The cryptocurrency trading robot
AN ALGORITHMIC PROGRAM
A cryptocurrency trading robot is an algorithmic program. It is designed to automatically evaluate, on behalf of the user, the financial markets of cryptocurrencies. When the conditions are met, place orders to buy or sell.
Recall that cryptocurrencies are virtual digital currencies. Among the best known is bitcoin, created under a pseudonym in 2009. Most of these currencies are based on blockchain technology. It works without intermediaries and tracks transactions.
With the digitization of society, more and more people are learning about online trading. Cryptocurrencies appeal to finance regulars, but that’s not all. Today the general public is also interested in it.
The marketing objective of these software is precisely the novice trader, new to trading and who dreams of investing. The offer is meant to be easy to use and designed for non-professionals. However, its ability to generate revenue is widely questioned. Doubts follow one another on the fabulous announcements made by various trading robots dedicated to cryptocurrencies, such as bitcoin prime.
The challenges of automated cryptocurrency trading
MARKET VOLATILITY AND COMPLEXITY
The volatility of cryptocurrencies is not a myth. The newspapers regularly report the whims of their value. Bitcoin, the oldest of cryptocurrencies, has thus collapsed this year. To invest it is essential to have solid knowledge of economics of finance, data processing or statistics.
However, there are many who venture into trading via these automated solutions out of ignorance. Attracted by the revenue promises and ease of use of these platforms, they trust the machine. Yet market movements remain difficult to predict even for software.
QUESTIONS ABOUT THE RELIABILITY OF COMMERCIAL ROBOTS
Forming an opinion on the reliability of cryptocurrency trading robots is a real challenge. You can read the comments of previous investors on verified sites. It is also possible to find out if the software is associated with a known broker. On the other hand, it is difficult to have the guarantee of profits or even the certainty of keeping one’s starting capital.
The Financial Markets Authority (AMF) warns against fraudulent platforms. In this sense, it publishes on its website the names of the actors to avoid in a black list. This is not exhaustive and regularly updated. It should be noted that the industry is flooded with many scams. Vigilance is therefore essential.