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How to create passive income using crypto trading bots

Robot traders or money makers have been used in the digital currency investment markets for a long time in the forex and stock markets, but currently 80% of the stocks are managed by these robots. The use of robots has entered the digital currency market for some time and is used because of its ease. In the traditional financial market, there are specific times for activity. At certain times, they have limited fluctuations, and at these times, the doors can manage their behavior. But the cryptocurrency market operates around the clock and has no closing time.

Expensive companies must be on the system 24/7 so that they can make a profit and minimize losses. Being in this market for 24 hours is definitely not possible for anyone. So, at this time robots come to help humans and these robots act as a behavioral assistant.


The use of robots has entered the digital currency market for some time and is used because of its ease.

The use of robots has entered the digital currency market for some time and is used because of its ease.

What is the history of using a trading robot?

This concept of automated trading was first mentioned by a person named Richard Donchian in 1949 who used to sell funds. Algorithm trading was introduced in the 1980s when famous traders like John Handy used it. In the past, we used robot traders in forex stocks, and the use of robot traders in the cryptocurrency market is an emerging phenomenon.

In traditional markets, the range of price fluctuations in one day is usually 5%, but in cryptocurrencies, price fluctuations may reach 50% in one day. Therefore, for many reasons, this market needs monitoring and follow-up.

What are the possibilities of trader robots?

Robot trades made it possible for traders to have golden positions and the best options in the cryptocurrency market at all hours of the day and night without using the voting process.

Some of these bots are offered for free on the internet, but if you want to offer them on your own terms, you may end up paying more. The price and features of a trading robot are determined by the following factors:

  • Efficiency
  • Level of analysis
  • Number of orders

If you make free links and use them, you can not only not get the functionality, but you can even suffer losses regarding them. Professional and experienced traders use robots that are specially prepared by skilled programmers. Among the capabilities of these robots, we can mention trading based on traders' brain bases. Also, bots have the ability to copy skilled payments and use them.

How are robot traders programmed?

Experienced traders in the digital currency markets analyze the market and then use their analysis to make trades.

On the other hand, robots are based on algorithms and written by programmers. The success rate of the trading robot is the increase in the amount of work of the developers and the people who produce them. The more familiar these people are with financial markets, the greater the profit for Terri Der. Although bots that are at a simpler level in terms of programming are not useful for professional jobs, as it only limits them. These robots do not have the ability to buy at the moment and do their work according to the technical indicator.

For example, you program a robot in such a way that it buys digital currency by increasing the RSI index below 30. If the quarter trader is in this position, he buys the digital currency according to the plan. If you connect your robot with a professional trader, you copy the trader's card and use that card. This method, called "copy trading", has its own fans. When selling when you are sure of profit, you can activate sell and also set stop loss or stop loss to avoid loss when the market falls.

What is the main task of the robot trader?

The use of robot traders in digital currency market transactions has been legal since the past and all exchanges use them. Since the small volume of market transactions is not suitable for traders, nor does it create a good profit for exchanges, and on the other hand, the use of robot traders causes a large number of transactions to be carried out on the first day, so for this reason, exchanges Cryptocurrencies make it easy for their clients to use APIs.

Robot traders can take a series of information from exchanges, which include:

  • Current price
  • Turnover
  • The amount of assets in circulation of the exchange
  • Best buy price
  • Best selling price
  • last price

Obtaining this information is done by traders using their user account and trading software. The software used in these transactions, which trade through the API in the exchange, are in fact the same robot traders. For robot traders or trading robot, we describe three main tasks, which are:

  • Signal generation
  • Risk assessment
  • make a deal

To generate profit by a trading robot, it is necessary to predict the movement of the market first. A trader robot initially generates signals for buying and selling based on the available information and also by checking the defined algorithms while checking the market data. Robots that are set up by professional programmers have the ability to combine a group of indicators and based on them provide a trading signal for buying and selling. This group of transactions using robot traders is very popular and it is recommended not to use these robot traders for your transactions.

One of the questions that may arise is how does the trading robot recognize the trading time?

After performing the first step by the robot and generating the signal, in the second step, the amount of risk of the transaction is considered and checked by the robot trader. After the complete completion of the previous two steps, the robot trader starts trading. These steps are all based on predefined plans.


 Robot trades made it possible for traders to have golden positions and the best options in the cryptocurrency market at all hours of the day and night without using the voting process.

 Robot trades made it possible for traders to have golden positions and the best options in the cryptocurrency market at all hours of the day and night without using the voting process.

Is the work of robot traders reliable?

We cannot say that the use of robot traders in trading will lead to definite profits, but sometimes it is possible that working with robots will bring you losses. Robots can never compete with human intelligence. If you want to make your trades in the digital currency market using robots, it is necessary to experiment with small capital first.

When choosing a robot with which you want to do your transactions, observe the following points:

  • be reliable
  • No programming errors
  • be up to date

If you choose a trading robot with these characteristics, you can be sure that it will prevent the loss of your capital. Of course, you should also pay attention to the fact that not every robot can be trusted. Because sometimes a very safe bot is introduced, if it is produced by a scammer who only wants to steal your capital.

Our advice to you is to check the correctness of the work performed by them when using robots. Famous traders around the world say that in order to have a steady income from trading, you should not put all the tasks on the shoulders of trading robots, but only use these robots as auxiliary trading options. Since robots are made using artificial intelligence and have access to a lot of information, human intelligence and understanding is still higher than robots.

These robots are unable to detect major threats against the cryptocurrency market and cannot make correct decisions on their own. On the other hand, if all the traders who are present in cryptocurrency markets using robot traders want to use the same algorithm for trading, it will no longer be possible for them to make a profit.

The advantages of robot traders are:

A software or application that, based on an algorithm determined by the trader, made a transaction without the presence of the trader.

The trading robot has the ability to buy and sell fully automatically based on various algorithms, in the conditions desired by the trader.

The more experienced the programmers, the more professional the robot became in this field.

The stronger and more professional the robot is, the more efficient it is. Free robots generally do not have the necessary efficiency and cause losses to traders. Professional traders use dedicated robots to execute their trades.
One of the advantages of trading robots is to increase the volume of daily transactions.

What are the reasons for using a robot trader?

So far in this article, we have explained all the advantages and disadvantages of using trading robots. Although entrusting all the work to trading robots is a risky and wrong thing, getting help from these robots in making transactions is definitely not a wrong thing. Below are some of the reasons that lead us to use robot traders.

Development of trading time: 24-hour human presence in the digital currency market is impossible, but a robot has the ability to conduct transactions at all hours of the day and all days of the week without closing. So, with the help of these robots, you can monitor all situations without your presence and make the right decision at the right time.

Increasing the speed of data processing: Robots have the ability to process a lot of data in less time compared to the human brain.

Preventing emotions from entering the transaction: Robots perform the transaction using the program written for them and the special algorithm for which they are programmed. But in the case of humans, emotions such as greed or fear may affect their decisions and cause them to make mistakes in the transaction.

The ability to process large amounts of data: Another reason to use trading robots is that humans are limited in processing data, but the use of artificial intelligence has the ability to do multiple processes in a very short time.

Types of trading robots

Among the features of crypto trading robots, we can point out that they can be adjusted and also adjusted based on short-term and long-term investment algorithms.

Arbitrage bot

It is one of the most popular cryptocurrency trading robots that has the ability to compare different prices in different exchanges. After comparing the prices, this robot makes the transaction to benefit from the best price difference among the exchanges and earn the right profit. This robot can help to automatically set buy and sell orders when needed to make a profit.

Trend trading robots

As is clear from the name of this robot, trend trading has a series of specific movements before ordering, buying and selling, and if the selected trend indicates an increase in price. The robot is placed in a buy position and if the position indicates a decrease in price, it creates a short position.

Coin lending robots

Among the capabilities of these robots, we can mention lending coins to traders and withdrawing them with interest. Coin lending robots can provide you with the possibility to automate the process. Using this robot, you can spend less time searching for interest rates and this method will help you make the best decision in this. Get the context

You should note that robot traders are the only tools in the world of digital currencies that can make transactions automatically for you, but they may not have all the features considered for them.

It's important that you do your research before choosing your robot, because choosing the wrong one can put you at risk.

Market maker robots

These robots try to get you higher profits by using a turnover order book. In this way, with the increase in the volume of transactions of an asset, the turnover of Ard Book Exchange will also increase, and as a result, the profit that the robot earns for you will also increase.

In fact, how robots work is that robots are programmed in such a way that, when they can, they sell an asset at a price higher than the original price of the supplier. When an order with a price higher than the market price is placed on a set, this order is added to the order book by the robot, and in this way, it creates a market trend and can earn profit for the software owners. These robots are looking for wider circulation in the market 24/7 and non-stop so that they can benefit the app owner in every way.

Algorithmic trading robot

The meaning of this robot is a robot that is given specific algorithm programs and also performs them automatically. In this method, the trader defines a strategy for the robot and from then on, he looks for the best trading opportunities according to that pattern and algorithm, and after finding it, he makes the trade within a few seconds.

One of the necessary factors for entrusting your transactions to the robot is to have a suitable strategy for doing the transaction, otherwise it is not possible to define any program for the robot. An important point in using algorithmic robots is familiarity and mastery of the programming language, with which you can prepare and use ready-made software for algorithm equations.

Algorithmic robots have been very beneficial for traders and have been able to help digital currency markets to be more efficient in this direction. With its strategy, this robot was able to obtain the liquidity required by the market, and this was one of the reasons that traders used them to be present in the digital currency markets. In the past, these tools were only available to large and important financial institutions.

But today, almost everyone can access and use them. Automatic and frequent transactions are used in this system, which can make the whole market more efficient and eliminate the price difference between exchanges. You can discover the price difference faster than others and trade with them using trading robots.

The advantages of algorithm robots can be:

  • Being away from human emotions
  • Being tireless and 24 hours a day
  • Relying on technical indicators and using artificial intelligence to make transactions
  • The ability to analyze large amounts of data in a fraction of a second
  • Ability to use the experience of tin traders in making transactions

Portfolio automation robots

This robot has the ability to perform your transactions automatically and through a pre-written program. Also, these robots provide the ability to balance your transactions and adjust the balance for the transaction you want. The balancing process through automation bots may be every 30 minutes, an hour or more. This simple management allows you to have more time and, as a result, you can deal with another transaction.

Technical analysis trading robots

These technical digital currency trading robots are used to perform and take advantage of trading opportunities using technical indicators that have been set in advance by the programmers. Since today's market analysis can take one to two days and even longer periods, trading robots are able to provide you with social trading and signal trading, and all this information will help you get the right indicators. you brought.

Advantages of using a trading robot

Permanent and 24-hour presence

As a trader, you may sometimes get tired of being in the market or you may not have the opportunity to be in this market for a day. Among the advantages of the trading robot, we can mention the presence of 24 hours a day, 7 days a week. You will not miss trading opportunities in the market by using this feature.

To be asleep

One of the basic needs of every human being is the need to rest. If you want to be in the digital currency markets full time, it is definitely impossible. By using trading robots, you can be present in the digital currency market all the time by setting a predetermined program for the robot.

Not having access to computer and internet

If someone finds himself in a situation where he does not have access to electrical devices such as a computer or even the Internet, the trading robot can check trading opportunities using the programs that have been placed for him, and in this way, he can replace the trader. To be present in digital currency markets.

Power of analysis and fatigue

The efficiency of a person who works 24 hours a day in digital currency markets is very low, and if he is too tired, he may make decisions that are not in the interest of his capital and property.

Emotions, doubt and stress

All human emotions have the ability to affect decision-making and make a person unable to make correct decisions in sensitive situations and close deals at the right time. The cryptocurrency market is a world full of logic and strategy, and you should be present in it with all your preparation.

Disadvantages of using trading robots

Requires user knowledge

The useful and effective use of the robot trader requires deep knowledge of digital currency markets as well as having a suitable plan and strategy for investment. A robot can be a useful and effective tool for digital currency trading, but it can be dangerous if you use it without knowledge and awareness.

The need for constant monitoring

Since digital currency trading robots perform a series of predetermined tasks repetitively, it should be constantly checked and their performance ensured. In this case, you can entrust your trades to the trading robot and leave it to work independently. It is necessary to have a deep understanding of digital currency trading in order to effectively set up and ensure the functionality and operation of the trading robot.

Security weaknesses

Identifying how trading robots work is through how they are programmed. Due to the high security of blockchains, cyber hackers are not able to abuse them, but there is a possibility that they will target robots or even digital currency exchanges. You should disable automatic payment and withdrawal to increase the security of the trading robot and thus reduce the number of attacks.

Not all bots are profitable!

100% trust in robots to make transactions is wrong and risky. You should use these robots with a small capital first, and if you are confident with the robots, increase your capital.


In this article, we talked completely and comprehensively about the trader robot. We hope this article was useful for you. For speed and better results, we suggest you join Persian Elite's VIP channel so that you can use the powerful signals that are analyzed by the biggest traders in the world on a daily basis.

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