What is a crypto trading bot?

A crypto trading bot is an automated software designed to monitor, analyze and execute trades across cryptocurrency exchanges using predetermined inputs. Typically, these bots use trading algorithm programs to buy and sell crypto according to specific strategies automatically.

How do trading bots make money?

Because many of these trading bot platforms have so many users, they can often afford to run without charging their users any upfront payments, or at least not huge down payments. This is because they make their money from the exchanges themselves. For example, they may get a kickback from the exchange every time you make a trade.

Are cryptocurrency bots a good investment strategy?

While bots can help execute orders, they are not a substitution for a solid investing strategy. In terms of the issues with cryptocurrency bots—first, many bots only provide marginal returns (even when operating correctly). Second, many bots are simply not designed well.