Are cryptocurrency markets entering new and uncharted waters? Will there be any use for humans in the future speculative markets of the 21st century?
In this article we will explore the coming transformation of market trading into a purely robotic and technical activity in which robots and algorithms are pitted against each other in a battle of the byte in the quest for the best gains.
I was browsing through different technology articles when I found an interesting article about developments in bot algorithms that are taking over the roles previously held by experienced traders. This article was published by the Financial Times and was entitled 'Who is the sucker when robot trades against robot?'
According to the article in the past few years there has been an increasing interest in computer-powered investing. According to Barclays, assets managed by quantitative hedge funds has doubled over the past decade and hit a record $500bn last year.
Stock Markets have a long history of using algorithms for trading but what about cryptocurrency markets?
This is the question I am a bit more interested in uncovering and I found a few interesting points made in an article published by Bitcoin Magazine entitled 'Op Ed: The Role of Trading Bots in the Cryptocurrency Market.'
Chatbots allow you to be involved in the cryptocurrency marketplace while focusing on other responsibilities. But not just in an omnipresent way, they’re clued in to industry trends, know the necessary data and patterns and exactly when to trade — and when not to. Technically, you could say it’s cheating a little.
Arbitrage trading — the act of buying and selling commodities in one market and selling them for higher in another — is now possible with chatbots and automated systems. Another possibility is called market making, which involves generating profits based on long-term activity via sales and orders.
This is an interesting development as all sorts of cryptocurrencies can be traded using this new line of futuristic chatbots. We are talking about cryptocurrencies including Bitcoin BTC, Ethereum ETH and even lesser known altcoins. Be prepared for a bumpier ride as the cryptocurrency market expands.
Techblogger Wrap Up
The world of bots is ever changing as are the options available on the market... For a few specific leads on chatbots to increase your automated trading profits I highly recommend reading 'Op Ed: The Role of Trading Bots in the Cryptocurrency Market'
Haasbot, Tradewave, Zenbot and Cryptotrader are some of the biggest names mentioned in the automated cryptocurrency trading sector.
What are your thoughts about chatbots and trading algorithms? Will there still be a place for regular old trading conducted by humans in the future or are we too emotional and slow in our trading decisions to compete with this rapidly advancing trading environment?
Please leave thoughts and comments below.
Thanks for reading!
Source:
Who is the sucker when robot trades against robot? - Financial Times
Op Ed: The Role of Trading Bots in the Cryptocurrency Market - Bitcoin Magazine
Yes bots will more then likely control the trading grounds in this space, just have to adopt or if you can't beat them join them!
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.
Isn’t it already?
The regular non crypto market is already dominated by bots, the crypto market will eventually also be dominated by bots, the world will eventually be dominated by bots, soon enough we will have to break down our bodies and give unto the gears and the machines to become as efficient as bots.
At least not for now
Just look at the stock market..Bots, I don't think Crypto will be any diferent. Just people trying to day trade and losing money to bots. The good money is in the long trades.
I think so too. The most money comes with Holding. Too much Pumps out there
A Blockchain-based AI (Artificial Intelligence) will manage the world economy, it is not unusual, this is the reality.
The bots will control our economy! Terminator is coming
Wao the future is here, Skynet is comming, greetings from Venezuela!!!
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amazing!!!
CURRENT cryptocurrency trading is dominated by bots.
This isn't some sci-fi, forever out of reach, technological pipe dream. It's been this way for years. And before the bots were trading cryptocurrency, they were trading stocks, and have been doing so for decades.
Well i think yes, bots are more accurate and profitable, so it will be goo to them making lots of money while you are sleeping and enjoying time with friends and family,
Anyways Keept up the good work @techblogger!!!
Blockbasis is very interested in bots but it is a bit too early to comment on their relation to cryptocurrency and their significance in making it big. Cryptocurrency though is becoming more and more acceptable and there is a lot of solid work happening in the field of blockchain. Take for example our users on Blockbasis, which are able to send and receive cryptocurrency with an email address, bots are not really needed for that despite the arguments stated above.
Robots may have sounded like that back in early 2000s but they can sound a whole lot better today than that audio version.
See... point proven.