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Automated trading in a bull market, explained


Automated trading in a bull market, explained

What are the benefits of automated trading in the current market — and can they help mitigate volatility in unpredictable times? Our guide explains all.

They can offer an extra layer of protection during times of volatility.

The crypto markets were not known for being predictable, even before the dramatic bull run. Bitcoin started the year at $29,000 and managed to double in value… all in the space of about six weeks. Depending on who you ask, the cryptocurrency’s sharp spike upward was surprising — or entirely to be expected.

No matter what your convictions are, it’s important to have safeguards in place that help protect your crypto. We live in a time where a 10% move can shed thousands of dollars from your position. Current trading patterns have resulted in periods of sideways movement punctuated by dramatic breakouts that can happen day or night.

Trading activity is increasing, and institutional adoption can result in sizable transactions having a big impact on Bitcoin’s price. Recent research from Bank of America suggested that it takes just $93 million worth of inflows to move BTC by 1% — and with other analysts likening the current market to a tinderbox, it’s essential for traders to have effective instruments at their disposal.

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