Auto Crypto Trading
Crypto trading bots are automated computer programs that buy and sell cryptocurrencies at the correct time.
Their sole goal is to generate as much profit as they possibly can for their users. The way they do this is by continually monitoring the market and reacting according to a set of predetermined rules. As per your tastes and preferences, you can determine how the bot will analyze various market actions, such as volume, orders, price, and time.
Back in 1949, Richard Donchian came up with the concept of an automated trading system when he came up with a set of rules to buy and sell funds. Eventually, famous traders like John Henry began adopting the concept of “rule-based trading” in the 1980s. Since then, trading bots have been popular in the market in one form or another. However, these are usually pretty expensive and not available to average investors. The Bloomberg terminal can cost more than $10,000.
There are two main use-cases for trading bots. Firstly, investors can use bots to make the whole process a lot simpler and streamlined. The bots can take care of factors such as portfolio diversification, index construction, portfolio rebalancing, etc.
The second use-case is a lot more complicated and advanced. In this case, the bot will try to beat the market and consistently make profits. However, this approach requires a lot of research to be done beforehand.