Strategic thinking and abundant knowledge are vital to make an effective trading plan and make the most of it. As living beings, we can have those two, but we also need assistance from computers or machines.
Why is that?
We all know that the crypto market is open all the time, and one can always expect the unexpected. Let’s say a professional trader with expert knowledge in crypto trading creates a solid plan to trade his favourite coins. Can he do it 24/7?
There is no way a human being can stay awake 24*7 and keep trading. This is where trading bots come in.
Crypto trading bots are computer programs that help traders automate their trading activities. Once installed and configured, a bot does not need much human interference.
Recently, trading bots developed with Artificial Intelligence and Machine Learning have become true game-changers. Here’s a list of some benefits that a bot offers,
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they operate through predefined algorithms & logic
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they’re practically computers that don’t require rest or food
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they’re not affected by emotions or environmental circumstances
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they can analyse the market movements & trends much quicker
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they make calculative decisions, which are almost always successful
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they can perform tasks automatically without any intervention
Cryptocurrency Trading Bot Functionality
If you’re thinking of buying a bot or getting services from a cryptocurrency trading bot development company, then you make sure that it has the following functionalities.
Strategy Implementation
The primary and core function of a bot is to implement strategies effectively. You configure your trading strategy into the bot, and the rest is taken care of. So have a bot that executes strategies without a hassle.
Dynamic Changing
In addition to timely strategy execution, the bot should also be able to adapt to the changing environments. For this, the bot should have powerful algorithms backing it.
Market Tracking & Record Keeping
Analysis and improvisation are the two factors that enhance your trading experience. The bot should be able to aggregate market data and keep track of the previous movements, which will help further to create new algorithms and update older ones.
Notifications
As we already discussed, the crypto market is active 24*7. We don’t know when a profitable opportunity will kick in. Therefore the bot should be able to notify you about the movements, trends, and other market activities instantly through email notifications, push notifications, and SMS.
Security
There is no use in having a fully-functioning crypto trading bot without advanced security features. You need to make sure that the bot has sufficient functions like 2-factor authentication, email authentication, password/pin protection, withdrawal confirmation, and more.
Other functionalities include backtesting, sandbox mode, data logging, and scheduler.
