Investors have benefited from algorithmic (‘algo’) trade programs underneath many opposite circumstances, though these ‘trading bots’ can infer quite profitable to those meddlesome in cryptocurrencies.
Bot trade has reduced user error, enabled some-more fast estimate of information and given traders some-more time and flexibility. However, it might reason even larger intensity in a crypto markets due to their juvenile nature.
Trading bots have been around for decades, saying flourishing use in batch markets as digitization has taken hold. However, a digital banking markets are reduction than a decade old and with far reduction reign than some-more mature markets, have had significantly reduction time to confederate algo trading.
Tim Enneking, authority of cryptocurrency investment manager EAM, highlighted a differences between high-frequency trade (HFT) in traditional markets and those for cryptocurrencies.
He told CoinDesk:
“When it comes to use HFT for stocks, milli – and even micro – seconds matter. However, for cryptocurrencies, these really tiny increments of time are not scarcely as important.”
By harnessing algo trading, investors can obtain entrance to a far-reaching operation of trade strategies. HFT, for example, necessitates a use of program since it involves really fast trades.
Another plan traders can entrance by trade bots is arbitrage – shopping assets