Intelfin has 4.71 out of 5 stars 176 Reviews on ProvenExpert.com

Cryptocurrency Trading Advantages: Algorithmic vs. Day Trading

Buying and selling assets on the same day, based on small, short-term fluctuations in price, is called day trading. This method has been practiced in other markets for decades before Bitcoin and other cryptocurrencies were invented.

Thousands of assets are available to day traders at any given time across the globe as a result of the proliferation of centralized and decentralized exchanges.

On exchanges such as Bitsgap, Pionex, or Binance, investors can also automate many of their strategies with automated trading, or algorithmic trading. A number of benefits can be derived from automated trading, such as automated stop losses and grid trading.

We will discuss in a concise manner throughout the remainder of this article how both day and algorithmic trading methods have their own advantages.

 

Advantages of day trading:

 

NFTs and DeFi

 

By using a day trading strategy, investors have access to a wider range of assets and instruments than they would have access to when using an automated trading system. Aside from NFTs and DeFi, day traders have access to a wide variety of opportunities that are unavailable on centralized exchanges.

You may find hundreds of short-term NFT investments at OpenSea or MagicEden if you are looking for a quick "in and out" investment.

It may also be worthwhile to consider buying newly minted projects through decentralized exchanges such as UniSwap or PancakeSwap if you are interested in investing in a project that is not yet listed on major exchanges.

 

Arbitrage

 

As part of an arbitrage transaction, goods are purchased at one location and sold at another, resulting in a profit on both ends.

The price of Ethereum on KuCoin is $1477 USDT, while the price on Gemini is $1452 USDT. For a low-risk profit of $25, ETH at the lower price is purchased on Gemini and immediately sold on KuCoin.

In open marketplaces, cryptocurrencies will always be undervalued and overvalued (within a small percentage) due to the mechanisms of AMMs. By stabilizing and unifying asset prices across multiple exchanges, arbitrage traders actually contribute to the success of the cryptocurrency market.

Due to Automated Market Makers, which provide much of the underlying technology for DeFi, arbitrage will always exist in cryptocurrency. With our Arbitrage Bot, you do not have to monitor prices on different exchanges and do everything manually. Automated trading bot instantly analyzes all markets and conducts transactions as soon as possible.

 

Advantages of Automated Strategies:

 

Stop Losses

 

In contrast to the stock market, the crypto markets are volatile and operate 24 hours a day, seven days a week. It can be challenging to balance a job, family, or simply any commitment in your life when day trading, since all of your positions must be manually bought and sold.

The use of automated trading allows you to set profit targets and stop losses on centralized exchanges where participating currencies are traded.

By setting your desired losses at 10% at the beginning of a trade, you will have more time to search for new investment opportunities.

 

Grid Trading

 

Cryptocurrency prices move fast, and most traders will miss key moments due to the amount of noise in the space. Traders may also be affected by delays in transaction processing or executions on exchanges.

The Hybrid bot allows investors to profit from market volatility in the background while at the same time reducing risk. In essence, it establishes the prices at which the bot will always buy or sell a particular asset.

Several of small but profitable trades may be executed every week without the need to make any human error when carrying out these trades manually.

A well-designed bot is capable of detecting and executing such grid trades faster than any trader. Furthermore, grid trading offers traders the opportunity to profit in sideways markets, something that is difficult to accomplish through manual day trading.

 

Choose an investment without stress.

Our platform evaluates real-time price differences to find the lowest price at which to buy your chosen digital currency and then the highest price at which to sell it so you can make the highest possible profit.

Intelfin offers a completely safe and secure investment space and a team of professionals ready to help if you have any questions.

So, relax and start expanding your investment portfolio...

Invest now!

This site uses cookies to ensure you get the best experience on our website.

Learn more
Disable All