Cryptocurrency trading bots are software applications that allow traders to execute trades automatically according to a defined set of trading rules. This could mean following a certain chart pattern or using a specific API call to send orders to an exchange. Essentially, a trading bot will monitor the cryptocurrency market for patterns, and when it finds them, it will automatically buy or sell cryptos. Trading bots are accessible through many different platforms including exchanges, typically through a custom API which the trading bot developer will make easily accessible. Trading bots offer a number of advantages to people who wish to automate their cryptocurrency portfolio trading. Firstly, they can be programmed to execute trades in a safe way and at optimal prices, without the trader having to be constantly bot watching the market. They can also monitor all of the markets for you, so if you don’t want to watch any market, you can set up your trading bot to do it. While there is a lot of benefits, there are also some drawbacks. 


While trading bots offer a number of different advantages, they are not foolproof applications. Especially in the crypto world, which moves so rapidly, it is still an incredibly risky endeavor to use a bot without proper setup and rules. This could mean that you invest in a trading bot that uses bad parameters, or worse, one that is a scam. It is also important to ensure that you understand exactly how cryptocurrency trading bots work before you put your money at risk. Trading bots typically have ways to modify the parameters in the settings of the bot so that you can adjust for market changes. While it may be tempting, it doesn't always provide the best experience to change the bot settings mid bot run. You should be ultra-careful when setting up your trading bot and only buy from authorized resellers of top systems. Some dubious vendors will actually steal the API key and start running automated trades for their own benefit with your funds. This is the main reason we have chosen to simply provide an authoritative website rather than a direct storefront for our product. As such, we cannot authorize resellers on our network. 


 Cryptocurrency trading bots are coded software programs that connect to your exchange API using an API key. An API (application program interface) allows the bot to interact with an external piece of software, in this case, an exchange. The bots perform trades based on a set of pre-defined rules as well as on live market data. Many trading bots work by monitoring market trends and reacting to those trends by placing buy and sell orders to take advantage of those trends. Others act like automated traders that use technical analysis such as swing trading or TAS (trail mode) to allow for the bot to buy and sell cryptocurrencies at a later time based on the trend of the market. Each bot is different, and it is up to you to find out your own cryptocurrency strategies that will work best for your individual situation. A good rule of thumb for any beginner trader is to adopt a “set-and-forget” approach and execute pre-defined buy and sell rules with the creation of the bot. 


There are plenty of advantages to using cryptocurrency trading bots in your cryptocurrency trading. One of the biggest advantages is that the trades are automatically executed at predefined intervals, without the need to monitor them. This allows a significant reduction in overall time spent monitoring the markets and allows you to focus on other aspects of your life. Trading bots can execute transactions at optimal prices. A great benefit is that you can set specific rules for your bot doing certain things once certain goals have been met, such as being on dollar-cost averaging or rebalancing your portfolio back to set percentages. One of the largest benefits of cryptocurrency trading bots is that developing and updating them is relatively easy. A developer can quickly code a bot to execute endless amounts of trades, taking advantage of whatever crypto market you wish to trade-in. 

To sum up, Cryptocurrency trading bots offer a number of different advantages for traders depending on their individual needs. Some people prefer to simulate an exiting trade in order to learn the market, whereas others use trading bots to offload time spent bot watching. Overall, using a cryptocurrency trading bot can reduce the amount of time you spend monitoring the markets and will allow you to focus on other aspects of life. It is best to keep in mind that there are also a number of drawbacks to using trading bots. You should always be sure to do your research before investing in a trading bot and always take the security and availability of your API and bot seriously. Also, determine if it will really simplify your trade or just expose you to more potential risks. If you want to build your own bot, click here and check out our platform!

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