Ever since the inception of Artificial Intelligence and Machine Learning, scientists and developers all over the world have emphasized how the robots and their counterparts, bots, will take over the world by eliminating human labor in daily activities.
As such, bot, also known as the web robot, is a software application that is capable of executing automated tasks over the internet. Therefore, it has found its application in the trading sector too.
Bitcoin, the most famous and the original cryptocurrency, is the newest currency in the market. Because of the block-chain technology that guarantees no hacking, cryptocurrency is also the safest form of online trade that exists. Many investors and technology enthusiasts have invested in this technology, which has gained international recognition in the last two years.
Why do we need a day trading bot?
But the cryptocurrency trade varies greatly from the traditional stock market. It is always open to trade. This feature has two implications. One is that a market that is open 24/7 offers greater opportunities that one can capitalize on. The other is that a human needs sleep and in a market that can change overnight, you need assistance to monitor the fluctuations in the market trends.
Another factor at play here is that most of the investors are working and are employed somewhere or the other. As such, they do not find the time in the day to analyze the market trends. So to compensate for this, many traders and investors, all over the world are switching over to day trading bots.
A bitcoin bot is designed and programmed to perform cryptocurrency (bitcoin) trades just like a human does, but with more efficiency, as it does not tire out nor does it need rest.
There are several options in the market ranging from free bitcoin day trading bot that can be used by anyone to very costly bots used by professional bitcoin day traders.
How does a Bitcoin Day Trading Bot Work?
They function by using various indicators to analyze the pattern and automatically carry out trading decisions.
Each bot represents a parameter or an indicator and when all of them align in a pattern, will produce a sell or buy signal, updating the exchange platform of your choice to implement the action.
Bots will not always give you perfect results. It is like your advisor but it is up to you to follow that advice. It can help you earn a lot but sometimes, it may render a few losses. There are multiple variables that influence the market and it is almost impossible to gain by every trade.