Survey: traders don't trust trading bots

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Most traders lack an automated solution, but their experience with trading bots has been unsuccessful, the survey shows.

Traders do not trust trading bots and do not plan to use them, tweeted Cinneamchain Ventures partner Adam Cochran after he had conducted a survey among thousands of traders.

88% of traders surveyed said that they do not trust bot creators, 81% consider them inappropriate to their needs, and 69% are too complex in technical terms.

Most traders allegedly lack the financial or technical knowledge to manage bots, Cochran supposed.

In the course of the study, 10,388 traders with assets under management worth $53.5 million were interviewed. Among the respondents were both amateurs and professional traders and organizations. More than 81% of respondents answered that they are actively trading cryptocurrencies.

About 38.05% of respondents confirmed that they had experience using a trading bot at least once. The vast majority (94.18%) tested trading bots on spot exchanges. But 93% stopped using bots after a month of testing period. About 30% of respondents explained their refusal to use bots by the fact that they did not see enough of the desired functions in them (for example, built-in scripts or marketplaces for various scenarios), and the majority, 63%, complained about technical errors in trading bots.

The general conclusions that Cochran comes to are as follows: many users want to automate trading, they need ready-made modular scripts, proven brands, they want to separate and track balances separately, and they also need simple and clear ways to communicate with trusted members community.

Cochran estimates that, on average, a trading bot is supported by seven spot exchanges, which opens up ample opportunities for arbitrage trading. Most bots target Coinbase and Binance exchanges.

It is not the first time Cochran and his team assess the market of trading bots. Their first study on trading bots dates back in 2017. This is the fourth survey that helps to track changes in attitudes of traders to trading bots.

Via: 2Coinfox.info

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