From the 20th century the robots are said to replace the human efforts in many fields. Especially the chores of a housewife are said to be greatly reduced in the near future. Similarly such crypto bots are said to replace the old trade technology all together. Believing the hype these codes and crypto trades are said to deliver passive income for even the dumbest and laziest of traders. Well, these hypes are far from the truth as profiting from bots is not as simple as it sounds. We will be discussing about a few terms that are associated with the crypto bot and trading-
- Bot trading– it basically involves trading through bots using multiple softwares to exchange using an API. Using these APIs you can easily place sell and buy orders for yourself. The Bot trading can be done normally or using crypto currencies. It is welcomed in most of the exchanges using crypto currency.
- API– you may be wondering what this actually means. It is an application programming interface for applications that allows the applications to send and receive data specific in nature.
- Trading bots– not to be confused with Bot trading, trading bits are specific crypto bots that perform crypto currency trades like human beings. But these bots go independently and can operate without any rest or limit. They are basically a set of computer instruction that use indicators to recognize and execute trades. They have found their way into the crypto market
Benefits of algorithm trading-
- The prices of these trades are highly economical. You get to execute the best possible price for your trade.
- You get to order accurate and instant trades. This increases your chances of execution at a higher level.
- The time of trade is put instantly and correctly. It allows you to avoid any significant price change.
- The transaction cost is highly reduced. This increases the profit earned from your trade.
- You get simultaneous checks automatically on various market conditions.
- The risk of manual errors in placing the orders is greatly reduced. Hence, you can place your order safely
- Your orders can be tested well on real time and historical data. This allows you to see if it is a good and viable strategy for trading.
- The possibility of making errors and huge mistakes by human traders is greatly reduced. The removal emotional and psychological factors lead to greater accuracy and decrease the chances of errors.
All these factors and terms are very important for you if you are new to the term bitcoin and crypto currency trading. You must know these things really well before learning more about crypto bots and its uses in trading and other purposes.