A bot is an app that does something, some task it was programmed to do by a human being.
In cryptocurrency, bots are normally discussed along with crypto trading.
Crypto trading bots are just software apps that do trading-related tasks, in an automated fashion.
Bots are super fast at what they do, executing trades in fractions of the time it takes us, slow humans, to do them.
Bots can also react to changing market conditions quicker than humans can because they can be programmed to watch the markets 24/7 while we sleep.
Bots don’t only execute orders.
They can also analyze price movements and identify trading patterns, which they then alert a human being about.
Bots can send real-time signals based on these alerts.
But bots aren’t the holy grail of trading cryptocurrencies. Remember, bots are programmed by a human.
Bots can fall prey to the same things that make trading difficult for human traders.
Creating a simple trading bot can be easily done by following online tutorials. However, more complex trading bots require a deeper grasp of not just programming, but also signal generation, order execution, and risk management.