5 Reasons Why Cryptocurrency Trading Bots Are an Industry Boom - Coindoo
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5 Reasons Why Cryptocurrency Trading Bots Are an Industry Boom

Editorial Team Avatar
Sep 10, 2018
3 min reading time

Nowadays, when it comes to crypto exchanges, there is still a great volume of trading carried out by human traders. Nonetheless, this trend is quickly being reversed in favor of automated trading solutions, also known as trading bots. Let’s analyze the main reasons why trading bots are growing in popularity:

1. Efficiency

Machines can perform tasks at a much higher rate of speed than human beings can. In fact, it is well known that 99% of Wall Street trading is conducted by bots. According to the cryptocurrency market, the percentage of transactions carried out by bots is on the rise.

2. Comfort

At the present time, everything tends to be automated. Not many years ago, things that currently seem essential to us were nothing short of science fiction. More and more people value their time and choose to automate tasks by using kitchen robots, cleaning robots, even online game farming bots and, of course, cryptocurrency trading bots. Who would rather spend a whole day glued to a screen when a software can perfectly do that job for you?

3. Ease of use

The first generations of cryptocurrency trading bots were complex for novice users. However, the latest generations have improved a lot in this regard. Currently, the most popular commercial trading bot is Gunbot. This bot has gained popularity precisely because it knows how to combine a simple graphical user interface for novices and customized features for advanced traders. Gunbot has managed to combine a friendly graphical interface, with built-in trading strategies, leading to the “democratization” of trading bots.

Other bots such as HaasBot, Gekko, and Cryptohopper are also worth mentioning. Haasbot is one of the most advanced bots and, at the same time, the most expensive one – but it offers quality services.  Gekko is an open source bot that allows us to execute different trading strategies, and Cryptohopper is a recently launched bot that is getting extremely popular with time.

4. Time is money

Learning the trade of a trader is not an easy task. There are several strategies, indicators, ways of analyzing graphs, etc. Many people are only interested in profit and want to save the tedious task of trading. Hence, they simply prefer to use automated software to trade in their own place and spend their time in activities that they find appealing. On the other hand, many expert traders end up with serious stress-related illnesses, due to the constant market monitoring, permanent analysis of indicators, and prolonged screen exposure. As a consequence, many of them believe that having a bot doing their job 24/7 on an automated basis is a blessing.

5. Need for income

Many countries are still stricken by the economic crisis that began in 2008. Except for a few notable exceptions, unemployment rates remain high while wages fall or lie below the CPI. This has pushed many people to look for ways to make money online, and trading bots have become one of the few reliable, feasible and high return methods. It’s important to note, however, that not all of these crypto trading robots deliver on their promises.

Bots’ community, with over dozens of thousands of users worldwide, is growing very fast. In a short time, things will change radically, and having a self-driving car or a trading bot working for us will be as common as having a mobile phone is today. The future is here.

Image source: https://bitcoinexchangeguide.com
* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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