{"id":163502,"date":"2023-09-27T07:14:11","date_gmt":"2023-09-27T01:44:11","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=163502"},"modified":"2023-09-27T07:14:11","modified_gmt":"2023-09-27T01:44:11","slug":"10-crypto-insiders-share-their-advice-for-traders-considering-trading-bots-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/10-crypto-insiders-share-their-advice-for-traders-considering-trading-bots-crypto-news\/","title":{"rendered":"10 crypto insiders share their advice for traders considering trading bots – Crypto News"},"content":{"rendered":"
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Investment marketplaces \u2014 particularly the volatile cryptocurrency market \u2014 move at lightning speed and operate around the clock. It\u2019s not surprising that crypto traders would consider leveraging trading bots, which can monitor the market 24\/7, analyze ever-inflowing and changing data and follow established instructions to automatically buy and sell crypto. Bots don\u2019t need sleep and won\u2019t make mistakes due to fatigue, impulse or emotion, and they can react in a fraction of a second.<\/p>\n

Bots can be incredibly valuable tools for crypto traders, but along with their many advantages, they do have significant limitations as well. If traders rely too heavily or uncritically on bots, the results may not be what they were hoping for. Below, 10 members of Cointelegraph Innovation Circle<\/a> share their advice for traders who are considering adding trading bots to their investment toolkits \u2014 their counsel can help both experienced and new traders leverage bots both wisely and well.<\/p>\n

Maintain constant touch points<\/h2>\n

As is noted in conversations around innovations in artificial intelligence, technology is always limited by its programming, and crypto participants would be wise to remember that. Therefore, when choosing to utilize trading bots, it\u2019s imperative to tailor expectations and maintain constant touch points to ensure they\u2019re carrying out actions as specified. Traders who opt to put their finances on autopilot tend to regret that flight path. \u2013 Oleksandr Lutskevych<\/a>, CEX.IO<\/a><\/p>\n

Utilize a trusted exchange<\/h2>\n

With respect to utilizing bots on-chain, ensure you utilize a trusted exchange with reliable developers. Your trades are at the mercy of code, so ensure you\u2019re utilizing an exchange that satisfies your risk tolerance. Always do your own research and understand that any trade, with or without a bot, bears a risk. \u2013 Megan Nyvold<\/a>, BingX<\/a><\/p>\n

Know that a bot\u2019s performance can suffer during unpredictable events<\/h2>\n

Traders should remember that while trading bots can automate and optimize transactions, they lack human intuition and can\u2019t adapt to unexpected market changes. These bots are bound by preset rules, and their performance can suffer during unpredictable market events. Hence, supervision and periodic manual intervention are essential. \u2013 Tomer Warschauer Nuni<\/a>, Kryptomon<\/a><\/p>\n

Be wary of bots that rely solely on historical data<\/h2>\n

Traders should be cautious with bots that rely solely on historical data. Unexpected events like regulatory changes or technological advancements could cause significant market changes that bots may miss. Traders need to have a broader understanding of the market to anticipate and adjust to these changes. \u2013 Vinita Rathi<\/a>, Systango<\/a><\/p>\n

Understand when your human intuition may be needed<\/h2>\n

Trading bots are not foolproof. They\u2019re still subject to technical issues, software bugs and sudden market changes, which can lead to substantial losses. The lack of human intuition plays a role here. Certain events can have an impact on the market that bots may not be programmed to handle. Regular monitoring and risk management are crucial when using trading bots for crypto. \u2013 Anthony Georgiades<\/a>, Pastel Network<\/a><\/p>\n

Be cognizant of all the variables that can occur in a trade<\/h2>\n

Traders should always keep in mind all of the situations \u2014 such as false breakouts \u2014 that might occur while making a trade. Further, most of the indicators used in trading are not of an exact nature and can mislead a bot if it\u2019s not well-programmed. Traders should always keep up with constant monitoring, even if they are using bots. \u2013 Abhishek Singh<\/a>, Acknoledger<\/a><\/p>\n

Research the impact AI is having<\/h2>\n

Artificial intelligence has changed the trading bot game. In the past, a bot\u2019s limitations would have included over-optimization, impeding its capacity to handle current events; a lack of human intuition; and the inability to react correctly to unexpected volatility. With AI, trading bots are starting to run with the required \u201chuman element.\u201d Despite this, however, programming issues will still persist. \u2013 Sheraz Ahmed<\/a>, STORM Partners<\/a><\/p>\n

Get familiar with how bots analyze information<\/h2>\n

Most trading bots rely on Wyckoff<\/a> chart analysis techniques, which are great for technical analysis. But if a fundamental event happens that no one has factored into the price, expect what looked like a \u201csure bull pattern\u201d to head south. Always monitor what is happening with a trade. \u2013 Zain Jaffer<\/a>, Zain Ventures<\/a><\/p>\n

Don\u2019t miss swing-trading opportunities<\/h2>\n

While trading bots are great at eliminating emotions while trading, they also lack decision-making skills and reactivity. While you can program stop-loss orders and take-profit targets, sudden, wild swings are often when human traders are able to take profitable advantage of the market with an immediate strategy change. Bots can\u2019t. Be sure to set alarms so you never miss a swing-trading opportunity! \u2013 Tiago Ser\u00f4dio<\/a>, Partisia Blockchain<\/a><\/p>\n

Remember the importance of mood in the crypto market<\/h2>\n

Trading bots\u2019 pre-programmed algorithms can\u2019t predict human sentiment or market changes, a less-obvious drawback. They cannot \u201cfeel\u201d the market\u2019s mood, which is vital in highly speculative and emotionally driven crypto markets. They may ignore market sentiment on social media, news events and regulatory developments, which can greatly affect Bitcoin pricing. \u2013 Arvin Khamseh<\/a>, SOLDOUT NFTs<\/a><\/p>\n

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This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Investment marketplaces \u2014 particularly the volatile cryptocurrency market \u2014 move at lightning speed and operate around the clock. It\u2019s not surprising that crypto traders would consider leveraging trading bots, which can monitor the market 24\/7, analyze ever-inflowing and changing data and follow established instructions to automatically buy and sell crypto. Bots don\u2019t need sleep and […]<\/p>\n","protected":false},"author":2,"featured_media":163503,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-163502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/163502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=163502"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/163502\/revisions"}],"predecessor-version":[{"id":163505,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/163502\/revisions\/163505"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/163503"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=163502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=163502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=163502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}