How Algorithms Are Going To Change The Way We Trade Crypto – News Anyway

How Algorithms Are Going To Change The Way We Trade Crypto – News Anyway

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Technology is powerfully changing the way people trade in many markets. Cryptocurrency is opening up new frontiers in wealth creation, as well as introducing many fresh participants into the sector. This future group of traders may look at crypto trading as a full-time job or a hedge against inflation and societal instability – we have seen how the pandemic caused all kinds of stress on society. One nascent technology that has revamped conventional trading is trading using algorithms or “algo trading”, which gives traders a competitive edge to book profit, and looks likely to overtake classical trading techniques as the cryptocurrency market matures.

Traditional trading is where people watch charts all day and make decisions based on their knowledge, analysis, and also “gut feelings”. It can be an emotional roller-coaster but also has other disadvantages. There are technical issues, for example, an internet outage or your trade not being recorded at the exchange. There is also the simple fact that people need to eat, sleep, and have a life – you can’t do that if you are glued to a screen.

Algorithmic trading was introduced around 20 years ago for stocks, Forex and other markets. Initially, it tended to be used by large institutional investors, but the trading community soon took it up because of the cost reductions, time saving, and improved results. Now algorithmic trading is a significant part of most marketplaces and inevitably expanded over the crypto industry with a variety of solutions.

Algorithmic Trading in a Nutshell

Algo trading