Trading bots, how the automatic crypto trading programs work
Trading on crypto currency exchanges is one way to earn bitcoins and other crypto-currencies. The peculiarity of virtual currencies is in their high volatility. Gambling on the difference of rates, you can get a good profit even within a day. So the gamble on the stock exchange is a quite interesting way of earning of passive income. However, the disadvantage of this method is that it is necessary to monitor the quotations around the clock.
For this reason programs for automatic crypto-currency trading (or arbitration bots) have become so widespread. They automatically track coin rates and instantly convert assets, or transfer them to another exchange.
In addition to these, there are many more varieties of programs: bots for collecting crypto-currency from cranes (collectors), doublers, etc.
What is crypto currency exchange trading
Crypto-currency exchanges operate on the same principles as traditional currencies and securities exchanges. The principle of exchange trading is to arbitrate: buying an asset at one price and selling it at a higher.
Gamble on the stock exchange is a very specific action and depends on the mood of the leader. The growth of those or other assets is affected by many other factors starting from news about novelties in the field of blockchain to various rumors, legislative crypto currency bans, etc. In addition, in the current market, a lot of one-day currencies, which “shoot”, and then go into oblivion. While people talk about such coin, you can make money on it. Interest falls – their cost also falls. Knowing these features, you can already start gambling on the crypto currency exchange, however, do not invest large sums of money in this matter immediately.
Principles of cryptocurrency bot work
So, the exchange bot is a special program that tracks the difference in quotations and automatically buying and selling cryptocurrency. They work on technical strategies, which in turn are based on an analysis of the market laws. One of such objective analysis parameters is the statistics of the crypto currency course at least for a year.
How does it work:
- It specifies the amount for which we plan to gamble;
- The bot tries to buy bitcoins a little below the current rate (the difference should also be set manually);
- Next, the bot creates a sell order and holds it for the specified time (usually 3-4 minutes);
- If the transaction passes, a new invoice is issued for purchase;
- If during the specified time the transaction does not pass, then the purchase order is canceled, and a new one is created;
Five popular exchange bots
It should be said that almost all programs for automatic trading are paid (work under a license) or are provided for a certain commission from the sale and purchase on the exchange.
- Haasboot is the development of HaasOnline. It combines the functions of the crypto-currencies trading bot. It is able to track quotation, make decisions about buying and selling on the basis of 50 indicators. In addition, HaasOnline owns its own trading platform, where it is possible to conduct trading operations;
- BTC ROBOT is one of the earliest arbitration bots for trading bitcoins. Developers offer a 60-day money-back policy in case of failure. Nevertheless, it is difficult to configure and does not always help to make a high profit;
- GEKKO is an open source bot, one of the few free programs on the market;
- Tradewave is a cloud platform (does not require installation on PC) for creation of arbitration bots with a fairly advanced set of strategies. It is supported by most popular crypto-currency exchanges. It provides a free test mode for beginners, however, for a full license you need to pay $ 14;
- Cryptotrader is another cloud solution that does not require the installation of special software on computer and also works with many popular exchanges. A characteristic feature is the market of trading strategies, which can be sold or bought on the official website;
The result crypto trading
Bots for automatic crypto currency trading are a convenient tool. Of course, the use of these assistants will not bring instant and quick profits. Everything depends on the correctness of the chosen crypto trading strategies and the ability to adjust the bot under the changing market conditions.
It is necessary to be well-oriented in trading and to have an idea of how a particular currency pair behaves. In any case, a crypto-currency bot can save a lot of time and nerves at the auction. He is not subject to emotions and does not take impulsive decisions, makes decisions instantly, which will significantly reduce losses compared with manual trading.