Manual vs automated crypto trading: which is better?

Manual and automated trading are the common strategies used in cryptocurrency trading. Currently, the most significant debate in the industry revolves around the best strategy between the two.

While some individuals question the trustworthiness of AI-based tools in executing trades, others believe that automated crypto trading methods are a game-changer.

There's also a raging debate about the efficiency of manual trading versus its modern counterpart, crypto trading bot.

Let's compare the two strategies by analyzing their strengths and limitations.

What is manual trading ?

In manual trading, traders apply their mental power and feelings to open and close positions. They make decisions based on various factors, such as complex evaluations, market opinions, and emotions. You can excel in manual trading if you understand market movements and regional political dynamics. Also, you need to utilize major news outbreaks quickly.

Pros of manual trading

Manual trading relies on human beings to execute trades. Here are the pros of manual crypto trading:

• Traders manage the entire process: Manual trading allows traders to control the whole process. They assess market conditions and decide without applying any AI tools. This means that each trader's steps mirror their plan, gut feelings, and risk appetite. The method allows traders to enter and exit the market when necessary.
• Ability to perceive and adapt to external factors: crypto prices keep swinging in response to factors such as celebrity remarks and political changes. Manual traders evaluate the effects of external factors and make the necessary adjustments.
• Human sentiments: Some people maintain that trading should be above human feelings. However, great trades emanate from trader's feelings in the crypto world. Manual trading allows traders to develop an emotional bond with their trades.
• Best strategy for beginners: Manual trading is perfect for individuals beginning their trading journey in the crypto industry. Such people have yet to learn about the intricacies of automated crypto trading.

Cons of manual trading

Manual trading has various disadvantages, including:

• Time-consuming:Manual trading is highly involved as it requires consistent market evaluation, studying price graphs, and trade executions. You may find it unsuitable if you lack enough time.
• Tedious: the world of crypto keeps changing with each passing minute.Thus, traders must keep abreast of these changes and incorporate them into their trading strategies. However, being alert can always lead to fatigue, and traders might make mistakes.
• Poor judgment:Manual traders apply emotions when deciding how to execute trades. While these emotions can lead to excellent trades, they can also be risky. For example, emotions like fear of missing out (FOMO) and avarice can lead to poor decision-making, causing losses.
• Lack of knowledge:Crypto trading beginners may lack the skills and experience to evaluate market movements efficiently, discover patterns, and make the right trading decisions.
• Missed opportunities:Minimal application of automated tools can lead to suboptimal market evaluation. Manual traders might miss specific micro-shifts in the market, which might be lucrative.

What is automated crypto trading?

Automated crypto trading is a technique of trading that uses bots to purchase and sell digital currencies. Crypto trading bots are complex algorithms that use a set of parameters to recognize patterns, execute trades, and optimize profits.

These AI-based tools help traders leverage price swings without perpetually monitoring market changes. They study market patterns before executing trades, allowing you to maximize your profits.

Pros of crypto bot trading

Automated crypto trading is a widespread technique in the crypto sector. Here are the main pros of crypto trading bots:

• Effectiveness:Bots work all the time without resting. Within no time, they survey the market, identify patterns, and execute trades. You can be assured that the bot is there each time to work on your behalf so that you will take advantage of opportunities.
• Objective execution of trades:Unlike humans driven by FOMO and greed, crypto trading bots operate objectively based on rationality and data. The outcome of their operation is dependent on the strategy you set. Traders save themselves from emotional blunders when they utilize crypto trading bots.
• Execute numerous trades:It can be challenging or even intimidating for an individual to manage multiple cryptocurrencies at the same time. This is how crypto bots come in handy. The automated tools can manage various digital currencies simultaneously and help you execute trades.
• Micro-shifts:Automated crypto trading bots can identify micro-movements and take advantage of small price changes on various exchanges. The tactic can lead to vast amounts of profits.
• Prompt data analysis: Automated bots are machine programs that can deliver quick calculations. They are essential for trading techniques that need the processing of vast amounts of data within the shortest time.

Here are the main downsides of relying on crypto trading bots to execute your trades:

• Lack of sensitivity:Although bots are effective, they don't perceive market feelings. They cannot foresee abrupt market shifts or inconsistencies like human beings.
• Issue of over-dependence: You might face a significant risk if you wholly rely on crypto trading bots without knowing their primary strategy. Remember, an uncoded error can result in abnormal losses.
• Lack of news trading abilities:Bots cannot process news and use the data for trading. In this case, they are prone to errors.

Which is the most efficient trading strategy for crypto, Manual or robot trading?

A key component of trading is efficiency. Here are the critical efficiency parameters to compare when evaluating manual vs bot trading:

• Speed:The crypto market keeps changing at incredible speeds. These market shifts can lead to either vast profits or significant losses. Crypto trading bots excel in the fast processing of market information, making quick calculations, and executing trades. Manual traders can process data slowly and miss out on opportunities in the market.
• Error rate:Humans are predisposed to make mistakes, especially when managing recurring tasks. Remember, mistakes in typing figures, misreading graphs or poor processing of a news report can cause erroneous trades. On the other hand, when you set bots appropriately, you minimize the chances of mistakes.
• Consistency:Manual trading is prone to human emotions, thus lacking consistency. On the other hand, crypto trading bots are the symbols of consistency devoid of human feelings.
• Volume and work hours:human beings find it hard to work around the clock in the crypto sector. Bots can excel in this aspect as they can work 24/7 without resting. They can handle numerous trading pairs concurrently and expand trade volumes, which is critical in an ever-changing crypto market.

Consider Scientific Trading Bot

The debate about manual vs bot trading must shed light on various factors, such as speed, efficiency, and error rate. Although bots can be efficient, they lack human feelings and flexibility.

Crypto trading bots are highly effective in processing vast data and executing trades quickly. Our advanced Scientific Trading Bot offers even better functions, allowing users to maximize their profits by leveraging various computational models to execute trades. You can get up to 11% monthly profit just by automating your trades using this bot.

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