The invention and eventually the use of cryptocurrencies has attracted both praise and criticism in equal dimensions from different stakeholders. What is more amazing about the futuristic means of transaction is that the virtual currencies ecosystem never ceases operations, giving investors an opportunity to make money using trading bots while asleep or actively engaged in other commitments.
Since not all crypto trading bots are in line with your ambitions of generating profits and safeguarding your hard-earned cash, some of the key indicators to the ideal trading bot include:
1. Transparency in how trade is transacted
As trading bots grow in popularity, it is increasingly becoming arduous to discern between genuine and scam trading bots. A company that provides detailed information about how their trading bot operates giving you an understanding of how your investments will be handled is better than one promising you an overnight fortune with a vague explanation about how they run business.
2. Backtesting functionalities
Before engaging the services of any trading bot, it is advisable that you test the tool’s resilience to various market shifts. A good trading bot is built with a backtester, availing you as an investor with the opportunity to experiment with your various strategies against historical data before trusting it with a dime of your cash. The essence of backtesting is that it presents overall or detailed views. depending on your levels of analysis, on how you can minimize risks before deploying your various approaches on actual trades.
It is pointless for a trading bot to have a transparent mode of operation coupled up with backtesting functionalities yet yield no returns on investment. Gunbot is a good example of a trading bot that has seen investors enjoy good returns on their investments in addition to providing an excellent customer support. Though many have earned fortunes through investing in trading of virtual currencies, be wary of trading bots full of ‘the overnight millionaire promises’.
4. Seamless user experience
Contrary to the perceptions of many individuals, trading bots are not a ‘set it and forget it’ avenue of generating income from cryptocurrencies. A personal good understanding of the various market shifts, as well as the ability to wisely move targets, should accompany a good trading bot to maximize profits and minimize losses. An ideal trading bot should, therefore, be suitable for newbies and experts alike. Additionally, the tool should be easy to use even for those individuals with minimal or no programming experiences since the sole purpose of trading is to generate profits from the frequent market swings.
5. Top tier security
Since the inception of cryptocurrencies, there have been multiple stories of investors and users losing their coins to hackers who compromised the security of the various platforms holding their virtual currencies. Since to actively engage in trading you have to load the trading bot with a minimum required amount of cryptocurrencies which most times you might even surpass, consider a trading bot with robust security mechanism to protect your investments. SSL encryptions are fundamental signs of a secure trading bot.