Will the Future of Cryptocurrency Trading Be Dominated by Bots?
I used to be a long-time trader on Bittrex before I started to realise that Bittrex (I assumed it was Bittrex) were highly likely using their own trading bots to artificially bump up trading activity and give the impression people were actively trading a certain cryptocurrency.
The future is already here, in my opinion, looking at the order books for exchanges like Bittrex and Binance will yield really weird fractional trades that are clearly bots. I mean who seriously buys 0.67877 of a coin trading at $10? Nobody.
A good example of algorithmic bot trading is the traditional stock market. The traditional stock market has been algorithmically-led for quite a few years now (at least since the early 00's). The problem with bots is while they can be fast and great, they're not always perfect.
The biggest downside to bots is they can be tricked, as many operate on the basis of market cues and less-so using trading principles like fundamental analysis. So it is possible to "play the bots" into thinking a bull run is taking place or a coin is dropping in value, pump and dump groups play the bots and win quite regularly.