Recently, I read an
article where an Australian crypto exchange Independent Reserve has introduced the "AutoTrader" feature for its clients to purchase their crypocurrencies automatically. This feature will allow customers to set automated rules and strategies for trading cryptocurrency. Also, it includes scheduled bank transfers, which would allow customers to dollar cost average (DCA) their cryptocurrency purchases.
“Autotrader allows users to buy smaller parcels of cryptocurrency at regular intervals, for example daily or weekly or monthly. This limits their exposure to price fluctuations, especially compared to customers that may enter the market in a large way, and then see the market move against them,” the CEO stated.
My question: If we use AutoTrading feature, will it really benefit us? Anyone who is using that feature can share your experience here?
This auto trading feature is not something new. A lot of stock brokers offer such rule based auto ttader in stock market. This exchabge is probably the first one to offer in crypto market. It's definitely beneficial because it works based on few set of rules. Let me give you an example,
You set a rule to buy bitcoin when the price comes down to $8800 and funded your account accordingly. So the autotrader will obey the rule. Now you can set another rule to sell off your bitcoins once the market price goes up to $9500. Similarly auto trader will execute the order. This actually eliminates the need of continuously looking at the charts and provides user convenience!
It's definitely beneficial only if you know how to use it!