According to the study, 38% of users admitted that they use tools for automated cryptocurrency trading.

Analyst Adam Cochran published the results of a poll on the use of bots in cryptocurrency trading. More than 10,000 users participated in the survey. According to the poll, 38% of traders admitted that they use bots for crypto trading. Most of them, or 65.74%, use robots in margin trading, while crypto futures trading was the least robotized (only 3.97%).

Taking into account the trading volume, automated trading cover 86% of all money represented in the study.

The use of bots in crypto trading is growing due to the development of machine learning and artificial intelligence technologies, which help to create more advanced bots.

The top three cryptocurrency exchanges, which most often use bots in trading, include Binance, Coinbase Pro and Bitfinex.

  • Binance - 83.3%,
  • Coinbase Pro - 66%,
  • Bitfinex - 58%,
  • Kraken - 58%,
  • Poloniex - 58%,
  • Bitstamp - 41%,
  • KuCoin - 41%,
  • BitMEX - 33%.

The fewer bots activated on a crypto exchange, the slower is the market reaction to signals. But at the same time, the movement of cryptocurrency rates on such exchanges will be more rational, the study notes. It is more difficult for bots to work on decentralized trading platforms, and therefore the percentage of their participation in trading is much lower. The list of exchanges with no or slight signs of robotic trading includes COSS, Beaxy, IDEX, OKEx, BitForex, Gemini and CoinSquare.

Most bots (90%) use three data sources to make decisions:

  • expert signals (most often taken from pump-and-dump groups),
  • technical analysis,
  • listing news.

The Cochran study also indicates that some users refuse to use bots for crypto trading due to the fact that some robots are not open source software, and also require to input user's private keys, that jeopardizes the safety of user's funds.