Crypto bots – Bitcoin robots, why they don’t work… yet
Crypto bots or Bitcoin robots are basically software used for trading which is able to interact with financial exchanges often times making use of API’s to make buy and sell orders on the behalf of users depending on the market data interpretation. These bots in question are able to perform this activity by carefully monitoring the price movement of the market, thus, reacting on a set of pre-programmed or pre-determined market rules. These bots are able to analyze certain market actions like; price, orders, time, and volume. Also, they can be programmed to ensure that it suits your unique preference and taste.
In the last couple of years, these crypto bots have gained much popularity in tons of conventional and unconventional financial markets. Although they have gained much popularity, they are still inaccessible to average investors because of their cost. The main intention behind these crypto bots is that they were made for those that trade Bitcoin passively, thus, making it difficult for them to dedicate a considerable amount of time to carefully study market trends. These bots were designed to help them make more efficient trading without necessarily having to keep up with the market.
Why These Crypto Bots Do Not Work
There are tons of reasons why these crypto bots do not work. In this section, we will discuss some of the reasons why these bots do not work. These reasons include;
- Small market; the size of the market makes it difficult for these bots to analyze market actions. The size of the market makes it difficult for these bots to operate.
- Manipulation of the market; while most of the crypto robots claim to offer you the opportunity to place sell and buy orders, you will find it surprising to know that this is not possible as there are forces that manipulate the market, thus, making it a whole lot difficult for these crypt bots to carefully monitor price and volume orders. Forex robots offer more transparency. Human market manipulation is one thing that has hindered the success of these bots. While these bots are made with a pre-programmed set of rules, a slight manipulation in the market would greatly affect its effectiveness.
- The market fluctuations; one of the main features of the crypto market is that of volatility, which is the fall and rise of cryptos prices. This fluctuation in price could happen anytime and it happens to be the leading factor that makes these bots non-functional.
- The price; first, these bots seek to monopolize crypto trading, ensuring that only institutional investors are able to gain access to their acclaimed features. The cost of these bots has them non-functional.
Hard to find any live account results
To give any crypto bot a fair chance I tried to find some live results. I checked many websites like Gunbot but could not find one live track record. All i found were happy demo traders. But hey, in case you can help me out, leave a message and I will dive into it.
Bitcoin rules the market
Check out this table. Bitcoin rules, if this coin drops, the rest will follow.
Profits are small based on small volumes
Seems that the big players just buy enough coins to remain in the “green zone”.
These crypto robots claim to offer crypto investors access to market prices as well as help them place both the sell and buy orders. While most people have referred to these bots as scams, we have discussed some of the points why these bots do not work. The size of the market, the volatile nature of the market, the human market manipulations have made it difficult for these bots to operate.
Now do I give up on finding a good performing crypto robot? NO! But developers first need to show me some proof, thus a live account! Until then I have a preference for forex robots.