Real-World Case Studies of Successful Trading with a Crypto Bot
Crypto bots began as a useful tool for traders and have become the future for anyone who wants to become a successful crypto trader. These types of programs generate a great advantage when it comes to earning profits through the transactions that are made in a certain period.
In addition to requiring only basic programming to work, a bot works 24/7. This makes them much more profitable, since they do not require a break, unlike human traders. Add to this the fact that they are not influenced by emotions when executing orders and that they can effectively multitask, and you can see how they are much more effective than any other type of trading.
To demonstrate these abilities, several users have conducted their own studies of different trading bots. It should be noted that the data highlighted here has been provided by the users who conducted the studies; although there is no full proof of their effectiveness, the results seem to speak for themselves.
SmithBot: One of the Most Comprehensive Studies
If you search online, you will eventually come across research carried out by SmithBot. In this study, an investment was made with a total of 200 EUR for 3 bots that would be taken into account.
Although it is not a crypto telegram bot, this research took 2 months to carry out the data collection and draw conclusions. For this, a BTC purchase was made with the capital, resulting in 0.00411 BTC, which would be used by the bots that were tested.
The crypto trading bots were programmed to buy BTC when it reached a certain point and sell it for profit when it rose. Each of the 3 bots generated profits constantly, earning bid-ask spreads for each transaction.
At the end of the time period, the results were somewhat surprising. Even though the market situation at the time was completely unfavorable — BTC had fallen in price by a total of 15.6% — the bots had managed to make a profit of 8%. So despite the negative overall feel of the market, the bots were able to protect the original investment and even make a profit on every buy and sell.
VoskCoin: A Study with Surprising Results
The Youtube user known as VoskCoin has about 600,000 subscribers and is one of the emblems of cryptocurrency investment within this platform. To determine how crypto bots and crypto telegram bots work, he conducted a study in which he sought to know the results over a year.
To do this, he used the Pionex platform with its built-in bot and placed his own crypto-assets worth $1,000 inside the bot. He wanted to see how it would perform its transactions with the parameters specified by the bot itself.
This study was conducted in 2022 when there was a sharp decline in cryptocurrencies in general. The devaluation of Bitcoin affected everyone, including traders working with crypto-assets.
The surprising thing is that despite working with a market that had a constantly falling price, VoskCoin’s results were not discouraging: The return on investment in Ethereum was 10%, and the return in Bitcoin was about 8%. However, the sharp declines devalued the currency, so that after 57 days, Bitcoin generated a profit of just 13 EUR, while Ethereum generated a loss of 25 EUR.
The experiment continued uninterrupted for a year, but the final results have not been published. What is certain is that the study proved its point: The bots work even in falling markets, maintaining the price of the currency more effectively than just holding it.
What Do These Studies Tell Us About Crypto Bots?
Taking into account both studies presented here gives us a summary of how bots work in today’s markets, even in those that are in a downtrend.
The first study shows that crypto bots (including crypto trading telegram bots) can ensure profits if the market remains stable in periods as short as 2 months. Meanwhile, the second study shows that in falling markets, the bots can help to protect capital more effectively than simply holding.
Is it better to hold coins or invest them in a crypto bot?
The VoskCoin experiment shows that a crypto bot is better at maintaining or raising a price than holding the crypto.
What is the estimated profit of a crypto bot?
The profit will vary depending on the coin and the bot you use. In the Smithbot study, the bot earned a profit of 8% on a market that was down 15.6%.
Can a crypto bot make big profits?
It all depends on the state of the market and the cryptocurrency in question. However, the trend is usually positive when it comes to generating any kind of profit.
Can a crypto bot protect me when the market is falling?
Yes, it can. In some cases, the profit generated by a crypto bot can be greater than or equal to the negative effect of a falling market.
At the time of writing this article, I wanted to point out that most of the information found here is not backed up by any kind of support. There is currently no 100% verifiable study of the effectiveness of crypto bots.
Additionally, the few “studies” conducted by users do not have complete data and are limited to working with the positive aspect. This makes it very difficult to create an article on this topic.
Finally, each study has a name and a bot where it is tested. Due to the nature of these “studies” it is necessary to name the bot where the testing was performed.
All this information was notified to the PM who indicated that this article may need to be discussed with the client. It is possible that there may be mention of competitors or inaccurate data as there is no information available that can be easily found.