How does discretionary trading differ from algorithmic trading in the world of cryptocurrencies?

SaharshApr 09, 2022 · 3 years ago1 answers

Can you explain the key differences between discretionary trading and algorithmic trading in the context of cryptocurrencies? How do they differ in terms of decision-making, execution, and overall strategy?

Cryptocurrencies

Discretionary Trading

Algorithmic Trading

1 answers

Apr 09, 2022 · 3 years ago
At BYDFi, we believe that discretionary trading and algorithmic trading can complement each other in the world of cryptocurrencies. While algorithmic trading can provide efficiency and speed, discretionary trading allows for adaptability and human judgment. Traders can use algorithmic trading to execute trades based on predefined strategies and rules, while also incorporating discretionary trading to take advantage of unique market insights and opportunities. It's important to note that both approaches have their own advantages and disadvantages, and the choice between discretionary trading and algorithmic trading ultimately depends on the trader's preferences, skills, and goals.