Since the mid-1920s, there has been development of cyber robots or bots that take on everyday tasks. Almost immediately after the emergence of cryptocurrency exchanges, cryptocurrency trading software was also developed for them, automating trading or in other words crypto trade bot.

Cryptocurrency trading bots are special programs designed to perform trading operations. They can work autonomously and continuously. For many traders, this is an opportunity to control the market 24/7 and not miss out on profitable trades due to sleep or rest.

According to the developers, such trading programs are capable of generating passive income. To use them, you do not need to be an experienced trader, as well as spend a lot of time on trading, because the bot can perform monitoring and all trading operations on its own.

One of the brightest representatives in this area is the trading bot from 3Commas. So, for example, a Grid bot, which is a favorite, can easily trade for you, taking a minimum of your time and effort. You just need to choose a coin that interests you, and that’s it. This bot independently starts to trade for you. The principle of its operation is simple: the bot buys currency when the price is low, and starts selling it when the price rises.

Types of exchange bots

Currently, there are many varieties of trading bots. To make automatic transactions, exchange bots use various indicators. The simplest programs buy cryptocurrencies when the rate falls and sell when it rises. More sophisticated bots have a number of additional options and conclude deals according to the parameters set by the owner. For example, they can track the price chart over a long period of time and start buying cryptocurrencies only when the value falls by the percentage set by the owner. At the same time, the owner can also set an extreme limit for the fall in value, at which the cryptobot will ignore the purchase.

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All exchange bots are conventionally divided into two categories:

  • trading – programs that use quotes from only one trading platform and conclude transactions on it for the purchase and sale of cryptocurrency;
  • arbitrage bots that use quotes from several exchanges and bring the owner a profit from the difference in the value of cryptocurrencies on different trading platforms.

How does a bot for a cryptocurrency exchange work?

At their core, cryptocurrency bots are programs with indicators that perform automatic transactions if market conditions meet the established parameters. Trading robots always work according to a specific strategy. It can be set by the developer of the program and be guided by the general principles of trading or set by the owner. In the latter case, the robot’s strategy will, in fact, be the trader’s strategy integrated into the program for automatic execution.

The more customizable parameters a cryptocurrency bot has, the more you can influence the strategy of its actions, which allows experienced traders to make its work as productive as possible.

Where to get a cryptobot

Cryptocurrency trading bots are a common commodity. It is sold by both professional developers such as 3Commas. Among the assortment you can find programs with different functions. Developers can offer to rent a bot for a certain period of time or sell, while up to 10 different trading strategies can be integrated into the bot’s algorithm.

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