know which cryptocurrency is better for automated trading between Bitcoin vs altcoins
Automated trading, or algotrading, is a way of using computer algorithms to execute trading orders. The computer program follows a set of rules based on time, volume, and price and generates orders automatically.
These robots use advanced math, statistics, and technical analysis to ensure accurate results every time. This makes automated trading very popular among many traders who want to learn more about it. One of the common questions about this topic is whether to use Bitcoin or another cryptocurrency. Although there is no simple answer to this question, experts recommend traders choose BTC for algotrading.
One reason is that Bitcoin is the most famous and valuable crypto in the world. The market depends on this cryptocurrency and its price changes affect other coins as well. So, trading robots do well with Bitcoin, and most likely, you will get the best results in this case.
Why Should You Use Bitcoin to Trade Rather Than Altcoins?
Before we hop on making sense of the advantages of BTC over altcoins with regards to algotrading, we might want to momentarily make sense of what this interaction resembles. Computer algorithms that adhere to a predetermined set of instructions are used in algotrading, as the name suggests, a method of generating trades.
Algotrading has many advantages, including the ability to earn money much more quickly than any other person can. Additionally, this procedure completely excludes human emotions that could have both positive and negative effects. Finally, and most importantly, algotrading increases market liquidity.
The majority of traders have taken advantage of this opportunity, which should come as no surprise given the enormous potential of algorithmic trading. The primary concern they have is whether altcoins or bitcoin should be used in this process. While the response isn’t 100 percent exact to this inquiry, experts suggest picking Bitcoin.
The fact that Bitcoin influences the market is the primary argument. Every other asset is affected by this cryptocurrency’s price, and we can confidently assert that BTC has an impact on the market as a whole. The ongoing accident is an ideal illustration of this since Bitindex simulated intelligence expresses that the value depreciation of Bitcoin has instigated huge ramifications. That is the reason exchanging robots are built such that they follow Bitcoin and look at its cost development.
It is a lot more straightforward for them to sell the resource when Bitcoin cost hits a specific level contrasted with other digital currencies since every one of them is impacted by this one. For example, the predefined guidelines assist exchanging robots with arranging when to trade BTC when it hits explicit numbers. They might do a better job of this than we do because our emotions often get in the way, which can lead to very bad outcomes.
We have already noted that the value of the altcoins is primarily determined by the price of Bitcoin. Other cryptocurrencies followed the lead of Bitcoin, which has seen one of its lowest numbers in recent years. As a result, trading Bitcoin with trading robots is preferred to trading altcoins.
