Cryptocurrency Trading Bots are basically a computer program or software that utilizes indicators that recognize the current trend in the market and will automatically perform a trade sequence. This type of software is used by private investors, while the big-time traders like the hedge fund usually use more complex trading software.
As of writing, there are a couple of trading bots available, some of them are free for use while some have a monthly subscription fee, price range differs on the quality and complexity of the trading bot software.
How does a trading bot work?
This software usually reacts to the current state of the market by gathering specific data and run on parameters set by the user. With consideration to the parameters, the trading bots will automatically execute a trade. There are also limitations to what these trading bots can do, as I have said earlier, these bots are executing strategies set by the user on such parameters.
With the use of EMA or exponential moving average which is set as a point of reference, is tracking the current flow of prices in the market and only execute a trade after the gathered info matched the parameter set by the user.
There are some trading bots that are highly-recommended by traders. Some of these trading bots will continue trading and execute such parameters even after the user’s computer is turned off, running non-stop. Meanwhile, there are other bots which supports 18 types of Bitcoin exchanges, this can also be classified as a backtesting platform and has a user-friendly interface that is compatible even with beginners.
As well as all of that, there are those trading bots which are seen as being the most popular trading bot available which allows the trader to set a parameter for the bot to automatically execute a trade on almost all types of cryptocurrency. It has a user interface and that is easy to navigate and has a lot of features to it that will surely help the trader to grow his portfolio even more.
Cryptocurrency trading bots will be a great help for traders, especially if they also have a busy daily schedule and just want to run their trading in the background. With the help of these trading bots, the trader can be sure that his stocks are constantly moving in the market, which lessens the time and energy that are consumed while trading. Adding to that are the physical and mental issues that haunt traders. All in all, this software is of great help in increasing the trader’s portfolio.