The Advantages and Disadvantages of Using Bots on Cryptocurrency Exchange

Stock trading robots are add-on programs that connect to the API of trading terminals. They perform different tasks: they collect information about the current state of the market and place buy and sell orders according to parameters and algorithms specified by the trader.

The main advantages of cryptocurrency trading robots:

Decision making speed. Even experienced traders need some time to analyze the market situation. Beginners are still slower. As a result, the trading opportunity may be missed. In order to avoid such situations, many traders prefer to use bots. They analyze everything much faster and make decisions more quickly than humans.

The ability to analyze an unlimited number of pairs. If we compare the bot with the person in this parameter, the advantage again turns out to be on the side of the first. A person is simply not able to analyze a large number of assets and make an adequate decision. But some try to provide this work to bots, using only ready-made results from the work.

No errors in the algorithm. A person in the process of market analysis can make mistakes. This is due not only to the level of training, but also to the psychological state of the trader. Bots work clearly within the framework of the algorithm. If there is a signal, it will use it.