Cryptocurrencies trading on registered exchange has become a widely adopted way of earning some extra cash online but the thorn is how to trade effectively without making significant losses,as a guide this trading work by talking directly to financial exchanges and placing and selling orders automatically on behalf of the client on registered cryptocurrency exchanges like binance,bittrex,tidex, etc.
They do this by deciding on actions to take by watching the market price changing as well as acting as per seting of predefined rules
In regard to a strategy of trading, many works by exponential moving average (EMA) as a starting point. EMAs track markets over a period of time and bots are programmed to react to that price’s change — or act further when the price behaves in a certain way such as moving beyond certain thresholds.
Other bots work on the basis of a tweaked EMA approach, for instance, using DEMA [double exponential moving average] or TEMA [triple exponential moving average]. These can respond faster than EMA-based bots.
Other bots use strength indicators and regression analysis methods especially useful for unstable markets.
For those wanting this kind of technology, bot trading is not a “fire and forget” kind of technology. First, you need a bot trading strategy. Secondly, trading at crypto exchanges does not rely entirely on technical analysis alone. Bots are unable to decipher fundamental market conditions and trends such as rumors and market forces that are a basis for price change