In the world of today, we are witnessing the advancement of artificial intelligence and fears of robots taking over our workspace/home chores leading to predictions of a time when we will have to stay at home unemployed while the robot does all the work.
More so, this is also happening in the crypto space with steemit not left out as bot especially upvote bots have taken over curation leading to many active users having low morale to keep creating good content. ( I hope this is looked into in steemit so we go back to when folks curate good contents)
For those of us who also apart from blogging in this great platform steemit provides, are into trading of crypto's, some of us do experience bots trading as such hindering genuine traders from doing their daily trades uninterrupted. This is already causing more worries in many crypto exchanges due to the activities of trading bots.
In a recent article posted by Kai Sedgwick in Bitcoin news captioned " Do Crypto Trading Bots Really Work?" he explained that;
There are several types of trading bots available including arbitrage (arb) bots that capitalize on the difference in prices across exchanges. The price of bitcoin usually differs from exchange to exchange; Bitstamp, for example, typically displays a slightly lower price than Bittrex. The movements of bitcoin and other cryptocurrencies is always mirrored across exchanges, however, so if BTC breaks out due to a massive buy order on Binance, you can bet that the other exchanges will follow suit. Bots work by profiting from the delay it takes for prices to update across all exchanges.
hmmm.... doesn't this sounds interesting... So, how profitable are trading bot? Well, to find out continue reading below;
To make any sort of tangible profit from bot trading, you ideally need a stack of crypto to start with. If you’re running a bitcoin arb bot, for example, you’ll need BTC deposited on multiple exchanges that are connected to your bot via API. And even if you do have a healthy spread of coins, the returns can be slight. Romano – Viacoin developer and well-known crypto trader – claims the Hass bot he uses can make “0.26 BTC ($2K) a day by using 9 BTC for example just by using market inefficiencies” before adding that he doesn’t use the market maker bot that comes with Hass and cautioning that it’s “only for skilled traders”
He further surmised that;
Arb trading can be likened to playing online poker. If you’re good at setting up your bots, you can make a living off it, but you’ve got to grind it out. Crypto trading bots are reminiscent of those money-making Forex programs that you find “veteran traders” trying to flog. If those Forex guys are as rich and successful as they profess to be, wouldn’t they be better served keeping that esoteric knowledge to themselves rather than offloading it to the masses for $100 a month? In other words, beware of geeks bearing bots.
Below are some examples of trading bots
A slew of tokenized projects has emerged that promise “algorithmically-based smarter trading delivered via AI and machine learning” or words to that effect. These systems also utilize bots, but their claims of profitability have yet to be proven. If one of these new platforms were to deliver the goods and provide consistently high returns, crypto traders would flock to it, which simply hasn’t happened.
There is no doubt that machine learning has the potential to yield more profitable trading, but there is also no doubt that a lot of the claims attributed to AI should be filed under As If.
These are the most popular crypto bots on the market (and should only be tried at your own risk):
Haasbot allows for automated trading across all major bitcoin exchanges, with monthly subscriptions starting from .073 BTC
Profit Trailer allows you to average down on coins you buy into using bots, although there’s no guarantee that doing so will lead to eventual profit. It starts at $35 p/m
Cryptohopper is a cloud-based trading bot that starts from $19 per month
Gekko is free and open source but you need to tell it what to do and thus it’s only as smart as you are
Cryptotrader also needs to be programmed and starts from .0048 BTC for a Pro account (Basic is cheaper but too basic)
Others, such as BTC Robot, are so spammy and scammy that you will not even find a link ( from the source). For traders seeking a passive income or “easy money,” there really is none to be had. The reality is that bots are trading tools rather than workhorses that will set up and execute winning trades on your behalf. In using bots, you also leave yourself open to the possibility of scammy developers or flash crashes, either of which can liquidate your crypto.
So be warned guys...
Read up more from source
Even if you can find a system that delivers modest returns, you may wish to ask yourself this: What would you rather have – a bot that can turn 5 BTC into 5.1 BTC every week or the freedom of having 5 BTC free to invest in a simple day trading strategy? Bots can do a lot, but as it stands, they can’t factor in fundamental analysis, breaking news, insider knowledge and the myriad other factors that make markets move.
For me, no matter how sophisticated and useful a bot might be, there is nothing like doing these things yourself based on your own judgment which relates more to the current trending news or speculations. Doing the same thing after a time makes one perfect as long as your trading is not based on FUD or FOMO.
My question is, do you know or used/using any trading bot, if so how profitable is it.
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Wishing us a wonderful week ahead
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