8 Ways Fundamental Trading Beats Trading Bots in Crypto Investing

4 Mins read
8 Ways Fundamental Trading Beats Trading Bots in Crypto Investing

As the crypto ecosystem grows, traders find innovative ways to ease their trading and simultaneously make profits. That’s where crypto trading bots come in; AI-powered trading robots have mitigated human intervention in trading activities. AI-powered trading robots are computer programs that aid in trading by automatically buying and selling cryptocurrencies. 

On the other hand, the fundamental trading analysis evaluates a digital asset and attempts to measure its intrinsic value. Now, some crypto traders are considering using robots instead of utilizing their analysis skills on the market. Well, does trading with robots beat fundamental analysis in crypto trading?

What is Fundamental Trading?

Fundamental trading describes how traders value a company based on an in-depth study of the markets, the ecosystem in which the cryptocurrency operates, and the crypto itself. 

Traders utilize fundamental analysis to forecast market developments and determine a cryptocurrency’s intrinsic value.

It takes advantage of publicly available data to evaluate the value of the crypto investment. Fundamental trading aims to determine whether a digital asset is undervalued or overvalued.

Fundamental analysis considers everything to do with a cryptocurrency in terms of its historical price, past corporate actions, competitions, strengths and weaknesses, industry prospects, and macro factors that could influence the intrinsic value of its price.

Nevertheless, a digital asset may be fundamentally strong but underpriced in the crypto market. In addition, a digital asset may not be as fundamentally strong as others but overpriced in the crypto market.

Trading cryptos with fundamental analysis depends on evaluating a digital asset’s potential /intrinsic value. If it is valued below its intrinsic value, it signals a buying opportunity and vice versa.

What are Cryptocurrency Trading Bots?

Cryptocurrency trading bots utilize artificial intelligence and programmed codes to automate trading systems that can execute trades with minimal errors and almost no human intervention.

Crypto trading bots emerged to ease trading because they automate trading tasks, like selecting, buying, and selling a cryptocurrency based on specific parameters set by the bot’s programmer or creator.

You can develop your own crypto trading robot or purchase one from a development company.

The ability to trade bots to operate smoothly under pre-defined rules and conditions prevents investors from falling prey to emotions. They offer a more efficient way of trading in volatile crypto markets.

Since bots use artificial intelligence, investors can utilize principles such as objectivity, safety, and trust. Moreover, you can configure trading robots to execute different crypto trading strategies, like purchasing undervalued crypto tokens, including more digital assets that have hit the market, and trading in a basket of coins to gain from price fluctuations.

Why Fundamental Trading Beats Trading Bots in Crypto Trading

Adequately tested trades

Cryptocurrency trading bots work on strategies with algorithms that need to be more adequately tested. Trading with only partially reliable software might mess up your trades, resulting in losses.

On the other hand, fundamental analysis utilizes adequately tested evaluations of a cryptocurrency, which also attempts to measure its intrinsic value. Fundamental trading analyzes everything from the overall market conditions to the strength of a cryptocurrency’s price. 

Market projectivity

Fundamental analysis focuses on long-term trading opportunities as it considers the present financials and the likely change in its future price. Alternatively, trading bots in crypto trading only focus on the current market conditions, which can be challenging because cryptocurrency markets are highly volatile and can switch momentum quickly, ultimately leading to losses.

Trading on instincts

Fundamental trading tries to identify any abnormality in a cryptocurrency’s market value and potential future value. Fundamental trading relies on intuition to assist in trading, whereas trading bots have no instinct to help you. Some traders rely on intuitions to trade and will probably not be pleased with automated trading.


Fundamental analysis banks on smooth trade execution and uninterrupted run-time of expert advisors to help in cryptocurrency trading. However, running trading bots in crypto trading from a PC means you need dedicated servers to run your automated trading robots.

Ease of incorporating trading strategies

When using trading robots in cryptocurrency trading, it takes a lot of work to incorporate some types of strategies as those from actual expert advisors. It is impossible to code fundamental analysis into a trading program. At the current level of trading bot development, trading is better performed by the live trader manually using fundamental trading.


Trading bots in cryptocurrency trading have imperfections because they can also make mistakes. A configured AI bot requires constant monitoring to ensure your trades turn out safe, but with fundamental trading, analyzing the markets gives you a better advantage of having a successful trade.

Control of trades

Fundamental trading lets you have control of your trades, and you can execute them according to how you view the crypto markets. At the same time, crypto trading bots require you to give up some power and let the bot execute trades on your behalf.

It is not advisable to give control of your trading, especially to Artificial Intelligence software, because anything can happen between trades, and you might need more time to correct it, unlike with fundamental crypto trading.


Fundamental crypto trading only requires you to do a market analysis to better trade cryptocurrencies, but trading bots in crypto trading can be somewhat expensive, impacting your profitability.


As cryptocurrency traders, you have different ways to trade digital assets to make profits. You may go for a fundamental analysis or trading robots or even compare the two to decide which is worthwhile.

Making trading decisions can be daunting because nobody wants to lose, especially in a highly volatile market. It is where trading robots play because they can quickly identify the right opportunity to buy or sell and initiate trades with minimal intervention.

On the contrary, utilizing fundamental analysis is better because you execute trades depending on how you view the intrinsic value of an asset. You can place trades depending on how you view the market and not by giving an AI-powered software full ability to set your trades.

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