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What are the Types of Cryptocurrency Trading Bots?

cryptocurrency trading bots

To profit from trading, you need to have an impressive amount of experience. For this reason, buying and selling digital assets on the exchange is a good way to make money for people who understand its nuances. But what to do for those who are not professionals? Use crypto bot trading

A crypto-bot is a specialized software developed to track the fluctuations of digital asset rates at an exchange and to execute deals following predetermined parameters.

The main tasks performed by a trading robot are:

  • Parsing of market data;
  • Execute deals;
  • Maintains activity 24/7;
  • Places buy and sell orders in a specific price range and execute them;
  • Calculates the result of trade and profitability.

Many people mistakenly think that by running the best cryptocurrency trading software, a trader can do nothing. However, in seeking to work effectively, it is necessary to constantly monitor the work of the program and adjust it. In addition, it is important to know the basics of the crypto market and understand how do crypto bots work. The success of automated trading largely depends on understanding what can be automated.

Types of Crypto-currency Bots

All exchange bots can be divided into several categories:

Arbitrage bots

These bots earn by comparing prices of one or more assets on different places or between trading pairs on the same of them, and then sell or buy using that difference.  As an example, a Bitcoin bot arbitrage tracks the prices of this particular asset. Due to the high volatility of the digital assets market, these bots conduct many transactions. However, it is difficult to find an effective arbitrage bot – the more people use them, the lower the profitability will be.

Signal bots

Such bots do not make trades, but help to collect data from TradingView, social networks, blogs, media and other sources. On the basis of the received data they send “signals” to the trader or other bots about changes on the market and offer recommendations for deals.

Trading Bots

They are one of the most popular and frequently used robots on the market. It is the program whose purpose is to execute transactions according to given parameters. In their work, robots use tools of technical analysis to make decisions about buying or selling digital assets. For example, the Bitcoin trading bot tracks the movement of the most popular crypto and opens a deal when the price matches the parameters the trader set. 

AI trading bots

These are bots that use artificial intelligence in their work and are far superior to all of the above. 

Such bots act not based on algorithms inside them, but are able to make their own decisions about buying or selling crypto, based on the current market situation. AI cryptocurrency trading bots can also analyze a lot of data – financial reports of companies, news feeds, social networks, based on which they make assumptions about which way the market will go. 

Such bots are rightfully considered to be the best Bitcoin robots and are the most expensive, but their efficiency pays for this disadvantage. 


How to Get a Crypto Bot?

As with any software, there are several ways to get these bots. 

  • Buy;
  • Download for free;
  • Develop it yourself;
  • Use the built-in bots on crypto-trading platforms.

Each of these methods has its pros and cons. When downloading it without money, there is a chance of getting unreliable or fraudulent robots. If you are thinking about buying, you should keep in mind that the price of reliable trading robots is often very high. For example, a Bitcoin day trading bot cannot be very cheap. Developing your own robot requires knowledge of programming, technical analysis, and how trading works.

It is much more convenient to use trading robots that are already built into trading platforms. This is a combination of hardware and software that gives traders access to information relating to the state of the crypto markets and allows them to open and close trades. Another important feature of most trading platforms is the ability to automate work with built-in trading robots. One of the places providing such services is WunderTrading. 

With WunderTrading, you can make your trading easier and more convenient. Many trading robots allow you to use ready-made trading strategies as well as to develop your own. If you are just starting your way in trading, use a crypto bot for beginners.  

Besides trading software, you can automate your trading in one more way: via copy trading. It is a strategy that allows you to copy deals of professional players in the digital market, getting the same money as they do.

WunderTrading has many trading tools, user-friendly interface, lots of trading robots, including Bitcoin trade robot, and also works with most well-known crypto exchanges. All you need to do is connect your account via the API, choose a robot and start.

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