#BotOrNot What is a trading bot?

A trading bot is software that automatically executes trades on financial markets, including cryptocurrency exchanges, Forex, and stock markets. It operates based on pre-set algorithms, analyzing market data, technical indicators, and news.

Bots can follow different strategies: arbitrage, market making, trend trading, or scalping. Their main advantage is the ability to work 24/7 without emotions, reacting to market changes faster than a human.

For the bot to operate, access to the exchange via API is required. However, its effectiveness depends on the strategy, parameter settings, and market conditions. Using trading bots requires experience and oversight to minimize risks.