Bitcoin trading is a vast growth area, now with more people than ever investing and trading cryptocurrencies. But traders have quickly run into the same challenges with Bitcoin trading as they have with Forex trading – that the human factor. There is a solution – Bitcoin automated trading.
Automated bitcoin trading
So how does automated Bitcoin trading work, you might wonder? It works using the Bitcoin trading bot, a clever variation of the bot that is responsible for many other jobs across the internet. In this system, the trading bots are made up of complex software that talks straight to financial exchanges to place ‘buy’ and ‘sell’ orders on your behalf.
But how do they know what to do? The best Bitcoin bot systems will be able to watch the market’s price movements and react according to a set of rules that they have been programmed with, known as algorithms. Social media sites, such as Facebook, use similar algorithms to decide what updates to show you on your home feed or in search results when you make a search via a search engine such as Google.
Benefits of automated trading
The development of the bot for Bitcoin brings the similar benefits to the market as other trading markets such as Forex.
For starters, it removes the human element and with it, the emotions in decision making. Many traders go on ‘gut’ instinct about what trades to make, when to buy or sell. While there’s nothing wrong with that, it can’t compare to a sophisticated algorithm assessing hundreds of factors in a short time to make an informed decision about the trade – without any emotional involvement.
Another significant advantage is that the trades can take place when you are asleep. Sometimes, markets may change based on events occurring in different time zones when you are sleeping. You have two options in this scenario. Handle your trades manually and receive an alert in the middle of the night, to decide whether to make the trade, whilst you are half asleep. Or, you can allow the bot to handle it for you and you can carry on with your night’s rest.
Trading bot strategy
Different bots use different algorithms, created by human traders based on their own personal experience. And while most don’t give away the exact method they use, to make successful trades, there are some general strategies that are well known.
For example, many bots use the exponential moving average as a starting point in their programming. These averages track the prices of the market over a set period and program the bot to react when a specific rate is reached – usually when the price moves beyond a certain threshold.
It allows people to choose bots that are somewhat conservative or a little riskier. For instance, daily periods are safer than hourly periods.
Other systems include relative strength indicators and regression analysis. But whatever strategies the bots are programmed with, the great thing for the trader is that they don’t need to become an expert on them to start trading.
Start trading today
In fact, the process of automated Bitcoin trading means that anyone can start exchanging today with little knowledge needed. While there is no harm in learning about the strategies, the concepts and the terminology used in such trades, you don’t need to if you use an automated platform.
RoFx.net is one of the top automated trading platforms on the market for both Forex and for Bitcoin. It is because the bots (or robots) have been engaged in trading for over seven years. That’s seven years’ worth of learning, developing and refining the algorithms that are used and, more recently, applying that knowledge to the bitcoin trading.
The platform offers a wealth of information for users once they register for a free account that allows traders to learn as much as they want about the processes involved. They also guarantee the safety of the bitcoin account, a big concern in recent times where Bitcoin theft is at an all-time high.
While there are no guarantees against the fluctuations and drops that are a part of Bitcoin trade, RoFx.net does protect its users in ways that many other sites don’t. They also offer same-day withdrawal of funds as and when required, and the reassurance that comes from using a well-established platform that has been successfully operating for a number years.
Bitcoin trading remains a favourite way to invest and grow a profit and it is an exciting and fast-paced market. By using the best Bitcoin trading bot, you can increase your chances of making a profit, without spending months learning the market and how it all works, and allow the smart bots to handle all the hard work for you.