With the increasing popularity of cryptocurrencies, including Bitcoin, there has been a rise in the number of firms exploring the potential for automated trading in the digital currency markets. As with any new technology or market, new players are bound to emerge and offer something different to the market, and it would be a shame for Bitcoin advocates to deny these firms the opportunity to contribute to the ecosystem through improved functionality or innovative business models.
While the appeal of automated trading is obvious – you can set your own hours, manage your own stops, and there is no risk – it is important to understand what makes a “good” bitcoin robot. In order to achieve this, let’s take a quick look at how cryptocurrencies and their underlying Blockchain technology work, and how they can be used to create automated trading platforms.
How Do Bitcoin And Cryptocurrencies Function?
Bitcoin and other cryptocurrencies rely on a distributed network called the Blockchain. This network connects and stores information about all the bitcoins in existence (the “ledger”), as well as verifies and registers transactions between two parties (“contracts”). Thanks to the Blockchain, it is possible to create transparent and secure markets where transactions can take place rapidly and with low fees – ideal for automated trading. If you’re not familiar, the Blockchain is a technology that is entirely decentralized and can’t be shut down by a single entity. As a result, it is incredibly difficult to tamper with the data or interfere with the functionality of the network.
What Is The Difference Between A “Hacker” And A “Robot”?
Depending on how you define them, a “hacker” and a “robot” can be used to reference two entirely different things in the world of cryptocurrency. A “hacker” is one who engages in the act of “hacking” (the act of trying to break into computer systems or access secured data) for the purposes of stealing money or information. A “robot” is a programmable trading machine that mimics the actions of a human being (hence the name!). This can be very helpful when referring to the kind of software that connects people to marketplaces and allows for automated execution of buy and sell orders.
What Types Of Automated Trading Platforms Can Be Created Using Bitcoin And Cryptocurrencies?
With the right team and adequate funding, it is possible to create a variety of automated trading platforms that can support the buying and selling of cryptocurrency. One notable example is the Multi-Account Wallet – or MAW – developed by Coiniumator, which allows for the creation of various sorts of automated trading strategies.
Coiniumator’s Multi-Account Wallet functionality, for example, allows for the creation of automated sell strategies for those who have a large portfolio of digital currencies. Essentially, MAW gives users the ability to run several trading strategies simultaneously, allowing for greater profits in the long run. The software takes the complexity out of creating multiple buy or sell orders as each scenario can be configured with a click of the mouse. In order to function, MAW relies on the Blockchain to validate transactions and provide an unalterable record of all activity. This makes it more secure than other cryptocurrency wallets because all transactions are public and available to be tracked and verified by anyone with access to the internet. The fact that no single entity controls MAW makes it much less vulnerable to cyber attacks or hacks – as no single point of failure exists if the software gets hacked.
Security Is A Major Consideration In Any Industry, But Especially In Financial Services
From a purely technical standpoint, automated trading platforms offer a variety of security advantages over traditional trading methods. First, the less human intervention that takes place in the exchange of funds, the less risk there is of a malicious actor attempting to manipulate the system. Second, since much of the infrastructure for these automated platforms is software based, it can be operated from anywhere with an internet connection, making it more resilient in the face of cyber attacks. Third, since all transactions are recorded on the Blockchain and immutable, they cannot be tampered with – meaning that even if someone did gain access to the platform’s security system, their attempts to alter the data would be futile since changes would be instantly reflected by anyone who was monitoring the Blockchain.
Is It Possible To Profit From Cryptocurrencies Without Involving Yourself In The Activity Overall?
In principle, the answer to this question is yes – however, it is quite difficult to find a reliable, honest, and reputable dealer of cryptocurrency who doesn’t involve themselves in some way with the day-to-day activity of acquiring, storing, and trading the digital assets. In most cases, you would have to actively seek out such a firm and hope that their previous track record isn’t too bad. Additionally, always make sure that you are not being “fronted” – that is, sold crypto that you don’t actually own. In the United States, for example, the Securities and Exchange Commission recently launched an “inquiry” into Circle Securities and its CEO, Sean O’Kane, after he was accused of defrauding and misleading retail investors regarding the security and legitimacy of the firm. According to the SEC, O’Kane and Circle Securities are alleged to have misrepresented the risks and rewards of Bitcoin and other cryptocurrencies, the integrity of the platform, and the track records of the company and its principals. The SEC further alleges that these misrepresentations were made with the intent to defraud investors and in furtherance of an overall scheme to defraud investors of $50 million.
The Rise Of “Neutrino” & The “Unicorn” As Options For Automated Trading
Just a few short months after the birth of Bitcoin, a new entrant for automated trading emerged with the potential to completely transform the industry. Known as Neutrino, this open source platform is built on top of the Bitcoin codebase and aims to bring decentralized trading to the masses. In addition to Bitcoin, Neutrino supports other leading cryptocurrencies including Litecoin, Dash, and Dogecoin, as well as traditional fiat currencies such as the U.S. dollar and the Japanese yen. Thanks to its flexibility and openness that is inherent in its design, Neutrino is able to leverage additional software development platforms, such as Python, to create specialized trading tools catering to unique end-user needs. This makes it much more adaptable than other “closed” platforms that are designed and limited to specific algorithms or financial instruments. Neutrino is currently in its early stages of development and is looking for experienced software engineers to help build out and enhance the platform’s functionality – so if you’re looking for a project to contribute to, this might be a good fit!
A similar but even more revolutionary idea was recently proposed by billionaire Mark Cuban in his recent interview with Business Insider. Cuban suggests building a platform that would allow for “full auto-trading” – completely automated, high-performance financial trading that is completely independent of any human intervention. Through his highly successful investing career – including 15 years as Chairman and CEO of HDTV manufacturer, Magnavox – Cuban has gained a keen understanding of the potential to improve productivity and eliminate errors that come with manual trading. The difference is, while most firms are focused on providing tools for active traders, Cuban wants to give investors the ability to simply enter orders and see them executed with minimal interference – achieving complete transparency and trustworthiness.
The Future Of Automated Trading
With all the benefits that automated trading platforms and cryptocurrencies offer, it is no wonder that more and more firms are looking to enter the market and provide their users with the tools to easily and efficiently carry out all aspects of their trading. It is also important to remember that while cryptocurrencies and their underlying Blockchain technology offer a variety of advantages, they also have a number of significant disadvantages that need to be overcome – the most notable of which is the lack of fiat currency acceptance and the prevalence of cyberattacks and hacks. The good news is, with proper education and careful consideration, these disadvantages can be minimized or even avoided, allowing for greater adoption of the technology moving forward and more financial opportunities for all.