Trading bots are software that are frequently used in crypto money markets. Can altcoin prices be manipulated with these software?
What is trading bots?
Trading bots are software that are frequently used in cryptocurrency exchanges. As crypto money markets are markets that show high volatility and are open 24/7, investors cannot be expected to follow these markets constantly. With trading bots, investors can minimize potential losses or take advantage of profit opportunities during their timeframe when they stay away from markets. For example, on March 13, Bitcoin fell below $ 3,900 instantly, and some investors evaluating this process were able to purchase Bitcoin at a low price thanks to their trading bots. In addition, stop loss is also realized through trading bots software.
Trading bots can be used maliciously as well as malicious software and may lead to manipulation in the market. Some crypto exchanges can virtually increase their trading volume thanks to trading bots. Similarly, cryptocurrencies with very low trading volume can lead to counterfeit trading volume thanks to trading bots. In fact, prices can be increased virtually by making false purchases on fake accounts opened for these cryptocurrencies. Some investors who are unaware that prices are rising virtually may become victims of this manipulation.
Since traditional financial markets are overregulated markets, they are equivalent to the law of manipulations in the market. For example, in some countries the legal counterpart of such manipulation is as follows:
-Scot
-Imprisonment
-Being banned from trading for a limited time or indefinitely.
-Being banned from trade with public institutions or organizations
It was taken under protection with penalties like.
Unfortunately, cryptocurrency exchanges are not yet regulated markets in many countries. Therefore, investors are vulnerable to manipulations with trading bots. The way to get rid of this situation is to trade on reliable exchanges and invest in reliable cryptocurrencies.
