Making a profit in the crypto industry isn’t easy. On the contrary, one needs to dedicate plenty of time and effort in order to stand a chance of being a successful trader. To assist crypto investors with this issue, enterprising developers have come up with a tool that can automate some of your trading activity – a crypto trading bot.
Following the emergence of these automated trading bots, plenty of myths surrounding the bots began to appear among users. Now, it’s time to dispel those myths. After all, not knowing what you’re getting into when using a trading bot will only lead to monetary loss. Therefore, without further ado, we’ve got some mythbusting to do!
1. “A trading bot will fully handle trading instead of me”
Many users, especially beginners, see trading bots as a shortcut to quickly gaining wealth, while they can relax and enjoy those Pina Coladas that their newly-gained fortune allowed them to purchase. Of course, the truth is far less convenient.
Namely, trading bots won’t work well unless you’ve previously invested time into setting them up. You’ll need to instruct the bot to behave according to a trading strategy you devised. Otherwise, don’t expect it to trade successfully.
2. “A trading bot doesn’t need user input after the initial setup”
Once you’ve set up a bot, now is the time to go to the beach and buy those cocktails? Wrong, that’s just another myth. As the market changes, you’ll need to frequently modify the bot’s trading parameters. And that means plenty of research.
Analyzing a crypto’s price fluctuations, demand, longevity, and market capitalization, as well as learning about its developers’ background, is paramount for making money in the cryptocurrency sphere. If you’re not aware of these factors, you can’t expect the bot to work miracles.
3. “Trading bots are a great tool for beginners”
Naturally, due to these misconceptions, beginners are usually eager to start using an automated trading solution. But, the reality is that these bots are actually more suited for experienced users. Beginners will find trading bots to be confusing, due to a myriad of options and trading parameters to modify.
To actually get results with trading bots, you’ll need to know exactly what you’re doing. And the more you know about crypto, the more helpful the bot will be. If you’re a newbie in the crypto space, we suggest to visit CryptoDaily.se and begin your training by following this reliable crypto platform.
4. “Trading bots eliminate emotions from the trading process”
We often hear that one of the biggest advantages of using a trading bot stems from their lack of emotions. Allegedly, this allows the bots to achieve better results than human traders. Unlike us, they’re not undermined by sentimentality or fear.
Well, sure, the bots don’t have emotions, but did the bot come up with the trading strategy it’s using, or did you? Hopefully it was you because, as we said, a bot won’t work well if left to its own devices. Therefore, it’s only logical to conclude that trading bots don’t really remove emotions from the trading process.
5. “Trading bots are always safe to use”
Unfortunately, with the rising popularity of trading bots, many dozens of related scams are frequently appearing. The con artists are promising amazing profits in order to lure the unsuspecting victims. The BitQT is a good example of such a scam: multiple official websites, ingenuine reviews, and hilarious promises concerning its profitability all reveal it for what it is.
In order to avoid losing your deposit with such a scam, you will need to carefully choose a trading bot. Reliable bots, such as 3Commas, do exist, but it’s getting increasingly difficult to identify them amidst all the frauds.
6. “Trading bots are expensive”
Having in mind that many people believe that trading bots are an incomprehensible magical tool, it’s no wonder they also think the bots are expensive.
While that may be the case if you choose the most advanced version of a trading bot, users generally have the option of using high-quality trading bots for free. And you won’t have to pay much even for some of the more advanced versions (think $10-15 per month). Unless you’re a user with specific trading needs, those versions will suffice.
7. “A trading bot is bound to make me rich”
No, a trading bot on its own can’t do that. The bot is only as good as its user. While it may save you lots of time, there’s no guarantee at all that you’ll actually see any profit from it.
But with plenty of learning and effort on your side, there’s no reason why a trading bot can’t become your precious crypto trading ally. Now that we’ve dispelled these seven myths, you can actually use a bot the way it was intended – as a time-saving tool, and not as a part of some unrealistic get-rich-quick scheme.