#USHouseMarketStructureDraft
Bot trading (or algorithmic trading) in crypto refers to using automated software to execute trades based on predefined rules or strategies. These bots can monitor markets 24/7, respond to price changes instantly, and remove emotional decision-making from trading.
Types of Crypto Trading Bots:
1. Market-Making Bots:
Place buy and sell orders around the current market price to earn small profits on each trade.
2. Arbitrage Bots:
Exploit price differences of a coin across different exchanges for profit.
3. Trend-Following Bots:
Use indicators like moving averages or RSI to buy/sell based on momentum or trend shifts.
4. Grid Bots:
Place a series of buy and sell orders at fixed intervals—great for sideways (range-bound) markets.
5. Scalping Bots:
Make dozens or hundreds of small trades per day, targeting tiny price movements.
Pros:
Operates 24/7 with no fatigue
Executes trades faster than humans
Backtestable strategies
Emotion-free decision-making
Cons:
Can lose money in volatile or untested conditions
Requires understanding of strategy logic and risk
Needs monitoring, especially in extreme markets
Popular Platforms:
3Commas
Pionex
Cryptohopper
Binance Trading Bots (in-app)