Beware of Bots

[Reatim]

Skilled exchange traders learned to use the programs facilitating trading process long ago. It can be as semi-automatic trade advisers and completely automatic bots.

These programs trace the price chart of an asset and find an optimum point for an entrance to the market. Completely automated soft does not assume intervention of the trader in process of the auction.

The strategy of bots in the crypto foreign exchange market, as a rule, comes down to the creation of "false" warrants. Warrants are formed with one purpose to provide the illusion around a digital asset. Thus, manipulate the price in the necessary direction, deceiving other investors. Fake warrants at the right time are simply canceled.

‼Bots in the market of cryptocurrencies is a serious problem. Owners of the crypto exchanges need to think seriously of maintaining own reputation and to introduce internal rules and restrictions.

But they're legal, afaik. Bots have its own pros and cons so its really so we really can't do anything about it. Although I haven't used bots of sort in my trading, others find in advantageous though. Yes, it might send false warrants so you have to be very careful as a traders. Besides, this is just bots, we humans still makes the decisions to its still up to us if we wanted to used it or not.

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[Vieni]

Bots and talk of bots is endemic within the crypto space, with behavior, good and bad, often attributed to their actions. There are several types of trading bots available including arbitrage (arb) bots that capitalize on the difference in prices across exchanges. Arb trading can be likened to playing online poker. If you’re good at setting up your bots, you can make a living off it, but you’ve got to grind it out. Crypto trading bots are reminiscent of those money-making Forex programs that you find “veteran traders” trying to flog.

[Denton]

The problem with bots exists everywhere, not only in trade. In bounty also a lot of bots that take away part of our earnings. Unfortunately, we can't do anything about it, it's not always possible to found them and so we just have to be careful.

[desfira]

indeed trading using bots is very risky.
we could lose control of the bots.
if so, we will lose our assets.
be more vigilant in trading with bots

[South Park]

Bots tend to keep the trading active by creating fake orders, they are just buying and selling to themselves but it will also depend on their program as to how they behave on trading but you can actually spot most of the bots from newly listed tokens from ICO where their volume is so low, some people take advantages from this bots by learning their behavior to take some profits but beware you might lose your capital if you don't know what you are doing.

That is only true if there are not fees to make a trade, this was something that exchanges did to try to make it seem as if they had more volume, but the truth is that bots can be a good way to trade if you have created a strategy that can be profitable but that requires that you take decisions in a split of a second, something that is impossible for a human to do consistently.