There are basically 2 different ways to execute your trading strategy.
- You trade manually which means you sit an click in front of the computer or mobile device.
- You set up a basket of predetermined rules and let a bot trade automatically for you once any of these rules are triggered by the market.
Almost any crypto trading strategy is possible and maybe even preferably to automate with a bot.
What is arbitrage trading?
An auto crypto arbitrage strategy is a computer program that examines and compares coin prices across exchanges in order to make automated trades that take advantage of price discrepancies.
For example, an Ether arbitrage bot might identify that ETH is trading for $2.000 on Kraken and $2.100 on Binance.
This will trigger the bot to buy ETH on Kraken and quickly sell it on Binance in order to make a small profit.
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