Trader Bots

When trading on a bitcoin exchange, it is possible to make money by selling and buying bitcoin at the fluctuating value of the currency. This is one of the many aspects of bitcoin that really has people interested. However, unless you have the free time to be constantly watching the market and trying to predict trends then making your fortune could take some time. This is why programmers made trade bots.

Trade bots are essentially algorithms that constantly watch the market and make decisions on when to buy and sell for you. They operate through the exchange on what is called an Application Programming Interface, or API. Each exchange has setting that they use to allow communication between the market and the individual. On the exchange's website there is usually a page that provides the technical information that is required to unsure that your bot will be able to communicate with the market.

These bots can either be programmed by you as an individual, or the code for them can be found on the internet. Some of the code if free and others may charge a bitcoin fee to buy the code from them.

Some of the problems with these bots is that they evaluate the market to make decisions about whether to buy or sell bitcoins. Since the market is still young and prone to fluctuations, there is always a chance that your bot could make a bad decision that will lose you money. This is due to the volatile nature of the market, and its quick rises and falls on a day to day basis.

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