Misconceptions about Algorithmic Cryptocurrency Trading Platforms

Algorithmic Trading platforms such as AESIR or 3Commas tend to be misunderstood and judged for what they are not. In this article I am breaking common misconceptions about cryptocurrency trading algorithms by explaining how they works, what their purpose is, and how to actually make use of such platforms.

Misconception #1
Algorithmic trading = Passive Income.

This is by far the most popular misconception that I’ve come across. Cryptocurrency trading algorithms are not some magical out-of-the-box money printing machines. Far from it. They are a set of tools, that allow you to automate manual strategies that were proven to work, or to create new strategies that you might not be able to trade manually.

Any algorithmic trading platform out there claiming to be a hands-free-AI-powered-passive-income-solution is an outright scam. This is exactly what Bitconnect was marketed as before the ponzi scheme crashed and burned. Algorithmic trading platforms rely on user input in order to work efficiently. The strategy you feed into those tools determine how they perform. Even tools that are strategy-specific require careful calibration and need to be approached with a testing mindset.