21 окт. 2021
The differences between traditional and AI trading
Investing seems to have never been easier than it is now. Before the emergence of cryptocurrencies, the old trading technique was not very profitable because the earnings made from those methods were not very significant.
As a result, individuals desired something fresh that could provide them with a high rate of return and various other advantages. With the appearance of the cryptocurrency, since there is no physical existence of them and everything takes place on the internet, everything appears to take a positive turn.
Trading methods have made it accessible to everybody. However, this does not negate the fact that it has drawbacks as well. Because not everyone understands how cryptocurrency works, they may lose lots of money.
However, that doesn’t mean it has no advantages, from price swings that can result in large profits to the accessibility of mining, which allows everyone to try it. It has a significant potential against inflation, and it has a high level of security.
Traditional trading with crypto
To better grasp the concept, the conventional trading method requires individuals to accomplish everything on their own. Everything has to be done by hand, from researching the cryptocurrency market to selecting the most pleasing coin and beginning to trade.
That implies the trader must spend hours in front of the computer to obtain the desired trading option, which can feel like an endless procedure given how volatile the crypto market is. Individuals will never be able to possess cryptocurrencies because prices are quoted in regular currencies.
However, when it comes to cryptocurrency trading, there is a lot more transparency in the transactions, minimal trading fees, and a lot of possibility for high-potential cryptocurrencies that can provide lots of benefits.
AI trading
Artificial intelligence is the ideal solution when it comes to automating the crypto trading process. Having a system that can operate with hundreds of cryptocurrencies simultaneously allows the processing of data to be aided by bots that will discover the optimal trading alternative.
It can read and combine traditional market signals with technical analysis signals using AI, increasing social media sentiment elements. Trading automation helps individuals who may be novices enjoy the finest experience possible without the fear of losing money.
Cindicator, a predictive analytics platform that combines collective intelligence and machine learning models, is a solid example of an AI trading platform. It incorporates hybrid intelligence into the system and offers a 2,143% return on investment (APR).
Stoic, a trading bot with hedge fund benefits, is one of their products. As a result of this product, there is no concern about missing out on the finest trading opportunity; the Stoic services eliminate FOMO and FUD while providing frequent rebalancing, hedge fund-grade strategies, and a safe execution platform.
The difference between traditional and AI trading
The differences between them have both benefits and drawbacks. When it comes to saving time, automated trading is more advantageous because it eliminates the need for regular monitoring of the crypto market, allowing consumers to save time.
When it comes to this term, it is widely understood that cryptocurrencies are highly volatile, and there is no way to predict when the optimum time to trade is. In terms of fastness and transaction methods, it may take a while for folks to acquire the transaction they desire, but with automation, there is no need to worry about it because the bots will handle it.
The information available on the market can help predict when a person will make a trade, which is often influenced by emotions. AI trading removes emotions from the equation, allowing bots to analyze data and select the best crypto assets for trading.
Diversification is also possible thanks to the ability to define numerous criteria for different cryptocurrencies. A single person cannot keep track of more than two cryptocurrencies and make the optimal selection.
Ending note
Many people tend to make more moves if the market appears to be improving, but if they are unsure about the trade they want to make, it may be disastrous.
Furthermore, it appears that automation is the best choice that an individual may make in terms of cryptocurrencies. The verdict seems to favor automated trading, which is preferable to traditional trading if the bots are trustworthy and reliable.
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