For decades now, stock exchanges have employed trading bots backed by advanced high-frequency trading (HFT) software for utmost efficiency. Trading bots offers several advantages over conventional human trading as well.
Not only faster, but they don’t showcase emotions, instead choosing the most statistically advantageous decisions. Bots have found their way in crypto trading as well. They are used to regularly automate time-consuming yet basic processes such as portfolio rebalancing and more.
They help guarantee that orders are executed at the exact moment specified. The majority of cryptocurrency trading bots fall into one of four categories: arbitrage, market making, technical trading, or profile automation. Not to mention, several off-the-shelf bots are available in each of these categories, or users can create their own.
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