Are Bots Controlling Crypto Markets?

Justin Chan
May 31, 2018 · 5 min read
Image for post
Image for post

What is a bot?

A bot is an automated trading entity that is programmed to identify market trends and execute trades automatically. Using algorithms, these robot traders can replicate what human traders would do in response to various market scenarios.

Image for post
Image for post

Bots and crypto markets: a perfect match

Bots are now proving especially popular within the crypto community, ranging in sophistication from free services designed for everyone, to more expensive subscription-based bots for the professionals.

  • With some cryptoassets now tradeable on dozens of exchanges, the abundance of arbitrage opportunities that have arisen can be more efficiently exploited by bots than by traders.

Countering bot activity

It can be tempting to ‘outdo’ the robots by simply resubmitting your limit order with a slightly ‘worse’ price — i.e. a buy order that is marginally higher than the bot’s bid price, or a sell order that is marginally lower.


Data Driven Investor

from confusion to clarity not insanity

Sign up for DDI Highlights

By Data Driven Investor

Our Editor's Selection  Take a look

By signing up, you will create a Medium account if you don’t already have one. Review our Privacy Policy for more information about our privacy practices.

Check your inbox
Medium sent you an email at to complete your subscription.

Justin Chan

Written by

founder of datadriveninvestor.com where expertise and network generate value. justinchan@datadriveninvestor.com

Data Driven Investor

from confusion to clarity not insanity

Justin Chan

Written by

founder of datadriveninvestor.com where expertise and network generate value. justinchan@datadriveninvestor.com

Data Driven Investor

from confusion to clarity not insanity