Wikipedia defines a trading bot as a software program that interacts directly with financial exchanges (often using API’s to obtain and interpret relevant information) and places buy or sell orders on behalf of a person depending on the interpretation of the market data. This simply means that a trading bot is an online bot that performs trades on your behalf with algorithms. The main reason why people make use of Crypto trading bots is because it helps them perform the trade and make money in the Crypto market without them wasting their time doing the trade themselves. There are many Crypto trading bots online; some are free while some are paid for and really expensive. Contrary to what many people think, using a Crypto trading Bot may not be allowed on some crypto trading platforms but it is considered legal in crypto market.
Below are the top 3 reasons why people prefer Crypto trading bots;
- They trade with efficiency
- They perform trades faster than a normal human being
- They trade for 24 hours daily
DO THEY WORK?
For beginners in crypto trading, crypto trading bots can be of good assistance as it helps to trade on your behalf and also makes the process faster but don’t think it is a get money quick platform; you also have to do some work for it to be effective. You will have to choose trades and transactions that you want the trading bot to focus on, if you make the wrong choices you will most certainly lose your money. It is advisable to invest the least minimal amount you can when using a crypto trading bot, Why is this? It is simply because many Crypto trading bots promise many benefits and rewards but the truth is that by using a crypto trading bot you are taking a financial risk because they are not humans that you can interact directly with, they are computer programs and can develop fault and crash at any time. As it is with every other online activity, there are some real and genuine crypto trading bots while there are many scam ones in the internet especially the free ones.
Below are some of the most popular crypto trading bots;
- Gekko
- 3Commas
- Cryptohopper
- Autonio
- Gunbot
- Haasbot
- ZenBot
However, before you using any of these platforms, make sure you inquire about them and know how they operate.
CONCLUSION
In conclusion, it can be agreed that crypto trading bots can be seen as a rewarding tool that trade on your behalf and can yield income but the truth is Crypto trading bots has done more harm than good to the crypto currency market because there are more scam bots than genuine ones on the internet. The question of Do they work? Can be simply answered with “Few works while many do not”. If I should speak for majority, I would say it is better for you to do your trading yourself than using a Crypto trading bot but if you want to use one, make sure you research properly and trade carefully.