Trading With Bots - What Are The Risks?


Intended to augment productivity and profitability, algorithmic trading software offers many advantages, especially for the individuals who are new to trading in any arena be it legacy or cryptocurrency. All things being equal, they are not liberated from risk.

Truth be told, the principle risk in utilising autotrading programs is that a new trader may be persuaded that they will consistently benefit from their exchanges in light of the fact that a modern machine is accomplishing all the work for them and will consistently know precisely how to react to the market.

Various entanglements despite everything exist when utilising automated trading strategies. With numerous kinds of algorithmic trading software, analysis is only ever carried out retroactively. Ends are every now and again drawn dependent on positive outcomes, because of a logical fallacy known as the "survivorship bias", while the software likewise neglects to take the more extensive market context into consideration.


Mitigation Is The Word

One approach to reduce risk is through your decision of which platform to trade on, or software to use. Picking a completely regulated and compliant exchange platform is an absolute necessity if you want a protected, reasonable and straightforward trading experience. A licensed system provider will put rigorous technological security protocols in place and implement strict identification verification practices to safeguard against fraud, secure the privacy of your data and ensure the safety of your funds.

The Upside?

The potential for the average trader is unlimited. Basically, when utilising a well-designed algorithmic strategy, a fledgling trader without an expert, financial background or crypto trading experience can sit simply back and watch it accomplish all the work. Hours can be saved that would otherwise need to be spent analyzing the market, evaluating asset histories and waiting for the perfect moment to act. Algorithms can open and close countless positions across multiple exchanges at once, seizing on market opportunities the second they arise offering unmatched efficiency and speed as well as significantly reducing the trader’s exposure in the volatile arena that is crypto trading.

In any case, a few things won't change with the appearance of algorithmic cryptocurrency trading. This is as yet a powerful market that is a long way from predictable. While traders can increase a more prominent proportion of security and make the most of chances identifying with several diverse crypto trading pairs, an automated trading platform is not a look through a window into the future. All speculation includes risk and the crypto markets are no different.

As cryptocurrency trading and the businesses related to it grow in legitimacy and with an ever increasing number of people, organisations and establishments joining the cashless revolution, innovations in trading are advancing to address those issues and digital currency algorithmic trading frameworks are rising to help lead the jump into the future.


Why Use The Crix Platform?

Crix Exchange has also paired up with trusted KYC providers, custody and liquidity providers to not offer not only a safe but a reliable trading experience. Security aside, we have designed and implemented features that enable both new and experienced traders to utilise the power of automation. From pre-made algorithms ready to deploy, to Python library access, through to generous market maker rebates, we have created a platform that awnsers the wishes of the trading community.

CRIX Exchange is run by a fully registered company, Crix Limited, which operates under the laws of Malta. Crix Limited bears the company registration number C 88483, and has its registered office situated at Fort Business Centre, Level 2, Mriehel Bypass, Birkirkara BKR 3000, Malta.

Check us out today and discover why it pays to trade with!