Automated Crypto Trading for Beginners • Benzinga


Automated trading lets you actively trade cryptocurrencies without constantly monitoring your computer. Automated trading uses algorithms to buy and sell your cryptocurrencies at certain times. Depending on the automated trading strategy you use, trades may be executed based on asset price, technical indicators, or the proportion of value in your portfolio (rebalancing).

If you don’t have the time to trade cryptocurrency and don’t want to buy and hold, automated cryptocurrency trading is a great option. There are several automated trading platforms available, and each has its own set of features and trading strategies.

What is Automated Crypto Trading?

Automated crypto trading platforms are automated software that trade cryptocurrency for you. To use an automated crypto trading platform, you need to make an online account with a trading bot and select a trading strategy to use. Once you’ve selected an automated trading bot, the program will buy and sell your cryptocurrency for you based on the parameters of the software. 

Most automated crypto trading programs work as APIs. API trading bots work as an intermediary that trades for you on another exchange you connect. 3Commas is an API that you can use for automated trading on exchanges like Binance, Coinbase Pro, Bitmex and Kraken. 

The newest and most secure form of automated crypto trading are automated trading bots that operate on the blockchain. Instead of using a website or API, tokenized crypto trading uses smart contracts on the blockchain. Smart contracts are code that perform financial functions autonomously –– this code is typically uploaded to Ethereum’s network, as it’s the leading cryptocurrency that supports smart contracts.

Best Automated Crypto Trading Platforms and Bots

There are many choices for automated trading platforms. These platforms operate very differently from each other, and each has its own benefits and drawbacks. The right trading bot for you depends on the type of cryptocurrency you want to trade, what exchange you already use and your risk tolerance.