Although the outlook on crypto exchanges and crypto bots has changed after FTX's bankruptcy, reliable crypto trading bots mostly prevent fraud.
Cryptocurrency has been an asset that has been generally abstained from since its first launch. Crypto assets, which have been trying to demolish these negative approaches for a long time, have difficulty in reversing such thoughts with some news from the industry.
In the first years of Bitcoin, it caused a negative perception about its use as a payment tool on the Silk Road site, where everything is sold on the Internet. Bitcoin was also mentioned in many news about Silk Road, which was closed after the FBI raid. Because of these news, people saw Bitcoin as a payment tool used by criminals.
Towards the end of the 2017 bull season, many continued to view cryptoassets as one of the biggest scams in the world. However, this view has changed in the past years, at least for Bitcoin. Although people now think that centralized crypto exchanges or some cryptocurrencies belong to fraudsters, the same is not the case for Bitcoin and Ethereum.
In centralized cryptocurrency exchanges, however, a name that is trusted by everyone, such as Bitcoin or Ethereum, has not emerged. If Binance, the world's largest centralized crypto exchange, is taking steps at this point, many Binance bot Even though he owns it, developments make it difficult to trust.
What happened with the bankruptcy of FTX
The latest event related to crypto assets and this ecosystem is the world's The bankruptcy of FTX, the second largest centralized crypto exchange it happened. FTX had illegally sent more than $10 billion to its in-house Alameda Research, which was lost in risky investments.
After the statements made by Binance, FTX's biggest rival, FTX had to declare its bankruptcy. This event affected the expected rise in the crypto money market and the market lost value despite all the positive atmosphere.
Although some investors blame Binance for the developments and say that its biggest competitor pulled the string, there are also those who have the opposite opinion. Some experts stated that FTX is on the verge of bankruptcy due to its illegal transactions, and Binance revealed this.
Changpeng “CZ” Zhao, CEO of Binance He also said that every central exchange that does not use blockchain technology will be suspicious, and that the ecosystem should monitor itself, and that the developments have negatively affected the sector.
Importance of smart contracts
After these developments, eyes were also turned to crypto trading bots. Some bots also suggested FTX as one of the safe exchanges for their users. The point that is overlooked is that all payments made with smart contracts were made before the FTX bankruptcy.
Smart contracts are on blockchain technology, programs that make the contract valid if the two parties meet the terms of an agreement. To explain with an example, the person who wants to buy a car needs to send the money to the seller to the point specified in the smart contract. Similarly, the car dealer uploads all the requested documents to the smart contract. If both parties have done their part, the smart contract becomes valid. If a party does not keep its promise, the smart contract does not trade.
Crypto bots and their strategies
A similar approach exists with crypto trading bots. Although they do not act exactly like smart contracts, crypto bots also act in accordance with the strategies given to them. If they go to a point outside the trading price range, they freeze the price at that point.
Binance is one of the central currency exchanges used by reliable crypto bots. Membership in Binance bots depends on the investor's level of knowledge. Packages with the features that professional users will want are more expensive, while cheap packages are offered to new investors.
It is possible to see three types of trading bots in these programs. These; DCA, GRID and Futures bots. If we look briefly, "Dollar Cost Averaging", also known as DCA, makes purchases and sales depending on the price ups and downs in a certain price range.
In the GRID bot, it is possible to earn Bitcoin as the price of crypto money decreases, according to the feature of the program. In addition, you can freeze the price for buying or selling at certain prices, or for both, depending on the developments. Thus, it is possible to make a profit by trading according to the change in the price of a crypto currency.
Future bot consists of two types of transactions. In long-term transactions called long, purchases are made according to the upward price movement. Half of the investor's assets are waiting to be bought, while the other half is deployed by the DCA bot. In Shor or short trades, half of the assets are held for sale, and the rest are still moving through the DCA bot.
Things to watch out for in crypto bots!
Crypto bots, such as centralized crypto exchanges and cryptocurrencies, need to be thoroughly researched. If you subscribe to a crypto trading bot and connect your passbook without being researched with the idea that it makes good profits, you run the risk of losing all your investments.
The first point to be considered in crypto bots is the amount of fee required. Usually, crypto bots prepared by hackers do not demand any money from users. Investors who think they can make money without paying a fee will soon see that they have lost all their assets.
Therefore, the pricing of the crypto bot should be looked at. In addition, whether it receives commission from purchases and sales and the amount of commission it receives are also important because in some cases, it is possible for you to incur a loss due to the commission paid while the bots are buying and selling one after the other.
Crypto bots, which have a demo feature and allow you to test your strategies, show that they have features that will provide you with higher earnings.
More and more people are interested in cryptocurrencies, which are now one of the world's accepted economic tools. In this process, there is nothing as normal as needing bots to make money. However, it is very important to be careful and research thoroughly in this ecosystem where there are many frauds yet.