The international cryptocurrency trading industry in 2018 began to develop at a rapid pace. If the Bitcoin’s price rate showed a fall in recent times, then new tokens are constantly appearing. International crypto-exchanges support the circulation of hundreds of tokens so it becomes more profitable. Professional brokers can earn hundreds or thousands of dollars on constant buying and selling of different pairs of tokens, and the total capitalization of the international cryptocurrency market already exceeds hundreds of billions of US dollars.
The operating of crypto-exchange users gradually includes automatic crypto-trading algorithms. Automatically configured trades allow only indirectly to take a direct role in exchanging tokens, saving users time. Running up automatic algorithms requires time, specific programming skills and practice, but in the result, the work of the stockbroker on the international crypto market becomes much easier.
How to trade Bitcoin in the automatic mode: At the moment, there is a lot of specialized software for automatic trading in various cryptocurrency pairs. It should be used at your own risk, as most major token exchange online platforms prohibit the use of the third-party programs.
How to use special algorithms
Many specialists on ordinary exchanges, say, shares, often use automatic trading algorithms. The creation of such software requires many years of trading experience and specialized skills. In free access, almost no such algorithms are found because they are the result of many years of work done by high-class professionals.
You need a deep analysis of the trends of growth and fall in the rate of selected pairs of cryptocurrencies to create your own software basis.
The approximate structure of the work front for the creation of proprietary algorithms for automatic trading, Bitcoins, for example, is as follows:
The market of crypto-currency is famous for its instability, that’s why the collection of statistics of price indicators is a more complicated task than on ordinary trading exchanges.
Calculation of averaged indicators of growth/fall in prices for a certain period of time. For beginners, it is especially recommended to choose those pairs of cryptocurrencies, that show the most stable tendencies of price growth. This, though, will reduce the total possible profit, but also protects the user from a total loss of funds.
You will need specialized software that works freely with user algorithms. Not all programs that are used to manage trading activity on international crypto-exchange exchanges support an integration of custom scripts or algorithms. Select the software that can support your own machine learning trading algorithms.
In practice, everything is somewhat more complicated. You will need considerable specialized programming skills in order to translate the analysis and scripts into code. The programming language here is not important, the main understanding of the work of trading platforms and accurate analysis of the collected data.
In addition, the programming of automatic trading algorithms is not expressed in the standard for “if-then” programming. Trading cryptocurrencies are more difficult, therefore, each solution must have a comprehensive approach and solution. You have to work out the algorithms in the smallest detail because every inaccuracy can cost you money.
As triggers for running specific software solutions, it is recommended to use special indicators such as SMA and MACD. Indicators perform the role of functions, only much more flexible in setting parameters and can take into account more factors for the performance of a programmed action.
The main task is to carefully outline the effect of a particular indicator, depending on certain market conditions. The more conditions and indicators you use for analysis with automatic algorithms, the more accurate and profitable will be the work of your automated system for trading crypto-currencies.
Also, it is possible to use neural networks and artificial intelligence. This allows you to implement the most advanced and advanced solutions for learning custom algorithms in the automatic trading system. It should be noted that algorithms for machine learning of artificial intelligence are much more complicated than conventional code.
In our time, there are already workable developments of automatic algorithms, based on artificial intelligence, machine learning and hybrid modeling systems. Self-sustaining programs for a certain period of time are able to track the approximate deviation of the rate of a certain cryptocurrency token, making transactions with high profitability. But in order to integrate such complex systems into the trading, not only do you need high programming skills but also the specialized skills of creating self-learning programs and systems.