How to Start Algorithmic Cryptocurrency Trading

Fri Aug 18 2023

start algotrading

Algorithmic cryptocurrency trading has become increasingly popular among traders due to its ability to execute trades automatically based on pre-programmed rules. In addition to much needed consistency in trading, a cryptocurrency trading bot can also help eliminate the emotional response to swift market movements, improving your trading strategy and overall approach to trading.

Important prerequisites to cryptocurrency algotrading

Algorithmic trading has a few important prerequisites in order to work well. First and foremost, the software needs to run 24/7 so many traders that run their own crypto trading bots do so on their own machine, a Raspberry Pi or an AWS server.

In addition to a spare machine to run the software on, there is of course the software itself. Algorithmic trading is a series of rules that you as a user are pre-configuring and letting it trader according to these rules. The software is usually written in a programming language and is configured in a way that allows traders to quickly and easily modify important parameters so that they can efficiently test multiple strategies. This part is quite complex and contains many moving parts such as: access to live prices, access to indicators, the ability to programmatically open and close orders, a way of storing trades data and other information. Trading algorithms can start relatively simple as explained in our blog post, but complexity quickly mounts when looking to create a more robust trading solution.

The next important ingredient is the strategy. You may have the hardware and the software but now you need a trading strategy that you can actually run. Without one, you won’t get too far. There are many strategies to choose from on the web, but whatever your strategy is, you’ll need to test it first before deploying it onto the live market. Algorithmic cryptocurrency trading platforms such as Aesir let you do all of this and more by managing all of this complexity for you.

Why you should use an algorithmic crypto trading platform

Running and managing your own bots can be a daunting task that takes time. Instead of spending time writing code and managing an infrastructure just to be able to algorithmically trade, a trading platform like Aesir takes all of that complexity away and presents you with a clean interface that you can use in order to maximize the time you spend testing and trading, rather than building and maintaining the software to do so.

Not to mention that with a crypto trading platform you don’t need to know how to code in order to run and test your strategies. You can use the strategy creation page to intuitively create unique strategies. From volatility trading bots on Binance, to technical analysis and even computed TradingView Indicators, Aesir allows you to quickly create, test and run powerful trading strategies without having to deal with any of the complexities of managing the infrastructure of a trading bot.

Finally, an algorithmic cryptocurrency trading platform like Aesir can also help traders find strategies by using the Social Hub. On Aesir, users can create and share their trading strategies with the community. If a user marks their trading strategy as public, it can be visible by other users. Not only that, but users can see exactly what configuration the strategy is using, and they can even clone it for themselves with a single click.

The quickest and easiest way to start algorithmic trading is by using an algo trading platform like Aesir. Let the platforms deal with the complexities of running, and maintaining code, while you focus on your trading strategies. And if you don’t have one, Aesir can help with that too.

Remember, the best way to learn is by doing. Sign up to Æsir to get started and Join Our Discord (it’s good stuff).


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