Cryptocurrency’s popularity with investors and traders makes more and more people more curious about it and may want to invest in it. Most especially with news of cryptocurrency taking over and innovating the world of finance, people would definitely be curious about how digital trading works.
Beginning investors and traders may know manual trades or may be aware of automated platforms but may be confused about which is better and which has better trade benefits than the two. This discussion stemmed from the sudden increase in the number of automated trading platforms, which may have you wondering, “Is automated trading platform better than manual trading?”. To verify whether a website is trustworthy, always refer to crypto media sites like Dart Europe, where experts take time to research apps thoroughly.
Now, if you can’t still pick between the two, this article will tell you the advantages and disadvantages of the two for you to find out the better fit for you and which will fit your financial status and goals.
Automated Trading Platforms: Does it work?
There have been a lot of discussions going on about the claims of how automated trading could bring one double even triple the gains one could have from making trades manually. These exaggerated claims must be put out by; you should not let yourself be a victim of EA scams which still doubt and takes out the trust one could have in automated trading platforms. The fact is that automated trading platforms work; it is valid and is not a scam.
Let’s layout this fact about automated trading platforms. Many investment and financial institutions use trading bot strategies from automated trading platforms to invest and trade cryptos. Through automated trading, these financial institutions are able to pull out better gains from their investments. So you can definitely get a higher gain from automated trades than manual trades as long as you are connected and partnered with licensed and great automated platforms which will suit your financial aims and preferences.
Now the question is, is choosing a good automated trading platform better than developing yourself into being a good trader? To help you decide and see through the benefits of both, here are the advantages of automated trading as compared to manual trading.
No matter how you look at it, there will be advantages to both trading manually and trading automatedly and disadvantages as well. But first, here are the advantages of automated trading platforms.
The first factor which you have to consider is the trading software used by trading platforms. They use programmed trading bots, which ensures that your financial plan is performed well, and it will always stick to the goals of your plan as it does to its programming. Every trade is fitted exactly to your finances; your trade is safe and is the best trade option for you since it will use data it receives alone it will take out the emotions of the trader, which could affect the trade transactions as well as it ensures your every trade is of lesser risk because a trading bot uses data analysis of the market without the delay which you will definitely experience when trading manually. This is possible for as long as the trading bots are programmed correctly and functioning at great quality.
On the other hand, when trading manually, sticking to the plan is a big problem. Once a trader’s emotions got out of hand, especially when one feels the adrenaline rush during gains or when is stuck to holding on to the cryptos for fear of losing out, or even when a trader feels like he’s about to miss out on something good which will all result in trading issue or even a huge financial loss.
As mentioned earlier, trading platforms use data analysis to provide the best trade opportunities, which is only possible through the trading bots capacity to hold data across market values and compare them to ensure its users of a higher gain.
Though this is not entirely impossible in manual trading, it just requires a lot of hard work and effort as well as a good handle of how trades work to make the best out of his trades. A good manual trader will do his research before investing, will predict the market value and potential of his investments before even going to proceed to investing or trading.
Automated trading platforms are 24/7 because trading bots don’t sleep and don’t need rest. They can function any time of the day, making trades that give their passive user income.
Whereas, a day trader has to work out the time best for trading to happen, which is not an entire day because humans need sleep, rest, and do things that keep one from continuously trading.
Now that you may be leaning into automated trading but you still need to consider the advantages of manual trading.
The final decision
Manual trades do not exactly mean the absence of all gadgets. A manual trader can also use computer programs that could help him analyze data and strategize then make decisions regarding this data. So a manual trader can use a trading strategy suggested by the computer program but may opt to not follow it if the trader has a better plan for the strategy to tackle a crypto transaction which is due to the fact that humans have instinct and the better feel of the crypto market. Since the software will still rely on the decision of its user, if the user commands it to proceed, it will do so, and if not, it will not.
Freedom from mechanical errors
Hacking is something that has happened before and can not be taken out of the picture of automated trading. However, manual trades are better in this area; a manual trader doesn’t have to worry about hacking or programming errors.
No setting up parameters
Computer software needs to be programmed correctly to get the best trade opportunities, which could be really time-consuming. Setting up parameters for lessening the risk of investment is programmed to the trading bot. Suppose you’re not one to have a great deal of experience in dealing with computers and troubleshooting them. You may be losing the money you don’t know. Though trading platforms could offer to guide you with this, it is still better to hold the necessary knowledge of how trading bots work.
If you don’t want to deal with this, manual trades are a better option for you. Since a human trader decides everything in trade transactions, you don’t have to worry about complex computer stuff, with the exception of when you choose to have a computer trading bot to assist you with your trades.
Truth cannot be denied that automated trading platforms make crypto trading easier and more profitable. However, automated trading is not for everyone. If you want faster gains for short term investment, setting up parameters and signing up with trading platforms may be wasteful. So, in the end, whether you choose one over the other, it is still better to have a good idea of how crypto trading works to find what is better suited for you, your finances, and your goals.