Bitcoin trading bots use different tools, algorithms, and methods. However, the easiest and one of the most popular ones is Arbitrage. The main feature of this algorithm is that it motivates the Best Bitcoin Trading Bot to buy the order at one price and to sell it at another.
On most of the listings the same order may differ in price, so these bots can make instant profits simply by buying and selling those assets without delay. The quantity of possible profits mainly depends on the fluctuation of the asset. For example, the lower the fluctuation is, the smaller the earnings will be. However, when the market is more unstable, with a proper approach the Bitcoin bot can hit the jackpot!
However, a bot’s arsenal is not limited with Arbitrage. They are also able to create markets and make huge profits. Simply by constantly buying and selling orders close to the market price, the bot is able to reproduce activity on the market.
A Bitcoin day trading bot will automatically gain profits from these orders. To get the maximum out of this sort of approach, bots rely on asset liquidity.
Have you already booked a personal island on Airbnb after learning that Bitcoin trading bots can do this magic?