that some of them usually malfunction to an extent and this can lead to a huge loss if care is not taken.

Op, Algorithm is finite step by step process in solving a problem it goes beyond this, I believe you are speaking about Algo trading (algorithmic trading) which is an automatic trading bot while you have listed the pros(benefit), I don`t know much about this in order to see if the risk of using it outweighs the benefits.
Like is it prone to hack?


It seems like you can create a telegram bot of such though I have only seen those trading meme coins doing it linking with their Phantom wallet to buy or sell.

I don`t see any reason of this bot maybe possibly expect one is a trader who possibly is trading with a DEX because these features as already been integrated in CEX. As an investor you need discipline to invest, is not about all this because the bot won`t convert our naira to our bitcoin, we have to buy to our non-custodian wallet like Bluewallet, Electrum and the likes, which is the right practice.
 

I have been seeing auto invest on many exchanges but which I have not tried to use because I do not like it. I will prefer to invest on noncustodial wallets instead of doing auto invest on those exchanges. If it is noncustodial wallet, parts of it or all of it would be manual and not bots.

Or let us say it will automatically invest for you on the exchange and you will later send the coin out manually after some period of time. That is good but I do not like those bots. I have preferred to do everything manually.

Bots will be helpful more in trading but I do not consider them useful for me. I prefer to check the market and see what is happening before doing anything.

Algorithm is a set of instructions, that tells a computer (or even a person) how to do something. Algorithms can be important to facilitate our Bitcoin investment, and I know a lot of traders make use of Algorithms in trading bots and so on. Some investors do as well. But many still do not know how important it is to an investor, apart from executing trades automatically which is the most commonly important there are other significant I would love to discuss so that we may have a wider of it and how it can help facilitate our accumulation effectively.

Algorithm can be programmed to follow whatever strategies we are using for our Bitcoin investment: If you are buying during the dips below a certain point, it can consistently monitor those points you set and execute the buy order releasing you the stress from watching at the charts all day. Again, if your strategy is to DCA, we just have to put our funds and it will automatically DCA every period we set.

Algorithm ensures consistency in our investment: This is the part I am interested in because a lot of investors do not achieve their target because of inconsistency and procrastination. Since the instruction has been given to the Algorithm, it does not need to take permission from you to buy the Bitcoin. It is in human nature to feel less concern or change our mindset towards something. Something we may seem to not to want to invest because we want to use the money kept for investment to do something else, perhaps because we want to party, go out with friends or have some other pleasure. Algorithms, save us from doing all those things.

Algorithm has no fear or greed: Ever since the market has been declining a lot of investors have been triggered by fear not to buy or they would want to sell while some are filled with greed. However, the algorithm eradicates this human feeling that may lead to decisions that will slow us from accumulating or not reaching our target. It has no emotions or feelings so whatever trade that has been automated it executes it. This will help us since most of us can't control our greed and fear of investment.

Note: In as much as Algorithms can be a tool to facilitate our Bitcoin investment, we should not rely entirely on them the instructions we give to it are as important as the tool itself. Wrong instructions may eventually lead to wrong investment.