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Research shows that 86% of crypto trading is done by bots

Researcher Adam Cochran conducted a survey on automatic cryptocurrency trading aimed at 10388 people from different crypto communities. While the report shows that only 38% of users say they use bots, this number rises to about 86% if the amount of money moved is considered.

Of all the real users, 66% of them use bots for margin trading, whereas the percentage for futures is around 4%.

research crypto trading bots

Trading using automated software (so-called bots), be it crypto, forex or other, has been growing steadily for several years now. Thanks to the advent of machine learning and artificial intelligence, and by using appropriate libraries, it is increasingly easier to create one from scratch.

According to the report, Binance is undoubtedly the exchange with the largest number of active bots.

The others follow with discreet percentages:

  • 83.3% of bots support Binance.
  • 66% of bots support Coinbase Pro.
  • 58% of bots support Bitfinex.
  • 58% of bots support Kraken.
  • 58% of bots support Poloniex.
  • 41% of bots support Bitstamp.
  • 41% of bots support KuCoin.
  • 33% of bots support BitMex.

These are clearly ready-to-use software, but if someone wants to develop one from scratch, there is nothing to prevent access to other platforms at the moment. Almost all of them release APIs to take allow trading, withdrawal and deposit services.

Here is a chart showing the amount of cryptocurrencies (in corresponding US dollars) held by respondents to the survey:

research crypto trading bots

The research also points out how many users are likely to rely on a product recommended by CoinMarketCap, or what are the situations in which users use bots for crypto trading only for the trial period and so on. But the most interesting part is undoubtedly the one showing the reasons why people decide to abandon this path: problems encountered with the software.

The people who haven’t tried using these bots, don’t trust them: not all of them are open source but all of them use private keys and, consequently, it’s normal to have a suspicious attitude towards certain platforms.

research crypto trading bots

Among the most used bots, Gekko is in the fifth position. It is one of the most famous cryptocurrency trading bots, open-source and reliable, which gathers more and more consensus within the community and boasts several updates to ensure the continuation of the project.