I have been seeing the same questions asked many times on the boards, so I figured why not put them in one place. As we see more we can add to it, feel free to ask questions as well and we will see if we can get answers.
Why do people create bots in the first place?
Its obvious that people don't want to be staring at charts and trying to figure out the best time to buy and sell. Sometimes, it is also used to save transaction fees. In short, it for simplicity. Well, purpose may vary from creator to creator.
How do the bots work?
Each bot is set of indicators and parameters that when all align will make a buy or sell signal, telling the exchange of your choice to execute a trade. Most of the time a bot is tuned for a specific market and time period, this is the creator's best educated guess on how the market will work in the future. It is not a magic crystal ball that will make perfect trades every time.
How long will it take to get rich using the bots?
If there was an easy way to get rich off bots and altcoins, don't you think there would be more stories out there about it? The better question is...
What should I expect as profit?
Depending on the time frame and what your bot is looking for you could make a lot, or loose some. This is after all a free market and not a bank. There are large unknowns when dealing with markets, any number of influences can trigger a rise or fall. Most bots will be a better strategy than a buy and hold method and as long as you believe your choice of altcoin will go up, then you will likely make a profit. Sometimes a bot is used to help reduce lost, not just make profit.
If a bot is not preforming the way you think you can always change bots or pause the bot and make a manual trade and then turn the bot back on when it is in sync with your choice.
Why use a bot at all?
There are many reasons why you would use a bot. Maybe you are an inexperienced trader and are looking for a way to get into trading, maybe you want someone watching over your account while you are away or asleep, maybe you don't need the stress of staring at monitors all day and want a rational less emotional way of trading.
Why doesn't my bot buy/sell at the lowest/highest?
Most importantly the bots are not always checking to buy or sell, they have a period of time where they wait and it is likely that which ever peak or valley doesn't happen right when the bot checks. Plus even if it was the highest or lowest how would the bot know? All bots are looking for specific conditions to trade on and in most cases it will execute after it the high or low.
This is the holy grail of bot trading, not just for altcoins, but for all markets. There are large computers with well paid designers trying to create these kinds of bots.
Why does one bot buy/sell but another doesn't?
Different bots are designed and tuned to do different things. Of course they are going to react differently to the market. -cryptotrader
Why do people create bots in the first place?
Its obvious that people don't want to be staring at charts and trying to figure out the best time to buy and sell. Sometimes, it is also used to save transaction fees. In short, it for simplicity. Well, purpose may vary from creator to creator.
How do the bots work?
Each bot is set of indicators and parameters that when all align will make a buy or sell signal, telling the exchange of your choice to execute a trade. Most of the time a bot is tuned for a specific market and time period, this is the creator's best educated guess on how the market will work in the future. It is not a magic crystal ball that will make perfect trades every time.
How long will it take to get rich using the bots?
If there was an easy way to get rich off bots and altcoins, don't you think there would be more stories out there about it? The better question is...
What should I expect as profit?
Depending on the time frame and what your bot is looking for you could make a lot, or loose some. This is after all a free market and not a bank. There are large unknowns when dealing with markets, any number of influences can trigger a rise or fall. Most bots will be a better strategy than a buy and hold method and as long as you believe your choice of altcoin will go up, then you will likely make a profit. Sometimes a bot is used to help reduce lost, not just make profit.
If a bot is not preforming the way you think you can always change bots or pause the bot and make a manual trade and then turn the bot back on when it is in sync with your choice.
Why use a bot at all?
There are many reasons why you would use a bot. Maybe you are an inexperienced trader and are looking for a way to get into trading, maybe you want someone watching over your account while you are away or asleep, maybe you don't need the stress of staring at monitors all day and want a rational less emotional way of trading.
Why doesn't my bot buy/sell at the lowest/highest?
Most importantly the bots are not always checking to buy or sell, they have a period of time where they wait and it is likely that which ever peak or valley doesn't happen right when the bot checks. Plus even if it was the highest or lowest how would the bot know? All bots are looking for specific conditions to trade on and in most cases it will execute after it the high or low.
This is the holy grail of bot trading, not just for altcoins, but for all markets. There are large computers with well paid designers trying to create these kinds of bots.
Why does one bot buy/sell but another doesn't?
Different bots are designed and tuned to do different things. Of course they are going to react differently to the market. -cryptotrader
People create bot because they do not have time in trading, they also think that they will earn with the bot. The bot is the one who does the work that you should do in trading, but not at all the times and not 24/7. For me if you will just used the bot, you will not esrn from it. It is not odeal that you used it if you want to earn big. You should not expect that big cause you will not earn big in using the bot. For me I am not reccomending you to use the bot cause it will not give you a good result in trading.
