Why Algorithmic Trading Is the Future of Crypto Investing: Passive Income Opportunities

May 16, 2022 | Insights

Why Algorithmic Trading Is the Future of Crypto Investing: Passive Income Opportunities

It’s no secret that algorithmic trading is the future of investing. Bypassing human emotion and bias, automated trading platforms powered by algorithms offer a more efficient and profitable way to trade and look after your portfolio. But what about crypto? Isn’t that a bit too volatile for algorithmic trading? Not anymore! In this blog post, we will discuss the usual methods of crypto trading (manual and bots) but more importantly, automated algo trading — why algorithmic trading is the future of crypto investing and how you can get started today.

Your phone is ringing, the year 2010 just called — why are you still manual trading?

Manual trading requires a lot of time and effort. You have to constantly monitor the market and your charts, do your own research, make decisions based on your gut feelings, and hope for the best. And even if you did all that, there was no guarantee that you would make any money. In fact, most people end up losing money. Stressful times, right?

Not to mention the hours you would need to spend educating yourself and learning about technical and fundamental analysis of the markets (not to mention the hundreds of strategies you could adopt) — as well as making sure you are up to date with all the latest news so you don’t miss something that could cause a coins price to either pump to the high heavens or completely crash to the dirt, leaving you out of pocket.

Trading bots and Algorithmic trading platforms such as minty take a completely different approach. Instead of relying on human emotion and intuition, they rely on smart, dynamic objective rules and parameters set by the algorithms. These rules are then handled by the bots or platform itself, which will execute trades on your behalf according to the specified rules. Algorithmic trading platforms will trump bots 100% of the time every time. Because they learn on the fly and are already connected to a number of pairs and exchanges, automated trading is much faster (talking mere milliseconds to enter and exit a position), more accurate than traditional methods and strategies, and a lot more profitable in the long run.

Crypto trading bots

Crypto trading bots are one way that you can get started with automated trading. By using a bot, you can ‘plug them in’ and trade automatically on exchanges. While this option is available to anyone with an internet connection, it does come with some risks. First, you will need to have a good understanding of how trading works in order to configure your bot properly. Second, there is always the risk that your bot could malfunction or be hacked, leaving your funds at risk. Not to mention the crypto world is rife with scam bots (platforms too!) that promise guaranteed returns and 3% daily… which just end up stealing your private keys and draining your account or are just glorified crypto Ponzi schemes. You can never be too careful.

You will also need to be semi-versed in understanding how best to run your trading bot, for example setting it up on a VPS close to where the exchange is located for optimum speed as well as deciding what parameters, indicators or strategies would be best for each pair on your chosen exchange. You will also have to manually manage and update your parameters to keep up with changing market conditions so prepare to invest a decent amount of time and money if you are planning on using a trading bot.

Algorithmic trading platforms

The best option for automated trading, is to invest in an algorithmic trading platform. These offer several advantages over using a bot. First, you don’t need any prior knowledge of trading in order to invest and there is zero set-up requirement. Second, the platform’s algorithms handle all of the trading for you, so there is much less risk involved. Third, investing in a platform requires less time and effort than using a bot and/or manual trading, making it a great option for busy people.

Automated algo trading is the future of investing, and it is only going to become more popular in the years to come. If you are looking for a way to earn passive income from your crypto holdings, then algorithmic trading is a great option for you.

By investing in an algorithmic trading platform such as minty, you can watch it trade your funds on the cryptocurrency markets passively without having to put in any extra time or effort, you won’t need to lift a single finger. Once you’ve deposited your funds, the platform will do all the work for you, 24 hours a day, 365 days a year. This means that you can earn money while you sleep!

What are the benefits of algorithmic crypto trading?

There are many benefits to automated crypto trading via an algorithm led platform, but some of the most notable ones include:

  • Increased accuracy: Algorithms are not subject to trading psychology, human emotions or bias, which means they can make decisions based on pure data and logic. This leads to increased accuracy and profitability over time as they learn and evolve using artificial intelligence to adjust their parameters and optimise on the fly, which trading bots cannot even begin to comprehend.
  • Speed: Automated trading platforms can execute trades in milliseconds over hundreds of pairs, which is much faster than any human or self-run bot could.
  • Reduced risk: By taking emotions out of the equation, automated trading can help to reduce the overall risk of your investment portfolio.
  • 24-hour trading: Automated trading platforms never sleep, which means you can take advantage of opportunities 24 hours a day, 365 days a year.

If you’re looking for a more efficient and profitable way to trade crypto, then algorithmic trading is definitely worth considering. With its many benefits and increased popularity in recent years, it’s no wonder that algo trading is the future of crypto investing.

What if the market crashes though?

If the market crashes, algos such as the ones minty use will usually not enter any positions and reduce losses by moving and holding the crypto in a stable coin.

However, the profits that these platforms can earn on the way up again will hands down beat the buy and hold return you would get if you just bought the bottom of the ‘dip’ — they thrive on riding waves and market corrections. Even better if they ride both sides of the wave by actively trading both long and short positions. So a market crash would actually be an ideal time to invest in algo trading.

Algorithmic trading is a tool that can be used to help you make money, but it is not a guarantee as with all types of trading. Just a lot better odds!

The bottom line is:

Algorithmic trading offers a number of advantages over manual and bot trading, including AI, speed, accuracy, and profitability. If you are looking for a way to earn passive income from your crypto holdings, then exploring an algorithmic trading platform or fund will be the best option for you.

What is the best algorithmic trading platform?

The best algorithmic trading platform for you will depend on your individual needs and preferences. Some factors to consider include the types of assets traded, the fees charged, the level of customer service, and the features and tools available.

minty is a great option for those looking for a passive income opportunity as it offers a wide range of features and has no bounds on the number of pairs or exchanges it can trade on, as well as good support and a Discord community we are proud of.

minty has done something no one else has and combined the best of both worlds by running algos on a single ‘pot’ contributed to by our investors, enabling the platform to run on hundreds of pairs over multiple exchanges simultaneously with more funds, something trading bots simply cannot contend with. Meaning that everyone shares the same profits and losses but more importantly peace of mind, knowing their portfolio is being looked after around the clock. Not to mention our fees are the lowest on the market — talking a mere 14% — to better that, fees only apply when a trade results in a profit, generous arent we…

So what are you waiting for? Get started and become a smarter investor with minty today! Our algorithm-led, simple, automated and emotionless platform.

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