By Though I don’t believe “bot trading” is as profitable as actual human professional traders, most of the major exchanges do allow APIs Bot integrations for auto traders. Kucoin, Binance and HitBTC all do, for sure.
While I understand the idea behind using an automated trading bot, with a market that is only emerging, bots are incapable of taking into considerations many of the changes in the crypto-sector. In more developed sectors like Forex, bots work well as the spreads tend to be much smaller. Also, as the majority of investors in cryptocurrency are amateurs with little market experience, “panic selling” and FOMO (fear of missing out) buying, tends to happen a lot more. Bots in this sector tend to cut shorting opportunities too early in a panic sell and take profits earlier than experienced human traders would in a buying frenzy.
I do, however, agree completely, that professional tools and trader/brokers are needed in the sector. I find it incredible that investors would attempt to day trade or handle their own portfolios 99% of the time in cryptocurrency markets, while in traditional markets less than 1% do. In those traditional markets, most people stick with brokers and traders with years of experience. In this market, it seems that everyone thinks they are a professional or a pundit.
I think the main reason for that is most people have enjoyed a great deal of success, due to the general bullish nature the market has enjoyed. Most professionals agree, during a bull market, anyone can make a decent return. When the market becomes bearish, however, that will change and more people will seek out professionals. Since the meltdown of the markets over the first half of 2018, many more people are seeking professional help and looking for quality publications like CoinBeat to keep them up to date and ahead of the informational demand in the sector.
Trading bots are great and while some will definitely be profitable, I do think they have a long way to go before automation in the cryptocurrency sector is at a level anywhere near the conventional markets. But most of the major exchanges do have the potential to be connected to such tools.
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