If you’re already a crypto trader or not, we take the heavy lifting off your hands.
In a nutshell, our automated signals will tell you what trades to take, whether it’s a buy or sell order, and of course, what entry price to execute the position.
Even more importantly, our crypto signals let you know what stop loss and take profit orders to install. This ensures that you’re able to trade in a risk-free manner if you are using our proper risk management.
Trading with algorithms in the crypto market is similar to algorithm trading in traditional markets. However, there is one big difference: the crypto markets have a much higher volatility. Higher volatility indirectly leads to greater potential swings in prices.
In addition, unlike traditional markets, the crypto markets never close. But algorithmic trading in the crypto market is very useful for a few other reasons as well. In the traditional markets, trading is dominated by strategies of multi-million dollar funds.
But how does this algo-trading actually work? There are actually two things to keep in mind:
Algo trading can help traders determine when to trade. It looks at various aspects including price, momentum, volume and the like. The advantage of algo trading is that they can execute trades instantly and automatically and react to certain signals much faster than humans.
However, algorithms are not guaranteed to make a profit. It's about having more profitable trades net than placing loss-making orders.
Arbitration is happening in the crypto market. This means that the price of an asset on one exchange differs from the price of the same cryptocurrency on another exchange.
Traders can make a profit by buying the coin on an exchange where the price is low and then selling it to another at a higher price.