There are a lot of rumors and misconceptions around automatic cryptocurrency trading. Some consider it a scam, others do not understand the mechanism of work at all.
Today, technology allows you to fully automate some trading processes. For example, market analysis, trend forecasting and order execution. Thus, there is more time for planning and a solid foundation is created for successful cryptocurrency trading.
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The role of bots in trading
Automated trading works with the help of special computer programs (trading bots). Bots control the buying and selling of digital assets. The application allows you to monitor changes in the market in order to choose the best time to trade. The automatic mechanism eliminates uncertainty and the occurrence of force majeure (for example, a sudden shutdown of the Internet).
Cryptobots can use smart contracts and work with the blockchain, or they can be an API.
API - a software interface with tools for working with a cryptocurrency exchange. It allows developers to extend the functionality of their product and link it to others. Bots with API open and close positions on behalf of the user, in accordance with the established conditions.
Automated trading has a number of advantages over manual trading. These include: smooth operation, tracking market trends 24/7, saving rules and strategies, and much more.
There are several types of bots for trading: exchange, arbitrage, working in telegram channels, as well as bots for collecting cryptocurrency through faucets.
Is automated trading profitable?
Despite their advantages, cryptocurrency trading bots also have disadvantages, as well as some risks. First of all, it is worth highlighting the high initial costs and maintenance costs. To properly set up the functions of the bot, you need to have an understanding of the market and trading tools.
The cost of using a bot depends on its features. Some programs are free, others can cost around $200 a month.
Is it legal to use crypto bots?
Jurisdiction does not prohibit the use of a trading bot in countries where cryptocurrency is allowed. At the moment, automated trading is a common phenomenon that is gaining momentum every day.
The release of the bot does not violate any law, as this program simply helps to make transactions without human intervention. However, it is worth choosing only trusted bots, as some consumers are faced with fraud.
Earlier, news appeared that scammers from Lazarus attacked Japanese exchanges.
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