With cryptocurrencies taking the financial world by storm, both institutional and retail investors are exploring the additional value returned by applying advanced technology to their trading strategy.
While learning to trade every type of asset has become mainstream in recent years, thanks to the broad availability of online learning tools, time and resources continue to be scarce for self-learners and traders of all backgrounds.
This is where technology, in the form of a trading bot comes to the rescue, saving time and making trading much more efficient. In the crypto world especially, a trading bot can remove the trouble of portfolio construction as well as the need to devise, execute and maintain a trading strategy in this fast-paced, often volatile market.
Trading bots are not new. They were first established in Forex trading in the early 2000s, but the concept of automated trading goes as far back as the 1950s when Richard Donchian introduced a set of rules to buy and sell funds. Automated trading systems like bots now manage huge volumes of assets all around the globe with roughly 75-80 percent of all stocks being traded via bots. More recently, as institutional financial companies have entered the crypto markets, they have bought these trading bots with them, which have been adapted and applied to cryptocurrencies, and we’re now starting to see bots made available for retail participants too.
What exactly is a crypto trading bot anyway?
Cryptocurrency trading bots are basically software programs that often