Trading bots: what they are, how they work and why use them

Trading bots: what they are, how they work and why use them

By Roberto D. | CryptoFarm | 5 Jun 2020

In this article we will explain what trading bots are, what they are for, why they are useful and I will suggest some of them. If you are not interested in the explanation, just go to the paragraph "My trading bot" and jump directly to the recommended trading bot, I hope you like the article!

Among the most interesting developments of "tech finance", the sector of trading with cryptocurrencies is the one that arouses the greatest interest for many factors: it is always active; it is almost completely disconnected from the real economy; it is a pioneering market and consequently high profits are still possible.

Alongside these "investment incentives" (so to speak) are added two rapidly evolving technological tools that provide the investor with new prospects for economic growth unthinkable until a decade ago. We refer to automated trading software to support investments and artificial intelligence. It is no mystery that algorithmic trading rules 53% of global equity exchanges, with peaks reaching 66% in the United States and 47% in Europe.

The trading bot is therefore a factual reality both in the sale and purchase of shares, and in other financial instruments such as futures, however cryptocurrencies have not "escaped" from the field of application, but have been used as a testbed for new developments.

How a trading bot works

So how does an automated trading system work? It is an application developed by IT programmers with the close collaboration of professional traders who know the financial markets and the rules that underpin the operation, for example, of a specific sector such as that of cryptocurrencies.
Trading bots therefore reason based on algorithms.
The algorithm is constantly "listening" to the prices of cryptocurrencies operated on the reference market, so as to be able to provide quick indications on changes in direction and give suggestions for planning the daily or longer-term trading activity.

The role of artificial intelligence in trading

Artificial intelligence plays a non-secondary role in the functioning mechanism of a trading bot, I explain better: Artificial intelligence is clearly a rapidly developing technology capable of analyzing the historical data collected previously and from which to extract elaborations of reliable strategies to be applied in the present. Ultimately, a trading bot absolutely needs artificial intelligence algorithms and without them the capabilities of automatic software would be limited.

Why do investors use trading bots?

The transition of the financial markets from paper to digital has made it necessary to use increasingly sophisticated software to carry out operations.
 The advent of techno-finance has made it complex for one man to make decisions in a financial environment where traditional stock exchanges are competing with alternative digital exchange platforms. Here, therefore, the financial intermediaries had to intervene by developing software suitable for the continuation of the operations, simplifying the investor's task of executing orders.

The influence of economic news on the markets should not be overlooked. In a globalized reality where news bounces from one part of the world to the other instantly, they can cascade all the stock exchanges generating effects that cannot be controlled by a person in the flesh.

In conclusion, trading bots powered by artificial intelligence become more and more the precious ally of the trader that you will soon be able to do without.

My trading bot

# BitUniverse- Crypto trading bot

(You can download BitUniverse by clicking HERE, or by clicking on the word BitUniverse whenever you find it written)

BitUniverse allows you to trade both manually and through bots. It is one of the best trading bot platforms (or in any case it is the one I use so it is for me ..).

I use multiple wallets and multiple exchanges, part of my cryptocurrencies (such as those earned here on Publish0x) are moved to Binance.
BitUniverse then deals with trading in a completely autonomous way of those cryptocurrencies, I really recommend everyone to try this system you will not regret it.


The trading bot on BitUniverse is easy to use. Furthermore, when you start to stay deeper in the world of crypto you immediately notice that it is impossible to stay behind every rise or fall of every single currency.

For the more paranoid, I would like to point out that BitUniverse is 100% safe and has obtained MAS and MBS licenses in Singapore, and in the United States.

However, this is only "a taste", I recommend everyone to try a trading bot (not necessarily BitUniverse you are very free to do your research).
I will talk more about BitUniverse in case it interests you.

Thanks to those who have come this far, I wish you a good day and see you soon!


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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016


All about crypto and airdrop

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