What are the best strategies to prevent deadbotting in the cryptocurrency market?

3 answers

• Dec 27, 2021 · 3 years ago
  One of the best strategies to prevent deadbotting in the cryptocurrency market is to implement strict KYC (Know Your Customer) procedures. By verifying the identity of traders, it becomes more difficult for individuals to create multiple bot accounts and manipulate the market. Additionally, exchanges can monitor trading patterns and identify suspicious activities that may indicate deadbotting. By promptly investigating and taking action against such activities, exchanges can discourage deadbotting and maintain market integrity.
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• Dec 27, 2021 · 3 years ago
  Another effective strategy to prevent deadbotting is to impose trading fees. Deadbotting relies on high-frequency trading with minimal fees, so by introducing fees, the profitability of deadbotting decreases. This discourages individuals from engaging in this practice and promotes fair trading. However, it's important to strike a balance with the fees to avoid discouraging genuine traders from participating in the market.
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• Dec 27, 2021 · 3 years ago
  At BYDFi, we have implemented a unique solution to prevent deadbotting. We have developed an advanced algorithm that detects and flags suspicious trading activities associated with deadbotting. This algorithm analyzes trading patterns, volume, and other factors to identify potential deadbotting activities. Once flagged, our team conducts a thorough investigation and takes appropriate action to maintain a fair trading environment. Our proactive approach has significantly reduced deadbotting on our platform.
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