Ever since 2017, there has been a rise seen in cryptocurrency and so has the crypto trading bots. More and more people are showing their keen interest in trading cryptocurrencies through bots.
Are you considering to trade cryptocurrencies through bots? There are a lot of people who are, however, the question that arises on our mind very often, is it worth all the hype? Do crypto trading bots really work? Are they efficient enough to carry trade on some of the major crypto trading exchanges across the globe? We shall be discussing all this in this article.
Ever since the invention of the first robot in 1954, the idea of using robots instead of humans for better efficiency and functionality flourished. 64 years later, their counterparts trading bots seem to become quite popular when we talk about trading cryptocurrencies.
The trading bots are believed to run efficient trade on behalf of the humans which is backed by pre-programmed strategies and constantly analysis of the market. The trading bots are supposed to generate a fair amount of income even for traders who have no experience or skills. So far so good, however, is it true or just hype. The truth is that generating income from crypto trading bots is not as easy as it might sound.
You can find various types of trading bots which include arbitrage bot that works by analyzing and identifying the price difference of cryptocurrencies in different market and exchanges. Bots can earn you profit from the delay that various exchanges take in updating the price of cryptocurrencies.
How much profit can automated crypto trading bots generate?
In order, to earn a significant profit from the trading bots you will ideally need sufficient amount of cryptocurrencies, to begin with. For example, to run bitcoin bot you shall deposit Bitcoin on a number of exchanges which connects with your bot through Application Programming Interface. However, the returns, in the beginning, might not be as per your desire. But having a trading bot that monetizes and plans strategies based on changing trends in the market can be very fruitful and handy in the long run. The bots shall be used in deciding what kind of strategies to run in order to execute a trade that can earn profits. The bot shall be used as a tool to run efficient crypto marketing trade and not a solution. Also, the profits earned from the trading bots depend somewhat on the trader as well.
The idea is to set your trading bots in the right way if you can do that you are there to earn a lot of fortune from it, but you definitely have to work on it. Bots are typically great if you are planning to make large investments as it can generate you more profits contrary to small investments.
What makes crypto trading bots unique rather better than humans?
The thing that makes trading bots different is that the automated bots can run trade on behalf of you. Because of the growing popularity of cryptocurrencies, the usage of bots has also increased thereby; more platforms are trying their best to introduce new features which makes them quite advanced.
The trading bots use indicators and algorithms to predict the right time for trading the crypto. Trading bots have been there for a while now and have swiftly paved their way into the crypto world. The constant shift and changing trends in the crypto market is something that is accountable for the ongoing trend of using automated trading bots to run crypto trade. However, the thing that makes the trading bots different and better than humans is its functionality, accuracy in terms of running an analysis of the market, and different types of exchanges on which it can run the trade.
Therefore, bots can be regarded as an effective tool that can be really beneficial for the traders to run profitable investments based on ongoing market trends.
Talking about the question are trading bots better than humans? The crypto trading bots run on Artificial Intelligence and pre-programmed rules thereby it takes decisions based on facts and figures rather than pre-biased notions or emotional interference. There are some platforms like
Bittrex Bot that are using AI to run the automated bot in order to generate profitable trade of cryptocurrencies. The platform offers you a choice between automated and manual mode to choose the types of investment you want to choose or make using the bot. Thereby, allowing you to make a perfect choice between manual or automated trading both based on strategies and facts. The platform runs an in-depth analysis and runs an efficient trade on your behalf 24/7. Platforms like this provide more human touch that is required in running crucial investments and trades, especially in a volatile crypto trading market.
Therefore, it won’t be wrong to say that the crypto trading bots can provide traders with an efficient trading strategic platform if used as a tool and not as a solution.