Wall Street is in an uproar. Papers are flying; curse words are being hurled, financial portfolios are in disarray and have been for the past year because of one word: crypto.
What has happened? What changed?
Well, in the past year, a lot. I’m not talking just the earth-shattering, meteoric rise and fall of bitcoin as a $20,000+ asset that has made billionaires. I’m not talking about the billions in ICO fundraising that has left some in the blockchain in the community very wealthy, nor the assets lost by foolish investors.
I’m talking about the perplexing case of what exactly cryptocurrency can do for the average layman. For those without thousands laying around who got in late or those that were too afraid to take the leap, it begs the question: What is the opportunity that remains?
There is a market for cryptocurrency development services. There is also a market for marketing for blockchain companies. Within cryptocurrency as subject, there are dozens upon dozens of opportunities to still profit even as it falls harder than ever before.
One that has many’s attention is that of the cryptocurrency trading bot.
Much like forex, stocks, and a flurry of other bots that have been developed to isolate and profit from signals that exist in the market, cryptocurrency has proven no different.
Cryptocurrency bots operate on a trading algorithm set by its developer whom should be or is working with a trader. These traders often boast about their profits, and that they have systemized some form of reliability by isolating trends/criteria that lead to profitable trades.
The Market & its Infancy
While there are definitely plenty of bots that are successful, there is one drawback to creating a cryptocurrency bot that trades. The market even with its current fervor is still in its infancy. It is totally new to the manipulations that we have seen happen by governments, social influence, and random freak occurrences.
There are so many factors that tie into pricing that its hard to predict what will make a bot trade successfully. One one hand, a bot that trades based on analyzing or at least compiling news/trend data, and then offering the ability to select what to trade based on could potentially work. The difficulty is in sifting through the fake news and what is actually relevant.
News sources naturally sensationalize, but the problem doesn’t only lie there. Communities like Reddit and telegram are usually far ahead of any development within cryptocurrency.
So unless a bot takes into consideration mentions of particular cryptocurrencies and any words that can help it judge the context, it’d be harder for it to adapt to little more than buying and sell order fluctuations.
Technical analysis is still being worked out, but some have made strides and are certainly profiting regularly, such as Ian Balina and other associates.
That said, a systemized approach of any kind will need to have its kinks worked out, so only time will tell how successful it would be to create a crypto trading bot.