Automated trading has long established itself in binary options trading and Forex, and now it has come to cryptocurrency exchanges. What is a cryptocurrency trading bot? Can such a program be trusted? Which robots make deals for profit?
What Are Cryptocurrency Trading Bots?
Cryptocurrency bots are special programs that use scanners and indicators to determine the market’s optimal entry and exit points. Depending on the algorithm used, the program can either simply inform about optimal conditions or place and close transactions on behalf of the user.
The use of exchange bots is legal. Moreover, the owners of trading platforms are interested in traders using bots since they are able to conclude a huge number of transactions beyond human strength, and exchanges, as you know, earn precisely on commissions from transactions. Therefore, for using the bot, you don’t risk being blocked. Many traders use the stoic.ai service. It is more than just a trading bot. It takes quantitative research and artificial intelligence into account when creating and optimizing a portfolio of crypto assets for long-term investment.
When making transactions, cryptocurrency bots are guided by the parameters that are indicated for them as starting points for the need to open or close a transaction. These parameters are often set manually by the user. Therefore, the strategy of a trading bot is the strategy of traders themselves integrated into the program.
Cryptocurrency Trading Bots: Benefits
Are bots profitable? Is it worth using them? These questions arise for many people who are not familiar with the concept of cryptocurrency bots. Like any relatively widespread phenomenon, bots have their advantages:
- Time. Trading takes a lot of time. On busy days, they can work for 10-15 hours. Bots help them. Moreover, they can work 24 hours a day.
- Coverage. There are at least dozens of exchanges where you can trade. It is physically impossible for a person to cover all of them manually. But a bot can do it.
- Speed. While a person is thinking, remembering formulas, and calculating proportions, a bot will have time to calculate several times more, issue a buy/sell order, and make a deal. It is an important advantage of bots in those moments when the price of currencies is rapidly rising or falling.
- Strategies. The bot may turn out to be smarter than inexperienced beginners. It saves them from significant financial losses and brings profits that beginners couldn’t have made on their own at first.
- Infallibility. Bots execute the given strategy up to each sign in the formula. People can miscalculate something, put it up incorrectly, and, in the end, see it wrong and deprive themselves of profit.
- Emotionless. Bots don’t rush, don’t lose time because of doubts, and don’t get nervous looking at the course, unlike people.
So, cryptocurrency bots are suitable for simplifying beginners’ tasks and automating trading for experienced traders.