Is cryptocurrency of particular interest for you? Are you desperate to find out about the tools that may enable you to reach the most effective trades? So, you’d better clap your eyes on cryptocurrency trading bots. Sounds curious, right? In the era when bots seem to get application almost everywhere, it comes as not surprising they have been implemented even in cryptocurrency trading. Let’s find out more about these bots and clarify the main element aspects.
Cryptocurrency (or crypto) trading bots are computer programs that enable you to buy and sell cryptocurrencies at the right time. They aim to create about profit for their users and ensure free crypto trading bot that they can be at an edge in the long run. The bots carefully observe market conditions and execute trades basing on the preliminarily defined algorithms. It should also be stressed that you’re free to create your own parameters, that’ll subscribe to carrying out various trades. This kind of software is effective at responding almost one thousand times faster than the usual human – thus its operational efficiency is out from the question.
Crypto trading bots could be subdivided into many types. Among them you will find trend-following bots, arbitrage bots, and scalping bots. However, according to bitcoin.com, the most popular ones are arbitrage bots.
Trend bots can be found in handy if you mainly focus on trends once you’re in the process of building your strategies. These bots can follow trends and decide when it’s profitable to purchase and/or sell something.
Scalping programs facilitate their users to execute more proficiently in sideways markets. Which means that’scalpers'(as these users in many cases are referred to) manage to purchase something at a low price and resell it at an increased bargain price.
As for arbitrage bots, they’re meant to achieve profits by means of examining prices across multiple exchanges and benefiting from price discrepancies, consequently.
Once or if you’ve decided to use applying cryptocurrency trading bots in practice, then you should think over which will have the ability to deal with your business needs. Mind that most bots have different requirements regarding software and hardware. Consider all of the aspects before making up your mind.
After all the formalities have already been settled, you will get down to the installation procedure. As a matter of fact, you can obtain a trading bot resorting to some of the 3 options below:
Get it cost-free via an open-source platform;
Get a paid version of a licensed bot;
Create a trading bot (on condition that you possess enough technical knowledge and skills).
Having processed all the important points above, you almost certainly have formed an opinion about crypto trading bots. Still, let’s recap all of the advantages they have over humans.
Speed: without doubt that bots operate one hundred times faster than humans
Stamina: bots can operate 24/7 without any breaks
Capacity: bots can process gigabytes of data per second
100% objectivity: bots aren’t prone to emotions of any kind. They simply do what they’re required to.
However, many experts argue that some cases require subjective thinking and in this way, humans can outperform heartless bots. But these are individual cases and considering that bots offer so many tremendous opportunities, you’re bound to be better off as soon as you give your priority to them.