The 3 Most Popular Types of Bitcoin Trading Robots

With the popularity of Bitcoin, more and more new traders are joining the crypto market. One of the popular technologies that we can use to make it easier for traders to earn profits is Artificial Intelligence technology in the form of Bitcoin trading robots.

Before you join in using this technology, first know more fully about trading robots. This robot is a software that utilizes machine learning and AI technology to observe value movements and execute trades.

Choose Bitcoin Trading Robots Quality

Trading robots can work by relying on an algorithm that has been previously determined. The algorithm is what makes the robot able to trade automatically and in a high frequency.

Today, trading robots are available in many different types. Several types of trading robots that you can choose from include:

1. Trend following robot

Trends are one of the most important pieces of information that we as traders need to make the best strategy for trading. Trend following robots are here specifically to find out a trend that is happening in the crypto market automatically.

Then the trend following robot can take action to sell or buy. Action by the robot is based on the direction of movement of the crypto market. When the software algorithm finishes identifying market trends and conditions and ensuring that conditions are optimal, the bot will jump into action.

Buy or sell action will be carried out by the trend following robot as soon as it is known that the conditions and trends are truly optimal.

2. Robotic arbitrage

Bitcoin trading robots this one is software that can help its users in generating profits or profits. The trick is to take advantage of the price differences found on various trading platforms or exchanges.

Arbitrage robots will automatically track Bitcoin prices from several different platforms. Then the robot will determine the most profitable price, both when doing sell and buy actions. Bitcoin trading will also be more competitive this way.

For example, the value of Bitcoin on platform A has a higher price than platform B. The robot will buy Bitcoin on platform B and then sell it on platform A for profit.

3. Scalping robots

The next trading robot can make money by selling and buying Bitcoin on bid offer spread conditions. This condition is when there is a difference in the highest price that will be paid by the buyer and the lowest price that will be received by the seller.

Scalping robots can take advantage of the gaps that arise between ask and bid transactions. This robot will sell and buy Bitcoin in a fast tempo and in real time. When working, this robot will immediately carry out trading transactions even though the difference is very small.

Currently, scalping robots are one of the robot choices that are most widely used by traders in conducting crypto trading transactions.

Advantages of Trading with Trading Robots

Bitcoin trading robots provide various advantages for traders. One of them is being able to scan multiple Bitcoin trading platforms 24 hours a day and 7 days a week. So that profit is easier to obtain than manual trading without this special software.

Find out more about Bitcoin trading, either by using robots or manually without the help of robots, only at the latest and most complete source of crypto news and information, namely

Photo by Tara Winstead from Pexels

Leave a Comment