In many ways, the rise of automated trading in traditional markets coincides with the emergence of a new investment asset, cryptocurrencies. Now, as these nascent digital assets have positioned themselves alongside more conventional investment vehicles, it’s time to apply this same automated trading approach to the crypto market as well.
Crypto Is Ripe for Automation
Cryptocurrencies are a burgeoning investment class with hundreds of unique tokens that collectively comprise a market cap that exceeds $300 billion.
Although the movement started, in part, as a rebellion against financial institutions, the market is now comprised of forward-thinking individuals and profit-minded institutions. With Bitcoin providing better returns in 2019 than just about every other typical asset class, it’s no wonder that everyone is looking to get involved.
The term “HODL,” a misspelling of the word “hold” is intended to connotatively encourage investors not to sell their positions when turbulence becomes tough to stomach.
Computers don’t care about volatility, and automated trading strategies can help investors manage these market changes to maximize profit and to minimize the impact that overreaction or wrong reactions can have returns. Automated trading is already assisting investors to navigate volatility in traditional markets, and it can do the same thing for those participating in the crypto field.
Cryptocurrencies are a unique asset for the digital age, and it makes sense that those investing in this digital asset would benefit from the other technologies that can make the investment process more seamless and profitable than just going it alone.
Tools of the Trade
Investors in more established markets have many tools available to execute an automated trading strategy, and more resources are continually becoming available to people of all experience levels and budgets.
Now, as institutional and individual investment levels are at their zenith, many of those same things are being made available for crypto users also.
For example, Coinbase has emerged as a mainstream crypto trading platform with a user base that outpaces many more established companies offering more mainstream investment services. By bringing a crypto investment app to the homepage of millions of smartphones, they made investment services broadly available to a significant population.
For automated trading, smartcryptobot’s trading bot equips investors to deploy numerous algorithmic or copy trading strategies that can help them capitalize on this movement.
It’s clear that cryptocurrencies are going to play an integral role in the future of investment finance. As such, they should be approached with the same sophistication and prowess as more established markets, which, in 2019, means applying automated trading strategies to investment opportunities.
Not only will these help traders manage the volatility and uncertainty of crypto markets, but it gives any investor the ability to compete with other traders who are invariably adopting this strategy.
Investment banking might not happen as it does in the movies, but that doesn’t mean that there isn’t plenty of excitement in today’s digital-first approach. Anyone looking to build wealth by using the most capable technology available should focus less on the big screen and more on the platforms that are preparing investors for success in the digital age.