Crypto Automated Trading. Table of Contents
- Crypto algorithm trading for beginners
- Bot (Trading System) selection and setup
- What you need to know about Automated Trading
- How to start Crypto Margin Trading?
- Cost and Risks of Crypto Margin trading
- Bitcoin and Altcoin Margin Trading Tips
- Invest in Crypto with IronFX - IronX
- Why choose IronX (IronFX) as your Crypto Broker?
- Why many investors are skeptical about Crypto?
- IronX changes the Crypto industry
- Why you can trust IronX - IronFX?
- What to expect from Crypto in 2021?
Crypto algorithm trading for beginners
According to recent research by J.P Morgan, “90% of stock transactions are sold with algorithms.” Algorithm trading is the process by which trades are traded using computer programs or bots.
The purpose of automatic trading is to conduct transactions at a speed and frequency that cannot be tracked by humans.
Algorithm trading provides liquidity and allows traders to judge trades objectively by controlling the trader’s sentiment to the limit when it comes to trading.
The rules of timing, price, and quantity are the basic elements.
Advantages of Algorithm Trading include the followings:
- Buy and sell at the best price;
- Improve transaction accuracy, efficiency and performance;
- Automatic tracking of various market conditions;
- Prevention of human error by removing emotional or psychological factors;
- Minimization of minor mistakes in trading;
- Reduced transaction costs;
The cryptocurrency market is still in its infancy.
This results in more frequent volatility than other financial markets.
Therefore, the ability to predict the extent of price fluctuations and prepare for them appropriately is important.
When trading cryptocurrency, algorithmic trading will help you devise a strategy to survive volatility and take advantage of this opportunity to earn profits.
Algorithm trading is 100% legal and accepted for most cryptocurrency transactions.
Bot (Trading System) selection and setup
Developing a bot’s strategy and working on a program requires expert knowledge.
So, the simplest solution is to buy a bot that’s already implemented to save time on learning code, compiling applications, and hosting software.
Commercially available bots can choose between pre-programmed and programmable options.
Programmed bots trade only with established strategies.
Most of the bots are compatible with cryptocurrency transactions, but before purchasing the bot, please also check whether it is compatible with the cryptocurrency transactions you plan to trade.
What you need to know about Automated Trading
If you have chosen a bot, the following procedure is required for trading.
- Create an API on an exchange equipped with a secure environment. When creating an API key, please follow the procedure provided by the exchange.
- API keys cannot be shared with others. Please save the API key offline to keep it safe.
- Do not provide withdrawal rights to bots. Please install the bot so that only strategies related to trading can be established.
- Manage your bot with two-factor authentication and strong passwords. It is recommended to use different emails for different platforms.
- Back tests can reveal strategies based on historical pricing data. Be sure to backtest before using the bot in the real market.
- Start small with your margin size. As you learn algorithmic trading, you can add the size of your deal step by step.
- Bots are regarded as a trading aid. Even if there is a programmed bot that can be liquidated according to the trading environment during trading, it is necessary to liquidate it manually.
- Focus on your long-term programming strategy. Short-term losses are likely due to the high volatility of the market.
Crypto Algorithm Trading is designed to get the most out of the highly volatile marketplace for 24 hours 7 days.
However, despite all the advantages that algorithmic trading offers, you cannot be completely free from manual trading.
Before choosing a bot, please choose a stable and reliable exchange.
IronX provides a proven and stable platform based on over 1.2 million existing retail customer accounts. T
his provides high liquidity while increasing trust among users.
What is Bitcoin and Altcoin Margin Trading?
Investors who are restricted from trading Bitcoin and altcoins can benefit from leverage through margin trading.
This is similar to taking a short-term loan from an exchange or futures company.
Investors can trade more products than they can currently hold as an asset.
If the market moves in the desired direction, it will be the best choice.
While it is true that you can trade more assets due to the use of leverage, it is important to note that this can also increase the potential loss.
That’s why we recommend starting small at first and then increasing your transaction size as you get used to it.
How to start Crypto Margin Trading?
In order to trade bitcoin and altcoin margins, investors must open a primary trading account.
After that, you can add a trading account via internal transfer.
Margin trading is possible through an account in which cryptocurrency is deposited.
Some exchanges provide a service that allows customers to directly lend cryptocurrency to others, and this is called a peer-to-peer (P2P) transaction.
When trading margins, the customer needs to predict whether the price will rise or fall.
If analyzed as a bullish market, it enters a long position.
Conversely, if a bearish market is expected, a short position is entered.
Cost and Risks of Crypto Margin trading
The cost of margin trading is calculated by borrowing interest and exchange fees.
As mentioned earlier, when trading a product based on margin, both profit and loss potential increase.
Therefore, you need to enter a position with the amount of loss you can afford.
You can determine the maximum possible loss by taking into account all the assets used to enter the position, interest and fees.
The exchange closes the position and proceeds with liquidation at the maximum possible loss amount in order to protect the customer from the loss of borrowed coins and assets.
Bitcoin and Altcoin Margin Trading Tips
- Risk Management
- You need to clarify your risk appetite and do not exceed it. It’s a good idea to set up your own rules for investing. You have to make a reasonable investment, and when entering a position, you have to free yourself from emotions such as ‘greedy. Set profit-taking or stop-loss value in advance and stick with your investment strategy.
- Continuous monitoring
- The cryptocurrency market is highly volatile. Cryptocurrency margin trading increases the potential risk and profitability at the same time. For initial investments, you should consider short-term strategies, and be aware that transaction fees and interests can increase in the long run.
- Rapid fluctuations
- Cryptocurrency prices can move significantly up and down. In these situations, you may even reach the liquidation price. If you can accurately predict high volatility, you can make a big return, but at the same time, it can lead to big losses. This is why knowledge and analysis are essential to making informed decisions.
Invest in Crypto with IronFX – IronX
While many cryptocurrency exchanges offer margin trading and dazzle investors, it is important to trade with trusted and officially licensed exchanges.
In addition, exchanges that are used by many customers can provide abundant liquidity, which is a very important factor for margin trading.
IronX exchange, developed by highly skilled professionals, is one such exchange.
It is an exchange established as a joint venture between the IronFX Group, a global leader in online trading, and Emurgo HK, who invented Cardano.
In addition, it provides a stable and robust platform capable of 1 million transactions per second through Alpha Point technology.
IronX is operated under an official license and is managed and supervised by world-renowned organizations so that you can trust and trade your precious cryptocurrency.
Why choose IronX (IronFX) as your Crypto Broker?
Why 1.2 million cryptocurrency trading customers trust IronX
The cryptocurrency market has been evolving rapidly and interestingly since its inception in 2008.
The total market size has declined rapidly as of 2018 and is maintained at around 200 billion USD as of September, but at one time exceeded 800 billion USD in 2017.
Cryptocurrency, despite its great volatility, has the potential to change the world and offers investors many opportunities.
Why many investors are skeptical about Crypto?
Unfortunately, it is true that cryptocurrency is not becoming more popular than expected due to various difficulties facing the present.
One of the important issues investors are considering is whether the cryptocurrency exchange can be trusted when it comes to trading.
The reasons investors are skeptical about cryptocurrency trading are as follows.
- The trading platforms used by many investors are complex and unresponsive to use. Most of the platforms currently available are not easy to add new cryptocurrencies.
- Liquidity is a very important part of any market. Lack of liquidity can create an unbalanced trading environment, leading to missing valuable trading opportunities.
- The growing cryptocurrency market requires an experienced customer support department. As the cryptocurrency market is a new market, more education and support are required for successful transactions of customers. This education and support is part of the cryptocurrency exchange’s responsibility.
- Cryptocurrency investment has been used for money laundering and investment fraud due to the absence of a supervisory authority.
- Security issues and transaction transparency are also important issues.
- Due to the high volatility of the market, it is difficult to convert smoothly between cryptocurrency and legal currency.
IronX changes the Crypto industry
IronX is a Cryptocurrency exchange that overcomes the limitations of existing exchanges.
IronX is a newly developed exchange to overcome the difficulties already existing in the cryptocurrency market.
This exchange provides an independent platform to increase interest in cryptocurrency and make it easier for customers to access.
Its greatest strength is its ease of use and strong security.
IronX Exchange is already accredited by the Estonian Financial Intelligence Agency and provides high-quality, customer-focused service.
In addition, IronX’s customer support team of experienced experts provides customer support services in more than 180 countries around the world in a variety of languages.
The IronX Exchange is the result of the creation of the EmurgoHK Group, which invented the Cardano blockchain technology, and the IronFX Group, the global leader in online trading with over 1.2 million customers.
By providing the world’s first officially licensed, service-oriented, and strong security platform, IronX helps you make a free investment through cryptocurrency and legal currency.
Why you can trust IronX – IronFX?
IronFX Group is the Best Global Online Trading Platform (2017), Best of the Best in European Finance (2016), Best Forex Educators (2015), Outstanding Contribution to the FX Industry (2014), Best Forex Service Provider (2014), Most Trustworthy IronX has various awards worldwide including Forex Broker (2014) and Best Trading Execution Global (2013).
The IronFX Group is officially accredited and supervised by four major regulators: the British Financial Supervisory Authority (FCA), the Australian Securities and Investment Commission (ASIC), the South African Financial Supervisory Service, and the Cyprus CySEC.
Through the online trading platform that has been operating for the past 8 years, IronX has formed close relationships with the world’s most famous banks, and provides professional services based on IronX’s expertise in international financial systems to global customers.
Serving more than 180 countries in Europe, Asia, the Middle East, Africa, Australia, and Latin America, IronX provides customer support tailored to regional characteristics through six offices.
IronX has a premier customer support department in over 30 different languages that provide immediate support to your needs.
IronX was developed after a thorough investigation of the challenges facing cryptocurrency investors and exchanges around the world. Now trade cryptocurrency securely with the best customer support service.
What to expect from Crypto in 2021?
As cryptocurrency has been attracting a lot of people around the world starting in 2017, the market cap of cryptocurrency has reached an all-time high of about $800 billion every day.
In addition, most industries, including the economic sector, are researching blockchain technology, and a lot of efforts are being made to use it to promote growth and solve existing problems through crypto.
Now, let’s take a look at the 2021 cryptocurrency expectations growth forecast diagnosed by market experts.
1. Market capitalization of 4 trillion dollars
Bitcoin, which gained attention after showing an explosive rise in 2017, is also referred to as digital gold.
Currently, the number of cryptocurrencies (altcoins) that can be traded is already over 2,000, and more cryptocurrencies are being developed every day.
As altcoin’s growth accelerates, the liquidity of the cryptocurrency market increases.
In addition, Starbucks, which has the world’s largest coffee chain network, is developing a payment system using bitcoin.
2. Adoption of official payment by banks and payment agencies
Crypto is the future of the financial industry.
Over 40 banks around the world are researching and implementing blockchain as a payment system, and VISA Card, American Express, and other financial giants have already completed it.
If crypto is applied to the payment method, security can be strengthened and the risk of personal information leakage and transaction fees can be drastically reduced.
Crypto technology also has the potential to simplify and speed up the personal information verification process (KYC) of financial institutions.
3. Issuance of crypto by government agencies
Market experts predict the issuance of digital currency at the national level based on a distribution ledger controlled by the government.
This will make it much easier to move and hold funds in each country, which will lead to an increase in demand.
In addition, blockchain can be applied to provide public services.
In the Swiss city of Zug, you can already pay utility bills in cryptocurrency.
4. Strengthening the Internet of Things
Crypto and the Internet of Things (IoT) are the perfect combinations.
Cryptocurrency pursuing decentralization can support IoT devices to minimize errors and create an appropriate ecosystem through flexible convergence.
In addition, distributed ledger technology can improve users’ data security and personal privacy.
5. Generalization of smart contracts
Smart contracts have the potential to replace the cumbersome paperwork required for contracts between a number of two or more.
It provides a form of permanent contract that can be monitored by mutual agreement.
These agreements are set forth in the contract and are drawn up so that all parties involved in the contract have a set of responsibilities.
Save time and money because contracts are written in the programming language.
The crypto market has endless potential, so it is not surprising that it attracts the attention of investors to diversify their portfolios.
This will eventually increase the demand for reliable and reliable cryptocurrency exchanges.
IronX Cryptocurrency Exchange is an exchange established as a joint venture between IronFX Group, the online global leader, and EmurgoHK Group.
IronX’s exchange is made up of a trading platform with a number of awards and a team with long-standing know-how.
Operating in more than 180 countries, with 1.2 million existing customers and providing customer support in over 30 local sources, IronX Exchange complies with regulatory agency guidelines.