The boom of the cryptocurrency market has attracted many traders but, unlike the stock market, it is incredibly volatile and unpredictable. While there are many that still practice human trading, the balance is starting to shift more towards automated trading. The use of trading bots in the cryptoshpere has grown significantly over the years, as they offer a number of advantages which give users an edge on the market.
What is a trading bot?
A trading bot is a computer software which interacts with the market and automates the trading by using data it receives from an exchange. The bot uses market data in its algorithms, based on which it places a buy or sell order. The data analyzed usually consists of the trading pair, volume, number of orders, price, the high and the low of the candle, and time frame.
Every bot comes with its own set of strategies and technical indicators that determine how the trades are made.
How do you use it?
Trading bots are the main tool preferred by traders who do not have the time to follow charts all…