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Automating Crypto Trading: Pros and Cons in 2023

Haru Invest’s all-in-one tool deploys essential algorithmic trading strategies that drive profits for investors.

Cryptocurrency trading can be a lucrative way to make money, but it can also be time-consuming. With the market fluctuating hourly, traders must monitor their positions and make decisions quickly. What if the process could be automated? Would it be possible to set up a system that does the work for you? We will explore how automation works in crypto trading and what it means for traders.

What is Automated Trading?

A form of algorithmic trading, automated trading involves the use of computer programs to execute trades in accordance with predetermined criteria. This automated system eliminates the need for traders to monitor their positions or react when the market moves continuously. They can instead set up their system with specific parameters and let it run autonomously. As a result, they can focus on other aspects of their portfolio while still earning profits from trading activity.

Benefits of Automated Crypto Trading

The main benefit of automated crypto trading is that it removes much of the emotion from trading decisions. An automated system may prove highly beneficial to traders who make reactionary decisions based on fear or greed since it removes those emotions from the equation and only executes trades based on pre-set criteria.

Automated systems can also help scalpers maximize profits by executing multiple transactions simultaneously and taking advantage of short-term price fluctuations.

Finally, automated systems can reduce risk by limiting losses if conditions during a trade session turn unfavorable.

Drawbacks of Automated Crypto Trading

Automated crypto trading has many advantages, but it also has some drawbacks that should be considered before jumping into such a strategy. First and foremost, automated systems require an upfront investment in either software or hardware, depending upon your chosen platform; if you are just starting out in cryptocurrency trading or have limited capital resources available to invest, this cost may be prohibitive.

Moreover, these systems rely heavily on accurate data feeds; if these feeds are not accurate or timely enough, your algorithm may execute trades based on faulty information, resulting in potentially large losses.

Furthermore, because these systems automate so much decision-making, they lack nuance when it comes to more complex strategies like arbitrage or hedging, which require more hands-on management than standard buy/sell orders.

Haru Invest: All-in-one tool for automated crypto trading

Since its launch in 2019, the Haru Invest trading strategy has been guided by algorithmic trading, not borrowing and lending.

They deploy three core algorithmic trading strategies to drive profits for investors:

  1. Arbitrage trading that leverages the price gap between crypto exchanges
  2. Market neutral strategy based on the price stability mechanisms at crypto futures exchanges
  3. Spread trading that focuses on the volatility of BTC/ETH futures contracts

They find inefficiencies between different crypto futures markets that did not previously exist in the traditional financial market. And by using this mechanism in the crypto futures market, Haru Invest can generate profits by using a hedging strategy that leverages a futures contracts mechanism to hedge a spot market. In other words, this strategy uses perpetual futures’ funding fees to generate profits by hedging the risks of future contracts in the spot market.

Haru Invest has paid out 4.1M+ separate earnings on time.

Their total transaction volume since launch exceeds $2.11B. They have more than 74,500 members from 140+ countries using Haru Invest. 87.5% of their members continue to use their platform with deposits.

It’s never too late to invest in crypto.

Grow your portfolio with Haru Invest now!

Conclusion

As a result, automating cryptocurrency trading can be advantageous for some traders who are trying to streamline their portfolios and earn profits in volatile markets like cryptos - however, before fully committing to such an approach, some potential drawbacks should be considered, including cost issues as well as concerns about the accuracy of data feeds used by many algorithmic trading platforms.

Ultimately, however, whether automated processes are right for you depends entirely on your personal risk tolerance levels as well as your financial resources - so be sure to research thoroughly before diving in head first!

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