Steve Wozniak, of Apple fame and Silicon Valley legend, once told CNBC that “as a rule, I don’t invest often, because you’ve got to be watching it every day.” Despite the mathematical beauty that can be found in the world of investing, Steve and many others share this sentiment.
Investing, either day-trading or holding on to stocks for the long haul can be an incredibly lucrative endeavor. Researching companies and calculating their worth based on public opinion and market statistics can even be addicting. Regardless, watching your money yo-yo through a stock app on your new phone is never fun and can frankly be emotionally distressing.
This is where automated trading comes in. Trading bots, like Bitcoin Prime, used on either cryptocurrency or stock exchanges are essentially pieces of software that follow programmed trading advice to a T.
Where one person would need to constantly check for a crash in their token’s price and reactively sell it, the trading bot would preemptively sell before losing too much value. Likewise, if a coin gains a set amount of value, a trading bot can be programmed to sell for instant profit.
Although large investment firms have been using automation for decades, domestic bot use started back in 2014. HaasOnline has provided a solution to high-frequency trading in traditional stocks and shares and crypto since the early 2010s, offering an open-source toolkit.
HaasOnline paved the road for others to race by; open and available dev kits are powerful when taken advantage of by the general public. Pioneers in financial technology, whether hobbyists or actual companies, have improved tenfold on HaasOnline’s original concept to create trading strategies that take advantage of every crack in the financial system possible.
Despite this, trading bots are still mostly unregulated. Whilst cryptocurrency is being taxed more and more worldwide, crypto trading bots remain a niche that has avoided the public eye. Dodgy bots and inefficient programs have thus become landmines that need to be avoided through reviews.
The technology is becoming exceptionally mainstream with the rising prevalence of crypto trading bots in traditional trading circles. If everyone follows the same bots and patterns, the opportunity for profit in this literal gold rush period will dry up rapidly.
Automated trading will soon see its heyday as well. The bots’ inability to see conventional human emotion makes them less susceptible to the volatile market conditions of the modern cryptocurrency market. No matter the ups and downs of the market, if your bot is programmed intelligently by a company that you trust, there’s a good chance you will make a profit.
Following the current downturn, a new high for many coins will be established in the coming months of the year. 2023 is looking like a bounce-back year for many traditionally strong coins as the world takes another look at the crypto market.