Hao, I would only consider building a bot for day-trading; while I’ve done that manually in the past, through some research I decided that I’d rather invest my time researching the coins that I think have potential and then holding them for a longer period of time than trying to catch the peaks and dips.
Just for some perspective (I’ll be putting more details into it in an upcoming article), here’s one point to consider: if you put $1 into all 550 existing cryptos in 2016, today you would have $400k. That’s almost 730x. I’m not saying history will repeat itself and the market has certainly gone parabolic since then, but if the trend is that crypto will continue to experience more and more volume every day, we can still see some good growth in altcoin holds.
The median market cap for coins in 2016 was only $19,433. Today, it’s $7.5m. I’ve learned through simply watching the growth of the crypto markets, that it’s really hard to say if this is the top or not. I remember back several years ago, when I saw Bitcoin hit $200, and I suggested mining on some gaming computers.
One of my friends told me it’s not a good idea because Bitcoin is already at $200 and won’t get any higher.