Is Your Crypto Bot Smart?

A lot of crypto currency traders are using crypto bots to make a lot of trades for them, but some traders are using the bots for additional tasks as well. Some crypto trading bots go beyond just the basic functions and preprogrammed algorithms to do more for online traders.

Before you download a crypto bot and expect it to make smart trades for you or before you pay money for one hoping that you get a return on your investment, you should know just what a บอทคริปโต is capable of. You just might make a smarter decision in choosing a suitable crypto bot.

A Learning AI

The finest crypto bot programs use AI, or what’s known as artificial intelligence, and that doesn’t mean that they’re alive and able to talk to you. In this case, it simply means that they can learn and adapt. So, they are constantly utilizing their programming to your advantage, trying to learn from their mistakes and make better choices. That’s not something every crypto bot has, though.

Some of them (actually, a lot of them) use preset algorithms that never change. These are tried and tested programs that work well sometimes, but not all the time. If you find that a bot is making foolish decisions and you feel like you could do better, you may be using one that doesn’t have any AI or adaptive programming

Data Collection

The crypto bot will adapt well if it is collecting data constantly. This is what some of them are designed to do- gathering information on changing rates and trade volume and actually changing their preset trading methods based on that new information.

You see, cryptocurrency trends can change over time. Crypto rates don’t always follow the same patterns. The art of trading is an organic one, and it has to evolve with the market. There may be a period of instability followed by stability that simple computer programming cannot account for. With data collection, crypto trading bots can make a change in their trading patterns and make smarter trades that are to the advantage of the person using the bot.

Outside the Box

A lot of algorithms and trading bot programming exists in a kind of box. It is stagnant, never changing other than to maybe switch between a few different preprogrammed operations or patterns. So, when the market is down, the bot may switch tactics, and then when the market goes back up, the bot may go back to the program that is designed for a healthy market. If that is what your trading bot is doing, it can easily be caught by surprise. Sharp climbs and sudden drop-offs are impossible for most bots to predict.

With some out-of-the-box thinking, however your trading bot can do more than simply switch from one tactic to another. It can devise new tactics based on new data. The market is fluid, and your trading bot has to be as well.

That fluidity can be achieved in a couple of different ways. The simplest one is to have the bot updated every so often. As the market shifts into new trends for an extended period of time, the developers behind the crypto bots can issue updates to make their bots adapt to the changing market. This works great, but it is a little slow. It takes time to make up a new set of programming and then send out an update.

The other method is to create adaptive AI that uses data collection to make decisions on the fly that run counter to the preprogrammed operations when necessary. That’s a tricky thing to do, but some of the better crypto trading bots are designed to do just that.

It’s worth your time to learn about any crypto bot you are interested in trying out. Before you trust the bot with your money, you may want to test it and see how it does in a simulation. Some trading bot services allow you to do that, trading at your leisure and practice before you do it for real. This gives you an idea of how the bot will function, and it’s a good way to see its strengths and weaknesses before you commit.

RJ Frometa
Author: RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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