Crypto trading bot

A bot connects to an exchange through an API key, reads prices and order books, and sends orders when its rules are met. Common strategies include grid bots that buy and sell at set intervals in a range, DCA bots that buy on a schedule or after drops, arbitrage bots that exploit price gaps between venues and trend-following bots based on indicators. Some exchanges offer built-in bots; other tools run on separate platforms or on the trader's own server.

Automation removes emotion and lets a strategy run around the clock in a market that never closes. On-chain, a different family of bots handles tasks such as sniping new tokens or capturing MEV.

A bot executes a strategy; it does not make it profitable. Poorly tested rules lose money faster when automated, and changing market conditions can break a strategy that worked in backtests. Scams are common: services promising guaranteed returns from a secret bot are a recurring fraud pattern, and API keys with withdrawal rights have been used to drain accounts.