How often do BOTS trade cryptocurrencies? Here's what the expert says
I'm Simon, a comedian and so-called crypto hobbyist. And just like you, I'm learning about trading as I go. In these videos, I do my very best to tell you as much as I can about trading apps, cryptocurrency, starting with trading, and much, much more.
There’s no more need for fancy bit-shot Wall Street guys to do the trading: trading in cryptocurrencies can be done fully automated! The BOTS app has intelligent algorithms that buy and sell cryptocurrencies at the best possible moment. But how often do these bots make trades? I decided to ask an expert trader.
Sit back, relax and enjoy the story!
Why do bots trade better than humans?
In all honesty: trading in cryptocurrency can be challenging, and there are loads of risks involved. With a constantly fluctuating market, it’s hard to predict whether prices go up or down. If you wanted to make these predictions, you’d have to be able to analyse loads and loads of data. And as not many people function on the level of a supercomputer or feel the desire to sit in front of a computer watching the market day and night: many have developed algorithms to do just that.
These algorithms make trading a lot easier and a lot more accessible. As the team of BOTS believes: bots trade better than humans.
But what are these bots actually up to? Let’s hoover the magnifying glass over them, shall we?
The trading frequency of bots in the BOTS app
In the app, every bot comes with a more in-depth description. In this description, you’ll find all sorts of data — amongst which the trading frequency. You might notice that most bots have a trading frequency between 0 and 1.
● A bot with a trading frequency of 1 generally makes about one trade per week, averaging over 50 trades a year.
● A bot with a trading frequency of 0 makes as few trades as possible and is most likely relatively new to the BOTS app, therefore not having the correct data to reflect an up-to-date trading frequency. That figure will change over time based on live updates.
Now, the trading frequency of the bots is a nice figure to keep an eye on but doesn’t always have to say much about its performance. A bot that trades once a week can be just as profitable as a bot that makes five trades a week. It entirely depends on the algorithm and strategy that this specific bot is based on. Some bots only trade at the most beneficial moments, while other bots are willing to take more risk and make trades more often.
How about the fees?
Now, as you know, every trading platform works with trading fees: and so does BOTS (a 0.2% fee of the traded amount). But the trading frequency does not influence the number of fees you are due to pay. The fees are paid once a transaction is completed. So a bot that’s making a lot of trades and is continuously creating a profit won’t get killed in these trading fees. On the other hand, if there would be a bot out there that trades often and doesn’t provide any returns, it would automatically self-destruct. Lots of trading and no profit is an end-of-life situation for any bot in the app!
Would you like to learn more about the BOTS app or get some more trading in cryptocurrency tips? Just continue reading below.
See you soon!
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.