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Pros and Cons of Using Crypto Trading Bots
Automated trading is not new. Even before the advent of crypto trading, the stock market had brave and brilliant traders who made their fortunes using algorithms. Nevertheless, due to the robustness of the crypto market and its high volatility, automated trading has assumed a newer and fresher form. It is on this note that crypto trading bots are a real thing.
For crypto traders who rely on trading bots to buy and sell coins and assets, bot trading is awesome. It not only saves time but also lends them a semi-omnipresence in the online trading market. For crypto traders who prefer to rely on their own guts and smarts, trading bots are only a futile luxury and convenience.
So everybody has something to say about crypto trading bots and their usefulness. This is because there are both pros and cons to the use of these bots. It is because some traders know these pros and cons that they decide to use—or decide against using—crypto bots for trading.
We developed this article to show some of the pros and cons of using crypto trading bots. Our aim is to give you a rationale pedestal for decision-making regarding the use of crypto trading bots. We expect that after you have read the article, to use or not to use crypto trading bots would no longer be the question for you.
Pros of Using Crypto Trading Bots
There are many advantages to using trading bots. In this section, we touch on 6 such advantages. These are as follows.
1- Emotionless Trading
The foremost advantage to using crypto trading bots is that your trading game becomes devoid of emotions. Emotions, as you well know, clouds judgment. Clouded judgment is not useful for profitable trading since it gets in the way of logical decision-making. And except you are willing to throw out your heart and take on that of Sophia The Robot, you are better off using trading bots.
Trading bots are computer software. They are algorithms that are rule-based and they are digital. They will not cry over a loss or pump their fists into the air in excitement. That emotional element is missing, so clouded judgment is not a thing with them. Thus, they are able to trade without emotions, using tested strategies for buying and selling cryptos.
2- Disciplined Trading
Disciplined trading is an extension of the first point: emotionless trading. When you trade using your guts, you tend to vacillate between options. You rely on what you know which is very limited. And your decisions are not often backed by any real principle other than broad strategies that offer minimal value for profitable trading.
In such instances, you need discipline to trade cryptos. Remember that price volatility is a common thing, so discipline takes you from green trader status to the status of an expert trader. This is where crypto trading bots excel. As long as you give them instructions to follow, they don’t deviate. In fact, this rule-based trading style is one of the reasons some crypto traders use bots in place of guts.
Imagine using BitQuant, a novel trading bot, for instance. The bot’s rule-based approach to trading will not only save you from erroneous decision-making due to emotional interferences. It will also help you trade consistently so you can make up to 20% guaranteed monthly profits on your crypto investments. Unless you are a trading bot yourself, this level of consistent returns is impossible with gut trading.
3- Easy Backtesting
Backtesting is one of the 4 major components of trading bots—the others being strategy implementation, execution, and job scheduling. This component ensures that the bot uses historical data to test the ups and downs in the price of a particular crypto. This essentially grants you a playing ground within which you can experiment with the crypto market in general and cryptos in particular.
This is only one of the applications of backtesting as a component of trading bots. Nevertheless, you can see the advantage this gives you. Of course, if you have the time and mental fortitude, you can also get a pen and sheets of paper to carry out these tests. However, the trading bots are likely to give you better results, not to mention a simple and relatable interface. So, yes, trading bots allow you to backtest without stress.
4- Diversification and Flexibility
Going further down the lane of backtesting, crypto trading bots offer you a variety of technical capabilities. Some of these capabilities (Naïve Bayes, for example) are mathematical and statistical in nature. Others like AI (artificial intelligence) are largely computational. However, the implementation of these capabilities brings about diversity and flexibility.
The diversity we refer to is the same as an extensive trading scope. With crypto trading bots, you will be able to monitor more markets, coins, and prices. Moreover, flexibility means that you will be better furnished with information for better decision-making.
So, crypto trading bots will not only open you up to a brave new world of cryptos that are inaccessible to the sixth-sense trader. No, they will also set you up for success by positioning your trading game at opportune points.
5- Transparency
One of the biggest pros of using crypto trading bots is that you will be able to better monitor your trading. As these trading bots are digital, they automatically keep records. The ones that are driven by AI, especially, can even learn from these records. This simply means that your trading becomes transparent.
For prospective investors, a trader’s reputation is everything. And what is a good reputation in crypto trading without transparency? So, trading cryptos using bots gives you a clear tracking record.
6- Ease of Trading and Semi-Omnipresence
Crypto bot trading just simplifies trading. You don’t have to register for crypto boot camps. Trading bots are fitted with the basics of trading. You only need to ‘plug in’ instructions and strategies and they’ll be up and running.
Moreover, you can rest your eyes and mind when you use trading bots. No keeping vigil because you think the price of a coin might shoot up and fall during the night. Trading bots lend you a semi-omnipresence in the trading market and enable you to trade without trading.
These are some of the reasons that many crypto traders use trading bots.
Cons of Crypto Trading Bots
Crypto trading bots are not perfect. There are several disadvantages to using them. Some of the most common of these disadvantages are highlighted as follows:
1- Possibility of Technical Failure
Crypto trading bots are digital, so they are also subject to digital shortcomings. The most universal of these shortcomings is technical failure. Since the bots are driven by algorithms developed by error-liable human minds, they can fail. And if they fail without your knowledge, you could lose your crypto investments.
2- High Requirements for Technical Supervision
Although automation is the core offering of trading bots, this does not mean that they do not require supervision. In fact, some of these bots can only be reconfigured by software developers. This is another reason why bots like BitQuant with perpetually accessible customer service are highly prized in the crypto trading community. So, if you are a beginner or someone without useful experience with trading bots, you might end up at a loss when you need to fine-tune your trading bots.
3- High Odds of Distortion from Over-Optimization
Some of the offerings of trading bots can be over-optimized. This means that the projections made by these bots can be belabored to the point of distortion. In such instances, the evaluations of the bots regarding the crypto market are far from what is obtainable. Thus, there is still a risk of trading failure and loss when you use trading bots. Of course, this is where choosing the best crypto trading bot is a big deal.
4- Too Many Options
There are so many crypto trading bots. One might even say that there are as many crypto trading bots as there are cryptos and crypto exchanges put together. This variety is both good and bad. It is good because you can always get something to fit your trading goals. It is bad because the presence of alternatives makes it difficult to come to reasonable conclusions. Worse of all, it is not easy comparing trading bots. You can only rely on what the developer says and what you get from experience.
5- Possible Indecision in Emergency Situations
Lastly, crypto trading bots cannot make spontaneous trading decisions. This, once again, is both good and bad. You can easily lose great opportunities to plug into hot deals in the crypto market. In the same way, your crypto trading bot can only operate in one direction, it can stop moving totally on some rare occasions. What, for example, will an arbitrage bot do when there are no price differences across reputable exchanges? It will stop trading. That’s a minus.
So, the choice of whether to use bots for crypto trading rests with you. Generally, there are incredible traders that use them and others that don’t. In deciding which of these categories you want to belong to, take your time to consider your options. If your trading goals can be met with crypto trading bots, use them. If not, don’t.
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Big Trading Opportunities with Kyrrex: How to Maximize Your Profits in Cryptocurrency Trading
The cryptocurrency market is a rapidly evolving landscape that offers big opportunities for profit. However, navigating this market can be challenging, particularly for those who are new to the space. In this article, we will explore how you can maximize your profitability in cryptocurrency trading by taking advantage of Kyrrex's wide range of trading opportunities.
The Relationship Between Open Crypto Trades and Profitability
Open trades are trades that have not yet been closed. These trades can have a significant impact on profitability, as they represent potential gains or losses. In general, having more open trades can increase profitability, as long as they are managed effectively.
One way to manage open trades is to use stop-loss orders. A stop-loss order is an order that automatically closes a trade when a certain price is reached. By using stop-loss orders, traders can limit their losses and protect their profits.
For example, if a trader buys a coin at $10,000 and sets a stop-loss order at $9,500, the trade will automatically close if the price falls to $9,500. This can help the trader get out of a bad trade before their loss becomes bigger.
Another way to manage open trades is to stay up-to-date with market trends. By staying informed on market trends and using technical analysis, traders can identify potential trading opportunities early and make informed trading decisions.
For example, if a trader notices that the price of a particular cryptocurrency is trending upwards, they may decide to open a long position (i.e. buy the cryptocurrency) with the expectation that the price will continue to rise.
However, it is important to remember that open trades are never risk-free. If the market moves against the trader, they may end up losing money on the trade. To minimize this risk, it is important to use appropriate risk management strategies, such as setting stop-loss orders and diversifying your portfolio. Stop-loss on a winning trade locks in your profits while a diversified portfolio helps to spread risk around.
The Importance of Trading a Wide Range of Cryptocurrencies
Trading several cryptocurrencies, instead of just one or a few, is essential for maximizing profitability. By limiting yourself to a small number of cryptocurrencies, you are potentially missing out on gains that could be made by trading in other coins. Additionally, trading more cryptocurrencies can help to minimize risk, as losses in one coin can be offset by gains in another.
Here are some benefits of a diverse cryptocurrency portfolio:
- Increased exposure to potential gains: By trading in a diverse range of cryptocurrencies, traders can increase their exposure to potential gains in the market.
- Minimized risk: By trading in a diverse range of cryptocurrencies, traders can minimize their risk by offsetting losses in one coin with gains in another.
- More opportunities for profit: Traders can open more orders in more cryptocurrency pairs, which increases the potential for profits.
Wide Crypto Trading Opportunities with Kyrrex
Kyrrex is a leading crypto-fiat platform that offers comprehensive services for individuals and institutional clients alike. With its advanced trading, storage, and payment technologies, Kyrrex is designed to meet the needs of modern cryptocurrency enthusiasts.
One of the main advantages of Kyrrex is its wide range of trading opportunities. Users can access the built-in trading terminal, which allows for seamless transactions in cryptocurrency pairs. Currently, Kyrrex offers a total of 20 currency pairs, including popular options such as AVAX/USDT, ETH/USDT, and XRP/BTC. By offering a diverse range of currency pairs, Kyrrex enables users to trade in a way that best suits their needs and preferences.
The Kyrrex trading platform boasts flexible functionality. Users can easily analyze and track quotes around the clock, select limit and market orders, and enjoy reduced trading commissions. These features make it easy for users to make more trades and analyze market trends, thereby increasing the chances for gains.
In addition to its trading capabilities, Kyrrex offers a comprehensive set of features to help users manage their cryptocurrency assets. With its state-of-the-art storage technologies, Kyrrex ensures the safety and security of user funds. Users can also take advantage of the platform's advanced payment technologies, which enable them to make and receive payments in a variety of currencies.
Conclusion
Maximizing profitability in cryptocurrency trading requires a combination of trading in a wide range of cryptocurrencies and effectively managing open trades. Kyrrex's wide range of trading opportunities, advanced trading tools, low trading fees, and real-time market data make it an ideal platform for those looking to engage with the cryptocurrency market.
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BTCUSDT: Analyzing Bitcoin's Performance on TradingView
Bitcoin (BTC) has emerged as one of the most popular cryptocurrencies in the world, and its value has skyrocketed in recent years. As a result, traders and investors have become increasingly interested in BTCUSDT trading on platforms like TradingView.
TradingView is a popular charting platform that allows users to analyze and trade financial markets. With BTCUSDT trading, traders can track the performance of Bitcoin against Tether (USDT), a stablecoin that is pegged to the US dollar. This pairing is commonly used on crypto exchanges, and TradingView provides comprehensive BTCUSDT charts and indicators for traders to make informed decisions.
BTCUSDT Price Action
BTCUSDT's price action has been volatile, with sharp price swings and fluctuations. However, the overall trend for BTC has been bullish, with the cryptocurrency hitting all-time highs in recent years. TradingView's BTCUSDT charts provide traders with the ability to track BTC's price movements in real-time, as well as view historical price data.
Technical Analysis on BTCUSDT TradingView
Technical analysis is a popular method for traders to analyze financial markets, and BTCUSDT trading is no exception. TradingView provides a wide range of technical indicators and charting tools to help traders analyze BTC's performance.
One popular indicator used in BTCUSDT trading is the Moving Average Convergence Divergence (MACD) indicator. This indicator can help traders identify trend reversals, as well as potential entry and exit points. Additionally, traders can use other technical indicators like Relative Strength Index (RSI), Bollinger Bands, and Fibonacci retracement levels to gain further insight into BTC's price action.
Fundamental Analysis on BTCUSDT TradingView
In addition to technical analysis, fundamental analysis is also important in BTCUSDT trading. Fundamental analysis involves analyzing the underlying factors that affect BTC's price, such as adoption rates, regulatory changes, and economic events.
TradingView provides traders with access to news feeds and economic calendars, which can help traders stay up-to-date on the latest developments that may affect BTC's price. Additionally, traders can use TradingView's social networking features to discuss and share information with other traders and investors.
Final Thoughts
BTCUSDT trading on TradingView offers traders a comprehensive set of tools and indicators to analyze Bitcoin's performance. With both technical and fundamental analysis options available, traders can make informed decisions about when to enter and exit the market. However, as with any financial market, BTCUSDT trading carries risks and traders should exercise caution and conduct their own research before making any investment decisions.
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Top 5 Crypto Charities
There are two sides to everything, though humans tend to focus on one side of the coin. The latest weapons can help through deterrence, not just destruction. Artificial intelligence is an incredibly useful tool despite its dangers. And cryptocurrency, just like everything else, can be a force for good in the world.
Crypto is about PnLs, market and limit orders, DeFi and staking, coin offerings and L1s. It is also about borderless payments which can facilitate goodwill donations by anyone from anywhere to any organization that works towards a noble cause.
The philanthropic space, just like health, finance and sports, has realized the benefits of adopting crypto. Some of the best known global and regional charities have created channels for crypto donations.
Bitcoin, Ethereum and stables like USDT are the most popular coins supported by charities accepting crypto. Depending on the type of crypto charity, other popular digital coins like Dogecoin, Monero, Bitcoin Cash and Litecoin may also be accepted.
So if you're moved to reserve some of your cryptocurrency holdings or trading gains for a worthy cause, there are lots of charity crypto projects that would be happy to receive your donation
These crypto-affiliated charities vary by mission. Some are dedicated to helping oppressed peoples in war-torn areas like Ukraine to stand up to the aggressors. Others utilize blockchain technology to support next-gen ideas and technology like effective altruism and AI.
These organizations all have noble goals and have thrived through the benevolence of citizens who use some of their crypto for charity. This article presents 5 reliable and dependable crypto charity projects. So if you're looking for charities that accept crypto, you've come to the right place.
1. Electronic Freedom Foundation
The Electronic Freedom Foundation (EFF) is a U.S. 501(c)(3) nonprofit that has a mission to defend civil liberties and human rights both online and offline, but especially online. It supports outreach and legislation that protect digital rights and provides funding for projects that promote the rights of the individual to free expression in the digital space.
The EFF sees increased legislation and user restrictions in the digital age as a wall that stifles creativity and infringes on the rights to liberty. Thus, it campaigns hard against moves that seek to restrict people's rights and freedoms, especially online. The organization has a long and proud history of canvassing change and is one of the best charity crypto projects around. It accepts Bitcoin, Bitcoin Cash and Ethereum from individual donors and you can also elect to receive some cool swag if you donate at least $100.
2. Kyrrex Charity
The start of the war in Ukraine has led to a groundswell of governmental, institutional and individual support for the beleaguered country which continues to maintain its independence in the face of overwhelming odds. The Kyrrex Charity is the social arm of Kyrrex, a regulated crypto-fiat ecosystem. Its goal is to work towards the war's end and victory for Ukraine by supporting the country's civilians, volunteers and defenders through financial aid.
The foundation organizes charity events and fundraisers all over the western world to raise money which it then distributes to various agencies across Ukraine.
Because of the difficulties caused by the war, crypto donations to Ukraine is one of the best ways to get money across to those who need it on the ground. That is why the Kyrrex Charity's main vehicle is a crypto charity fund. Benevolent individuals and organizations can directly donate Bitcoin, Ether and USDT through the foundation's Ukraine crypto donations wallets and be rest assured the money will be used for a worthy cause.
So if you have excess coins gathering dust in your wallet or cold storage and wondering how to donate crypto to Ukraine, you can send your coins to a Kyrrex Charity wallet and sleep easy knowing you've just done a great deed for humankind.
3. UNICEF Cryptocurrency Fund
Unicef, or the United Nations Children Fund, works in 190 countries across six continents to help children overcome developmental and geographical challenges and achieve their full potential from early childhood to adolescence. It's long been one of the most visible agencies of the UN and its impact has been felt in every corner of the globe for decades.
In 2019, UNICEF launched a crypto fund to simplify fundraising and grants distribution and reach their networks of donors and beneficiaries faster than the complicated web of traditional finance would allow. Donors can send BTC and ETH directly to the UNICEF CryptoFund. To date, the fund has received 8 BTC and 2527 ETH which is distributed to open-source frontier tech solutions showing promising results.
All donations made by the funds are done in BTC and ETH only and capped to $100k. Through this scheme, UNICEF has invested 52 ETH in a digital cash and voucher transfer platform in Nigeria, 43.5 ETH in a platform for digital healthcare savings in DR Congo, and 21 ETH in a tool for visual eye tests to detect vision disorders among children in the UAE.
4. The Giving Block
Would you like more control and flexibility over your charity crypto donations? Then you can check out The Giving Block. This donations service is like a crypto charity marketplace that allows you to give crypto to a nonprofit, charity, university, faith organization, environmental NGO or any other mission-driven agency of your choice.
The Giving Block emphasizes choice and flexibility. Donors are free to choose any of the 100+ organizations that accept crypto donations through the service. You can use their search tool to filter available organizations. For example, a "crypto donations Ukraine" search brings up the Ukrainian American Coordinating Council, the US-Ukraine Foundation and similar organizations. You can also switch to "Impact index funds" and donate crypto to a particular cause, such as the war in Ukraine, women and girls empowerment, or arts and culture.
Another big draw of The Giving Block is the versatility provided for those who use the platform to donate crypto to charity. Most blockchain-positive philanthropic platforms support just a few cryptocurrencies. But on The Giving Block, you have your pick of more than 70 crypto options to donate with such BTC, ETH, USDC, USDT, DAI, MAKER, AVAX, SOL, and many more.
5. The Tor Project
Tor, or The Onion Router, is the free and open-source browser that enables anonymous communication through a network of volunteer nodes spread across the world. The Tor project and its browser allow users to bypass censorship and restrictions on internet usage. It generates a semblance of digital privacy and independence in an environment rife with governmental policy.
The Tor Project accepts donations in crypto and other avenues to keep the Tor network running and protected against intrusion by global institutions and governments. Tor accepts crypto donations in 9 currencies including Bitcoin, Ethereum, Dogecoin, Augur, Dash, Litecoin, Monero, Stellar Lumen, and ZCash.
Donating Crypto to Charity
If you'd love to donate crypto to charity, you can try one of the organizations on this list or another one that accepts digital currencies. You can donate your crypto directly—no need to convert into a stablecoin or fiat money first. Moreover, if you have a stablecoin in your portfolio, you can donate that. The price of a stable fluctuates less compared to traditional cryptocurrencies, which can benefit the charity of your choice more than a volatile coin would.
Making donations to a charity actually helps fulfill one of the founding principles of cryptocurrencies—anonymity. By donating through crypto, you show that you truly care about a cause and aren't donating just to look good in the news or on social media.
5min reads