One of the most popular types of earnings in 2017-2018, was the trade in crypto currency. According to some reports, traders who previously sought happiness in the FOREX market, and in the trade of binary options switched to trading in digital money. But, due to mistrust of traders to brokerage companies, and the difficulty of earning money on forex, these people began to trade in crypto-currencies. As a consequence, we see the creation of many blogs on YouTube, where traders share their market forecasts. But, guys, you should understand that trading bitcoin or ether is very different from trading in the currency or stock markets. After all, there are crypto-currencies in the market, the laws of trade and the rules of technical analysis practically do not work. The only law that is effective for all types of market sounds like: “History repeats itself.”
Therefore, earnings on trade in crypto-currencies require the trader to have a system of actions and the availability of solutions to overcome unforeseen situations.
What is it: a robot for trading cryptocurrencies
When you hear the word robot or bot, first of all, a picture of robots from “Star Wars” comes to mind. Do you remember them?But, in fact, robots that deal with trade are written in one of the programming languages algorithms. Not for nothing, this kind of trading is called algorithmic trading.Experienced trader knows that to trade in any kind of markets, it is necessary for a clear algorithm, adhere to which is the main task of the trader. By this wording, we mean that entry and exit from a transaction, just like the time spent in it, should be taken on the basis of cold calculations and signals to effect transactions.To automate the trading process, traders began to transfer their trading algorithms to programming languages, which later could perform the trader’s functions independently.
How to use robots to trade crypto-currencies: cryptocurrency trading machine learning
When working with forex brokers, the integration of trading bots into the trading platform, this is a matter of a couple of minutes. And when working with stock exchanges, crypto currency, this function is more complicated. To write you, or purchased a trading bot started to make money on the crypto exchange, you need to connect to the trading platform through the API. Among the many exchanges, there are those that provide a secure connection for your crypto savings, for example the Binance exchange. But, there are also those sites that simply did not provide for the possibility of secure connection of their account through API keys.
What are the advantages of a trader using bots for trading
Most of the mistakes that a trader performs during a trade are related to his emotions. It often happens that a trader leaves the transaction ahead of time without waiting for pre-set goals. When trading bots are used, in addition to freeing time, the trader will benefit from:
- speed of decision-making;
- absence of emotions;
- round-the-clock and unlimited work.
Having installed a quality robot on your trading account, within a few days, the trader returns his normal complexion, and begins to live a full life again.
Algorithms in the real market: cryptocurrency trading learning for beginners
Cryptocurrency trading lowest fees do not always mean favorable conditions for a trader, besides a high commission may be charged on the exchange.Crypto currency is poorly regulated and has low liquidity. Because of this, they are also extremely unstable. In this case, it is absolutely normal that sharp price rises are accompanied by sharp falls. This usually happens as a result of price manipulation by wealthy investors, known as “whales.” Cryptocurrency trading market is very variable and unstable. Such problems cause new investors to be very wary of investing large amounts of their money in the market. This uncertainty often causes people to deviate from their trading plan under the influence of emotions, in part because of fear of losing everything.
Cryptocurrency trading: legal or not?
An undefined legal status does not allow the authorities to count the taxes on the profits received from transactions or to hold those who sell Bitcoin and other virtual currencies accountable for non-payment. In general, lawyers advise to press on the fact that the crypto currency has no jurisdiction, even if it is bought not for foreign, but for national currency. But in each country, the authorities are related to crypto-valets. In many countries trade in cryptocurrency is prohibited.
Cryptocurrency trading platform: list of resources
- Poloniex – the largest exchange for trading crypto currency at the moment. It was founded in 2014.
- Kraken is the year of foundation 2011. The largest exchange for trading Bitcoins and other currencies. Stably recognized as one of the best and most reliable sites.
- Bittrex – another popular American exchange of cryptocurrency.
- BitFinex is the largest and most developed trading platform for bitcoins.
- Bitstamp – the European marketplace.
- BTC-e – the main platform for trading crypto currency.
- Livecoin – convenient and affordable service for the purchase and sale of Bitcoin and Ligtecoin currency.
- HitBTC – crypto exchange from Hong Kong. It was founded in 2013.
- Cex-IO – Founded in 2013.
Cryptocurrency trading leverage
Leverage is the borrowed funds that exchanges and brokers provide to their clients for transactions in the financial market. In simple words, they add their own capital to the traders’ trades, thanks to which the latter get an opportunity to significantly increase the volume of their trading operations and, accordingly, the profit margin. The need to use leverage is usually due to the fact that many traders come to the financial market with small deposits, which are not quite enough to enter into transactions and receive the expected percentage of income. Instruments of margin trading have long and successfully practiced in the stock, commodity and currency markets. And more recently, began to appear and crypto-currencies with a shoulder, which greatly expands opportunities for trading in the digital money market. After all, leverage gives traders the opportunity to use much more money in trade than they actually have. The cryptocurrency trading list includes all possible cryptocurrencies.To thoroughly study the market of crypto-currencies, learn about the latest trends and get an accurate forecast, cryptocurrency trading live stream can help you – a special web resource, which hosts video materials.