Quick money is the prime goal of most traders. Experienced or not, this goal is the same for every trader. If the crypto markets give a hint of quick money, you can be damn sure most traders will quickly follow.
Last week would be a perfect example of how a popular crypto exchange can create quick money. Coinbase Pro announced their decision to list 0x (ZRX). This decision was followed by what many refer to as the “Coinbase effect.” As soon as ZRX was listed, the price blasted off and the news saw a 40% price increase.
For many people, this wouldn’t come as a big surprise. It’s natural that the biggest exchanges with biggest resources can do that to a cryptocurrency. Volume wise, Coinbase is the biggest crypto exchange in the United States. By rough estimates, Coinbase is worth over $8 billion. Some even say that due to the large amount of users, the exchange is worth even more.
There was also an interesting development with the price of ZRX just before the announcement was made. A large spike in price just before the announcement would puzzle most investors. As per usual, there were quite a few rumors about insider trading going on. This is a common occurrence during most listings so the exchange quickly dismissed all of the rumors.
What the exchange didn’t dismiss though, was the use of trade bots. These trade bots are extremely well-timed and they automatically scout the technical price charts and exchange APIs. This is done in order to identify any development that would be considered profitable. Their response is automated and instantaneous. The bots can be programmed to either act immediate and trade or send their owners a message.
Quick money often requires innovation
In both cases, these bots are a solid investment for those traders looking for the advantage. The bots, which execute the trades however, are significantly more expensive than the alarming ones. The alarm bots like Altcoinnotify are completely free. If we look at trading bots, Cryptohopper is customizable, can place multiple trades with multiple signals and it costs up to $99 per month. Taking into consideration the huge amount of potential earnings a trader can score, this is a measly price to pay.
Of course personally-programmed bots also exist. Some traders have very specific requirements and pay developers for one suited to their needs. According to programmers, such a code can be created in the matter of days. Even though such bots offer countless advantages, there’s currently not much information about the total bot usage.
A successful implementation of such a bot can give the traders the edge. Some traders however, still believe that bots are yet sophisticated enough to execute trades and follow the market better than actual traders. Some experts speculate that in a couple of decades, all traders will without a doubt be using these bots and “normal” trading would be a thing of the past.
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