How is trading bot made?
Bots are the form of software which in the most cases works directly with crypto exchanges through a software interface (API). The purpose of bots is to automatically conduct transactions with assets: bots carry out a detailed analysis of market information and, based on the data obtained, make decisions on the conclusion of transactions. According to the chosen strategy, they set parameters and goals, the trader can choose one of three types of bots.
Where to get a bot?
You can get bot in three ways:
• make a software by yourself;
Trading bots are usually made taking into account crypto exchange features. Essential condition — the exchange must have a trading API.
• buy;
Bots are now really common. You can buy them from companies involved in their development (HaasOnline, BTC Robot), and from individuals (for example, on forums).
• download for free;
There is a considerable number of ready bots for certain exchanges (Kraken, Poloniex, etc.). To predict how safe these programs are and how well they work is impossible.
How to select a bot?
There are 3 main types of bots:
Trading bot analyzes the information received from the crypto exchange and makes decisions on the purchase and sale of cryptocurrency based on the parameters chosen by the trader. This type of bots can be independently configured to work with several parameters at once, or you can use predefined strategies that were developed by analysts.
The Arbitrage bots monitor changes in cryptocurrency quotes on various exchanges and automatically make transactions to benefit on the price difference.
Order bots are used to complete trades with predefined parameters that are entered manually or selected automatically.
How effective the bots in practice?
However, the use of bots has several key advantages for traders. First of all, bots provide an opportunity to constantly interact with the crypto market without having to constantly monitor the state of the market. Moreover, an effective trading bot does not only help to save time, but also protects you from the constant stress associated with the cryptocurrency trade. Also unexperienced traders can monitor the bots trade in order to analyze the parameters and strategies incorporated in their work.
