Bitcoin Trading Bots vs Humans – Who is the Winner?

The cryptocurrency market is very stressful for traders as well as investors as it never sleeps. It is such a volatile market that can provide traders with immense gains or even losses in just a night.

Because of these uncertainties in the cryptocurrency market, crypto trading bots are becoming much more popular.

Unlike humans, bots never sleep and hence they have control over their trading all the time. 

Along with this, bots are able to do the trade more efficiently and faster than the humans that perform it manually.

As the cryptocurrency market is gaining huge popularity, hence the number of trading bots available is also increasing.  

The bots are available through a license for a fee to the users and also by an open-source platform for free.

However, it is very difficult to say which among those works best as per the need and which does not.

What is Bitcoin Trading Bot?

Bitcoin is basically a software program that directly interacts with the financial exchanges for the purpose of selling or purchasing on your behalf.

It does it automatically depending upon the market data interpretation. 

The bots are trained in a manner that they monitor the market’s price movements and react according to them on the basis of predefined rules. 

Various parameters on the basis of which a bot analyzes the market action includes order, price, volume and time. 

Bitcoin Trading Bots vs Humans

Bots are better than humans and provide various benefits which are as follows-

1. Emotionless

One of the features that make bots different from humans is that bots are free from biases and emotions.

Bots analyze and understand the data without any bias and emotions.

2. Automated

Bots are trained in such a manner that they execute trade automatically.

Using various mathematical concepts, probability theory, statistics and predictions, bots tend to apply an effective approach that produces favorable outcomes.

3. Huge Processing Capabilities

Bots have an immense capacity that they are able to process and analyze huge amounts of data in real-time.

They are able to keep a watch on different stocks and charts at the same time, that even the experienced traders can’t do. 

This enables them to make suitable decisions on the basis of stock prices, movements, and other factors.

4. Fast in Speed

Trading bots can perform transactions at a faster rate than humans.

Even the hardest of computation can be performed in lesser times than humans. 

Also, the instant reactions to price changes by bots can provide huge advantages, as opposed to delays that can turn a profitable trade into a loss.

5. Longevity

As cryptocurrency markets are highly volatile and fluctuate even in seconds, this can easily be handled by bots as they can be up 24/7.

Whereas, humans on the other hand, need to sleep, eat, and live. 

6. AI-Powered

Artificial Intelligence and Machine Learning have been the talk of the town for many years. Both the technologies are making great advancements in various sectors. 

Examples include self-driving cars and healthcare diagnosis.

Various trading bots are AI-powered and enable them to learn and improve.

7. Self-Optimized

Bots are smarter and are able to adapt themselves to every situation as against to humans that are slower.

Humans are demotivated easily when something doesn’t go as they desire and hence perform even worse. 

Thanks, to AI and its advancements, because of which bots are capable of self-optimize.

For any given task, they try to achieve greatest outcomes by finding out best methods.

8. Strategy Diversity

Bots are able to scale and can perform the required task efficiently and at a fast speed.

They are capable of working at different times with different strategies without even correlating them, thus this reduces risks.

Conclusion

Trading bots are very reliable and better as they help humans in removing the stress and emotions that they face in financial trading.

Bots help in ensuring that they always interact with the market even when they are not physically present. 

However, it is not necessary that the bots always perform better.

Especially the beginner should not go for free bots, instead they should choose the licensed bot to get the best bot services. 

It is also essential for a trader to understand the overall market before going forward with the bots.

Price, security, ease of use, and reliability are few things that you need to consider before choosing a trading bot.

Also, using trading bots can be proved unsuccessful if you are not familiar with the creation of financial strategies.

However, if you have the capability and knowledge to deal with such obstacles, then using a trading bot can be worthwhile.

It can help you make big gains while you eat, sleep, and rest.