🚨 Time is Running Out: Reserve Your Spot in the Lucky Draw & Claim Rewards! START NOW
Learn to gain real rewards

Learn to gain real rewards

Collect Bits, boost your Degree and gain actual rewards!

Video Courses
Video Courses
Scale your career with online video courses. Dive into your learning adventure!
Crypto Terms:  Letter B
Jun 19, 2023 |
updated Apr 05, 2024

What are Bots?

Bots Meaning:
Bots - A bot is a software application that conducts automated network tasks.
2 minutes

Let's find out Bots meaning, definition in crypto, what are Bots, and all other detailed facts.

Trading bots are very helpful in the stock markets and have been used for a long time. A bot, on the other hand,  manages automated network assignment.s

To put things into perspective, traders can program a robot to execute a trade in the most efficient way imaginable, based on a predetermined set of rules.

The most modern bots can even examine a few markets at the same time, as well as buy and sell in response to real-time changes, automatically. Bot trading seems to be superior to human trading because of the speed, since they don’t need any rest time.

Aside from that, humans have a tendency to base their decisions on their emotions. Bots, on the other hand, make decisions based purely on statistical data, processing enormous volumes of information at the same time, something humans cannot accomplish.

In crypto trading, bots have a lot of similar applications. They can be utilized to shorten the time it takes to accomplish tasks such as portfolio rebalancing. 

Furthermore, bots may be used to ensure that tasks are completed on time.  Many deals can become too difficult for humans to complete, in this instance, bots can ease the process of executing the trade.

Types of crypto bots:

  • Market making
  • Arbitrage
  • Technical trading
  • Profile automation

However, users can code their own bots if they prefer.

It is crucial to note though that bots can never assure that the transactions will be successful. The vast computer power and byzantine algorithms available to the greatest institutional investors allow them to acquire a significant competitive edge. But they are not accessible to the typical crypto trader.