Facts on Crypto Currency Bot Trading
A common feature among all cryptocurrencies is that they are very volatile. They can rise rapidly over a couple of hours and drop just as rapidly. Cryptocurrency traders still utilize tools like technical analysis to guide them. There are two kinds of traders- the ones that use old-school trading methods and the ones that have embraced technology and use bots.
One of the advantages of crypto trading bots is that they make trading easier but the user needs to know what they are doing. Bot trading is letting a computer program handle cryptocurrency trading for you. Bots are computer software that connect to coin exchanges then conduct trades as per the instructions of the trader programmed in them. Bots interpret a market based on various factors like volume, price movement and time. Most trading bots can be customized to the needs of the trader.
Just like any other Internet business, the cryptocurrency is riddled with scammers and faulty bots. You need to do your due diligence to make sure that the bot you settle on will perform as per your expectations. You can get good information on the bot you want to pay for by asking on online forums for cryptocurrency enthusiasts. Steer clear of companies that have negative reviews and a lot of customer complains.
Trading bots have been around longer that cryptocurrencies. The reason, why they have never been popular for the traditional investor, is because they have no direct market access. Normally, although traders trade in real time but for the trade to be effected a brokerage firm must fulfill the trade. Things are different in the cryptocurrency space since all traders have direct market access thus they can opt to use bots to do all the work for them.
Crpto currency exchanges never close-they are always running.This aspect creates many opportunities for traders and also creates issues too. The fact that the market is open means that there are more opportunities for you to capitalize on. The downside is that you can never be awake for 24 hours a day thus the market can crash without you knowing it. The good thing is that with a trading bot you can sleep in peace and let the bot handle all your trading needs.
Benefits of using trading bots
Bots can run continuously without fatigue thus they will trade for you even when you go to bed. Bots reduce the risk of human error since they have set instructions that they follow. These and other facts could explain why crypto trading bots have become very popular.