While Bitcoin and other cryptocurrencies see an increase in mainstream adoption, the industry remains to be nascent for some. As institutions continue to enter the cryptocurrency space, retail traders are following the trend.
Unlike the traditional stock market, the new asset class is unpredictable and volatile. Since the crypto market can make unexpected moves, it’s essential to safeguard and protect your crypto. As the cryptocurrency market trades 24/7, you could wake up with thousands of dollars gone from your position.
The cryptocurrency market can move sideways periodically and see spikes of breakouts that can happen at any time. Institutional adoption rises, and news breaks of large corporations entering the Bitcoin and altcoin market could significantly impact cryptocurrencies’ price.
According to Bank of America, in order to move the Bitcoin price by 1%, it only takes $93 million worth of inflows. Understanding how the crypto market works can help you make better decisions when trading digital assets.
Focus on your strategies
As much as we like to believe that we have control over our emotions when it comes to trading crypto, sudden crashes or surges could tempt us into making decisions we initially did not intend to.
As humans, we sometimes act on impulses, which prove not to be the best asset very often, as we could quickly regret our decisions due to the fear of missing out.
Setting strategies is important when trading cryptocurrencies to understand how much risk you are willing to take in a single trade. By determining when you want to enter and exit trades, you can reduce the possibility of making decisions based on emotions.
With a cryptocurrency trading automation platform or a crypto trading bot, you can improve your odds of cutting losses and securing profits.
The perks of automated crypto trading
After setting clear parameters of when you want to enter and exit trades, you can then use a crypto trading automation platform like CoinPanel to execute these trades ahead of time.
Since the crypto market runs 24/7, it’s almost impossible to execute trades around the clock. By using a cryptocurrency trading bot, you can set your orders and make sure that your strategies are put in place.
Using an automated crypto trading platform also allows you to reduce overtrading, as it is easy to switch between ideas, which could amplify your losses.
You will also be able to set stop-losses to only trade what you are prepared to lose. CoinPanel’s platform runs 24/7, just like the crypto market. CoinPanel can execute the trades you entered while these trades are still based on your terms when you are asleep.
Not only are you able to sleep more soundly without worrying about your crypto portfolio, but you will also be able to have more time away from your screen to enjoy your free time while CoinPanel monitors the market for you.
Sometimes when you execute a trade on a crypto exchange, there could be slippage — where the price you would like to enter or exit the market has changed due to the time it took to set the trade manually. An automated crypto trading platform like CoinPanel can guarantee the speed when an order can be executed, maximizing the final outcome.
As many crypto traders use technical analysis as a considerable part of their trading strategies, CoinPanel has integrated TradingView onto its platform, allowing you to use the tools for technical analysis to plan your trades.
Life is just more manageable with the help of an automated crypto trading platform. You could be saving time, energy, and money. Start trading on CoinPanel today! You don’t know what you have been missing out on.