Cryptocurrency Leverage Trading is all the More Dangerous – An Adventurous Yet Risky Luxury

By Maheen Hernandez February 21, 2019 Off

Trading cryptocurrency is very hard than it sounds.    Machine learning algorithms, artificial intelligence, and a suite of market analysis tools are required for the trading cryptocurrency.

Algorithmic trading does not work during all time frames in cryptocurrency trading, and this is one reason why cryptocurrency trading is tough.

Copy trading works in traditional markets, but it does not work in the cryptocurrency market. There are not sufficient empirical data to deploy copy trading strategies that work. So, coming up with a strategy to make trading work is not as easy.

While the strategy is that which differentiates gambling from trading, having a game plan before trading is crucial, Crypto leverage trading is all the more dangerous.  Even if one starts small, the idea that any money that is put into margin trading does not belong to one is a must remember the fact.

Smart order routing, algorithmic trading, and consolidated data are important for crypto investors.

David Weisberger, the Co-Founder, and CEO at CoinRoutes stated, “We are pleased to be working with Vela to deliver easy and convenient electronic access to crypto-asset exchanges.”

CoinRoutes platform with crypto asset SOR from Vela will be providing investors with access to aggregate prices across all exchanges.  CoinRoutes platform will be providing the required routing.

The platform provides for aggressive and passive algorithmic strategies permitting clients to trade thus providing complete control over wallets and exchange keys.

Empirica provides users with proven algorithms with which they can execute their investment strategy.  The platform provides for trading strategies like market making, arbitrage, smart order routing, VWAP, and hedging baskets.  Advanced order types like trailing stops, Iceberg orders, and Pegged orders are also provided in this site.

With all this happening and different technology companies coming up with strategic tools, a working paper cited, “hype and emotion of investors as they watch the price climb or drop” when talking about what influences the price of cryptocurrency to climb up and down.

And while all this has been happening the South African Reserve Bank has refused to recognize cryptocurrency like Bitcoin as a currency.

Lesetja Kganyago, the Reserve Bank governor, stated, “There is nothing called as a cryptocurrency. A currency should fulfill the following criteria.  It must be recognized as a store of value.  It should be accepted as a medium of change.  These crypto things are not a medium of exchange. They are only valid among people who think they’re clever and among those that think they have got a head start in a convoluted sophisticated pyramid scheme.”