Automated Trading Vs Manual Trading
It’s been a long time since we compared manual and automated trading. And now, due to the popularity of crypto bots (automated trading bots), it has become crucial to compare the pros and cons of automated trading and manual trading and find answers to the long-time unanswered question, ‘Why Traders Prefer Automated trading over Manual Trading?’
What is Manual Trading?
Manual Trading is the process through which individuals use tools and strategies to trade manually. Trades, when initiated and completed by humans, fall under this type of trading. In simple terms, a human sits in front of a computer or laptop for opening and closing trades manually.
Manual trading relies entirely on the decisions taken by the trader with partial guidance from the strategies they use. In some cases, trading software is employed to assist the manual traders in making their trading decisions.
Despite the assistance from these kinds of software, many manual traders analyze the crypto market on their own to place buy or sell orders manually.
“A trading analysis is mandatory for traders to find out when to trade and what to trade. In manual trading, experienced traders use technical analysis and fundamental analysis to build a profitable trading analysis.”
What is Automated Trading?
Automated Trading is the process in which the so-called crypto trading bots (computer programs or algorithms) trade on behalf of humans. There are a lot of tools such as signals (triggers) and filters that assist the bots in making trading decisions.
The automated crypto trading process depends on the previous trades, market analytics, and other patterns and excludes human factors such as emotions and sleep. Trading bots are designed to work 24/7 * 365 (way faster and efficient than manual trading).
Each trading activity can either be simple protocols such as moving averages or complicated trading strategies requiring a thorough understanding of the trading platform. Sometimes, a bot’s strategy will also be formed from the trading pattern of a legendary trader.
Manual Trading Vs. Bot/Automated Trading (Why Prefer Bot Trading?)
- No room for errors
- When an individual trades manually, the trading decisions may not be accurate & there are many chances for wrong actions.
- Crypto trading bots are machines that follow certain protocols, and so there is no room for human error.
- Emotion-free trading
- Humans act according to their emotions. Traders get carried away a lot of times in the fluctuating crypto market. This makes traders make some illogical decisions.
- Whereas, crypto bots are machines that simply act on the best possible option at every moment since they’re deprived of the ability to feel any kind of emotion.
- More Efficient & Always-ON
- Being humans, we cannot perform multiple operations simultaneously. We need to rest and sleep at regular intervals.
- The bot is advantageous and proves its efficiency here. It can process hundreds of information at the same time.
- Bots are also programmed to work non-stop to make you stay on top of the crypto market.
- They monitor the fluctuations in the market prices and process changes, place orders, and do a lot more actions.
What makes NexFolio the best Automated Trading Bot?
NexFolio crypto trading bot is equipped with top-notch features with automated trading as the primary one. Our trading bots are undoubtedly the best in the market. With our bot by your side, even the volatile nature of the crypto market won’t stand a chance against you.
Here are the features that make NexFolio the best Automated Crypto Trading Bot:
- A crypto portfolio to keep track of the crypto assets and the profits earned by trading on the platform.
- Customizable trading strategies to make trading profitable in the fluctuating crypto market.
- Candlestick patterns and technical indicators to predict the future and make better trading decisions.
- An option for traders to edit stop-loss and profit percentages when the trading is currently live.
- Signal Trading where the bot receives trade signals at the right time to make the right trading decisions.
- Risk management strategies to limit the traders from spending too many funds in buying/selling than the actual value.
It’s the space where traders can compare our bots equipped with different trading strategies and subscribe to the one that best fits their requirements.
The primary advantage of automated trading lies in its pre-built nature of getting automatic signals. Undoubtedly, the trading will be accurate, perfect, and error-free. So, in automated trading, the bot will be disciplined and will follow the trading according to your plan only if it is appropriately programmed.