Trading bots continuously collect and analyze vast amounts of data from cryptocurrency exchanges.
Traders or developers program the trading bot with a specific trading strategy.
The trading bot uses the strategy and predefined rules to make trading decisions.
When the bot identifies a trading opportunity that matches its strategy, it automatically places buy or sell orders on the chosen cryptocurrency exchange.
Trading bots often include risk management features such as stop-loss and take-profit orders.
Crypto trading bots can operate 24/7, providing traders with the advantage of round-the-clock monitoring and execution.
Before deploying a trading bot in a live environment, traders often conduct backtesting.
While trading bots are automated, they require ongoing monitoring and maintenance.