What are trading bots for?

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A cryptocurrency trading bot (robot), or automated trading system (ATS) is a program that partially or fully automates the trading process. Such a program is able to recognize trading signals and make the right deal in a fraction of a second, which a trader cannot do.

There are different kinds of trading bots on the crypto market, created for certain tasks. Let’s go through the main categories.

According to the strategy can be identified a couple of main types:

  • Exchange bots (market makers) – work on one particular exchange, making money on the difference of buying and selling rates of cryptocurrency. This strategy is called market-making and is encouraged by exchanges.
  • Arbitrage bots – earn on the exchange rate difference between several exchanges.

In terms of the complexity of the software:

  • Simple bots – work according to predefined algorithms. Users can usually edit the algorithms to suit their purposes.
  • AI bots are robots with artificial intelligence integration and machine learning.
  • Other robots are not directly involved in trading.

Advantages of trading bots

  • Saving time. The trading bot doesn’t get tired and doesn’t need to sleep.
  • Large coverage of cryptocurrencies and exchanges. To cover such a volume of information you would have to sit at your computer all day and night. In the case of the bot it is enough to spend one day setting up the bot, and then just watch the profitability of the trading and adjust the algorithm.
  • Quick analysis, fast transactions. The human trader calculates everything according to the same algorithm as the trading bot. Except that it takes more time. That’s why using a bot allows you not to miss the moment when you need to make a transaction.
  • For inexperienced traders, the trading bot can be a guide to various trading strategies. Just watch it work and gain new knowledge.

Trading bots are excellent assistants in cryptocurrency trading. The advisability of using them will depend on the experience of the trader. Experienced traders do not often trust the program to work. Unless it is a proven product that allows you to configure a flexible work algorithm. Novice traders will definitely appreciate the trading bot, and probably do not want to give up such a convenient tool.

One of the leaders in the segment for creating trading bots is the RevenueBot service.

Using the built-in marketplace, you can buy a ready-made, create your own, or sell a trading bot. There are no hidden commissions, everything is transparent and clear. Save your nerves and start automating your trading today with RevenueBot.

RevenueBot has no hidden fees and you can create a bot for free. Only successful and profitable trades of 20% are charged, but no more than $50 per month.

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