Artificial intelligence is a new technology that has yet to realize its full development potential. In reality, the potential for what it will one day be able to achieve is almost endless. For this reason, its use is very wide, and trading is no exception.
What is a crypto bot?
Before explaining how an AI bot works, let’s recap what a trading robot is. It is software that is based on a strict sequence of actions and can open and close trades, automating the routine actions of a market participant.
Strategies for such bots can vary in their complexity. From simple buy-on-fall and sell-on-rising to complex models with many parameters, taking into account historical events, trade signals, and indicators with the analysis of hundreds of variables.
Today there are many variables such as trading programs, from free programs available to everyone to expensive professional bots distributed on a paid subscription model. However, even the most popular trading systems differ in quality, usability, and profitability.
With all the benefits, crypto robots also have disadvantages.
- Actions are strictly within limits. One advantage of trading robots is their biggest disadvantage.
- Inability to make independent decisions. Without intervention by a trader in a complex situation on the market, the robot will continue to make the same actions as before changes until the trading account runs out of money.
Knowing the disadvantages of such bots, we can explain what an AI bot for trading is.
The main difference between crypto AI robots
This is a program that does not operate according to two or three pre-defined strategies but can make independent decisions about buying and selling.
Best AI trading bots can analyze news, and social network feeds, making conclusions about the price movement in either, and trade your digital assets based on that. Crypto AI trading bot can determine the best moment to enter the deal, trade in bullish and bearish markets, and almost completely free traders from having to monitor the current situation. In addition, the AI trading bot can develop an unic independent trading strategy, test it and make improvements.
The main disadvantage of such bots is their high cost. If you have found a free AI trading bot on the Internet, it is highly likely either unreliable or fraudulent software, which will not bring results, and in the worst case, it will deprive you of all the money in your account.
Crypto bots for beginners
If you just started the way in the digital asset world and want to automate your work, we advise you to begin with WunderTrading trading platform. Working on it will allow you to avoid many mistakes inherent to beginners, as well as gain experience in the crypto market and become a professional trader.
WunderTrading bots allow you to use many ready-made trading strategies, as well as create your own. To develop such a robot, you do not need deep knowledge in programming – it is set up in a few clicks. You will only have to choose the strategy, determine the basic parameters and start trading.
WunderTrading connects to crypto exchanges via API, so you must have an account on one of them. Once your exchange account is connected to your WunderTrading account, you can trade on this exchange using a convenient trading panel with many tools, as well as use the cryptocurrency robots.
If you are not yet confident in your abilities, you can try trading on a demo account, saving yourself from unfortunate money losses.
