How do crypto trading bots work? Will it succeed in replacing the human in the near future?


In recent years, the digital currency market has witnessed significant growth with the emergence of many new currencies and the great multiplication that bitcoin has experienced, and with the beginning of 2018 the total market value exceeded the $ 500 billion barrier until it decreased significantly thereafter within a few months. As a result of these events, many investors began to go towards this market in the hope of achieving profits through various trading operations.

Artificial intelligence techniques helped create a new concept in the world of trading, due to the spread of the so-called Trading Bots that were developed to carry out various trading operations on behalf of the investor, and, as with any technology of this kind, it has received approval and encouragement from some Others because of the sensitivity and importance of this field, in this article we will answer the most important questions about Trading Bots and how they work and whether they should be trusted so continue with us.

What are Trading Bots and what distinguishes them?

The term Trading Bots is referred to as any software that relies on specific indicators and data to form a picture of the market situation and executes trading operations automatically based on them and on behalf of the investor, as it is used to trade and rely entirely or partially in many different markets such as the currency market Stocks and commodities as well, and for digital currencies there are many bots special for trading on its market as well.

While many of the well-known trading markets usually fluctuate in simple proportions during the day, the cryptocurrency market is famous for its permanent fluctuations, which can incur a lot of losses if investors are not present all the time to act when necessary, and here the importance of trading bots comes as being active on Around the clock and therefore it is able to carry out trading operations when needed on behalf of the investor if he is not present to do so.

Today there are some simple Trading Bots that can be used for free, but other professional types come with very high fees at times, depending on the features they offer, as they may include features that allow them to analyze the market better or perform several trades. In a short time as well, thus it is of great importance to daily traders more than others.

How do Trading Bots work?

Regular Trading Bots usually work by relying on simple and fixed algorithms that are developed by the developers, and therefore their effectiveness depends on the developer’s experience and his knowledge of the digital currency market and its permanent movements, and as a result some of these bots may be inappropriate for professional traders who have their own view. For the market and how to trade within it, as it is not able to analyze the market effectively unless it is linked with a professional trader, otherwise you will have to take some additional steps related to monitoring the market to obtain good results.

When it comes to selling digital currencies, it is possible to set bots to carry out trading operations until they achieve certain profits, or for example to limit losses by setting a certain limit for the bot to stop trading if it is reached, some trading bots provide other trading strategies as well Such as following up on the rise of the currency and refraining from selling until it begins to decline suddenly under a certain limit, whereby the sale is executed to reduce the potential losses associated with the continuing value of the currency falling.

Trading Bots suffer from their inefficiency in some respects as well, as many sudden market movements are often the result of various news and reports, or the result of one of the influencers on communication platforms publishing a specific publication or expressing an unusual opinion, for example, and with the difficulty of tracking and analyzing these news The process is more difficult to implement for bots.

Can the crypto bots be trusted?

In general, Trading Bots are an appropriate option even for professional traders, but in the end, human intervention is necessary to obtain the best results and achieve more profits, as relying on Trading Bots in full is still an inappropriate idea today. However, as is the case with any other software, trading bots are subject to some programming problems that may lead to errors or to the bot completely stopping work, for example.

It is important to choose trading bots with credibility or a good reputation in this field, and even though they must be on constant caution from them, some fraud occurred in the past as a result of the use of bots that were found to be designed to deceive even though they were considered reliable before, as investors lost At that time the authority to access their money and assets was valid and they were unable to withdraw it.

In the event that you are seeking passive income, i.e. making profits without having to physically and permanently be present in the investment department, Trading Bots will not be able to secure that, as they still need human intervention to allocate them and apply the appropriate strategies or Until its performance is checked every period, but in the end, the risks of trading by mistake will be less when using the bot compared to trading operations in the traditional way.


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