One of the most cautious aspects of cryptocurrencies is also the biggest advantage in its trading. Highly volatile and completely unlike their traditional counterparts, cryptocurrencies are prone to major price movements, even on weekends and holidays. Further reading: Can you Make a Living Day Trading Crypto?.
The high speed market which operates 24/7, 365 days a week, makes it currently difficult for short to midterm hedging or using crypto as a means of financial holding.
Yet, the same volatility has meant that having an active trading strategy can enable people to capitalise on the price movements to their advantage and increase their overall holdings. True, there are many risks involved, but the upside potentials are too big to ignore.
How Crypto Trading Markets Have Improved
While Bitcoin, the first cryptocurrency, was launched in 2009, it wasn’t until a year later that the first crypto exchange was established. The now defunct Bitcoinmarket .com was simple in operation, yet paved the way for a completely new market.
BitcoinMarket allows users to buy and sell Bitcoin using PayPal as a means of payment and the platform acts as an escrow service. The success led to proper exchanges being built, such as the infamous Mt. Gox and today, there are several ones that dominate the market.
Incorporating TradFi (Traditional Finance) tools, exchanges today allow users to set up complex buy and sell orders, such as Limit, Iceberg, Trail and others. Many of these exchanges even allow users to deploy bots that can access the exchange services through dedicated APIs and run custom orders set on predetermined conditions.
Yet, however good these improvements are, the latest innovation outstrips every trading methodology: leveraging AI for trading
When AI Meets Cryptocurrency Trading
With computing power and machine learning advancing, crypto traders are increasingly taking advantage of AI powered bots that can help them gain the edge in trading. Even with ordinary bots that can be set up to run trading strategies, they are limited in success as they are fed instructions manually and cannot compensate if markets move along unpredicted paths.
AI trading bots such as Bitcode Method are a new and rising class of fully automated trading strategy that leverages the latest in artificial intelligence to keep their users ahead of the market and to make the best out of crypto trading.
The technology allows not only a very greater chance of profitable trades, but also offers several other benefits such as:
- Full Automation: Users can set up strategies regarding their preferred risk levels, the type of cryptos they are interested in and their eventual goals. The AI takes all of these into account to make trades best suited.
- Speed: Manual assessment of market conditions can be time consuming. Seeking out the latest information, making heads and tails of different graphs and analysis can mean that the crucial time for entering and exiting a market is lost. AI trading bots can process the information at lightning speed and make decisions even before a human can react.
- Freedom: Since the AI bots are automated, users don’t need to constantly sit in front of their screens. The AI bots do all the trading and users only need to check in once a while to fine-tune their strategy (if needed).
- No Experience Necessary: You don’t need to have knowledge of crypto trading while using AI crypto trading bots. The trading is done on your behalf. All you need to ensure is that you give the right parameters according to your risk profile.
- Easy to Operate: Requiring minimum of maintenance, the user only needs to register, make a deposit and place a strategy. The rest is taken care of by the bot.
- Minimum Capital Requirement: Unlike custom made bots that can cost thousands of Dollars, these new classes of AI trading bots are designed for mass adoption and therefore, can cost a significantly low amount to run. Bitcode Method, for example, only requires a minimum of $250 to start trading – and even that is used as the initial funding capital.
Are Crypto AI Bots Worth it?
There are several websites out there today that claim to have the best AI trading bot for cryptocurrencies. While there may be some bad sheep, some are robust and live up to the hype.
To understand which AI bot is the best for you, there is a way to see if the one you are interested in is worth it. The best way is to check out their profitability claim and match it with user reviews. Profit and losses are part of the game. If the majority of the users have good feedback, it may be worth it to use that AI bot.
Once you have found the crypto AI bot that suits you, remember to always start small. Invest the minimum amount possible and see if it lives up to your expectations. You should invest more only when you are more confident.