DEVELOPMENT OF A TRADING BOT FOR TRADING ON THE CRYPTO EXCHANGE

Trading on cryptocurrency exchanges can be time-consuming and stressful. While beginners who do not know how to use analytical tools sit at the monitor all day and make banal mistakes from overwork, experienced traders have long begun to use robotic assistants – trading bots.

On stock exchanges, such instruments have been used since the end of the twentieth century, and now, according to Zero Hedge, they close 80% of all transactions there. Consider what opportunities the use of bots on cryptocurrency exchanges opens up, and what is better – to use ready-made software, or to develop your own.

A trading bot analyzes the situation on crypto-exchanges and automatically closes deals, in accordance with the scenario laid down in it by the developer or by the crypto trader himself. The algorithm of actions of a service is called a strategy.

For example, a trader can set a condition for a bot to buy a certain cryptocurrency when its rate decreases by 5-7% and stabilizes at this mark, and sells when the coin’s value starts to rise again. Given the volatility of digital currencies, buy and sell trades can happen on the same day and generate profits for the trader.

Automatic trading requires much less human attention. All a trader needs to do is set up a bot in accordance with his strategy, after which he will autonomously monitor offers on the market and buy / sell currency in accordance with the specified conditions.

Pros of trading bots:

• Work continuously

Cryptocurrency exchanges operate 24/7, seven days a week, holidays and lunch. The use of robots will make it possible not to sacrifice sleep, and will allow you to find a profitable offer at any time of the day.

• Make no mistakes

A trader may succumb to emotions, be distracted or simply tired, which leads to irrational decisions and erroneous actions. The robot adheres to the chosen strategy without panic or hesitation.

• Save time

The bot itself controls the market situation, without human intervention.

• Instant decision making

Bots immediately react to the slightest fluctuations in rates, and automatically carry out transactions in accordance with a given strategy. A human being physically cannot place hundreds of orders per second if the market situation requires it.

Despite the obvious advantages, trading bots should not be perceived as a passive source of income. Your strategy needs to be constantly checked, analyzed and improved, accordingly changing the software settings.

As the crypto industry developed, various crypto bots appeared on the market to facilitate the work of traders. We have identified several main types, depending on their functionality.

Trading bots

They make money by reselling digital currency. They track trends, make predictions based on market indicators such as RSI, MACD and Bollinger Bands, and then close trades at the most opportune moment.

Arbitration bots

They work on several exchanges at once, and pursue the task of buying cheaper in one place, and immediately selling in another – more expensive. The fact is that crypto exchanges do not set the exchange rate, and therefore it can differ significantly on different platforms at the same time.

Market making

Such robots form limit orders for the purchase / sale of cryptocurrencies, and allow you to make a profit due to rate fluctuations. This increases the liquidity of the selected digital currency on the exchange, due to which the trader can count on a bonus from the platform, in the form of a decrease in trading commissions.

Signal bots

They analyze data in the media and blogs of leading traders, and, based on this information, give the trader advice on buying or selling a particular coin.

Credit bots

They open up the opportunity to borrow their cryptocurrency in order to make a profit. In this case, the user can set the conditions, volume and term of the loan himself, depending on his preferences. When working with such bots, it is important to monitor the market in order to form an offer that will be interesting for borrowers and profitable for a trader.

There are ready-made solutions on the market – already developed trading bots that can be customized and integrated into work. Let’s consider the most popular options that have gained a good reputation among traders.

CryptoHoper

Cost: up to $ 99 per month

Number of supported exchanges: 10

Supports work on the popular Binance exchange and supports over 100 cryptocurrencies. There is a mobile application that allows you to constantly monitor the trading situation.

Pros: Many indicators are built in, including RSI, EMA, Parabolic Sar. You can choose a ready-made trading strategy and create your own.

Bitsgap

Cost: $ 19 per month

Number of supported exchanges: 30

It works on the basis of the GRID algorithm, and is able to maintain a high-frequency trading pace, with building many buy / sell levels.

Pros: there is a trial version, and a demo mode in which you can practice. Additional trading functions can be integrated: take profit, trailing stop, etc.

RevenueBOT

Cost: 20% of profit, but not more than $ 50 per month

Number of supported exchanges: 10

It uses the Martingale strategy, due to which it is able to cover negative trades with larger positive ones. This makes trading relatively safe.

From the pros: it works on the cloud, that is, you don’t have to install anything on a PC, takes a percentage of transactions for use, and therefore is interested in a positive result of the trader.

A functional and proven bot costs a lot, which in the long run turns out to be more expensive than developing your own solution. At the same time, the use of dubious and cheaper options is associated with the risk of installing malware that will zero out the connected wallets.

Your own trading bot can have unlimited functionality tailored to solve your specific tasks.

You do not need to pay a commission to use it. Moreover, you can sell its use to other traders, receiving additional rewards for this.

The Avada-Media team is one of the best blockchain developers in Ukraine, and has practical experience in implementing trading bots. We will take you to the next level of trading.