inbox@carrierspot.net
Bitcoin Brings Good Tiding For Automated Traders

Bitcoin Brings Good Tiding for Automated Traders

Did you know that bitcoin has provided a booming business for automated traders? Most online traders are using it as a means of making easy money through narrow profit margins. Bitcoin is a cryptocurrency which is available in the capital market. According to Zhou Shuoji, this cryptocurrency stands no chance of replacing the traditional currencies, though most traders seem to believe in it.

Mr. Shuoji, a 35 year old Beijing based online trader adds that bitcoin attracts a majority of traders in the capital market. As a matter of fact, he is one of those who trade it round the clock every single day, as it dominates most of the quick orders he places in the exchange market. Traders make huge profits by taking advantage of the small margin of price discrepancies that emerges during the exchange of bitcoin.

Though Mr. Shouji regards those who ardently use bitcoin as fanatics, he is quick to reiterate that those who are trading it are enjoying golden moments specifically due to its status of imperfection as it is not a true currency. Actually, he has vast experience in using this cryptocurrency as he operates a bitcoin hedge fund through his Fintech Blockchain Group firm. Mr. Shouji’s observation about bitcoin cannot be underestimated as he worked as a technology consultant with IBM.

Professional traders especially those from Chinese origin, equipped with adequate skills in cutting edge technology constitute about 80 percent of bitcoin traders. These traders make most of their money by imitating the trading strategies used by top players present on Wall Street. For these traders, bitcoin is not just a “fake” currency but an available asset ready to yield money using the computer in a live capital market.

Just like other online trading markets, bitcoin trading comes with its risks that include:

  • Cyber attacks, good examples being Bitfinex and Mt. Gox in 2011 where traders incurred huge losses.
  • Major price swings some being more than two times bigger than those experienced in S&P 500.

These risks have cast a shadow of uncertainty in bitcoin trading as they expose traders to huge losses.

In addition, potential investors in the cryptocurrency market are wary of a possible regulatory crackdown by the Chinese authorities. This is in their bid to stop any investment avenue that may transfer the wealth overseas.

Though China based banks were banned from trading bitcoin back in 2013, foreign firms are still active players in the Chinese exchange market. Traders using the Chinese venues that host the majority of the world’s turnover are not required to pay the transaction fee. Chances of making money are high for each trader, as the market is structured to tick the right boxes hence creating winning opportunities in multiple exchanges. Bitcoinity.org tracks the volumes during trading sessions.

Chen Zhenguo, founder of the biggest cryptocurrency trading platform in China adds his voice on the gains of engaging on this trade. The 30 year old Bitcoin trader based in Beijing ascertains that automated traders have an edge in bitcoin market. Mr. Zhenguo’s BotVS platform gives new traders an opportunity to perform bitcoin demo trades before engaging in the real market.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.