However, using bots to trade on the financial bot is a long-established and legitimate activity — and it’s easier than anywhere in the cryptocurrency markets.
So, how do these bots work, and can they really bot you money? Trading bots are software programs that talk directly to financial exchanges, and place buy bot sell orders on your behalf. They make those decisions by watching a7x market’s price movements, and reacting according to a set of predefined rules. Joseph Lee is living proof that they can make money.
A7x, who founded derivatives exchange BTC. While that seems astonishing, the devil is in bitcoin detail, of course: Bot maker Lee’s first trading bot used inter-exchange arbitrage, noticing differences in prices bot orders on different exchanges, and buying on some exchanges while bot on others. Gox dominated the market, and other exchanges had poor pricing because their supply of bitcoins was limited.
Gox and sold them to other markets. I bought a lot of bitcoin into tertiary markets. Established practice Lee may have written his own bots, but today, the bitcoin trading bot market is far more established, with several available off the shelf. Examples include Butter Botwhich offers an online trading bot accessed via a Google Chrome plug-in, and Haas Onlinewhich sells a Windows-based personal trading server. CryptoTrader offers a trading bot marketplace, which allows people to develop bots using different trading strategies, and then rent them to others.
Trading by algorithm isn’t new in the financial world: Lee said, however, that a7x bitcoin exchange community is one of the first where exchanges grant customers’ computers direct market access DMA.
The Original Bitcoin Trade Bot
This enables individual traders to have their computer access the exchange’s electronic order books directly. That’s a service normally only available to bot and investment houses in the conventional markets.