Automated Cryptocurrency Trading for Beginners

[crabby]

I know there are a number of people here who have been looking for simplified ways to automate aspects of their portfolio.

As a result, I would like to suggest the following guide:

https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/

This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.

I think it's worth a read for everyone to explore this new concept.

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[nelson4lov]

This guide discusses how to automate your portfolio using strategies.
~Snipped~

I've always been a fan of automation. It does take the heavy load especially for a trader. Having a bot to continously adjust stop loss orders to a Trailing stop when in profit. I don't understand the concept of rebalancing and don't think it's for me.

Dive into these solutions to begin developing your own solutions and simplify the way you manage your portfolio.

I'm taking Python as a course this semester and since it's a multi purpose language, its good for automation. For now, I'm thinking of just usiit for data analysis. I plan to get the data from coinmarketcap.com and other exchange apis. I might build a prediction model using the data from coinmarketcap.com though. I look forward to building solutions soon.

[crabby]

This guide discusses how to automate your portfolio using strategies.
~Snipped~

I've always been a fan of automation. It does take the heavy load especially for a trader. Having a bot to continously adjust stop loss orders to a Trailing stop when in profit. I don't understand the concept of rebalancing and don't think it's for me.

Dive into these solutions to begin developing your own solutions and simplify the way you manage your portfolio.

I'm taking Python as a course this semester and since it's a multi purpose language, its good for automation. For now, I'm thinking of just usiit for data analysis. I plan to get the data from coinmarketcap.com and other exchange apis. I might build a prediction model using the data from coinmarketcap.com though. I look forward to building solutions soon.

That's great to hear! Instead of getting the data from CoinMarketCap, I would highly recommend checking out the Shrimpy Developer APIs. They provide more complete market data than CoinMarketCap and can be used for trading, among other things.

You can check them out here: https://developers.shrimpy.io/

Since you're using Python, here is a quick example of how you can start plotting price charts using the python library: https://blog.shrimpy.io/blog/a-python-script-for-cryptocurrency-price-charts

How to make a live price ticker: https://blog.shrimpy.io/blog/a-script-for-bitcoin-price-live-ticker

How to make automated trading scripts: https://blog.shrimpy.io/blog/automating-crypto-portfolios-with-trading-scripts

How to make an arbitrage script: https://blog.shrimpy.io/blog/arbitrage-scripts-for-crypto-trading-bots

Let me know if these tutorials help! Would love to hear your feedback.

[GreatArkansas]

For example, say you have a portfolio of 50% BTC and 50% LTC. You want the percentages to stay at those values. So, in order to keep them at those percentages, as the value of those assets change, you can periodically trade to reach those target allocations again. If BTC goes up to 60%, a rebalance would then sell BTC to bring it back down to 50%.

I read the article and the Rebalancing got me curious.
This kind of feature, the Rebalancing one is something like covered by some Bots? Like what was explained in the example(quoted one).
So if it's done by bots, how we can assure if the bot will perform it accurately? Because I'm a little bit afraid because maybe the bot will make mistake or any misconfiguration on your account settings/bot settings.

[Wexnident]

Interesting. The rebalancing idea got me but there are still a few questions lingering like is the performance done by the automation accurate? Is it possible that it may not be able to rebalance? Like when BTC goes to 40%, where would it get funds to retake it to 50%? From the previous example lets say, it would take it from the LTC one? but then it would make the LTC balance go down right? So doesn't that mean that it would need my funds to maintain the balance? Does that mean that I would leave a certain amount of balance in the automation that would automatically be used whenever the coin is imbalanced? What if a market crash happens in a slow amount of time? could that possibly lead me to a loss instead? Not gonna lie it sounds an interesting idea but I'd rather have beginners study how to trade themselves before using such bots. Imo, such bots are better used by those professional traders since they could think up of many complicated situations that would require more assistance than what a bot can provide.

[Strongkored]

Automation is good especially if we are person who have other activities besides trading.

But if everything is done through bots, I'm see it will make my trading knowledge will decrease because everything has been run automatically.

Automation also can reduce profits, example yesterday BTC price rises with a significant, if we set rebalancing with BTC50% and Altcoin 50% as mentioned in article

For example, say you have a portfolio of 50% BTC and 50% LTC. You want the percentages to stay at those values. So, in order to keep them at those percentages, as the value of those assets change, you can periodically trade to reach those target allocations again. If BTC goes up to 60%, a rebalance would then sell BTC to bring it back down to 50%.

https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/

then we lose the moment to get a big profit because the bots will sell automaticalyy when our assets have increased by 10%, when we can get a profit more than 10% if do it manually.

It is not a guarantee that doing it manually will make the maximum profit, also used bots, so all there are advantages and disadvantages.

Bots should be used to help trading activities, bots not an automatic machine that give profits.

[Suslived]

I know there are a number of people here who have been looking for simplified ways to automate aspects of their portfolio.

As a result, I would like to suggest the following guide:

https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/

This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.

I think it's worth a read for everyone to explore this new concept.

Took a quick look and..

Portfolio rebalancing, are you kidding me? Sounds like a great way to lose money. There is no profit sense in always keeping X percentage of your portfolio in a certain coin. If a certain coin rises in value there is no reason to sell it automatically just to keep your portfolio "balanced." Calling BS on this one.

[dimonstration]

While it is good to do rebalancing, it is not recommended for those who want to trade new altcoins as stop loss can't be perform. Rebalancing is good for long term holding with those coins or token that are in top 10 or those alts we only determine to have for a specific period of time of we don't want to trade in those time.

[Herbert2020]

(automation + portfolio + beginner) = disaster.
they don't go together. a beginner must never use automation and he must never have a portfolio to begin with specially since altcoins are dumping each time bitcoin makes a move (like yesterday)!

in my experince if you want to use automation then you must use it in a good "trading strategy" where you have a certain capital which you put in different coins based on their performance and pull out after you got your profit to go into the next one. automation here can work in a lot of ways, for example placing stop loss orders, watching the market for pumps and alerting you to act on them. watching the market for dumps and selling fast automatically,...

(portfolio is for investors who want to buy and forget not to actively engage the market with automation,etc)

[MURONDI]

everyone will want a simple trade, but I don't recommend novice traders using bots, the most important for beginners is to learn the basics of trading, what's interesting to me here is the rebalancing strategy, I will try to learn it.

[carlfebz2]

(automation + portfolio + beginner) = disaster.
they don't go together. a beginner must never use automation and he must never have a portfolio to begin with specially since altcoins are dumping each time bitcoin makes a move (like yesterday)!

in my experince if you want to use automation then you must use it in a good "trading strategy" where you have a certain capital which you put in different coins based on their performance and pull out after you got your profit to go into the next one. automation here can work in a lot of ways, for example placing stop loss orders, watching the market for pumps and alerting you to act on them. watching the market for dumps and selling fast automatically,...

(portfolio is for investors who want to buy and forget not to actively engage the market with automation,etc)

A total disaster indeed!

Also i dont really suggest too much for automation when you are still a newbie.Better to go manual when you are just starting.
Hence, combining up this system wont really give out some good results unless if you do know on what you are doing.
Portfolio isnt really suggested for alt markets.

[panganib999]

I know there are a number of people here who have been looking for simplified ways to automate aspects of their portfolio.

As a result, I would like to suggest the following guide:

https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/

This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.

I think it's worth a read for everyone to explore this new concept.

People like you are such a heaven-sent for beginners especially for those who are actually looking for things like this, it's like an answered prayer. It would help them a lot since they are like walking to a street without any light in it. This could guide them and could be their starters with their trade for there is a lot to learn in trading, but I'm hoping they won't fully rely on this and take time learning automation and actual trading so they could stand alone.

[princerepon]

I know there are a number of people here who have been looking for simplified ways to automate aspects of their portfolio.

As a result, I would like to suggest the following guide:

https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/

This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.

I think it's worth a read for everyone to explore this new concept.

Seems like you are talking about a bot. But i never used a bot for my trade and i don't thing i will do that in future though. I always prefer to stay way from bot. Because there are plenty chance that you can loose your money if bot make any mistake (which is probable possible).

Security is one of the main reason to don't using a bot. I mean how can i know who made that for which purpose. So in my opinion it's better to stay way from that kinda bot no matter how much they offering to you.

[leowonderful]

Security is one of the main reason to don't using a bot. I mean how can i know who made that for which purpose. So in my opinion it's better to stay way from that kinda bot no matter how much they offering to you.

That's a rational fear, but most exchanges allow you to control what an API key you create which is linked to your account is capable of doing; for example, you can set the API key so that the bot's only able to make trades and not withdrawals from the key and vice versa, though there is still a very small chance that a bot could just wreck your account through making you lose money on purpose, though I've never seen this before and more reputable trading bots such as Gunbot shouldn't do this. Pretty low risk in my eyes, but I could see how you think this way especially with trading accounts with larger balances.

[NathanJB]

For example, say you have a portfolio of 50% BTC and 50% LTC. You want the percentages to stay at those values. So, in order to keep them at those percentages, as the value of those assets change, you can periodically trade to reach those target allocations again. If BTC goes up to 60%, a rebalance would then sell BTC to bring it back down to 50%.

I read the article and the Rebalancing got me curious.
This kind of feature, the Rebalancing one is something like covered by some Bots? Like what was explained in the example(quoted one).
So if it's done by bots, how we can assure if the bot will perform it accurately? Because I'm a little bit afraid because maybe the bot will make mistake or any misconfiguration on your account settings/bot settings.

Bots are going to act strictly the way you set them up or configure them. They cannot act outside how you wanted them to act. This is both an advantage and disadvantage. Bots are not aware of what's happening around beyond their limited settings that is why they could be defeated and played with by manual traders. But it takes a lot of patience to play with bots. In the end, I prefer to do my thing manually and step by step rather than relying on bots.

[romero121]

Even with automation we cannot succeed in trading of different altcoins. Here also what gets priority is the choice of altcoins, very few altcoins have the regular price fluctuation. This means the stop loss can be achieved only on these altcoins. Apart from this when a beginner starts to use automation from the beginning, it'll not let the user learn further about trading. This is a negative thing, with trading once after learning for convenience using automation is different from using automated services from the very beginning.

[Shasha80]

I suggest beginners not to use trading bots, this will be dangerous for people who use them. Because you will not get any knowledge
related to trading, and trading skills will not increase. It's better to learn manual trading, it is a hassle at the beginning because you
have to understand various strategies. But if you have mastered it will get maximum results compared to using trading bots. The problem
is there when it uses bots, it actually makes our capital run out, because the bots may experience errors.

[maydna]

If that is related to trading, I think I prefer to do manual trading than to use automation. With manual trading, I can learn many methods that will help me to have skills, and I can improve my skills to be better than before. I know that using manual trading, I will need to have time to learn the methods, but that will be worth it for me if I can master one or two methods. If I decide to use automation, then I don't think that I can learn more methods because what I need to do is how I can set the bots to run as I want, but the market will not run as I want. There will be a time for the market to go up and down. Besides that, it will need more time to set the bot.

[kanayaTabitha]

I think it's impossible to make own trading automation or trading bots if we're a beginner, and also beginner trader is not recommended to use any trading bots becase they have to know what they're investing and know the basic of the trading itself.
Using the bots made by someone can be tricky also and we're not always get profits from it.

[crabby]

For example, say you have a portfolio of 50% BTC and 50% LTC. You want the percentages to stay at those values. So, in order to keep them at those percentages, as the value of those assets change, you can periodically trade to reach those target allocations again. If BTC goes up to 60%, a rebalance would then sell BTC to bring it back down to 50%.

I read the article and the Rebalancing got me curious.
This kind of feature, the Rebalancing one is something like covered by some Bots? Like what was explained in the example(quoted one).
So if it's done by bots, how we can assure if the bot will perform it accurately? Because I'm a little bit afraid because maybe the bot will make mistake or any misconfiguration on your account settings/bot settings.

Yes of course! Rebalancing is covered by https://www.shrimpy.io/. I would encourage you to check it out. You can be comfortable knowing there are tens of thousands of other traders using Shrimpy and it accurately rebalances the portfolio of these users. This service has been around for almost 2 years. Let me know if you have any questions.

Interesting. The rebalancing idea got me but there are still a few questions lingering like is the performance done by the automation accurate? Is it possible that it may not be able to rebalance? Like when BTC goes to 40%, where would it get funds to retake it to 50%? From the previous example lets say, it would take it from the LTC one? but then it would make the LTC balance go down right? So doesn't that mean that it would need my funds to maintain the balance? Does that mean that I would leave a certain amount of balance in the automation that would automatically be used whenever the coin is imbalanced? What if a market crash happens in a slow amount of time? could that possibly lead me to a loss instead? Not gonna lie it sounds an interesting idea but I'd rather have beginners study how to trade themselves before using such bots. Imo, such bots are better used by those professional traders since they could think up of many complicated situations that would require more assistance than what a bot can provide.

Generally, rebalancing is effective and accurately completes each time. The premise is pretty simple, so it's a pretty safe strategy to execute.

everyone will want a simple trade, but I don't recommend novice traders using bots, the most important for beginners is to learn the basics of trading, what's interesting to me here is the rebalancing strategy, I will try to learn it.

Shrimpy is really designed to be perfect for novice users. It's simple to select the percentages and begin automating without much overhead. I think if you dig into the details a bit you will see how simple and powerful the idea is.

Please let me know if you have any other questions! Happy to help.

[DeathProxy]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

[BitHodler]

But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.

A bot can easily adapt to the changed market dynamics, much faster so than a trader can trading manually.... another advantage is the fact that a bot has no emotions and therefore has no such a weakness to deal with.

Why do you think the stock market is being traded almost entirely by bots? That wouldn't be the case if bots sucked and traders trading manually would be better. In crypto that ratio is likely a little lower, but it will get there eventually.

Bots are not perfect by any means, but they get the job done faster and better than humans do.

[fullhdpixel]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

One of the thing that we are able to control using bot is emotion which one of the greatest enemy of emotion is actually greed, which is why bot is still very much reliable in managing this aspect for people and I think that people may still not lose out in all these surge if they are very smart in thinking about business. Anyone using bot ought to have thought far and out two and two together to actually not miss out of any of the train.

When I was using bot to trade, having out this challenge into consideration, what I did was just to split my fund into 3 parts, one for the bot trading, another for long term investment and the last of it for a moment like this when we will experience suddenly surge, then I pull out, at least this one does not require much staying on system to monitor price, people will definitely announce it.

[alan2here]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

I think if automatic trading, you can still see a big risk because we can not be sure when it can make a profit and asset we always will face many security so I don't recommend it this way. You can analyze this market yourself and choose to invest if it is a good coin for profit. I have encountered many cases when using bots and they often complain a lot about their profits.

Of course I never use automated trading because if you have entered the crypto market your chances of making a profit are huge and it does not take too long to wait if you are a good trader.

[NewRanger]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

I think if automatic trading, you can still see a big risk because we can not be sure when it can make a profit and asset we always will face many security so I don't recommend it this way. You can analyze this market yourself and choose to invest if it is a good coin for profit. I have encountered many cases when using bots and they often complain a lot about their profits.

Of course I never use automated trading because if you have entered the crypto market your chances of making a profit are huge and it does not take too long to wait if you are a good trader.

automated trading or some people called it as robot trading, it didnt give any guarantee we will earn profits consitently.this robot builded by logical algorithm from expert trader,this algorithm not suitable with some market condition and it work on stable movement,meanwhile market always moved with high  volatility so its so risky use this robot.its better to developt our own skill step by step,so we will understand about market movement. In future this skill will very usefull in all market,not only cryptocurrency.

[Quidat]

But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.

A bot can easily adapt to the changed market dynamics, much faster so than a trader can trading manually.... another advantage is the fact that a bot has no emotions and therefore has no such a weakness to deal with.

Why do you think the stock market is being traded almost entirely by bots? That wouldn't be the case if bots sucked and traders trading manually would be better. In crypto that ratio is likely a little lower, but it will get there eventually.

Bots are not perfect by any means, but they get the job done faster and better than humans do.

Bots are for automation but it doesnt mean that its way more better than on trading with manual knowing that bots
are just following on what are being ordered by the trader itself.Yeah they dont have emotions but there were circumstances
where bots do failed to do so because human reaction and intuition do still have edge when it comes to decision making.
So it isnt really good to rely fully with bots if you dont know on what you are doing.

[teosanru]

I know there are a number of people here who have been looking for simplified ways to automate aspects of their portfolio.

As a result, I would like to suggest the following guide:

https://cryptopress.news/automated-cryptocurrency-trading-for-beginners/

This guide discusses how to automate your portfolio using strategies like portfolio rebalancing.

I think it's worth a read for everyone to explore this new concept.

I highly suggest anyone not to use any automation when it comes to your hard earned money. Best strategy which can guarantee you long term profits is choosing good coins yourself by doing thorough research and investing in them. or use some bot only if you have yourself created some bot which could help you in trading. I have seen people burning all of their hard earned money using these softwares. Even if they aren't shaddy they generally would end up with some glitch which would cause you a lot of money.

[jrrsparkles]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.

[gabbie2010]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.

I also canvasses manual trading for a beginners in cryptos this will enable them to have a first hand experience, manage their trades with a suitable stop loss and take profit, starting a with automated trading bot is not the best option due to unreliability and might be complex to a newbie thus failure to setting up correctly might lead to loss of trades.

[BitHodler]

So it isnt really good to rely fully with bots if you dont know on what you are doing.

Isn't that up to the people running them? I mean, institutions are monitoring their bots every single second and allow human input to adjust settings so that their bots don't buy or sell into an unexpected price movement.

I think your point refers more to those who pay a service for a bot and then sit and wait hoping for a profit. In that case you are right, but that's a problem with the people who bought these bots and not necessarily the bots themselves.

As long as you know what you are doing and have full access to that bot, there isn't much that can go wrong IMHO. At least, not more wrong than when people make mistakes trading manually.

[michellee]

At least the service is not free. There is a subscription for beginners to pay $19/month, and after I check on the help page, I found that there are so many commands that I am not sure beginners will understand how to set the bot for the first time. It needs programming knowledge to arrange everything so the bot can run properly. But I am not sure how we can set the command since I can the service because I only register on that site. But the bot is looking promising because if we can set the bot with the right set up, it will search the profitable coin, and it will work as your command.

[Webetcoins]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.

Depending on bots rather than one’s own skills and knowledge is not appreciated by me either. If it was possible to succeed in trading, then the world of traders would have rich people only. Other than that, in order to use a bot efficiently, a trader must have a sound knowledge of not only this profession and his asset, but the bot too. Especially bitcoin traders must not depend on such bots.

[Colt81]

Automation is good for traders that are busy and can not spend most of their time to trade all day. But those traders which use automated trading method should also realize that profit will be reduced since its been traded by a bot, they wont be able to partake in any BTC sudden surge in price.  And in order to be safe traders into automated trading should take out time to also have knowledge about crypto trading no matter how little it is

A beginner should understand trading bot will make the things easier but will not make the profits for us to be easier in history there are lot of scams and losses also happened due to bots so for beginner they should try manual trading method than looking for automation because bots are really a thing for pro trader who keep trading 24/7 not for the one who don't have enough time for that.

Depending on bots rather than one’s own skills and knowledge is not appreciated by me either. If it was possible to succeed in trading, then the world of traders would have rich people only. Other than that, in order to use a bot efficiently, a trader must have a sound knowledge of not only this profession and his asset, but the bot too. Especially bitcoin traders must not depend on such bots.

Dependcy on automated trading or trading bots are not really effective to used in trading because it only serves as a guide or a backbone for beginners in trading and for people who can't manage their trade every time, that is why it will not actually help you to make a huge profit on your trade. Trading manually should be advised for every trader because it is still the most effective way to trade that you only follow your strategy to earn huge profit or to make a successful trade.