- What are Trading Bots in general?
In the virtual world, a bot is a program that is configured to perform repetitive actions. They are written in order to save a person from mechanical and monotonous work.
The bots for trading cryptocurrency are no different from their counterparts in general: they are set to mechanical trading on the exchanges according to specified parameters.
The simplest versions bots buy cryptocurrencies when the exchange rate drops and sell when they grow.
Since many people trade Bitcoin passively and, therefore, cannot devote a significant amount of time to analyzing the market, Bitcoin bots allow users to establish more effective trading without a need to stay on top of the market.
Although the cryptocurrency market is much less developed than other financial markets, the digital nature of the market means that, even though it had significantly less time to integrate algorithmic trading, the technology did not take long to keep up with its competitors.