The profession of trader is known as one of the most stressful jobs related to finance. Stock market traders are engaged in trading day and night, the same is true for crypto traders.It often happens that a trader, being carried away by his or her work, goes into it entirely, forgetting that real life also exists.
Due to the fact that many people face similar problems, they have started to come up with solutions to engage in asset trading. This is how trading bots came about.
Trading robots appeared in the seventies. At that time, they were quite primitive and sent the trader signals that price quotes were changing sharply. But everything else had to be done by a human. They were used only by big investors, because ordinary traders had many questions about the technology and it was not clear if it was legal.
In the nineties, such questions went away thanks to the US Securities and Exchange Commission. The regulator officially allowed the use of trading robots, which in turn breathed new life into bots. And the developers continued to improve the software.
After a while, a cryptocurrency opened up to the world, namely Bitcoin. Although initially not many people traded it, because there were no trading platforms or exchanges, it could only be mined.
However, progress continued and the first cryptocurrency exchanges began to appear, giving people the opportunity not only to mine the cryptocurrency, but also to start trading digital assets.
Some professional traders and investors from the traditional stock market gradually began to move to the cryptocurrency market. However, along with them came crypto-enthusiasts, who did not know what was trading on the exchange, began to learn the new craft.
Naturally, developers of trading bots also started to think about bringing the bots into a new environment for them. So, after a small amount of time, services for creating trading bots for cryptocurrency exchanges began to appear..
Why do traders use trading bots?
Trading bots are quite popular among traders no matter what market it is. According to statistics, around seventy per cent of traders in the traditional stock market use their services.
The secret of the success of trading bots lies in their convenience and automated trading. Imagine that as a trader, you have to constantly sit in front of a screen or with a smartphone in your hands and follow the charts. Moreover, the latest economic and world news should always be kept up to date. Also, some people use the services of professional traders and monitor their analytics on an asset. All this takes quite a lot of time, which then may not be enough for a personal life.
Automated trading bots do not need time to rest or take breaks. They can work around the clock and still potentially make a profit for the trader. This is what automated trading is all about, thanks to which many people choose trading bots as their assistant.