How does a crypto robot work?
Carries out trading research on your behalf
A bitcoin robot conducts trading research and comes up with insights which it relays to a given partner broker system.
Partners with brokers
Bitcoin trading robots are usually in partnership with select brokers. The role of these brokers is to execute the orders sent by the robot.
The broker picks the trading signals and executes them into orders. Bitcoin robots brokers usually rely on advanced trading systems to ensure instant order execution.
The other role of the partner broker is to receive deposits and facilitate transactions. Bitcoin robots are usually not registered as a financial institution and hence lack the legal mandate to receive deposits from the public. They must, therefore, rely on the brokers to receive the funds and oversee transactions.
Works with regulators
Regulators require all brokers to segregate clients’ funds and submit reports on how they use them. This ensures that no broker or robot can misuse deposits. With regulators such as the FCA and ASIC, users have a guarantee that their money is safe. Cryptovibes also conducts robot broker reviews to ensure that they are legit.
Utilizes leverage to maximise earning potential
Robot brokers also provide leverage to enable traders to place huge trades using a small deposit. The best provide leverage of up to 1:5000 which means that traders can bet on positions worth up to five thousand times their capital. New traders should keep it in mind that leverage is a double-edged sword that has the potential to magnify both the returns and losses. The rule of thumb when trading on such high leverage is to always trade with what you can afford to lose.