5 good reasons to opt for a trading bot

I am often asked a lot of questions following my top 5 of the best cryptocurrencies tradind bot.

In particular, I am asked whether it is useful, obligatory or practical to use a trading bot. So, I decided to write this article to talk about the advantages of using a trading bot when looking to trade.

Likewise, you should know that there is a slight difference between Forex type trading for example (classic trading) and cryptocurrency trading. Even if the operating mechanisms are the same, the markets are slightly different. In what? Well, it's mostly in volatility that these two types of market are clearly distinguishable.

This high volatility implies a different way of trading. You then have to be much faster, faster and more agile to trade cryptocurrencies. This is why we generally use trading bots when it comes to cryptocurrencies. I would add that even in classic trading, high-frequency trading via robots is also widely used.

Let's take a closer look at this and see the 5 reasons that will definitely make you opt for a trading bot.

1. Bots are proven

In 2014, 75% of all trades on the New York Stock Exchange were conducted through automated trading systems (ATS). For what? Because since their introduction, they have proven to be much more effective than manual trading. Additionally, early adopters of ATS were the real winners because they were competing against a market controlled by humans. Of course, manual trading will always be less effective than that of robots for the simple reason that the bot has no emotional problems, it has no fatigue problem and it remains “programmed” to perform as many tasks. actions as necessary.

2. Bots surpass human capabilities

Let me put it this way, but you get the idea I think. Humans have a lot of needs and get tired quickly.

A good trader is a trader who accurately tracks stock prices. He also follows and interprets major political and economic events as accurately as he can. This requires incredible rigor. However, human beings must also rest and it is often during these hours of rest that they “miss” events or arrive too late to make a decision. The robots…well, they don’t sleep. Day and night, they analyze the markets. This is also why they are much more efficient than humans when it comes to trading.

3. Bots don't have to deal with emotions

Sure, you might be good at writing a love poem or a punchline on Youtube, but when it comes to trading, you're asked to suppress your emotions. For this, robots are simply better because they are 100% rational. The word rational is very important in trading. This is what will actually allow you to make a profit. For example, has something like this happened to you? Did you panic when you saw the curve drop? You then decide to sell in a hurry and a few minutes later, you see the curve going back up??

Why did you stop the order? Because emotionally, you were panicked. You believed (from the verb believe, eh) that it was going to drop continuously, eh? You didn't set a significant stop loss and so you thought you'd lose everything? In short, if this has already happened to you, it simply means that you really trade. It's such a basic situation, as you know. And, this reaction is simply human.

I'm not talking about FOMO etc. What I want to show here is that emotions can prevent you from trading well. Which is not the case with a bot.

4. They are an extension of your manual trading

Yes, it is also very important to mention this. Most people who discover the existence of trading bots think that it is an absolutely objective bot, which has been programmed ex nihilo to do trading.

But that's not how it works. In fact, you are the one who configures your trading bot. You enter the settings. The goal of a trading bot is to simply delegate the work to software.

It is therefore your extension to trade automatically. Your bot won't work until you configure it.

It's up to you to adjust and refine his decisions so that he can trade exactly like YOU would if you had the time and energy to trade in front of your computer all day.

The active bot is therefore a reflection of you and your trading style. Of course, you can also opt for an already programmed bot. This is also why many bot trading platforms like 3commas ou Cryptohopp is are very successful. You can in fact opt for bots already configured (by other expert traders) and choose them according to their performance. It is indeed very practical.

5. They are easy to use

Okay, okay, they're great at trading - even better than humans, but that also means they must be complicated... That's just WRONG. If you have ever tried trading on your own, you will see that there is a gap between manual trading and trading with bots.

You don't need a PhD in mathematics to control a trading bot. These bots were designed to be easy to install and get started. Moreover, often, on trading bot platforms, there are always tutorials and explanatory videos. For example, I made a little tutorial on how to use Cryptohopper, if this interests you.

Discover Cryptohopper

I hope this has answered your questions regarding trading bots. If you have any other questions about this, don't hesitate!

Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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