The last time we mentioned about trading cryptocurrencies, we featured crypto trading bots as the basis of the articles. In fact, if you click here, you find that we used a whole section in the article discussing the importance of bots as an essential tool of trade in the cryptocurrency space. In fact, we recommended Cryptocurrency Automatic Trader bot or CAT Bot as one of the best products on the market. However, not every crypto trader is enjoying the benefits of trading bots. But why? Well, here are simple but costly mistakes limiting traders from exploiting the full potential of the crypto trading bot.
First, it is imperative to mention that trading bots or what is popularly referred to as the bitcoin bots are not different from any other products on the market. Just the way you check the manufacturer’s reputation, quality, versatility, efficiency, and effectiveness, you should have the same done on trading bots. So what the small but costly mistakes are most traders doing?
Poor Quality Bots
It is important to check quality matters when to comes to selecting a trading bot. But how do you tell a good or bad quality? Now, this is where most people get it wrong. The quality of a bitcoin bot is tested in various ways. First, you need to check the features that they are offering such as the number of exchanges it supports. There are the exchanges that you should check out for, and they include Bittrex, Binance, Poloniex, HitBTC, and BITFINEX amongst others. If the bot cannot support these exchanges, then don’t waste your money on it.
Second, you should check the cost of the trading bot. But some people have an affinity to cheap products, and that’s not a good thing at all. If a product is selling cheaply and mostly below the market price, think twice. Always remember that cheap is expensive. A good quality trading bot will cost you extra money, but you will get value for that money. However, some the bots may have a poor coding or maybe having a faulty software.
Lack of Technical Knowledge
Well, this is another reason that many people are struggling with poor performance in trading crypto assets. While some could be having some of the best trading bots on the market, such CAT bot, but still have a problem working with it. The reason could be that they don’t have the technical knowledge on how to use the bot effectively and efficiently. In such cases, we recommend that you research widely on the particular bots. Watching videos on how to use the bot would be a great way to understand the bot. If that is enough, contact the customer care team for more instructions.
Buying the Wrong Bot
What do you want the crypto trading bot to do for you? Well, we have noticed that some people have no idea that there are different types of trading bots. Some bots will help you make profits while other will help you reduce losses. So you have to choose wisely the kind of bot that you need. Avoid buying the bot blindly just because it is a crypto trading bot.
Check out this video on how to trade with a bot on Poloniex.