Automated Trading in Crypto vs. in Forex

by FX EA Review
Automated Trading in Crypto vs. in Forex

Automated or robo-trading is a way of participating in financial markets by executing pre-set procedures for entering and exiting trades through a computer program. As the trader, you’ll combine in-depth technical analysis with the creation of position parameters such as open orders, trailing stops, and guaranteed stops. Robo trading allows you to make a large number of trades in a short amount of time while also removing emotion from your decisions. That’s because the parameters you set already include all of the rules. You can even use your pre-determined strategies to follow trends and trade accordingly with some algorithms.

How does automatic trading work?

You’ll start by selecting a platform and defining the parameters of your strategy. You’ll construct a set of rules and conditions based on your expertise, and your customized algorithm will utilize the criteria to conduct trades on your behalf. The time of the trade, the price at which it should be opened and closed, and the number are usually the determining considerations. 

The established robo-trading method will continuously monitor financial market prices, and deals will be completed automatically if predefined parameters are reached. The goal is to execute trades more quickly and effectively, as well as to profit from technical market occurrences.

What are the differences between forex and crypto automated trading?

The process

Crypto and forex are two different assets, especially in their trading processes. First, platforms such as MetaTrader 4, MetaTrader 5, and others are used to open and liquidate positions on the forex platform. The trading method for cryptocurrencies, on the other hand, is fundamentally different. When dealing with cryptocurrency, you don’t use Forex brokers; instead, you use crypto exchanges. Instead of swapping one currency for another, crypto trading involves purchasing and selling cryptocurrencies to generate a profit.

Second, trading them is a completely different experience due to the lack of liquidity. When it comes to crypto vs. forex robo-trading, it’s not about profit but rather liquidity and volatility. Forex has greater liquidity; however, cryptocurrency is recognized for being more volatile, which means that a bigger return comes with a higher risk.


For automated trading, this is one of the most significant differences between these two assets. When it comes to leveraged positions, people who trade Forex are more likely to obtain a significantly better deal than those who trade cryptocurrencies. The FX market frequently provides clients with leverage of up to 1:1000, if not more.

Crypto traders, on the other hand, are typically granted smaller leverage. It might be a 1:3 or even a 1:2 ratio. This is mostly due to volume discrepancies between cryptocurrencies and currency pairs in the Forex market.

It should be noted, however, that the amount of leverage accessible to traders is mostly determined by their location. While some governments allow high-leverage trading, others place numerous limits on it. The major reason for this is because, in addition to boosting the potential earnings from Forex, leverage may also raise the hazards involved with it.

While you may customize your FX trading robot to use larger leverage, you can’t do the same with cryptocurrency robots. Many people assume that crypto investors are at a higher risk of losing their money because of the leverage difference between Forex and crypto trading. While traders may earn a lot of money by risking only $100, crypto traders can’t do the same.

Ease of use

Another significant distinction between crypto and Forex automation is the ease of use of these two marketplaces. When it comes to robots assessing the market, the crypto market makes it easier for them to do so. This is due to the fact that there are often few factors impacting price changes in crypto trading, making it much easier for machines to assess.

On the other hand, there is an excessive amount of information that traders must evaluate in the FX market. This might include everything from central bank publications throughout the world to the actions made by various countries, as well as the broader socio-economic climate.

Because there are so many variables to consider, it may be difficult for Forex robots to assess the market. As a result, Forex robots are frequently required to be more powerful and capable of analyzing a greater amount of data in less time.

While many variables and events can impact crypto price swings, the FX market is still far more complicated in terms of price movements. Forex traders must be highly active in the general, basic aspect of the trading in addition to frequent algorithmic trading and watching general market movements.

Ownership of the asset

When it comes to forex, everything tends to be rather simple in terms of ownership. You have the crypto market, on the other side, where everything is profoundly different.

One of the concerns that people have when purchasing cryptocurrencies is finding a safe place to keep them. Despite the fact that the majority of current crypto exchanges allow you to store your coins on the site, many traders are still unsure what to do with their coins.

Because of the risks connected with keeping cryptos, several of the auto traders on the market specialize in crypto CFD trading. When considering why you can’t use your crypto robot to trade currency pairings, keep in mind that ownership is a significant distinction between these two marketplaces.


Automated trading is used by many people all over the world. While the differences between crypto and Forex robo-trading are easily evident, it is impossible to say that using robots in one sector is superior to the other. When it comes to determining whether to employ it in crypto or Forex, it’s essential to remember that the decision is based on a number of criteria. First and foremost, bear in mind the method you are employing.

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