Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
Cryptocurrency trading bots: is it worth using on exchanges
As bitcoin grows, new programs appear on exchanges that help beginners successfully trade on the market. Among such programs, bots are gaining popularity – simple programs that can perform repetitive actions. They are usually set up to buy a cryptocurrency at a low rate and sell it at an increase. More complicated bots can analyse the market according to several parameters set by the owner.
You can buy a bot: developers write a program for different strategies, so there is a choice. Most exchanges do not prohibit the use of bots, so you should not worry about a ban.
Where to get a bot? There are 3 options:
- Text yourself;
- Purchase;
- Download from free sources.
You can combine the first option with the third one and buy a script with its further correction.
This method of trading automation is good in many ways:
- It takes very little time, while a professional trader can work more than 10 hours a day.
- A person will not be able to cover dozens of exchanges for trading, and a properly configured bot simultaneously monitors hundreds of trading platforms.
- The speed of calculating formulas is a big plus when you need to instantly make a deal.
- A bot programmed with strategies is much smarter than inexperienced beginners.
- The absence of a human factor – we often make banal mistakes, while the bot calculates everything with an accuracy of every digit.
- Cold mind – unlike us, the bot will not make decisions on emotions or be nervous.
And yet, with so many advantages, bots have a serious drawback – the situation on the market can change almost every day, and the program will work according to the old algorithm. Therefore, experienced traders are in no hurry to transfer routine work to automatic, because they can accurately predict the situation and get big profits.
The other side of the coin is that purchased bots often pay off much more than we think – unscrupulous developers either take the profit for themselves after some time the bot has been working, or deduct a small part of the profit that is invisible to the owner. No less frustrating is the fact that information from a user account can be copied and transferred to third parties.
See also: How to start trading on the stock exchange
