Module 6.0.0. Bot Trading
As discussed in the Primary School of Cryptocurrencies, one of the four main components of the emerging 4th industrial revolution is the use of artificial intelligence, also known as robots.
Bot is the minimized word for Robot. A bot is a software application that is programmed to do certain tasks. Bots are automated, which means they run according to their instructions without a human user needing to manually start them up every time.
Bots often imitate or replace a human user's behaviour. Typically, they do repetitive tasks, and they can do them much faster than human users could.
With advancements in crypto investment, bot trading has become increasingly popularly. More than 75% of exchanges now allow API interfaces that utilise robotic trading.
API stands for Application Programming Interface, which is a connection between computers or between computer programs. It is a type of software interface, offering a service to other software.
In contrast to a user interface, which connects a computer to a person, an API connects computers or software to each other. In crypto trading, trading robots have been built and connected by API to crypto trading platforms so that the trading bot can perform all the functions, and even more efficiently, than what a human trader does.
In simple language, there are robots that have been designed to trade for you – whether spot or futures trading.