CryptoRobotics

How does the crypto trading bot work?​

Bitcoin trading bots work under special algorithms, trading strategies, which, in turn, are based on technical analysis. To make an independent analysis, traders need historical data on price changes (charts, at least for the last year). Sometimes it is possible to determine an association with the news.

Besides, after conducting a technical analysis, the strategy is tested on the same historical data, and the number of potential losses and profits is calculated. And if the results are satisfactory, the rules of the trading strategy of the cryptocurrency trading bot are created on their basis. Some bots additionally utilize indicators that provide you with the opportunity to analyze the current situation on the market, others are executed only when certain market conditions occur.

The trading strategy of crypto trading bots can be very simple, for example:

• When there is a fall in price, the bot buys the digital coins.
• When the price rises, the bot sells cryptocurrency.

In addition, the bot trading crypto for beginner by https://cryptorobotics.co/crypto-trading-bots-the-ultimate-beginners-guide/ can use more complex trading strategies. The algorithm can consider the last historical data, indicators, and navigate by signals. High-quality crypto bots analyze over a hundred parameters while placing orders. In some programs, the algorithm does not change, but there are bots that can be connected or customized with additional settings. This option suits experienced traders who have their own trading strategies and preferences.

Crypto bot can implement the following actions:

• Evaluate the market situation, monitor the course for a given period of time, predict possible profitable trades. It can provide traders with signals during manual trading.
• Place sell or buy orders.
• Report back on profit or loss.

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How to get cryptocurrency bots?​

There are three options for obtaining bots for crypto trading coins:

• Creating a bot from scratch.

This option is suitable for those who are familiar with programming. All bots are created exclusively for some exchange. Accordingly, the platform must offer an API. This is a set of information about the state of trading and a set of functions that allows you to start trading according to user-defined parameters.

• Buying a crypto trading bot.

This option is suitable for users who do not know how to program. Today, quite a lot of companies are engaged in writing this kind of software. Moreover, not only the purchase is offered, but also the temporary rental of the bot.

• Downloading the bitcoin trading bot for free.

The third option is to download bots for free. The advantages of this option are no need to invent anything, write programs or pay money. But the disadvantage is that the user cannot be sure that the bot will not start, for example, transferring all earnings to internal accounts of third parties.