If you want to follow the original news written in Português, check the link below. https://www.startse.com/noticia/nova-economia/62045/robos-de-negociacao-de-ativos-digitais
Through BOTs is possible to take opportunities on the market, but is worth to be careful to avoid mistakes in strategy. Did you know that the cryptocurrencies market operates without breaks? Yes, it is possible to buy or sell digital assets 24 hours a day, seven days a week, be it business day, weekend or holiday.
And it may happen when traders are “disconnected”. Certain crypto assets may have a significant appreciation (or depreciation), and depending on the trading strategy, may represent an opportunity to make a purchase or a sale.
But how is it possible to take advantage of these occasions when we are not connected in the market? Simple, we can use robots to support us in digital asset trading. In fact it is software that performs automated negotiations. They allow operators to set specific rules, to send orders to a market or exchange, and that these requests are executed automatically through a computer, all at a much faster rate than that of any human being.
Through them, users can configure their operating strategies so that they can operate full time in the cryptocurrencies market and even in the conventional financial market.
Advantages of BOTs in operations
Just like blockchain, trading robots run all the time. With a BOT, traders will be able to operate the market 24 hours a day, 7 days a week, with no breaks. According to Dimitri, Chief Quantitative Analyst of CoinBene Brazil, the main advantages of robots are that they do not get tired, do not sleep and are much faster than any human being.
“Arbitrage opportunities that appear will be faster and more effectively harnessed by robots. Wall street and the B3 are full of robots that operate at very high speeds leading to what we call High Frequency Trading (HFT)”, says Dimitri.
Robots supports, but careful needs to be taken
Despite their important role in high frequency trading, robots are a tool that only helps traders take advantage of market that can provide good operations. According to Luiz Menniti, co-founder of the Bizanc Decentralized Exchange platform, BOTs perform the same operations that humans would do, but automatically and without autonomy. “Investors setup the parameters on these tools, which execute based on it” says Menniti.
Marcelo Jorge, co-founder of Bizanc, also parameters placed by users of robots can culminate in businesses that can go wrong. “Robots are enabling tools, but human monitoring is critical,” says Marcelo. Dimitri shares this point of view. According to the CoinBene executive, they are just helpers.
“An investment strategy that loses money will continue to lose money being executed by a robot or a human being. In the financial market, the main difficulty is not to execute your strategy. The main difficulty is to know which strategy to execute. The same holds true in the active crypto market. Which asset to buy today? Knowing which strategy to execute is the main issue”, says Dimitri.
How to start in the BOT world?
Will anyone be able to start programming their own cryptocurrencies operations robot? According to Menniti, the answer is no. “First you need to understand programming, which is the tool you are going to use. In addition, it is necessary to understand the financial market, to be very clear the demand that it intends to solve. If you do not understand the problem you want to solve, you will not be able to schedule a trading BOT,“ says Bizanc DEX co-founder.
Dimitri points out that, in the financial market as well as in the cryptocurrencies, the main difficulty is not to execute its trading strategy, but rather to know which one to adopt. He recalls that there are several websites and courses where traders can learn how to test and develop their strategies.
Is it worth using a BOT ready?
For the Chief Quantitative Analyst of CoinBene Brazil, one of the biggest problems in using a third-party robot is security in operations, since the tool will have access to your account, and it can be hacked, so that the user loses all assets. “Even without the possibility of stealing, the invaded robot can force the user to do bad business to drain the money into his account. In terms of security it is preferable to run a robot on a server of its own, but this requires technical knowledge, something that is not every trader that will have, “says Dimitri.
According to him, there are two ways to use a BOT: “We can make long-term or very short-term strategies via arbitrage. There is a lot of competition in the crypto trading space in the form of arbitrage, it is not a game for beginners. In this game, there is no advantage in having a “good” robot. To have advantages with arbitration in the crypto world or it is necessary to find a virgin market where there are few robots operating, or make a robot very fast. Long-term strategies do not require so much sophistication of the robot because there is so much need for speed, on the other hand, it takes much more financial sophistication to know what to buy and what to sell, “says Dimitri.
How to discuss the topic?
Interested in the subject and would you like to learn more about using robots in your digital asset trading strategies? So do not miss the Blockchain & Crypto Day powered by CoinBene, which takes place on March 28 at Expo Center Norte in Sao Paulo.
The event will feature keynotes and debates from technology experts behind the cryptocurrencies, as well as exhibitors and give enthusiasts the opportunity to extend their connections. For more information, visit the official website of the event.
If want to know more about Decentralized Exchange, check https://medium.com/@bizanc/the-first-blockchain-based-history-is-bitcoin-in-2009-was-created-the-peer-2-peers-payment-d398cfe2afac
user tutorial: https://bizanc.io/documentos/EN-TutorialTestnet.pdf
Thanks for reading