TRADE BOT

How do crypto trading bots work?

Crypto trading bots work on three basic functions. They are: Signal generator This crypto bot function helps it make predictions and track probable trades based on technical indicators and market data. Based on the data it collects, it generates a buy or sell signal. Risk allocation The risk allocation function takes the buy or sell signal from the signal generator and decides how much to buy or sell. It takes these decisions based on a specific set of parameters and rules. Execution This function conducts the actual buying and selling of your crypto assets. It converts signals to API key requests that exchanges can understand and process. Many crypto bots are free to use, while some have hefty charges. As an investor, you should seek bots that best fit your investment strategy. Each bot needs a unique combination of hardware and software to function. Furthermore, you must have accounts set up in different cryptocurrency exchanges for your crypto bots to function optimally.