10 crypto insiders share their advice for traders considering trading bots
Investment marketplaces — particularly the volatile cryptocurrency market — move at lightning speed and operate around the clock. It’s not surprising that crypto traders would consider leveraging trading bots, which can monitor the market 24/7, analyze ever-inflowing and changing data and follow established instructions to automatically buy and sell crypto. Bots don’t need sleep and won’t make mistakes due to fatigue, impulse or emotion, and they can react in a fraction of a second.
Bots can be incredibly valuable tools for crypto traders, but along with their many advantages, they do have significant limitations as well. If traders rely too heavily or uncritically on bots, the results may not be what they were hoping for. Below, 10 members of Cointelegraph Innovation Circle share their advice for traders who are considering adding trading bots to their investment toolkits — their counsel can help both experienced and new traders leverage bots both wisely and well.
As is noted in conversations around innovations in artificial intelligence, technology is always limited by its programming, and crypto participants would be wise to remember that. Therefore, when choosing to utilize trading bots, it’s imperative to tailor expectations and maintain constant touch points to ensure they’re carrying out actions as specified. Traders who opt to put their finances on autopilot tend to regret that flight path. – Oleksandr Lutskevych, CEX.IO
With respect to utilizing bots on-chain, ensure you utilize a trusted exchange with reliable developers. Your trades are at the mercy of code, so ensure you’re utilizing an exchange that satisfies your risk tolerance. Always do your own research and understand that any trade, with or without a bot,
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