How to choose a live trading system for crypto trading?



 Live or automated trading is currently ruling the roost in the global trading scenario. Did you know that around 70%+ of trading (worldwide) today is dominated by live or algorithmic trading systems? The same rings true for the crypto trading scene as well. In fact, live trading or automated crypto trading systems have been making big waves since the last couple of years. Immense convenience and stellar benefits offered by these live trading systems have made them a go-to pick for smart and busy crypto traders.

Are you too having serious thoughts about signing up with an automated crypto trading system? The post below offers expert insights on how to find a reliable live crypto trading system for a seamless crypto trading experience.

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What is live trading in crypto?

Before getting into the list of features to check while choosing a live automated crypto trading system, let’s understand the basic concept of a live trading system.

A live trading system is also called bot-based, algorithmic, and automated crypto trading system

As the name says, in an automated crypto trading system, live trading is performed by crypto bots that are configured to execute trade on behalf of the trader. Live trading systems conduct the trade through some kind of financial intermediary, say a crypto exchange. In layman’s terms, these bots in live or automated crypto trading systems are advanced software programs that work through API which helps the bots to connect and conduct trade automatically through the user’s exchange account. The automated crypto trading system will only execute the trade when the crypto trading market will match certain set conditions. 

The automated crypto trading system is powered by cutting-edge algorithms that enable it to perform the trade automatically. Modern live trading systems are built on blockchain platforms and they execute the crypto trade through smart contracts.

It’s to note here that a live or automated crypto trading system is intelligently designed to interpret, analyse, and calculate typical market signals and indicators, such as price, time, volume, and order to come up with calculated trading decisions. The system matches these aspects with different technical analysis indicators like Bollinger Bands, moving averages, etc. as well as social media perception while finalizing a trade.

The concept of Backtesting

The attribute of backtesting is a key component of an efficient automated crypto trading system.

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Backtesting is the process of experimenting with the trading algorithm on the crypto market performances from the past. This experimental testing with historic conditions enables users to gauge whether their trading applications would have been successful  in the previous market condition.

Tips to choose a reliable live crypto trading system

Rise in live or automated crypto trading has led to a rapid development of live crypto trading systems. But, then there is a catch – not every such automated crypto trading system that you find online would be equally compatible for you. For example, some of these trading systems are especially designed for veteran crypto traders and their strategies are too complex for the beginners. In short, you have to check out a wide range of factors to find a suitable and highly reliable automated crypto trading system for successful crypto trading.

Check the tools for backtesting and bot creation

Your automated crypto trading system will come up with necessary tools required to create bots as well as backtesting. Two things you have to check here- one, the tools are advanced enough to create cutting-edge bots as well as establish blazingly fast backtesting- two, the tools are not too complex to be used.

Type of strategies available

A top automated crypto trading system will usually come with a wide range of ready-made strategies for trading or trading templates. Some of them even offer even 100+ trading templates which are especially handy for new traders.

Then, it would be great if your chosen automated crypto trading system is able to extend  trading strategies of veteran traders to boost the trading experience for the new ones. Make sure these strategies are customizable as per the current needs of the market and your trading requirements.

Does it offer demo testing?

A live trading system could be a pricey investment for most of the traders. It’s advisable that you check out demo trading in real life with a system before you put your hard-earned money and trust into it. 

So, look for a live crypto trading system that offers a free account. You can always upgrade to the paid version if you are satisfied with the free run.

Check user interface

As mentioned previously, some live trading systems could be pretty complex to use. So, before you invest in one, make sure its UI is specifically designed for beginner traders. Some algorithmic crypto trading platforms come with separate versions to individually cater to new and experienced traders. For example, an automated crypto trading system might provide some additional trading bots for a more advanced trading experience, specifically for veteran traders.

Forecasts from several analysts

This is certainly one of the most vital points to check when you are looking for a reliable automated crypto trading system. Make sure your chosen trading system pulls in forecasts from thousands of expert analysts to help you reach an informed trading decision.

Exchange compatibility

No matter how advanced an automated crypto trading system is, it’s literally worthless to put your money in it if it doesn’t support your chosen crypto exchange. So, always check out the list of exchanges supported by an automated crypto trading system beforehand while you proceed to buy and sell. If you have already created an account with a crypto exchange, make sure your chosen automated crypto trading system is compatible with the specific exchange.

Wrapping up

Don’t forget to carry out an extensive market study on at least 5-6 trading systems while choosing the right automated crypto trading system for your crypto trade. You can search online for expert reviews and insights on a long list of algorithmic trading systems. Check out their features, USP, strength, and also weaknesses. Your chosen automated crypto trading system must be backed by high ratings and rave reviews from both experts and users.

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