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While You Were Sleeping: Welcome to the Age of Automated Bitcoin Trading

With bitcoin prices continually rising to $647 this week, does the use of bots to automate bitcoin trading survive the cryptocurrency markets?

 
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New York, NY -- (SBWIRE) -- 06/03/2014 -- Thanks to this new era’s technology, trading bots can do the work for us, even while we are sleeping. Like real people, these bots converse directly to financial markets, determine the movement of financial exchanges, and do the buying and selling of the bitcoins on our behalf. How cool is that?

But the question is, is this for real? Can someone actually profit from this automated trading?

Derivative exchange BTC.SX founder Joseph Lee attests that bots being used for bitcoin trading are indeed money-generating. From 2011 until 2013, he experimented on a bot which he wrote himself which earned him $200,000 profits out of a $100 buy via his private software army. But still, we cannot deny the fact that one of factors for Lee’s profits is the immense increase in bitcoin prices for the past few years.

With the establishment of the bitcoin trading bot market, there are a few softwares which have started to make a name. A few examples are Crypto Trader allowing people to intuitively create bots using varied trading strategies and start business via renting the bots to their customers, the Butter Bot which offers an online trading platform using a plug-in in Google Chrome, and Haas Online selling Windows-based private trading server.

Taking into consideration Lee’s astounding experience in trading using bots plus the technology on bitcoin trading being developed, it is important to note that any trader should be solely based on the wonders of technology. Proper strategies based technical analysis and the right amount of confidence in trading that would allow one to identify how much should be traded and in which direction should the trade be, and when to do the trading are vital. One should not solely base trading decisions on how a computer is being programmed as there are inevitable factors that could affect price movements. Bots usually start via the use of an exponential moving average or EMA as a starting point, in which market prices are being identified over a certain duration. Other strategies such as regression analysis and relative strength indicators should also be considered, especially for unstable markets.

The rule of thumb for any bitcoin trading is to come up with a set of trading rules that would work well at the most convenient stance of any trader. Bots can be programmed to be extrapolative or imprudent. Being financially smart is the key. The basis of how much would be traded should come from the confidence on how much one can afford to lose, not just on how much one projects to earn.

About Coinsetter
Coinsetter is a secure Bitcoin trading platform with tools for serious forex traders. We enable you to access the best prices from major exchanges and boost your trading on our platform built by Wall Street professionals. Whether you're new to Bitcoin or looking for a more reliable and user-friendly platform, Coinsetter is the trading solution for you.