Cryptocurrency, crypto bots / programs.
The decentralized system does not have an internal or external administrator or other analogue of the center in which the cryptocurrency circulation takes place. In this system, for the circulation of virtual money, the computing resources of individuals around the world are used. Such people are called miners.
Miners provide the computing resources of their computers to create the blockchain. Blockchain is a sequential chain of blocks, in each of which transactions are recorded. For this, miners are rewarded in cryptocurrency. This reward (mining) is the only way to issue cryptocurrency. Thus, the stable functioning of a decentralized system is ensured only through mathematical calculations.
The most advanced decentralized cryptocurrency of our time is Bitcoin. Bitcoin wallet and transactions have a significantly superior level of protection compared to other methods of storing and transferring funds. Bitcoins can be used to pay for various purchases or services. Here, all operations are absolutely transparent, and you can trace the entire chain from the moment of its creation.
You can buy bitcoins, sell bitcoins, and also make money on bitcoins through special exchanges, which are online platforms for cryptocurrency trading. They are attended by sellers and buyers of bitcoins. Here, the cryptocurrency rate depends on the ratio of the number of these participants: the more sellers, the lower the rate, and, on the contrary, the more buyers, the higher the rate.
The change in the bitcoin rate is taking place in a very dynamic mode, so buying and selling cryptocurrency is a rather promising, but risky business for traders. This is a real race, who succeeded — he earned, otherwise he suffered losses. Therefore, programs are now in great demand to minimize risks and routine work of a trader. A cryptocurrency trading bot (or abbreviated cryptobot) is a program that operates autonomously in 24/7 mode, which performs a set of repetitive actions to buy / sell currency pairs. Cryptobots work according to the algorithm established by the developer and are capable of performing thousands of transactions per millisecond. The algorithms implement existing strategies for buying and selling bitcoins. Based on these strategies, the following types of cryptobots are distinguished:
- Trendy cryptobots. They spot a big move in the market and trade in the direction of the main trend. These bots are used in trending markets with high volatility, i.e. volatility.
- Counter-trend cryptobots. They work according to the principle opposite to trend bots. That is, they trade against the main trend, revealing the degree of overbought market. Such programs for making money on cryptocurrency are good for trading in a range.
- Arbitration cryptobots. These bots are aimed at making a profit from the difference in cryptocurrency rates on different exchanges. Such programs allow you to generate income without risk, but there may be transaction costs.
Despite the possibility of complete automation of processes, buying a cryptobot is not enough for successful work. It is necessary to understand strategies, constantly study the market, look for patterns in price movements and use programs wisely.
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