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There are lots of reasons as to why companies and individual traders might want to build a crypto trading bot. It might be to allow them to buy and sell cryptocurrencies such as bitcoin without needing to physically undertake transactions. Another common reason for creating a crypto trading bot is to make it commercially available to others for a fee.
Whatever the reason, crypto trading bot development is a lucrative field, provided you get it right. In this article, I want to examine how companies can build their own trading bot so that they won’t have to pay to use existing ones.
I will begin by defining exactly what a crypto trading bot is before explaining how such programs operate.
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The cryptocurrency bot development field is
an extremely lucrative one. Given the increased desire for an automated
solution, cryptocurrency trading bots have become increasingly popular. It’s
not unusual to find them on significant exchanges given their ability to trade
24/7, execute strategies systematically, and place orders at high-speed. Given
the industry’s extreme volatility, traders are gravitating towards leveraging
trading bots with the sole intention of preserving and increasing investment
capital while limiting their manual involvement.
Crypto trading bots have become an increasingly popular tool for experienced bitcoin traders. Trading bots enable users to execute trading strategies in a fully-automated fashion, which takes emotions and market timing attempts entirely out of the equation. As a result, seasoned traders often prefer bots over manual trading.
In this guide, you will learn how you can build your own crypto trading bot so that you can execute exactly the type of trading strategies that you want to deploy.
Coding a trading bot from the ground up is very time-intensive and may require you to bring additional developers onboard.
From the ‘70s onwards we have lived in a more and more digitalized world. Although the technology 50 years ago is hardly comparable to the one we have access to today, it’s astonishing the change that computing power had on the financial markets of the time.
Trading specifically is a sphere where technology is making a substantial difference, where we see the best trading companies in the world having access and using tools that the average person will never have access to. But things are changing fast and when you have innovations like blockchain and crypto currency combined with modern technology, the mix that comes out of it is truly explosive.
Many experts didn’t see it coming, yet cryptocurrencies are back in the news. While there is a reasonable opinion that cryptocurrency boom is coming to its end, the Bitcoin rate is rising again after the significant drop at the end of 2018. Thus, mining and trading Bitcoin and its alternatives – altcoins – remain a “gold rush” of the digital era, attracting more enthusiasts to engage in investing and even building crypto trading bots.
Similar to gold prospectors, cryptocurrency entrepreneurs require high-quality equipment and reliable instruments in order to obtain and sell digital money.
Why Traders Use Them?
Accuracy of results
Over the past few months, the craze around the cryptocurrency has grown at times. Even those who have not heard of them are now familiar with not only bitcoin but also the etherium, litecoin, and others.
Even observer had noticed how much everything changed upside down.
In cryptocurrency trading platforms you can exchange your money relying on strategies like RSI, OBV or intuition. To simplify the work with them, increase your earnings and automate (or create your own SaaS platform) you will be helped by trading bots.
For many, cryptocurrency trading is a secondary and passive income.
Trading cryptocurrency can feel overwhelming in the beginning.
There are a lot of components to think about, data to collect, exchanges to integrate, and complex order management.
This guide will provide a detailed step-by-step break down on the different components you need in order to build a complete crypto trading bot.
Think of these as the building blocks to your trading bot.
Reminder: This is an educational experience.
The code examples are not designed to be production ready.
They are designed to help provide a base understanding of how to build a trading bot. Getting them production ready is your responsibility.
Unlike humans, trading bots can consistently execute strategies that are precise. An example of a precise strategy that is difficult for humans to implement is arbitrage.
Crypto trading bots have become a hot topic for millions of cryptocurrency users around the world.
Looking for ways to automate their strategy and outperform the market.
After dipping your toes into this fascinating market for the first time, you surely came across references to trading bots. To facilitate your voyage into cryptocurrency trading bots, the following comprehensive guide will act as your definitive resource for getting started.
By the time you’ve concluded this guide, you’ll not only better understand why trading bots are useful, but how to build your own trading bots, which trading bots currently lead the market, and what defining features to look for when picking a trading bot.
In order to further support the trading bot market, we have built the largest community of trading bot enthusiasts and users in our Telegram group.