Crypto Currency Bots are a software program which interacts with Bitcoin trading exchanges and places buy or sell orders on the behalf of the trader. As the cryptocurrency market, unlike other markets, never closes, Crypto Currency Bots have been created to ensure that the trader is constantly in control of their holding which ultimately prevents risks and volatility that can be found in the Cryptocurrency markets. Some bots are free for use while other need to be bought by the users.
Once enough data has been gathered, the bot executes a trade based on analysis of the trading platform. To start analysing the market many trading bots use Exponential Moving Average (EMA). EMA tracks the market price over a set period of time. The ultimate goal is to save the traders time.
The bots were created after the increase in the popularity of Bitcoin and other cryptocurrencies when people began to look for ways to simplify the trading process as they found themselves unable to stay on top of their holdings all day. As the bots are constantly awake and running, even while the user isn’t, they enable the user to remain in complete control of their trading all day, seven days a week. The Cryptohopper, for example, is one of the most popular trading bots currently in the market and it helps its users to make the trading process simpler.
There are several reasons why we should use Cryptocurrency trading bots. Firstly, calculating trades and executing them by hand is not only time-consuming, but also requires a lot of work. There is no need to do repetitive work as Bots can do it for you instead. Bots can place orders fifty times more than the owner in an instant, are very quick, and effectively make more efficient trades that the user would. Consistency is key. Bots can execute the same strategy over time whereas humans can be inconsistent.
Anyone from a complete beginner to someone with an in-depth knowledge of programming can use them as there are many different bots and each have different ranges in complexity. So far 75% of Cryptocurrency trades are implemented automatically so these bots that simplify the processes have made a very positive impact on the community due to their precision and reliability.