Is it advisable to use bots to trade cryptocurrencies?
Share on Facebook Share on LinkedIn Share on Pinterest Share to Email Share on Telegram Share on WhatsApp  The cryptocurrency market never closes and therefore it is impossible to always be on the lookout for huge price fluctuations. Not a few people have seen their profits evaporate (or multiply by 100) when they were not in front of their trusted exchange. Because of this, cryptocurrency trading bots are an increasingly prevalent reality. Bots can be very useful tools when trading cryptocurrencies and can help avoid unforeseen events when prices fluctuate a lot. First, you have to explain what what is a trading bot. A trading bot is nothing more than a program that is dedicated to operating our cryptocurrencies automatically based on pre-established parameters. That is, a bot can be programmed to sell a certain percentage of our portfolio of, for example, Bitcoin, when the price drops more than 5% and buy again when it drops an additional 10%. There are several ways to get hold of a bot with these characteristics. The first, and best, is to do it yourself. In this way, you can be sure that the bot will not do strange things, you will not have to pay any commission to anyone and you will have full control over it. Unfortunately, programming a bot requires skills that not everyone has. But do not spread panic. There are various online tools that allow you to buy a bot and even configure one. These can be connected to most exchanges through the API. We already tell you how to use Coinrule, a fully programmable bot with a free version. Most of these pages charge to use their bots, or at least block advanced features behind a paywall. First of all, you have to take into account the advantages of a bot. They are practically instantaneous (or at least much faster than a human), they can do many operations at once, they never rest and, for practical purposes, they can be everywhere at once. This can be seen in the so-called arbitrage bots, which examine a large number of exchanges for price differences (since a cryptocurrency does not have exactly the same value on different pages) to take advantage of them. Being able to get away from the computer knowing that a bot will automatically sell or buy if there is a catastrophic market movement can provide a lot of peace of mind, but it is better to keep in mind that they are not infallible. A bot has no intelligence, so it will simply execute the command without any consideration. This means that, in the face of unforeseen situations (of which abound in the world of cryptocurrencies), they may not be the best tool. Its use, in general, is limited, and if you are looking for great complexity (a large number of parameters) you have to pay for it. In addition, they can be dangerous. If someone in a forum offers their own bot of goodwill, the most sensible thing would be to distrust, as it is more than possible that it is a scam. Using bots is a perfect complement to in-person trading, to be used as a safeguard against unexpected movements when not in front of the computer and to take advantage of lateral market movements. But in no case is it wise to delegate all cryptocurrency activity to a bot, and sometimes, it is not profitable to pay for one when the same effect can be achieved by scheduling buy and sell orders in advance. .