The crypto market is absolutely flooded with interesting products and new innovations to make an investor’s life a tad bit easier. Considering how volatile the crypto space is, it is only fair that an investor gets some amount of help in making his or her investment decisions. One intriguing thing that is frequently employed to help an investor is the crypto trading bot. Available in both paid and free forms, these seem to be in frequent use today. Are crypto trading bots legit or a scam? Let’s find out.
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Why Do You Need Crypto Trading Bots?
An investor is a human being and he/she obviously cannot give up on food, sleep and all other normal activities just to be able to track the market and make correct investment decisions.
Yet, given how volatile the market actually is, given how Bitcoin’s price moves so much, as do the prices of other cryptocurrencies, it becomes increasingly imperative to keep a watch on the market movements literally all the time.
To fill in the gap a human being cannot, a trading bot comes in. For traditional financial markets, trading bots usually happen to be rather expensive. But the crypto scene is peppered with a lot of options, ranging from free to high-priced. Let us now see if they are even legit in the first place.
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Are Crypto Trading Bots Legit?
Now, since the crypto market is absolutely flooded with a very large number of trading bots, it is hard to pass a blanket judgement about the legitimacy of the entire class of product. There are indeed some legit crypto trading bots that you can definitely go for, in order to make your task of investing in crypto easier.
For identifying the best crypto trading bots out there, you must conduct a fair bit of research into the pros and cons of some of the more popular crypto trading bots. Having said that, there are some issues one must keep in mind when it comes to using trading bots.
Even if they are not scams, trading bots are limited in terms of the extent of their cognition. They can mostly just go through market statistics like crypto volume, prices etc. and assess them to make investment decisions.
They have no way of taking into account social factors such as new launches, announcements, influencer tweets etc. which can all effectively affect crypto prices.
Sometimes, these bots can indeed be programmed to react to coins crossing certain thresholds and they can be taught to respond to a certain standard of an EMA (estimated moving average). Even then, the bots respond to past trends, which do not accurately foretell what is going to happen to coin prices in the future.
Barring these factors, some crypto trading bots can indeed be quite reliable. Some of the more popular ones among these include 3Commas, CryptoHopper, CryptoTrader, Haasbot and Zignaly.
Choose wisely and always remember that a crypto trading bot is meant to complement your investment tracking and not replace your role in it.
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