Cryptocurrency trading bot development - An Comprehensive guide for crypto newbies

Since the boom of cryptocurrency, people around the globe have been willing to trade cryptocurrencies. Each day, millions of traders have been trading cryptos based on some marketing strategies, ideas, and functionalities. Trading is one of the profitable ways to earn money but will not give a profit each time. It works based on market analysis and strategies.

 Long-term investors never worry about those fluctuations. Because they have collective experience in crypto trading and probably know at which time the price will increase and decrease. But, if you don't wish on manual trading and you want an instant solution for trading, the cryptocurrency trading bot will be suited for you.

What is a cryptocurrency trading bot?

A cryptocurrency trading bot is software, that automates the trade without manual involvement. It's working based on market analysis, pre-designed functionalities, and pre-defined algorithms. You can configure the trading bot to buy/sell X amount of cryptocurrency at a particular price. 

For example, once the price reaches the target, the trading bot automatically buys the bitcoins. It will automate the trading based on some pre-defined data and algorithms instead of manual trading. Most traders prefer crypto trading bots instead of manual trading. Because it's used to generate substantial returns within a short span.

How does a crypto trading bot work?

Marketing data research

Bots analyze the data faster than humans. Trading bots analyze a huge amount of data faster, quicker, and smarter than humans analyze. Based on the collection of the raw market data, bots identify whether to buy/sell crypto assets.

Signal Generation

Based on data from market analysis, a crypto trading bots signal generator makes predictions and monitors possible trades. Then it will generate a buy/sell signal, based on the more refined results.

Market Risk Allocation

At this stage, the bot analyzes the market data and then the bot decides, how much to buy/sell. It will take decisions based on some pre-defined parameters and functionalities according to t the market data.

Execution

In this last step, buying or selling bitcoin assets based on signals produced by the predetermined trading strategy uses APIs (Application Programme Interfaces). Buy or sell orders are generated by the signals, which are subsequently transmitted to the exchange using their API keys.

What are the reasons to choose a trading bot?

Emotionless trading

Generally, traders have a lot of emotions while spending money. These emotions will be reflected while trading. But a trading bot is an emotionless solution for crypto traders.

Enhance risk management

Based on the marketing data crypto trading bots can help you enhance your risk management functionalities.

Speed & Precision

There are millions of traders trading every second. In manual trading, it is difficult to be active every second. It may suffer your profitability. But the bot reacts instantly based on the marketing conditions and precision of the data.

Easily Customizable

You can easily customize the options within the crypto trading bot. Once you sign-up you can customize everything like upper and lower limits of the price range, and the number of orders you want to place within these price ranges.

Applicable for both short and long-term trading

You can also prefer how many returns you want. If you want quick returns, you can set up a trading function in short term. If you have long-term traders, you can set up your trading for long period.

What are the most popular crypto trading bots?

1. Pionex
2. Crypto Robotics
3. 3Commas
4. CryptoHopper
5. Trality
6. CoinRule
7. Quadency
8. Trade Santa
9. HaasOnline
10. Cornix

Bottom line

Integrating the crypto trading bot within the crypto exchange is one of the most profitable strategies in recent times. But the challenging thing is picking the best cryptocurrency trading development company. The current crypto market is incorporated by a lot of solution providers. 

Based on popularity, portfolio, cost of development, and features they offer (according to your business requirements), you can choose the best cryptocurrency trading development company. Just analyze those factors and pick the best crypto trading solution provider and become a master in trading