Alex Morris

Top Gaming Cryptocurrencies: How to Earn Cryptocurrency While Playing Games

U.Today brings fun to the burgeoning industry in the search for the best gaming cryptocurrency? What gaming coin deserves the highest prize? We’ve reviewed them all!
Top Gaming Cryptocurrencies: How to Earn Cryptocurrency While Playing Games
Contents

The global game market is expected to hit $128.5 bln as early as in 2020. This mammoth-size industry is only getting bigger, and many are trying to make top-dollar out of it. That creates a ground for a cross-over between the gaming space and cryptocurrencies (a nascent industry that was worth a whopping $800 bln during the market peak in January).

U.Today has defined the best gaming cryptocurrency on the market that is currently making waves in the industry.

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WAX Coin

WAX is the platform that is supposed to be a decentralized marketplace for gamers. The idea is not new — there is already a fully centralized OPSkins marketplace, but this time the task is to completely decentralize it. This ‘old wine in a new bottle’ approach is supposed to bring more transparency and streamline the transaction process. It seems like the creator of this project tapped into the right market since a whopping 55 percent of millennial gamers already own crypto.    

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While the project sounds promising, decentralized games are struggling big with adoption (CryptoKitties probably has more developers than players as of now).  

Currently, the token is sitting at 65th place on CMC with a market cap of $62.4 mln (that’s a tremendous downfall since January, when its market cap exceeded $1.3 bln). Nevertheless, it had a rather big spike back in June with even Wall Street titan Mike Novogratz being ‘amazed’ by the intersection of crypto and the gaming industry.

Cryptocurrency

Rank (CMC)

Market capitalization

Price

WAX (WAX)

66

$63.3 mln

$0.067

Enjin Coin

Enjin is a powerful gaming community platform with nearly 20 mln gamers using it. They issued the Edjin Coin in order to make it the universal cryptocurrency in the gaming world. This ERC-20 token is supposed to be the backbone of a huge virtual goods marketplace. Users buy and sell items across thousands of games.

Apart from tackling the issues that are connected to exchanging different gaming items, the network makes transactions much faster. Meanwhile, the Enjin Smart Wallet allows users to store multiple altcoins while providing users with an extra layer of security.

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The platform is suitable for powering crypto collectible dApps (it’s a beginner-friendly platform, so you don’t have to be a high-profile Solidity developer in order to grasp the gist). Game developers can also make sure of smart contracts.

Unlike WAX, Enjin uses an already existing Blockchain, so the main issue is to convince gamers to use it. However, there is more than enough space in decentralized gaming for both of these projects to survive.    

Cryptocurrency

Rank (CMC)

Market capitalization

Price

Enjin Coin (ENJ)

143

$20.4 mln

$0.026

ION

Does the idea that you can be paid for simply playing video games sound too utopian?

The highly ambitious projects are creating a full-fledged gaming economy that could unite players and game developers of different caliber — from indie groups to billion-dollar giants in the likes of EA.

The ION coin is based on the static PoS algorithm (according to the project’s white paper, they reject Bitcoin’s PoW because of excessive power consumption).    
 

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As more people get on board, the ION economy (‘Ionomi’) continues to grow. The coin will acquire a lasting transactional value if there is a constant influx of users.

Cryptocurrency

Rank (CMC)

Market capitalization

Price

ION (ION)

387

$5.4 mln

$0.254

Crycash

Crycash is somehow similar to ION — gamers are able to earn crypto by simply having fun and completing numerous challenges. The project looks rather solid, and there is a good reason to believe that Crycash (CRC) may be up to a ten-fold increase.    

Crytek, a big-name German game developer, is the company behind this project. It acquired a high-profile status after the Crisis anthology. It is also worth to mention the Warface integration.

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The coin that is earned during the game could be used for making different in-game purchases. The developers hope that it could serve as an incentive for players to spend more time on the game.

GameCredit is yet another example of such platforms (it serves a similar purpose of creating a universal cryptocurrency for gaming).   

Cryptocurrency

Rank (CMC)

Market capitalization

Price

CryCash (CRC)

1086

$158,775

$0.034

GTCoin

GTCoin (Game Tester Coin) is a unique coin that creates a bond between game developers and those who consume their product. In order to earn GTCCoin, users (you guessed it) have to test games in order to reveal different bugs.

This is a win-win situation — developers can hone some weak spots in the game, and players are able to get their hands on exclusive content while simultaneously earning coins.

This is shaping app to be a robust platform for uniting people that are involved in the process of game creation.

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Other alternatives include:

  • FirstBlood rewards, a fairly similar project, rewards players for participating in gaming matches with the 1ST token. The project aims to bring cryptocurrency mainstream adoption closer while simultaneously enhancing transparency in the global gaming market.

  • One also should mention a $40 mln project called Refereum that rewards players with cash prizes for being involved in the game.   

  • MobileGo offers more than simply rewarding content creation with tokens – it is a global platform for conducting decentralized eSports tournaments. As the name suggests, MobileGo extends far beyond PCs, offering a competitive gameplay on a mobile phone.       

Cryptocurrency

Rank (CMC)

Market capitalization

Price

GTCoin

375

$5,7 mln

$0.007

RevolutionVR

RevolutionVR, as its name suggests, is making a revolution in the gaming industry (to be precise, in its small niche — virtual reality).

They strive to accelerate the adoption of video game cryptocurrencies, and they place an emphasis on the development of high-quality VR games.

The current VR games are not really affordable, and RevolutionVR tries to tackle this issue of high prices — that would eventually allow increasing the number of consumers. Players around the globe will be able to enjoy a high-quality gaming experience without the need to own a powerful computer at home. Moreover, it also promises to be more powerful than modern PC solutions.

RVR, the network’s native token, is already listed on numerous exchanges.   

We are not supposed to give you investment advice, but it goes without saying that virtual reality represents the future of the gaming industry, and there is a chance that RevolutionVR could spearhead this progress.

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Cryptocurrency

Rank (CMC)

Market capitalization

Price

RevolutionVR

447

$3.9 mln

$0.019

Unikoin Gold

Unikoin Gold deserves an appearance on this list simply because many big-name investors are already backing this project, including American millionaire Mark Cuban, who earlier criticized Bitcoin due to its volatility. So, what makes these investors tick?

The eSports industry has a huge potential, and it comes as a no surprise that many are trying to capitalize on that. Unikoin is one of the new betting platforms that allows putting money on a slew of popular games such as Overwatch, Counter-Strike and so on.

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It circumvented the prohibition on betting in fiat currencies by issuing their own token. During the ICO, it raised an eye-popping $110 mln, making it one of the most successful ICOs.  

Mark Cuban is really picky when it comes to putting his name on the list of investors of a certain project.

HEROcoin (PLAY) is also a platform that has the potential to disrupt online betting. Meanwhile, Ethbet (EBET) stands out among the rest of similar projects by offering the highest returns on the global dicing market.   

Cryptocurrency

Rank (CMC)

Market capitalization

Price

Unikoin Gold (UKG)

428

$4.31 mln

$0.03

Decentraland (MANA)

Decentraland is a popular virtual reality platform whose native token (MAGA) is on the CMC list of top 100 biggest cryptocurrencies. With Decentraland, you are able to create your own virtual reality network. It is supposed to be a Blockchain-based alternative of such hit games like Skyrim and Fallout.     

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Unlike the majority of other projects on this list, Decentraland has been around for a relatively long span of time — the first development milestone was reached back in 2015.

The games that allow its players to live in alternative realities are growing at a rapid pace, and such technologies as 3D and Blockchain are already poised to reshape this sector.

Cryptocurrency

Rank (CMC)

Market capitalization

Price

Decentraland (MANA)

63

$65.7 mln

$0.062

The problem with gaming coins

To sum everything up, we should point out a single problem that relates to all of the aforementioned gaming coins — the pace of adoption. These projects are still in the early stage of their adoption, and they still haven’t managed to reveal their full potential. There is also a place for more global questions — will Blockchain produce a palpable impact on the gaming industry? Will dApps ever see the light after the front-loaded success of CryptoKitties?

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Overview of Six Types of People in Cryptocurrency Community

In honor of Telegram’s importance in the crypto world, we take a look at the most common types of people on the platform.
Overview of Six Types of People in Cryptocurrency Community
Contents

Telegram is going to launch a $1.2 bln ICO and issue its own cryptocurrency, according to TechCrunch. Telegram founder Pavel Durov neither confirmed nor denied plans for an ICO, but during an interview with Bloomberg, he praised Bitcoin. He said that Bitcoin is a kind of digital gold, and the 2,000 BTC that he bought for $1.5 mln is now worth $33.5 mln.  

Telegram is the main communication center for millions of people. And like in any real-life community, virtual communities feature they have several basic types of members. Here are some archetypes you’re likely to meet in Telegram channels.

1. An alarmist

 

 

Users of this type are notable for the highest activity in channels, making themselves and others crazy. A panic-monger declares his eternal love to the project and all the users quite often, but immediately switches to anger at the first signs of problems. Basic vocabulary includes: I love everyone. HODL. I truly believe in the project. I want the refund and my coins back! I hate you! Give my money back! It’s a scam! A fraud! Everything’s gone! I wish I had listened to my mother! Run, you fools!

2. A person with “connections”

 

 

This kind of user usually demonstrates their knowledge of all world jurisdictions, connections in the CIA, the law courts and presidents. Basic vocabulary: You’re in big trouble. I have reported everything to the SEC already. You may start panicking because the FBI is keeping an eye on you.

3. A believer

It’s the major category of users in every crypto Telegram channel. They invest their own money not only to get the profit but because of their trust in the project and the team. These people are the core audience of every project and they support and inspire the team. They are the most loyal followers of the product and the ones who display understanding and patience during the development. This audience is mainly represented by experienced cryptocurrency enthusiasts and analysts who read almost every message and monitor every reference in the media. They usually investigate all the issues on their own and sometimes share the answers with the others.

 

4. A reseller

This user comes to projects with one aim: to buy low and sell high. He doesn’t care what kind of product is under development, or what’s the idea behind it, or who’s on the team. He hardly ever reads the white paper. Basic vocabulary: When’s the listing? Come on, guys, hurry up! I can’t wait to see $100 for a token within a month.

5. Forever banned user

A user of this type always floods and gets banned for it each time. Then he creates a new account and starts all over again. Basic vocabulary: Why am I banned again? I invested a million dollars and got banned here. Why?

 

6. Sarcastic troll

A user who appears online once every month and asks the same questions every time: "So, how are you doing here? Has the project collapsed yet?" He disappears then and usually comes back a month later with the same questions and jokes.

 

Each token sale is unique. Telegram is not just another messaging service; it means a lot to the crypto community. It’s the primary way to keep up with the thousands of ICO projects on the market. Telegram is not monetized at the moment, although it’s potential is quite high: its ICO can become the biggest one in history.

Alexander Borodich, venture investor, Forbes contributor, CEO of Universa.io.

P.S. to editor: the pictures are drawn by us


 

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AI Alex Morris

How Artificial Intelligence (AI) Penetrates the Crypto World

🤖 AI
The utilization of AI-powered instruments becomes the most recent trend in crypto trading
How Artificial Intelligence (AI) Penetrates the Crypto World
Contents

Artificial intelligence is nothing new in the world of finance, since traders have been using traditional algorithms for decades. However, the new generation of AI technologies, which is currently entering the field of cryptocurrency marketplaces, may be a truly revolutionizing solution for traders who constantly have to deal with rife market manipulations.

Let’s find out how widespread the adoption of AI in the crypto space is and what benefits it gives to crypto holders.

Actives’ analysis

One of the most effective ways to predict the future value of assets is to make forecasts with the help of AI technologies.

There have been several platforms like Augur and NeuroBot that utilize AI-powered tools in order to analyze crypto assets and come up with near-precise price predictions that are based on crypto exchange rates.

AI-driven services come out as a low-cost solution for investment portfolio management problems. Such tools are able to functions 24/7 and are less prone to mistakes than humans are.

Conducting AI analysis of a specific cryptocurrency is crucially important to determine whether there is a positive/negative outlook and how successful a potential investment can be.    

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Trading

Artificial intelligence has been widely utilized in cryptocurrency trading which is usually a no-go zone for inexperienced traders due to a high market volatility. However, AI poses as a game changer, since it is able to remove a human factor and instantaneously determine possible risks before you even manage to place your order.

An AI-based Chinese crypto exchange Bibox already has more than 50,000 daily active traders. Because of AI-enhancement, traders are able to use unique tools for market analysis and forecasting.  

While there is always a room for ambitious investors who are able to go all-in, AI allows to significantly reduce the risk of losing money to almost non-existent by making almost 100 percent precise predictions. For beginners, this is a wonderful tool for in-depth market analysis that helps to make wise investment decisions without extensive knowledge in finance.

However, there is a lingering question– what’s the point of being a trader if AI tools are so powerful?  In fact, a human always stands behind artificial intelligence by designing specific algorithms that can either lead to big gains or tremendous losses.

Another issue with AI-powered crypto trading is that it requires huge processing power for precise results that no ordinary person can afford which places traders in an unequal position. Therefore, one can make a conclusion that AI technologies are more beneficial for big companies.

Community mood

There is already an algorithmic crypto-asset manager named NapoleonX that helps to gather data about the market mood (including their emotional state of investors, their sentiment and opinions). Understanding the community mood can help to identify behavioral patterns that are typical for the crypto space.

Similarly to the dot-com craze in the late 90s, crypto speculations are prevalent as the market still remains in the stage of its inception. A study shows that the crypto community is rather guided by emotions and mood than different economic data. Sentiment analysis that can be conducted with the help of artificial intelligence can be a game-changer in this industry where everyone strives to find out who will be modern day’s Google in the cryptocurrency world.

Free AI bots allow users to review market sentiment, emotions, opinions for Bitcoin and Ethereum, the two biggest cryptocurrencies on the market.

While sentiment can only range from positive to negative, there are different kinds of emotions included, such as excitement, fear, sadness, surprise and anger. You are also able to choose between social sources and media sources which may impose a different effect on a trader’s emotions.

Data related to sentiment and emotions is useful for predicting how the volatile the market will be in the future: highly positive sentiment, for example, may be a sign that you are dealing with a market bubble that is about to burst. When it comes to opinions, there are only two options for crypto bulls and crypto bears.

Also, check Matrix AI

Matrix AI (MAN) is considered to be a groundbreaking China-based blockchain platform that conveniently utilizes AI technologies for security enhancement by means of automated auditing and self-optimization.

The network offers as many as 50,000 transactions per second and, on top of that, its TPS rate is expected to increase up to one mln in the future.

Another important feature that may potentially lead to Matrix’s mainstream adoption is the ability to create smart contracts in your native tongue which makes them more accessible for anyone and eliminates the need to learn programming languages in order to use the blockchain technology (only 20 mln out seven bln people have extensive programming skills).

With Matrix, English, Chinese or any other language will be converted into programming one with the help of a code generator.

Although, Matrix AI currently sits at a very humble price of only $0.37, there are plenty of predictions that such a revolutionizing technology won’t go unnoticed and could become the next 1,000 percent ICO. Some really serious developers stand behind this project (including former Google and Microsoft employees). You can find more information about their impressive team on Matrix’s official website.

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Hiring AI devs

KickCoin (KICK), which currently makes into the top 150 coins by market cap, is also stepping up its AI game by expanding the team of developers. This Blockchain-based platform was specifically designed for organizing fundraising events (ICO, pre-ICO and so). KICK’s price is a bit underwhelming ($0.104, but performance indicators are showing an ongoing positive trend as crypto crowdfunding becomes more popular. With further utilization of artificial intelligence, KickCoin may significantly improve its positions.     

The new project named U.Community is still in the early stage of development, but it is a very ambitious endeavor, since they want to come up with a multifunctional platform that will a cryptocurrency exchange along with AI-powered instruments for market analysis. You can also see the list of other Blockchain projects that utilize artificial intelligence here.

AI
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SingUlarity Evgeny Konstantinov

A Case for Reddit, Billy Milligan, Facebook, Gmail, and Cryptocurrency

SingUlarity
Evolution of communities puts self-governance on top
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Contents

Reddit

Back in 2005, Alexis Ohanian and Steve Huffman — two undergraduate students of the University of Virginia and dormmates — had an idea for a food ordering app that they pitched to a computer scientist and entrepreneur Paul Graham. Paul Graham liked the idea and told Alexis and Steve to pitch it to Y Combinator — a startup accelerator that Paul co-founded that same year and that’s one of the most successful today.

The pitch didn’t go well with the Y Combinator investors and was rejected, but they liked Alexis and Steve as a team and told them to come up with something else. The two undergrads quickly came up with the idea of Reddit that Paul Graham immediately called “the front page of the web.” Reddit was given funding, developed in a very short period of time, and went online in June 2005.

At first, the new social network was very barebones with very few users, and to create the effect of a crowded house so that it would show some activity on the website, Alexis and Steve started registering fake users and submitting news and links worth of attention through different names. This way of attracting new users can be crudely called the Billy Milligan effect. Alexis and Steve had to pretend they were a number of different people who used the website until they reached a critical mass when Reddit would be able to function on its own.

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Facebook

A year before Reddit, Mark Zuckerberg launched a universal student directory at Harvard called TheFacebook. The directory was a centralized place to keep all student photos and basic student information. TheFacebook, unlike Reddit, was launched to an existing userbase — Harvard students — and within the first month more than half of the undergraduates registered on Facebook. Facebook was initially restricted to Harvard.

Gmail

Gmail was launched in 2004, but due to the limited infrastructure to support the users, Google decided to make Gmail invitation-only and limited the invitations to 1,000 opinion leaders and their friends and family members.

Gmail invitations, due to the closed nature of the service, became highly demanded and a market was quickly formed around them. Regular invitations were selling on eBay for $150 with some accounts soaring to as high as several thousand dollars.

As Georges Harik, product management director for Gmail at the time, puts it: “The limited rollout had been born of necessity, but it had a side effect. Everyone wanted it even more. It was hailed as one of the best marketing decisions in tech history, but it was a little bit unintentional.”

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Blockchain

Reddit, Facebook, and Gmail happened well over a decade ago, and the Blockchain technology and interest have advanced and spread in the meantime. Getting early in a product, project, or a service poised for success is always an advantage, be it a cool name on Gmail, the account age on Reddit, or making use of Facebook monetization.

With Blockchain and cryptocurrency, as the latest years show, getting in early is a solid advantage, and due to the decentralized nature of the technology, this can be a life-changing experience. It is to many.

To quote Michael del Castillo of Forbes:

“By giving early adopters of a budding social network like Steemit access to a token that potentially appreciates in value and gives them access to the service, developers could create an incentive to join long before the actual network effects are competitive with established centralized social networks like Facebook and Twitter.”

Community support through getting coins of a new service shortens the period necessary to reach the critical mass to not only keep the network going but letting it truly flourish on its own. With Blockchain and crypto, no longer does a project need to play Billy Milligan or simulate an elitist characteristic of an invitation-only service.

The service has to be good though, and decentralization allows it to be self-governed and ready for the community embrace, for the Blockchain protocol and algorithm are transparent and independent — the complete opposite of being centralized. You can’t pull a Billy Milligan on it or switch it to a doors-shut exclusive place. The protocol and the decentralized nature of Blockchain make it completely community-owned.

But again, the service has to be good.

The U°Community platform is not yet another social network on Blockchain just because of Blockchain. It’s an integral part of Blockchain and an interface to it.

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Yuri Molchan

Six Employees from Facebook, Netflix, Apple, etc, That Switched to Jobs in Crypto

A recent trend shows that the crypto industry is luring high-performers, not only from top banks but from centralized IT-behemoths, too
Six Employees from Facebook, Netflix, Apple, etc, That Switched to Jobs in Crypto
Contents

A co-founder of AngelList wrote back in spring that the blockchain industry is drawing top-notch pros from Silicon Valley quicker than any other innovative sphere since Internet appeared.

This has been true even despite the hard bearish sentiment that has been dominating the market throughout the year. Among those who decided to dump their secure life working for global IT-giants are those who used to hold high positions at the FANGs: Facebook, Amazon, Netflix and Google. These people have ventured supporting blockchain and crypto startups with their time and effort. Let us see who they are and where exactly they went to, dropping their previous secure and highly paid positions.

Kahina van Dyke

Left Facebook, went off to Ripple

Before Kahina van Dyke got the position of a senior vice president for business and development at Ripple, she had a few impressive jobs on her CV that any high-performer can envy: Facebook, Menlo Park, Citibank and Mastercard. But since quite many people in the crypto industry consider Ripple to be a centralized platform, which in addition aims to work with top banks to help them conduct payments with XRP globally, one may say that Kahina van Dyke has chosen a job along more or less the same lines — she just went to a different company.

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Van Dyke set off to Ripple in June, saying she believes that the platform has the potential to help banks and ordinary users get rid of the hindrances that make transnational payments extremely slow and expensive.

Leo Chen

Ditched Amazon, joined Harmony

Chen used to be part of the team at Amazon Web Services (AWS), the cloud division of the online retail giant, and joined Harmony. This is a consensus platform that keeps working on its development and aims at quite high results in the industry overall.

His interest in crypto began back in 2012, when he invested in Bitcoin, making some good profit and then got interested in Ethereum. Chen admits that working for Amazon, he learned some very useful software architecture and that it can be a basis for building a secure and high-performing blockchain platform.

Alok Kothari

Left Apple to found Harmony

Harmony gets two points here. Kothari works as an engineer there, and he was also a co-founder. Harmony’s team seems to be packed with people having a FANG background, and this proves a simple basic principle true for many crypto startups: if you find one former FANG worker there, you will certainly bump into more of them on the same team.

Kothari had worked for Apple for three years, and his responsibilities included working on Siri, the voice assistant. But later he decided to set up his own shop. He believes that blockchain can transform the world and help data to become decentralized for everyone’s benefit.

Ryan Lechner

Former Netflix worker joins ConsenSys Labs

What Ryan Lechner does in ConsenSys Labs is that he manages the numerous investments that this ETH shop, located in Brooklyn, has made. At Netflix, he was trying to expand the strategy of non-fiction content.

He joined ConsenSys Labs after listening to a podcast about the transformation that DLT and crypto can bring to the world; this added to his previous thoughts about these two innovative industries and made him leave Netflix to join the crypto startup in 2017.

Alex Feinberg

Dumped his job at Google to work for OKCoin

Feinberg holds the position of Director of Business development at the OKCoin crypto exchange. Actually, this is not his first ‘crypto job’. After he left Google, he joined a startup named Petram Security.

He admits that his interest in crypto is a financial one. Once, his friend told him over dinner that he had invested in virtual assets and made some good profit. So Feinberg thought that people who share his world view outside Google are wealthier than his colleagues who see life at a different angle. He left Google earlier this year.

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Chandan Lodha

Ditched Google to found CoinTracker

Lodha co-founded CoinTracker, an app that calculates taxes on crypto investments.

Lodha gave up his position of product manager at Google in the middle of 2017. He admits that he had dealt with crypto before but was pretty skeptical about it, treating it as a hobby. But then crypto began to grow in price and Lodha began to take it serious.

Together with another ‘Googler’ he got an idea of a startup working in the crypto sphere. He admits that his work for Google gave him the necessary experience in focusing on customers to make user-friendly and simple products for them.

To sum up

It is difficult to say whether this trend will continue now that the market remains bearish, since as one can see above, not all of the people going from traditional tech into the crypto/blockchain sphere do it based on belief and enthusiasm.

Some of them are attracted financially by the possible results. As it often happens, almost any industry is first of all based on the enthusiasm of its workers. Because if there are no big profits for a long time, those who chase only finance and benefits will move on somewhere better, and only those who truly believe what they do will stay. Time will tell if they succeed.

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🎓 Trading Guide Andrew Strogoff

Bitcoin price, Crypto Trading, Cryptocurrency Market

Trading Guide
Cryptocurrency trading bot, advantages and disadvantages, how to use them in trading
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Trading robots or bots for cryptocurrency have appeared long go almost at the same time when the first crypto exchanges were created. Those algorithms were in demand as they offer (according to their creators) an opportunity especially for beginners to start trading without any knowledge and earn money.

Why do those cryptocurrency trading bots are popular among novice investors? The main reason for this is the strong belief in miracles. Some beginners think that there is some kind of AI helping investors to take right decisions or even opening profitable trades all the time.

However, this is a myth as there is no such an algorithm, which is able to predict the price in all the situations. We are going to start with some most common myths about crypto trading bots.

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Myth 1: the robot is able to assure 100 percent profit to you

We have already started to discuss this at the beginning of this article. The answer is “No, no and no!”. It is impossible as a trading bot is nothing more than an algorithm. There is no AI here. The robot follows scripts and dependson them completely.

Those who use trading robots have to remember that they need to conduct their own analysis as well. Leaving everything to bot means traders risk more.

Why do bots cannot assure 100 percent result in all trades? The main reason is that crypto robots are based on specific technical analysis indicators and have no AI inside. The robot cannot analyze the situation as it acts according to a special algorithm.

Let’s suppose your cryptocurrency trading bot “uses” RSI oscillator indicator. It gives signals when the curve returns from overbought and oversold areas. This trading tool gives the best entry points when there is no tendency. When a trend starts, RSI may stay for a long time in one of those areas. Let’s suppose we have an uptrend. RSI will stay within the overbought area for a long time giving no reverse signals.

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However, reverses during the uptrend are corrections and it is very risky to trade them as they may be flat and brief. How will crypto trading bots act? They will open short positions once RSI’s curve will leave the overbought area. What does it mean?

Cryptocurrency trading bot will significantly increase your risks. Trends may be long and significant. During the tendency, an investor will likely lose a part of his capitals or all his funds.

Myth 2: cryptocurrency robots “think” and “learn”

No, it is impossible. Those bots are nothing more than simple algorithms. They cannot “think” neither “learn” as there is no AI inside. However, many novice traders pay too much attention to cryptocurrency trading bots as they believe that those algorithms are able to make miracles.

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Unfortunately, many traders are trapped with this belief and they lose their funds before they understand the truth, especially in the cases when they buy crypto robots. Those who sell those algorithms do not tell all the truth about them.

We have decided to create this article in order to help traders to understand whether cryptocurrency trading bots are useful. We are going to cover other important things including the advantages and disadvantages of using this soft in trading.

Description of cryptocurrency bots

Those robots came from Forex and stocks markets. They are set up to free investors from some aspects of trading routine. Their main task is to open trading positions according to the parameters, set by the owner.

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Examples of Cryptocurrency Trading and Cryptocurrency Platforms

The simplest cryptocurrency bots buy cryptos when the price goes upwards and sell when it goes down. They have some technical indicators inside as the robot cannot see the chart itself. It can only react to some price changes.

More complicated crypto trading bots use several indicators and some chart data such as periods, for example. There are also some robots that are able to calculate several aspects.

All robots can be divided into two main groups– trading crypto bots that work within one exchange and arbitrage bots working with several exchanges.

How do cryptocurrency trading bots work

They do any steps according to their strategies. A strategy is a set of trading rules that a trader uses during his routine. In order to facilitate his activities, a trader can make his own software. The fewer settings bots have, the less flexible they are.

Experienced traders always try to work with robots that have the maximum number of settings. However, software developers try to set all parameters for beginners as novice traders may be confused by huge data massive.

Many investors think that crypto exchanges do their best in order to prevent clients from using cryptocurrency trading bots. The truth is that those trading places are interested in trading bots as those algorithms open many trades during the day meaning the volume of fees increases significantly. However, it is better to ask the support service of the chosen exchange whether they allow crypto bots or no.

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Where to find cryptocurrency trading bots

There are several ways to get such a software. Traders can do them on their own, buy them or download. In order to create a crypto trading bot, one has to have skills in coding. Additionally, traders need to work with exchanges offering API (Application Programming Interface). It is to mention that almost all trading places nowadays have their own APIs.

Those who want to buy cryptocurrency trading bots find special companies or private persons via forums and blogs. There is no unique price for such software. It depends on functionality, number of settings, quality etc. One can also order his own bot, but trading skills required in this case.

Another way to get crypto robots is to download them. There are several links to do it but you have to understand that the quality of such software may be significantly lower.

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Advantages and disadvantages of cryptocurrency trading bots

Those traders who use crypto robots in their everyday routing have the following benefits:

  1. They save their time. Trading takes much time. Sometimes you have to spend hours analyzing charts or placing orders. Robots are never “tired” and are able to work 24/7. However, it does not mean that you can rely on them in every situation as algorithmic trading involves more risks as we have mentioned above.
  2. Crypto bots do more than traders can. When you trade cryptos, you can follow a couple of coins in a period of time. Additionally, it is hard for a single trader to work with several exchanges simultaneously. Robots are “able” to analyze as more cryptos as you will indicate in their algorithms. Bots will “work” with the number of exchanges you want them to cover.
  3. Higher speed. This is another huge advantage of any crypto robot over humans. Traders are unable to make their analysis as fast as algorithms do meaning robots “can” open trades in the earliest stages of a new trend, for example.
  4. Robots are emotionless. Crypto trading bots “have” no doubts, they “are” quiet and patient, they “cannot” be confused by the market situation. They “have” no emotions and no fears at all. Traders may be greedy; they have fears especially after losing their funds.

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As for the disadvantages, they are also numerous:

  1. Sheep need a shepherd. Robots may be compared to sheep and trader to a shepherd. He has always looks after his robot, otherwise, he risks to lose his money. Skilled traders will better forecast the situation than any robots as they understand where to open trades and where it is better to stay off the market.
  2. Crypto bots can be used only in a typical situation. However, as practice shows, the market often offer non-standard cases where bots are useless as they are “unable” to conduct fundamental analysis and to “understand” what is going on with this or that crypto.
  3. Exchange fees. Robots may open tens and even hundreds of trades per day depending on their timeframes. However, you need to remember that you are to pay fees to crypto exchange. If you have significant losses after your bot’s trading session, you will be negatively surprised by the commissions as well.
  4. Security issues. There are several security issues when traders deal with crypto bots. Including the following:
  • Trading robots withdraw profit third-party accounts.
  • Copy owner’s account data and transfer it to a third party.
  • Other malicious activities.

Should novice traders use cryptocurrency trading bots in their daily routine

Many beginners think that using crypto trading bits is their unique opportunity to start earning. They look for some reliable software and hope it will significantly increase their trading chances. However, this is not the best way to start trading.

Novice investors do many mistakes when trading. However, they learn even from those mistakes and develop their skills step-by-step getting more experience. Over time they learn some market patterns and have chances to become good traders.

Finally, those who learn, reach new levels and gain more profits. However, those who used robots stay on the same levels and learn nothing. The end by having no background and trading experience. The only thing they know is how to set up their bots.

The other important aspect to consider is that simple crypto bots cost more than $10 per month. Arbitrage robots are even more expensive. The majority of those algorithms aim to take profit only and they do not sell the cryptocurrency until its price grows meaning trader risk to have huge losses.

Is it worth to use cryptocurrency trading bots? It is hard to give an answer to this question. Professional traders can use it in order to facilitate their trading routine. However, skilled investors never use their bots separately from their strategies. They learn first and then give robots a chance.

As for beginners, we recommend starting from trading education. When they get appropriate knowledge about markets and traders, they may start using crypto bots.

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