Time and again, we get emails with the following question: “Are cryptocurrency trading bots legal?” Our short answer is “Yes, they are”. We must bear in mind that the mere fact of using a trading bot does not mean that you are “cheating”. Let me elaborate on this. Imagine that you buy a coin worth 100, and your strategy is to sell it for a profit of 3%. You can spend 8 hours staring at a screen, waiting for the price to rise by 3%, or you can leave your trading bot monitoring the market for you. The result of the transaction is the same: you simply automate your trading and save time. This is a very simplified example. Obviously, an advanced trading bot, such as Gunbot, allows you to run automated professional trading strategies.
Let’s analyze some clarifying points:
– A win-win relationship: Traders can automate the trading process, and use that time to rest, perform some other tasks, or enjoy leisure activities. On the other hand, the exchange can have a trader monitoring the market 24/7, and that means more benefits.
– Bots have taken over 99% of Wall Street transactions: The image we all have of Wall Street traders celebrating large markets wins with champagne or crying about losses, is a thing of the past. Bots perform all transactions. Everyone knows it, and it has been true for years. Why would cryptocurrency trading be different?
– Exchanges win percentage for each transaction: Exchanges do not care if it has been a human and not a bot the one making the trade, all they are interested in is having as many trades as possible, in other words, they are interested in bots.
– Api keys have been precisely developed for bots: As many of you know, Api keys allow to connect bots to platforms. In this way, bots can easily extract all relevant market data in order to guide their buying and selling decisions. To be more precise, the purpose of an Api key is to allow applications and bots to access forex and trade information. Needless to say, exchanges themselves are the ones that create the Api key system.
– Exchanges themselves request bots to support their platforms: It is well known that trading bot developers constantly handle requests from exchanges to add support to their platforms. They have the greatest interest.
At this point, someone may wonder: “And why is it that some traders keep on speaking negatively about bots?” The answer is very simple: Anyone with a bot automatically executing trades does not need trading courses or signals. Taking into account that many traders have YouTube channels with tens of thousands of subscribers, and hundreds of them paying monthly fees for courses or “premium” signals, it is easy to deduce why they are against bots.
Indeed, cryptocurrency trading bots are legal. Moreover, as it has already happened on Wall Street, over time they will become the only way to perform cryptocurrency trading, and traders who spend long hours glued to a screen will become anachronistic over time.