Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
2021 was a pivotal point for the cryptocurrency industry, thanks to several historical events such as new all-time high values, a surge in NFT sales, BTC adoption by El Salvador and massive institutional investments making headlines across the globe.
With millions of people trading high volatile assets like cryptocurrencies, automatic trading platforms are on the rise to leverage the market. Trading bots, also known as robots, make the process of trading automatic, so even newies to the bitcoin family, can trade. Bots also assist traders in making huge profits.
Crypto bot trading
A bot is an automated program that operates on the internet and performs repetitive tasks. They’re essentially robots that are assigned to do certain tasks on behalf of users. They can interact with web pages and users, scan for content, and perform tasks more efficiently than humans.
Crypto trading bots work under the same principle. They are a set of software programs and algorithms that execute functions based on pre-established parameters. This is great for crypto traders because it can be difficult to pay attention to the market and make analytical decisions 24/7, 365 days a year, especially in such a volatile market.
Crypto trading bots automate certain aspects of market analysis and execute trades at particular signals, such as price changes or trading volume. The key functions of a crypto trading bot are market data analysis, market risk prediction, and the buying or selling of assets. For example, bots could collect data from different resources and interpret it to evaluate which cryptocurrency is best to trade at a specific moment in time. For buying or selling assets, bots use API (Application Programming Interface) to execute the transactions strategically.
Why is bot trading going to increase in 2022?
Crypto trading bots are one of the best ways to automate crypto trading, generate passive income, and perform effective trades as per the preferential conditions of an individual investor. By using a trading bot, investors gain the ability to participate in the crypto market around the clock from any part of the world. Trading bots can automate the analysis and interpretation of market data, calculate risk, and execute trades as soon as a parameter is met.
Using crypto trading bots to trade cryptocurrencies on behalf of the investor is one of the ways to ensure that trades are executed as per predefined conditions. For instance, users can set up a trading bot to purchase Bitcoin when the price decreases to a certain limit. This can save a lot of time and effort for the trader to make the purchase. The process also reduces the chances for human error, taking emotion out of the equation so an investor’s trades are based on data, rather than fear or greed.
Ruud is a Dutch actor who, after 20 years performing in films and TV-series in the Netherlands, became inspired by blockchain and cryptocurrencies and started trading cryptocurrencies actively in his free time. Rudd’s developer brother Pim created an automated trading platform to save time trading and the two of them took the platform to the next level, opening it up to an audience in 2017. That was when Cryptohopper was born.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.