A cryptocurrency trading bot can do multiple things. No human interaction is required other than setting up the bot. For example, a trading bot can buy a coin from the dip and then sell it after the desired profit. These bots can use signals from the paid signal resources or free signal resources. Cryptocurrency trading bots follow the signals. So if a purchase signal is sent from the signal provider, the bot will purchase the specified coin. Likewise, if a sell signal is sent, the bot will sell the specified coin. In those actions, no human interaction is required since the signals are provided by resources. The only thing matters is the bot server must work at least 99.8% of the time.
How to use Cryptocurrency Trading Bots?
There are a couple of services that provide cryptocurrency trading bots. Some of them are paid, and some are free. If you want, you can also set up your own trading bot on your server but that will require knowledge about coding etc.
Here are the following popular trading bot services; 3commas, Cryptohopper, Bitsgap, Coinrule, CryptoHero. By clicking on these services you can go to their website and check further information about them.
Pros of Bots
- With bot, you don’t need to pay attention to the market prices all the time because the bot will do that for you.
- After detecting a price decrease or increase, the bot will move quickly to sell or purchase the desired coin.
- Bot’s set-up is done by the user, it will move with user’s market strategy as long as they want it to move like that.
Cons of Bots
- If it is not set-up properly, the bot will buy from wrong prices, and this could cause the loss of profits on a large scale.
- If the server of the bot’s provider is down, your bot will be inactive, and it will not purchase or sell in critical moments.
- Bots are using crypto exchange APIs, if the API of your exchange have problems then your bot is going to be inactive till API problems are fixed.