Cryptocurrency robots are tools that simplify how traders research and execute trades. A well-built bot can open a trade and set the required take-profit and stop-loss.
In this article, we will look at the history of trading robots such as Bitcoin Code and assess whether they are popular in Germany.
Also, going further on this topic, according to Jan Nagir from CryptoMonday.de, “wir haben die Bitcoin Code App getestet und unsere Bitcoin Code Erfahrungen 2022 in diesem Bericht zusammen mit allen relevanten Fakten dokumentiert.”
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Trading robots history
People have been trading different assets like stocks and commodities for decades. During this time, the most common approach was to manually analyze the assets and execute trades.
In the past few decades, however, the concept of high-frequency trading has become popular, especially in Wall Street. It is estimated that a sizable amount of trades are executed by algorithms every day.
Algorithms are often seen as a better alternative to trading because they work for longer hours and they perform without emotions when executing trades. For example, hedge fund manager Jim Simmons of Renaissance Technologies has continually outperformed manual funds for years.
Today, these algorithms are widely used in the stock market globally, especially in Germany.
Trading robots, also known as expert advisors, are tools that seek to replicate the success of algorithms in forex and cryptocurrency trading.
How trading robots work
The idea behind robots like Bitcoin Code is relatively simple to understand. It all starts with a trader who is successful with manual strategies. For example, a trader can embrace a trend-following strategy that relies heavily on technical indicators like the Relative Strength Index (RSI) and double moving averages.
In this case, they will execute a buy trade when the RSI moves below the oversold level and when the price is above the 25-day and 50-day moving averages.
If this strategy has worked well for years, they can create a trading robot that opens a trade when these market conditions are met. In other words, they will create a piece of software that replicates the performance of the manual strategy.
As a result, trading robots are created by people with experience in both trading and software development. As such, since most people don’t have these skills, they often buy the bot in online marketplaces or from individual sellers.
How Bitcoin Code works
Bitcoin Code is a fast-growing cryptocurrency robot that is used by a substantial number of cryptocurrency traders in Germany. The bot is built using a combination of several technical analysis indicators.
According to its website, it has a faster response rate, meaning it is able to find trading opportunities earlier than other types of bots. As a result, it has a positive performance rate in the market.
Unlike most bots, Bitcoin Code is offered for free. Instead of charging a fee, the bot’s developers make money by taking a commission from its partnering brokers.
Some of the cons of Bitcoin Code is that its website does not disclose who its founders are and it has no contact information.
Cryptocurrency trading in Germany
Cryptocurrencies have become a viable alternative for millions of people in Germany. The real number of people who trade or own coins like Bitcoin and Ethereum is not easy although it is estimated that over 2.1 million people in the country own digital currencies.
Like in all countries, most of these traders use manual strategies while a small group of them use manual approaches to trade. Other people just buy and hold their coins.
There are several reasons why many cryptocurrency traders in Germany opt for trading robots. First, well-designed robots are usually effective. As a result, people with no trading experience or those with little time to trade can benefit from the use of these bots.
Second, bots work for longer hours since, unlike humans, they don’t sleep. Therefore, with robots, it is possible to make money as you sleep.
Further, robots don’t bring emotions to day trading. For example, it is relatively easy for a manual trader to stop a loss-making trade after being overcome by emotions.
Still, there are several cons of using robots in Germany and around the world. First, not all robots work well. Indeed, most people who start using robots tend to fail. For example, conventional knowledge says that a trader should buy an asset when the Relative Strength Index (RSI) moves to the oversold level. However, at times, the price will keep falling even when it is in an oversold level.
Another reason is that most robots focus on technical analysis and ignore fundamental analysis. For example, a robot cannot predict when an announcement on regulations will be made. It cannot predict when a hack in a DeFi platform will happen.
How to use a cryptocurrency robot in Germany
There are several steps you need to follow when using a robot in Germany. First, if you are building the robot yourself, ensure that you have tested it well. Doing that will help you confirm its performance.
Second, before you buy a bot, read reviews from past customers. You can find reviews from multiple sources such as just doing a simple Google search.
Next, test the robot in a demo account to see whether it works. Only buy a robot that gives you a free trial. After verifying its performance, you should go ahead and buy the robot. Most sellers offer the robot in form of a monthly subscription while others charge an upfront fee.
Germany, the biggest economy in Europe, has become an important market for cryptocurrencies. As a result, many robot developers are targeting German traders. In this article, we have looked at how bots work, some advantages and disadvantages of using them, and how to use them in Germany.