a good idea to start crypto trading?

Updated 09 August. 2022 at 10:32 am

Many novice traders give up the practice after a few weeks or even months. In the end, very few of them manage to get through the difficult beginnings that trading imposes. The reasons for these dropouts can be summarized as overly strong emotions, the long learning curve required and the time-consuming aspect of the activity. This is all the more true when you want to trade cryptocurrencies. A real generator of opportunities, the market still has some surprises in store that can catch beginners and completely discourage them. To overcome these difficulties, trading robots represent a good solution. Let’s see together why.

5 tips for better cryptocurrency trading

Securing your debut with a trading robot

A beginner’s biggest fear is losing money. Of course, this fear never completely goes away. This is why even some experienced traders fall into the trap. Although we tend to control this fear, the feelings attachments it generates can become a real burden for traders.

This is all the more true for beginners who have not yet become aware of all of them the affects that these emotions generate on their performance.

They are expressed in different ways. For example, after a series of losing trades, the fear losing again gives way to one stress devastating. The latter will push to invest more money to try to make up for the losses… but that actually worsens the situation.

Another example, after a series of winning trades, euphoria appears. It involves the trader in an excessive confidence which makes him take positions at any cost and little by little deviates from his original strategy. The result is the same as in a stressed situation, and the capital begins to melt.

Emotions of trading - trading robot
The different emotions that a trader feels

That it can be difficult to deal with these feelings to set up especially beginners. On the one hand, you need to be aware of this and, on the other hand, impose a certain discipline on yourself.

This discipline reviews the implementation of a strategy that has proven its worth in advance and a money management that includes the risk of loss.

In this sense, trading with robots offer a security. Built on computer programs called algorithms, they are by definition devoid of emotion. Thus, unlike a human controlled by his thoughts, a trading robot cannot experience fear, stress or even overconfidence. He will not be affected by a series of winning or losing trades.

Their only goal is to do exactly what they have been programmed to do: analyze the market in search of opportunities, take a position and secure the money management strategy that has been asked of them. In other words, they impose themselves the necessary discipline for effective trading.

Bots replace novice and therefore emotionally fallible traders. They ensure capital management so no emotions come to interfere with trading and taking positions.

Trading robot: investing in crypto without training

Trading is an activity that has its own jargon, its own codes. All beginners must acquire them to perform correct analysis and find the right opportunities to invest.

Crypto trading is even more complex. He is even more technical. We are talking about earning, effort, proof of work or even yield breeding. So many concepts that a beginner will have to understand and learn to use.

For this he will have to engage in a workout quite a long time since the crypto market is an atypical sphere that has its own specificities.

In addition to training, creation and master strategies, testing them to confirm or invalidate them is part of the trader’s apprenticeship. Even the most experienced have to at one point or another find new strategies then test them in real life or on demo accounts before adopting them. The market is constantly changing and a strategy that worked yesterday has no guarantee of being effective tomorrow.

Investing without training is thus an operation that has a good chance of failure. Positioning yourself in cryptocurrencies in the short or long term requires compliance with certain rules to maximize the chances of winning.

Trading robots are programmed to apply trading strategies. They are already predefined and should only be applied to a trading account.

To note

The performance of the strategies used by a trading robot depends on their programming. Some trading robots will be very basic and offer only simplistic and/or ineffective strategies. Others, on the other hand, will offer several back-tested strategies that can be applied to different investment visions according to your expectations.

These programs automatically check for graphic configurations, patterns, which gives them the opportunity to take a stand. They are also responsible for respect the rules for money management and limit the risks by placing a stop loss yourself. The bots also calculate the take-in levels.

To summarize, trading robots take care portfolio management like a pro. Now beginners no longer have to go through the learning box.

Be careful, but there are many scams around trading robots. It is important to find out before adopting a program.

Balancing leisure and crypto trading

As mentioned in the introduction, trading is an activity that requires invest time.

Learning and mastering one’s emotions is among the aspects time consuming. Unfortunately, they are not the only ones.

Once the notions of crypto trading are acquired, a trader’s work begins in earnest. In fact, most of this activity is monitor and analyze charts. It is important to look for the right opportunities, follow the positions, take your gains, analyze the crypto cycles.

It is on-call work that takes time. This applies all the more when you use smaller and smaller time units. But time is an increasingly scarce commodity these days.

In many cases, crypto trading is thus perceived as an activity incompatible with a full-time job. The timetable must contain a minimum of 35 hours at work, hobbiestime with family and friends. Trade comes painfully into a schedule.

This is one of the reasons why trading robots were created. In fact, they combine busy schedules with active investments.

They work alone without the need for human presence to keep an eye on. The trader no longer has to spend his time in front of the screen analyzing all the markets and assets that interest him. Trading robots are thus an effective means of earn money while you have free time to work, enjoy your surroundings or go on leisure.

In other words, it is a great way to grow your capital without limitations.

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