Are you considering to use Zenbot to automate your cryptocurrency trades? Then this Zenbot review would be the perfect article to read. We have covered the length and breadth of the bot covering the features, advantages, and disadvantages of the bot.
Zenbot: What is it?
The Zenbot is defined as an online natural language processing service and chatbot host. It has an open-source system which means that anyone can modify and update the code the way they like it. Zenbot is particularly useful in creating natural language user-driven interfaces and it also offers multiple currency support.
This artificially intelligent bitcoin trading bot is capable of high-frequency trading through extensive market analysis. Zenbot’s algorithm can be run on platforms such as Node.js and MongoDB while it also supports cryptocurrency exchange programs such as Gemini, Quadriga, Bittrex, Kraken, Poloniex, and GDAX which makes dealing with multiple cryptocurrencies less time-consuming and more effective.
Features of Zenbot
There are numerous features that come loaded with Zenbot –
1) All-in-one bot framework
Zenbot’s role is not just limited to being an intent resolver or graphical bot builder. It is capable of developing even very complex bots.
2) Natural language engine
The syntax of Zenbot is such that it is well versed in the areas of grammar, context, and semantics which makes it an extremely flexible and powerful Neuro-Linguistic Programming engine which is useful in building conversational bots.
There is no need for a server or a database for the Zenbot to host and interact with the other bots.
Zenbot can automatically store the bot’s usage statistics in any of the widely used analytics tools like Google Analytics, Mixpanel, Botanalytics etc.
The Zenbot supports this programming language which allows users to type in the right code and implement any complex logic.
6) Messenger Integrations
Zenbot is already integrated with messengers like Facebook Messenger, Slack, Skype, and others. Therefore all the user has to do is provide the credentials in the web console.
7) Facebook App Review
The bot does not have to pass through a Facebook Messenger’s app review process which saves a lot of time.
8) Availability of Buttons
Buttons are tools that help to build a user-friendly interface in messengers. With Zenbot, your bot can process both text and button clicks which maintains the messengers’ functionality as well as integrity.
9) REST API
This is one of the integrations in Zenbot where the user can easily connect any of the applications or websites with the bot through the application’s user interface. One can even create a virtual assistant similar to Siri through the REST API.
10) Numerous languages supported
Zenbot supports any language due to its flexible syntax patterns.
11) Flexible sampling
The Zenbot has an average of 1-2 trades per day in 1 hour period and 15-50 trades per day in a 5 minute period.
The Scope of Making Money with Zenbot –
Over the course of the past few months, Zenbot has come under scrutiny and skepticism due to discrepancies observed between the paper trade and live trade.
Users have complained that even though the live trade was clearly showing losses, the simulation carried out in paper trade indicated profits. This is has made the Zenbot community question the integrity of the service and also voiced their displeasure over glitches in the trading process.
The inconsistency by the development team to roll out updates has just made matters worse. Even though it is said that Zenbot 3.5.15 is capable of delivering a 1.531 ROI in three months, which is impressive for an open source automated trading solution, the profits are supposedly not following up proportionately.
Some of the reasons could be the unfriendly market conditions or slippage during limit order execution. Long-time users have suggested that one must use the volatility of the cryptocurrency market to their advantage and disregard the current price of the Bitcoin.
Instead, they should work on gaining more of it so when the price rises, they can sell a larger quantity that leads to greater profits.
In a nutshell, there have been cases where other cryptocurrency bots are making more money than Zenbot and this coupled with the fact of the Zenbot version being outdated, just puts it in a bad place.
How do Trading Bots Work?
The basic function of a trading bot is to analyze the cryptocurrency market and gather the required data in order to implement the trade. For this to happen effectively, trading bots make use of Exponential Moving Average (EMA) as a starting point for analyzing the market.
EMA acts as a momentum indicator for the market prices and the bot can be programmed to react accordingly. It also allows traders to set a certain threshold so if the price goes lower than the threshold, the bot can sell the bitcoin to avoid incurring a bigger loss.
How to Use Zenbot: Getting Started with Zenbot
- The user will have to first create a bot script which is basically a list of all tasks, written in a programming language, the bot has to perform.
- A Bot Script is easy to create and can be done in a text editor.
- It should contain clear instructions for the actions to be performed by the Zenbot.
- The user needs to then integrate Zenbot in the application using REST API.
- That application could be anything ranging from buttons and checkboxes in overloaded to actual conversational bots.
Advantages of Zenbot
- There’s no need to implement user-to-machine oral communication. This is because Zenbot proceeds each request, manages contexts of conversation, performs actions, evaluates scripts, collects and stores variables and generates output. Thus the consumer system simply sends a text request and receives a whole response.
- Zenbot relies on the well-known pattern matching mechanism, instead of machine learning “magic” – Pattern matching provides associate degree informatics flexibility in conjunction with full management of the dialog system and simple to use entity extraction.
- Zenbot doesn’t offer any net interface for dialog structure building – Net interfaces are usually more confusing than helpful to the user so Zenbot defines a straightforward XML file format that is easy to manage.
- Zenbot offers support to over 9 multiple cryptocurrencies exchanging platforms.
- The open-source nature allows users to modify the code easily or else the code is also readily available on GitHub and can be downloaded easily.
Disadvantages of Zenbot
- The low frequency of updates can undoubtedly put Zenbot behind than all its competitors in terms of access to new information regarding the market.
- The unreliability arising due to live-trading and paper trading showing a big gap in results. This also compromises the integrity of the platform.
- It is a completely command-line based interface so users who are not familiar with it are prone to facing difficulties.
Zenbot is offered totally free for non-commercial use and no rate limits. The required code can be easily downloaded from the GitHub website.
Overview of Cryptocurrency
The rise of cryptocurrency is truly mesmerizing. Who would have guessed that the human race would have come such a long way? The fact that there’s endless potential for it to succeed is just mind-boggling! Technology has played a huge part in all of our successes till date and there’s always going to be room for improvement, be it in the form of improved and efficient machines to digitalizing the commodity responsible for trading which is money.
Over the years, the stock market has been dominant but cryptocurrencies are putting up a fight of their own. This relatively unknown field burst onto the scene in 2009 and has since taken the world by storm. It has come a long way too because as of now, there are over 1600 different cryptocurrencies and that number is still growing.
The Cryptocurrency Market
It wasn’t a surprise when people started investing rigorously in the cryptocurrency market; with a plethora of options to choose from. The fact that the market provided a ten thousand-fold return on their investments within a time-period spanning fewer than five years only convinced investors to explore this field even more.
Investing in cryptocurrency is an extremely profitable venture but like any other trading market, only when the price is on the rise. No investor would want to see their trades plummeting downwards. This is where the cryptocurrency market comes into play.
It is volatile in nature and this property means that one can generate a passive income by trading. However, some assets are very profitable and trading them at the right moment could result in either a huge profit or a costly slip.
Unlike the stock market, the cryptocurrency market is open 24 hours a day, 7 days a week. This proves to be a stressful situation for the investors as the all-time availability of the cryptocurrency market means that they will have to continuously monitor their trades. This is humanly impossible as staring at a computer screen the whole day long is a very arduous task. Luckily for us, technological advancements have reached a stage where there is a solution to this problem too – and it comes in the form of cryptocurrency trading bots.
Robots in General
Robots were invented in 1958 and it wasn’t until the 20th Century that a boom of development resulted in robots being employed in a number of industrial fields. Robots modified the structure of society and allowed for safer labor conditions. Robots have proven to be instrumental in their role for the modern achievements that help in furthering knowledge. The best example of this is probably the implementation of advanced robotics by the government in the field of defense and by the NASA in the field of space exploration.
The contribution of robots in today’s world is simply remarkable. The industry has benefited drastically from the expanse of a robotic workforce. Automated machines have taken over the duties of dangerous and mundane jobs from humans, allowing greater productivity. Farmers have taken advantage of the latest technology with automatic harvesters, the waste disposal industry has implemented robots in some of its dirtier jobs, and the medical industry benefits from advancements in assisted surgical robotics.
The military has made good use of robots and has launched varied programs in robotic technology, most successfully the Predator and Reaper unmanned aerial reconnaissance vehicles that allow a pilot to control the robot from vast distances.
The vehicles will do high-altitude police work for long periods while not having to support a live pilot, and once required the planes will launch tiny strikes on targets in zones that normal aircraft wouldn’t normally be able to operate in.
In the Cryptocurrency Field
Since it is not feasible to keep a constant track of the market scenarios and make continuous logical investment decisions in the cryptocurrency market, we have trading bots to do that job. These bots are defined as open source software packages which constantly track the market trend, and help you manage your investment portfolio by automatically placing buy or sell orders against a set of pre-programmed rules.
The decision making is triggered by monitoring the price movement and reacting to a set of parameters like market volume, orders, price and other parameters depending upon your preferences. There are various different types of trading bots on the market today and the investor needs to choose the right one according to his/her requirements. This article is going to explore and evaluate one of these cryptocurrency bots – The Zenbot.
To Sum It All Up
Cryptocurrency trading bots have certainly made an impact on the market and their popularity is on the rise. However, one should understand that cryptocurrency trading is marked with high levels of risk and market volatilities. So a thorough understanding and evaluation of all factors should be done in order to get the most out of the bot.
Nonetheless, trading bots are not for everybody. Casual investors are not the prime target of trading bots, and if the intention is to buy and hold Bitcoin then a trading bot is probably not the correct investment.
Zenbot is probably the right option for investors who have loads of experience and have been on the playing field for a long time. Zenbot has shown to incur huge losses but it also has the advantages of high-frequency trading and supporting multiple cryptocurrencies.
Thus, an investor should weigh the available options carefully because all it takes is one bad choice to be the difference between successfully gaining profits and a total disaster.