The Rise of Automated Trading Apps in a Pro-Crypto World

Crypto trading bots have come in real handy for traders with different levels of experience.

13:52 14 January 2022

When cryptocurrencies first burst onto the scene, they were mostly regarded as an obscure asset class hyped up by anonymous individuals from the dark alleys of the internet.

 

Fast forward to today and that plot has twisted and how. Things are mostly pro-crypto now.

 

Nobody expected the cryptocurrencies to hit the mainstream from the fringes of the financial world the way it did.

 

Towards the fag end of the second half of the last decade, crypto came into its own and went through an extended bull run, garnering interest and recognition from the world over-- much to the astonishment of the naysayers.

 

A lot of good things followed from there, resulting in a considerable surge in interest among investors and traders looking to enter the crypto market.

 

Bitcoin Set the Crypto Market on Fire

Crypto’s campaign to mainstream interest was spearheaded by bitcoin, the largest and the most popular crypto currency which still holds a whopping 40% share of the whole market.

 

It single handedly carried the market forward to its next phase by attracting fresh investment left, right and center. But it wasn’t easy getting there.

 

Between 2013 and 2017, Bitcoin paced itself well for the long run- it would appear- growing slowly and steadily amid all the criticism and doubts surrounding its very existence. But 2017 was the breakthrough year for Bitcoin when it registered a stratospheric rise to $15000 per unit. having started that year at a modest $1000 per unit. A 15x growth looks good across any short-term time horizon but Bitcoin pulled that off in less than 52 weeks which is simply exceptional. That said, the highlight was the significant spurt in trading volume, which touched the billion for the first time and has stayed up there ever since. A sharp selloff ensued amid widespread profit-taking, and soon after that Bitcoin was stuck in a range for well over 18.

 

At a time when there was no sign of a rally happening, Bitcoin woke from its slumber and went on a tear, writing a new chapter in the history of the crypto market. 

 

Huge Influx of Traders and Investors

When the first wave of the pandemic struck, several financial markets around the globe took a severe beating and nosedived to multi-year lows sending market participants scampering for cover. Bitcoin was no exception either, shedding more than half of its value in a two-day plunge.

 

Then the markets went into disaster control mode but sprung a surprise on everyone bouncing back sooner than expected.

 

Everybody expected the markets to suffer another crash after the initial euphoria was over but that wasn’t to be. More and more participants and money kept flowing into the market triggering a fresh rally launching the markets into a rare bullish spree.

 

Buoyed by its swift v-shaped recovery, a large number of people-- and that includes those who were a touch hesitant to get in owing to lack of experience in markets-- seemingly forayed into the world of cryptocurrency with all the money they had at their disposal. We’re talking money from their bank accounts, government stimulus checks, and emergency funds. The mad volatility that the crypto markets are infamous for didn’t seem to bother them. Nor did they care about how their inexperience could disadvantage them.

 

Making money on the markets looked a lot easier than it actually is, and virtually every asset on the ticker tape was on an uptrend. It was almost impossible to not make money, and encouraged a lot of enthusiasts to emerge from the sidelines with inspired confidence. They all rushed in hoping to get a piece of the cake. They wanted to bet their money on the crypto rally and leave the rest to luck. Not everyone made as much money as they’d have liked, but those who had the luxury of trading with automated crypto bots ended up making a fortune.

 

The Rise of Automated Trading

Many newbie traders rode the crypto wave but not all of them could turn a profit. Those who were successful though had something working for them. While some acted on the advice and tips from experts on social media, some decided to get their hands dirty. They took to the novel idea of automated trading with bots, which are built to execute trades on your behalf even when you’re asleep or away from the computer.

 

It does sound too good to be true but it’s for real and a huge number of participants entering the market are already banking on the algorithmic smarts of these systems to reel in profits.

 

At first glance these bots may feel a little like a black box but setting up one is simple. Lay down the specific rules for the trade to take effect, dump a certain amount of money into its system, and, voila. Let the bot do its thing. Different bots may behave in different ways but there are more similarities than you can imagine.

 

The bots are designed to keep trawling the market for opportunities, and when the right one comes along, they pull the trigger and initiate the trade.

 

Crypto trading apps like bitcoin circuit have come in real handy for traders with different levels of experience. An intelligent algorithmic rule-based trading engine sits at the heart of this online service which also boasts of an intuitive easy-to use web interface and faster processing times. They comb through the market to find trades that offer maximum profit potential at a low margin of risk, which basically means you win big when you win, and give back to the market only a portion of your profits when a trade goes against you.

 

Technologically sophisticated services such as the one mentioned above have democratized the world of crypto and leveled the field for all market participants. If they remain true to their billing, they will allow traders entering the volatile crypto world more time and scope to make mistakes and learn on the job. And, it will keep them in good stead for the future.