Understanding the Rise of Automated Trading and Its Impact on the Cryptocurrency Market
The recent advancements in the world of automation have been dictated by the demand from the community of retail traders interested in using complex tools that allow them to be faster and more agile in one of most dynamic markets in the world.
There are several reasons why automated trading became so prevalent in the crypto industry:
- Around-the-clock cryptocurrency trading. Unlike many other financial markets, the activity never ceases in the world of crypto. People exchange tokens 24/7 without any pauses. The pace of the trading is quite high, changes are rapid, and the intensity is overwhelming. Human traders need to rest to recover. Robots can trade all the time.
- Outstanding reaction speed. Since the crypto market has so many participants, prices change quickly allowing for very little time to react and come up with a plan. Bots are triggered by alerts from technical analysis strategies deployed on TradingView and instantly place orders on the exchange of your choice. You will always be ahead of the market.
- Affordability. While it was merely a dream of a retail trader to run an automated trading system just two decades ago when only wealthy investors could afford them, modern automation vendors give you more flexibility, power, and consistency for a fraction of the price. You can use multiple bots to run complex trading strategies like statistical arbitrage.
It would not be an exaggeration to say that automation is one of the most prominent crypto market trends of the last decade. It is the best way to stay active in the cryptocurrency market!
The Future of Cryptocurrency Trading: Predicting the Top Performing Coins in 2024
Let’s talk about the best coins for automated trading that you should keep an eye on during the next year. Since automation relies on high liquidity and accessibility of assets, the top cryptocurrencies in 2024 to trade with bots are those that will stay in the center of the public attention. Generally speaking, tokens that were popular in 2023 will remain top choices for the next year. However, some caveats must be brought to light.
Searching for the most profitable crypto investments can be challenging if you do not know what to look for. Many experts believe that many tokens have the potential to take the spotlight and become quite large, but investing heavily in lesser-known tokens is not the best idea. We will mention some of the most promising ones, but you should still focus on popular tokens with high liquidity and trading volumes.
Note that identifying future market trends is quite hard. Do not take the content of this article as an investment advice, but soak in the information to have some food for thought!
Evaluating the Potential of Bitcoin (BTC) for Automated Trading in 2024
Thousands of skeptics have said that Bitcoin will lose all its value and fall into oblivion, but the biggest token in the crypto industry kept proving them wrong. The situation won’t change in the next year when $BTC is expected to reach a new all-time high according to some analysts. While believing the overly optimistic prognosis from enthusiasts is not something we would suggest, there are some indications that they might be right.
Multiple sources published their $BTC price predictions for 2024 saying that the token will shoot to $100K by the end of the year. This forecast does not seem feasible if the US dollar won’t lose the confidence and fall against crypto which will propel the price of multiple tokens upwards. However, the bullish trend has been quite strong throughout the 2023.
Algorithmic strategies for $BTC have been quite efficient with DCA buying being the most recommended approach within the Bitcoin community on Reddit and other public platforms. We strongly believe that this approach will continue working during the next year. Bitcoin automated trading will be big due to the token’s high liquidity, trading volumes, and anti-inflationary qualities.
Exploring the Opportunities with Ethereum (ETH) and its Potential for Automated Trading in 2024
Ethereum is still the most promising cryptocurrency in the industry thanks to its flexibility and the value of its technology and adjacent businesses in the DeFi sector. While some critics point out that there have not been big technological improvements, many enthusiasts counter with the argument that the introduction of the PoS mechanism was big step in the right direction and other improvements are soon-to-come.
Among all technological platforms in the crypto industry, Ethereum continues to be the biggest one dwarfing Cardano, Polkadot, and Solana. It is the most convenient and popular environment for blockchain-oriented developers who want to build new unique fintech solutions for the growing crypto ecosystem.
According to some analysts and their $ETH price prediction for 2024, the token is capable of reaching a new all-time high if the overall direction of the industry will remain bullish. Despite some technological setbacks and criticisms from the community, the Ethereum network continues developing and expanding. If you are interested in algorithmic strategies for ETH (DCA or GRID), you should get ready for a profitable year!
Ethereum automated trading should not be affected by any changes even if the price of the token will fall. The trading volume and liquidity will remain high allowing for successful use of various strategies powered by automation. All sorts of $ETH trading bots will be efficient in 2024.
Ripple (XRP) and its Role in Automated Trading Strategies for 2024
It would not be a far fetch to say that Ripple is in a weird spot with its unending SEC debacle and other issues. However, the popularity of the token did not suffer from the events in the legal world with millions of users putting their faith in the future of the token. Many $XRP price predictions for 2024 are quite optimistic with many saying that it will break through the $1 level somewhere in the summer.
Again, we do not encourage our readers to believe the most optimistic forecasts. Instead, let’s talk about the potential of $XRP to become more than just another token. Recently, Stuart Alderoty, the CFO of Ripple, stated that he sees a future where $XRP is used as a reserve currency by the World Bank. It is a very hopeful statement, but it does give us some reassurance that the team behind the token strongly believes in the success of their product.
In terms of Ripple automated trading, using standard approaches should work well. Algorithmic strategies for $XRP such as using DCA buying to acquire tokens over time or employing GRID bots to slow generate profits will produce good results in 2024. Since Ripple is a highly speculative and volatile asset, using XRP trading bots powered by swing or trend-following strategies will also be a valid approach.
Diversifying Your Portfolio: Lesser-Known Altcoins with High Potential for Automated Trading in 2024
Other top currencies to trade with bots are Monero (XMR), Lightcoin (LTC), Dogecoin (DOGE), and Solana (SOL). These tokens have been quite successful throughout the last five years and have shown incredible resilience against all external forces. Using various automated trading systems to trade these tokens is a sound plan for the year 2024.
Despite the prevalence of mainstream tokens in our review, we also want to mention several altcoins that may not have the brightest spots in the market but have a strong potential to reach new heights during the next year and be quite interesting to people using automated trading systems.
- TRON (TRX). This token is currently at $9 billion in terms of market cap and has a sizeable daily trading volume exceeding $220 million. The projections indicate that it will be able to reach new ATH somewhere in 2024 if some unforeseen events won’t affect it negatively. Initially, the token was issued as an ERC-20 token on the Ethereum blockchain, but moved to its own network in 2018. It has a similar transaction mechanism as Bitcoin and uses the architecture of Ethereum to release smart-contracts. The combination has proven to be quite appealing to many blockchain enthusiasts.
- Avalanche (AVAX). As one of the most ambitious competitors to Ethereum, Avalanche is a very interesting project that promises the same bright future as its rival but also has a more straightforward way to it. The architecture is slightly different with many experts saying that it is more efficient and better positioned to reach the necessary level of throughput and performance to leverage the power of blockchain and deliver a better experience to users than Ethereum. Among all altcoins for automated trading, this one seems to be one of the most promising cryptocurrencies for 2024.
- Polygon (MATIC) is positioned to take off in the nearest future. While it may take time for the token to return back to its former glory, the continuous development of different products on the Polygon’s technological platform ensures that the ecosystem has an undeniable potential. It is hard to make predictions about the immediate future of the project. Currently, it has a respectable $7 billion market cap and an impressive $420 million daily trading volume. By these metrics, it surpasses many other tokens in the TOP20 by market cap. We strongly believe that you should put this token on your watch list!
- Cardano (ADA). It is one of the most undervalued coins in the market. It has been overshadowed by Solana and lost the spot of the biggest Ethereum’s rival, but it still has a strong potential to return to its previous positions. Many developers are still preparing their products for the launch on the Cardano’s technological platform and some updates to the network promise significant improvements in throughput and transaction speeds. Throughout the last year, the price has been falling reaching on of its lowest points in the recent history, but it is one the path of recovery with a big promise to shoot for the stars in the next year.
Selecting the Right Tools and Platforms to Automate Your Crypto Trades in 2024
Effective automated trading systems can be created only with appropriate tools. There are three important cryptocurrency automation tools that you should use or deepen your knowledge of:
- TradingView. This analytical platform is used in the automation industry to generate alerts that trigger bots. Many automation vendors such as WunderTrading are integrated with TradingView. The platform allows its users to deploy sophisticated technical analysis strategies and produce high-quality trading signals for crypto trading bots and manual trading.
- Automation vendors. Companies like WunderTrading provide the necessary instruments to create advanced automated trading systems. A good provider should give you flexibility and reliability. Choose companies integrated with many trading platforms and offering multiple products including social trading, preset bots (DCA and GRID), algorithmic software, and advanced analytics.
- New technical indicators. The selection of new analytical tools is regularly updated in all terminals and applications. You should stay in touch with the world of technical analysis and learn about new useful tools that can improve the performance of your crypto bots.