Trading bots have existed for a long time and it definitely looks like AI (artificial intelligence) and trading algorithms are evolving at a rapid pace, especially on cryptocurrency market. Automated algorithms didn’t work in the same way as they do now and had to be downloaded and installed on your PC to work. Now, these solutions are available both offline and online, where users don’t need to download or install anything.
Trading bot services are growing every day. Such a volatile and explosive crypto market is a hard environment to trade in manually. The fact that it runs 24/7 is also a big issue. That’s why automated tools can be extremely helpful, they don’t need to sleep and will never act recklessly.
In this article, we are going to check the pros and cons of both types of services being offered to traders, who want to automate their deals.
Cloud Based Solutions
Not everyone likes installing and downloading software and with the rise of smartphones, cloud services also started to rise. They offer an easier and faster platform for traders that are looking to manage their portfolio and trades through their pocket device. There are of course pros and cons of using a cloud trading bot for cryptocurrency.
Cloud based solutions have been on the rise recently and a lot of services are switching to this option since it’s faster and very simple to implement.
- No installation of software required, so the user doesn’t have to download anything. With the amount of hacks and scams surrounding the crypto market, it’s no surprise that users don’t like to download anything.
- It is simple to implement, easy to access and use, very flexible and is very reliable in terms of backing up data.
- It makes possible for users to have access to their portfolio and trading bots at home, work or anywhere as long as they have access to the internet. This is again really important since the crypto market can change in a split second.
- It’s scalable: storing data on the cloud is almost limitless and allows services to easily increase their storage capacity.
- There is a small risk that comes with cloud tools, the internet can go down, no one can guarantee the internet will be available 24/7 but this risk also comes with locally installed trading bots that cannot work with no connection to the exchange.
- Trading bot services are dependent on the suppliers and these systems can go down due to the weather disasters, fire or other unpredictable cases.
- Security risks are also present when using cloud-based solutions. The data is stored with a third-party provider which means the visibility and control over your data is quite limited. It’s extremely important that users do their research before choosing a trading bot service.
TOP TRADING BOTS
This was the traditional system for most trading bots at the beginning when smartphones weren’t as popular as today. Users have to download and install a software or download an app if the trading service offers one. There are a few benefits of this type of services compared to cloud ones.
- Users will never lose access to their data and it works offline, you don’t need internet access although this will only apply to customization.
- Highly customizable, meaning that users will usually have more options as well as a more responsive service in general.
- Data entry is faster.
- Must be installed on every device the user intends to use. This means that if you are at work and want to access your trading bot from your job pc, you will need to install the software.
- Not easily accessible everywhere.
- Users have to create their own back-ups.
Which one to choose?
There isn’t a definitive answer since it always depends on what the user particular needs are. Both options have different benefits and disadvantages but it’s true that cloud based solutions are growing every day. They offer something really important these days, the ability to access the service from anywhere easily. This can be a huge advantage, especially in a volatile market like the cryptocurrency.
I personally use cloud tools and not only for trading bots. They are getting upgraded every single day. Installed software is getting outdated slowly and will perhaps stop existing in the near future. Cloud applications are now present in almost all services possible.