You should be aware of the great impact technology has on different ideals of the world with the idea of currency not being left out. What then are currencies? Currency is an agreed material used as a means of exchange for goods and services. Generally, currency refers to your money in any form or medium like banknotes and coins. Therefore, your currency must bear the seal of your government; the central bank retains the sole monopoly of issuing banknotes and it is illegal for you or companies to take part in such activities. Your currency can exist as fiat (bank notes, coins) or commodity money (precious metals like gold, silver) based on a law. Information and technology gave birth to the idea and reality of cryptocurrencies.
Therefore, you can now trade or purchase goods and services from the comfort of bedroom with a currency that is not physical, regulated or issued by your government. Do you know the principles that control currency? Our currencies have no face value, it is just a mere paper or metal but with the monopoly of issuing authorities gives and maintains its value. What then are cryptocurrencies? Cryptocurrencies can be are referred to as digital currencies. You are aware that dollars are issued by the United States and the pounds are issued by the United Kingdom but cryptocurrencies are not issued by any specific country. The first cryptocurrency was launched in 2009 as the Bit-coin, the face behind this launch is known via the pen-name Satoshi Nakamoto.
You need to know that cryptocurrencies leverages on the concept of block chain technology to decentralise its system. What then is block chain technology? The block chain tech as you know is a peer-peer consensus system that doesn’t have a single authority rather functions via consensus system. Every peer has a complete history of all transactions and once a transaction is signed, every peer receives a record. That means if a single member of the peer disagrees with a single balance, the system is broken. The system works via a confirmation concept which makes it very transparent.
What then are the features of cryptocurrencies? By now you should know that cryptocurrencies are not issued by any central authority or your government. Secondly, your payments and transfers are not traceable and protected by a system of codes, making it very secure. Now, you can have a piece of the pie, as this currency doesn’t discriminate based on race, religious beliefs or status. Lastly, your transactions via use of this currency are fast and totally irreversible. You need to be aware that cryptocurrencies has faced harsh criticisms such as: it promotes illegal activities such as tax evasion and money laundering. On the other hand, cryptocurrencies have been praised for being resistant to inflation, easy to use and transparent.
What then are the types of cryptocurrency? You know that the bit-coin is the first cryptocurrency that was launched and remains very popular and valuable. Other cryptocurrencies have been produced to compete with bit-coin which includes: Lite-coin, Peer-coin, Name-coin, Cardano, Ethereum. The above cryptocurrencies can be classified under an umbrella name ‘alt-coin.’ This word Forex (Fx) should be familiar to you, it means foreign exchange. Forex is the global currency market which allows you trade in different currency pairs, for example, the euros is traded against the American dollars (EUR/USD). These currencies prices are always changing based on the economic factors affecting your country, such factors includes: war and conflict, government policies, imports and exports.
You should know that cryptocurrency trading created a new spice in the kitchen called the crypto market which is volatile and open to you for 24 hours and 7 days a week. Generally, many traders like you prefer to trade passively which gave birth to the need for a trading bots. Our world is an automated one, from counting currency notes manually to the creation of automated money counting machines; evidently, the idea of automation is efficient and yields better results. This concept of automation as you know stirred the creation of the trading bots. What are trading bots? Trading bots are computer programs that buy or sell cryptocurrencies at the right time and ensures that profits are made regularly for their users. Crypto bots are wired to monitor the markets based on your set preferences; your set of instructions is what your bot would follow?
What then are th features of a trading bot? You need to know the four specific features which include: Back-testing: it involves comparing your strategy against historical market data before your trades are made on the market. Strategy implementation: it involves determining the strategy your bot would employ, like when and what to trade? Maths and logic is employed at this stage and you can always use back-testing to monitor performance. Execution: this stage involves deploying your strategy in real time currency trade. Job-scheduler: once your strategy has been tested in the real world and results are positive. You can then setup the job-scheduler to execute trading automatically.
Are you aware of the pros of using a trading bot? Do you know that the currency market is always awake, this bot gives you an opportunity to make money 24 hours 7 days a week? But your trading can be full-time and accurate.
Do you know the cons of using a trading bot? You need to know that automation does not discourage users’ efforts and setting your preferences on the bot can be time-consuming. Which factors are to be considered in choosing the appropriate trading bot to employ in your trade? The credibility and qualification of the developing team ought to be considered. Questions such as does the bot implement user’s strategy? Are they affordable? Can the bots adjust to different market conditions? Is it easy to use? These factors mentioned earlier you must be considered carefully.
Do you know that automation in currency trading improves efficiency and effectiveness? Like every automated machine, the supervision of the user improves efficiency. Cryptocurrency is our future and the complexity of our daily activities would demand the help of a trading bots regularly. Therefore, it is your responsibility to max the strengths and minimise the weakness of the trading bot in crypto trading. Finally, you can now agree that the role of bots in trading is important. You can explore the market now with this new information and you would yield good results. Your opinion about bots is sure to change now; you can start using bots today, you would be glad that you considered this opinion.