What is automated crypto trading and how does it work?

cointelegraph.com:

Time waits for no one and financial markets are no exception. Especially in the uncharted territory of cryptocurrency trading, keeping up with the fast-paced changes in prices is key to success. A plethora of cryptocurrencies, a few viable trading strategies and numerous tools accessible to new traders may all cause confusion. 

Fortunately, technology has made it possible to automate several trading processes, including market analysis, predicting trends and order execution. This frees up more time for strategic planning and establishing a solid foundation for long-term cryptocurrency trading success. 

Automated crypto trading, sometimes called automated cryptocurrency trading, is the practice of using computer programs (crypto trading bots) to buy and sell digital currencies on one’s behalf. These software applications are intended to react to market changes to trade at the optimum moment. Furthermore, automatic crypto trading removes the element of uncertainty and emotion from manually buying and selling cryptocurrencies.

Although some newer crypto bots utilize smart contracts and operate directly on the blockchain, most automated crypto trading platforms are still APIs. The term API refers to an application programming interface that allows your account to communicate with a cryptocurrency exchange so it can open and close positions on the user’s behalf according to certain predetermined conditions.

Automated cryptocurrency trading has many advantages over manual trading, including the fact that bots can work continuously without rest. They are also unbiased by emotion, so they will always adhere to their game plan and follow any new market trend or event immediately after it happens.

Several types of crypto trading bots