Crypto currency trading is a relatively new concept. But within a short span the concept has gained a lot of momentum and is now popular among traders around the world. As an instrument of trading crypto currency is quite different from the other instruments out there. The way crypto currencies behave, the factors that influence their growth and the probability of making large profits in a short time are all different. There are very few factors that are known to stop the crypto currencies’ value from growing. The impulsive decision by a bunch of buyers after some major political events might, for example, be a trigger in momentary drops. But the patterns are very different.
Bots are here!
Crypto trading with bots can be very much similar to trading with bots in other trading instruments. The underlying concept remains the same. Bots like Ethererum Code are created by writing a code that makes it easy to automate trading. Automation in general can be done by observing the common processes and patterns and making machines do the mundane tasks thus saving the end users’ time. In trading there is the process of market analysis where most decisions are based on technical analysis taking into consideration a handful of parameters. Trading bots achieve this by making the machine do the market study and then the results of the comparison would be based on the performance of the various currencies when they are compare with the same parameters. In the end the currency that has the highest probability of growth would be chosen as the ideal investment option. So the user can cut down the time spent in analyzing the market. The time spent on placing an order would also be reduced.
Bots aren’t perfect
After all every strong bot out there has some imperfections. If the bot is self-learning then it might have a competitive edge over the others. But most bots might soon get outdated as the market volatility never changes. Creating a trading bot is very simple and there are many who can launch a bot. There is not enough information about how many of them are tested with real market data and how many are launched simply after backtesting with limited data. The simulated results shown on the websites are often manipulative and might not be the best indicators that the trading bot is really worth trusting. So it makes perfect sense for every trader to learn about crypto trading while also using the bots.