Crypto Bots; In its simplest definition, they are software that analyzes the best strategies on behalf of investors and performs buy/sell transactions automatically under the most optimum conditions without the need for manual intervention. Also known as a trading bot, a trade bot is also known as a trade bot. The use of bots is also common in financial markets and in various exchanges. The use of bots in transactions on crypto exchanges has also become widespread.
Using Crypto Bots
The purpose of using crypto bots is to enable investors to trade in the world of crypto money and exchanges with less effort and less effort, saving time for the investor and making it easier to spend more time on his private life. In addition, manual order entries require intensive market monitoring and are more laborious. Manual trading always takes more time and causes the trader to spend more time on the market at the beginning of the market, especially when volatility is high. In such cases, great care is required when conducting market analysis. The indicators to be used should be selected correctly and interpreted with the right analysis. Trade transactions are carried out within the risks and expectations to be taken. But; The bot software to be used analyzes all these on behalf of the investor, performs algorithmic calculations in the evaluation of buy/sell signals, and allows the investor to trade at the point where the optimum market conditions are determined. In short, crypto bots; We can define it as computer software that performs buy/sell opportunities at the right time in order to keep profitability at the highest level according to the predetermined conditions of the investor. Bots are the ones that the investor will determine in this whole process; It performs automatic trades as soon as it finds the most profitable buy/sell signals according to factors such as time, volume, price and order.
However, trading solely on bots does not always mean achieving the most profitable level of trading. The bot, which is tuned to certain market conditions, may need human intervention if the current conditions change. Constantly changing market conditions may require updating the bot’s strategy parameters.
Bots are usually effective for short-term and short positions for traders who buy/sell. For investors who see the purchased crypto asset as a value investment and want to hold it for a long time (hold), trading with the bot may not always offer the opportunity to trade at the maxim level.
Types of Bots
Crypto bots are divided into types according to their purpose of use and strategies. The most well-known of these are ‘arbitrage bots’. Besides; There are bots that buy and sell according to the trend, bots that make the market, bots that borrow coins.
- Arbitrage bots allow you to buy an asset on a cheap market and sell the same asset for a higher amount in another market. It has determined the price difference that may occur between the markets as a profit strategy.
- Trading bots by trend try to achieve profitability by analyzing the instant fluctuations that occur in the current crypto asset.
- Market-making bots are bots that create multiple buy/sell orders in order to make a quick profit and form the spreads that determine the trading ends of the price of the commodity. The orders executed within the spreads ensure profitability.
- Coin debt bots are bots that are effective in futures, determining the maturity rate of crypto assets and crypto asset borrowing.
