Forex and Crypto Robots – How Do They Operate? Features and Characteristics

Forex and Crypto Robots – How Do They Operate? Features and Characteristics

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The implementation of AI in trading has been seen notably in recent years. The development of modern technologies made it possible to simplify the trading process, using robots for conducting processes that are difficult for humans. The existence of such technologies is beneficial both for brokerage companies and people as well.

Alongside Forex trading, crypto trading has also grown sharply in the past years. The surge of Bitcoin and the emergence of various cryptocurrencies paved the way for more customers to engage in crypto transactions. Let’s have a look at robots and how Forex and crypto automated trading systems differ from each other.

What are Forex Robots?

Forex robots are mainly trading advisors or experts that help trades to conduct trades more effectively. Unlike humans, who have emotions, these robots make practically no mistakes, as they can handle a lot of information and discover an interesting piece of information. These robots are available on the majority of brokers’ websites.

What is the main feature of automated currency trading robots in FX trading? First of all, they are designed to mechanically recognize technical patterns like breakouts, reversals, and momentum that offer trading opportunities.

In addition, users need to make sure to purchase a product, with the highest quality. Not every broker offers the best trading robots when it comes to Forex trading.

What Are Trading Bots for Cryptocurrencies?

A robot for trading cryptocurrency is a specialized computer program, the purpose of which is to track fluctuations in the quotes of digital currencies on the trading platform, identify patterns and make transactions according to the parameters specified by it.

On cryptocurrency platforms, unlike classical ones, a lot depends on the holders of large cryptocurrency packages, which can, if desired, raise or lower the rate, but the basic mechanisms are similar. Depending on the complexity of the bots, the number of criteria for their functioning fluctuates.

The simplest ones buy coins on a fall in the rate and sell on an upward curve.

More complex developments can take into account a larger number of indicators: analyze trends for previous periods, buy or dump crypto-only in a certain range, etc. According to the organization of work, the programs are divided into the following types:

Customizable 

These are bots for cryptocurrency trading that only operate when certain conditions arise in the market. The player can choose the trading strategy himself or use the automatic setup.

Script 

Such robots represent a base (“skeleton”), based on which players can program their own trading strategy. Most often, large speculators who use a unique trading strategy turn to their services.

In addition, according to the features of work, there are two main types of robots:

Trading 

They carry out transactions within one specific cryptocurrency exchange based on specified indicators. The profit arises from the difference in the buy and sell rates.

Arbitration 

They monitor the situation and work on several exchanges at the same time. Profit is the result of buying Bitcoins cheaper on one marketplace and reselling it on another exchange at a higher rate.

The more indicators the program is tuned for, the more the trader has the opportunity to influence the final result. At the same time, a large number of parameters can be confusing for beginners, so they usually prefer auto-tuning or bots with built-in trading scenario options.

There are many trading robots on the Internet. Some of them are developed by reputable companies, others are the fruit of the work of crypto enthusiasts. There are paid and free programs, the user can independently choose their own computer advisors.

What Are the Differences?

In essence, both of these robots serve the same purpose – to help trades discover opportunities and conduct profitable trades. While talking about them, we should also speak about volume. FX trading customers will get better conditions with leverage, than with crypto, as the latter one offers a lower rate of leverage.

Furthermore, these 2 robots are working with different assets. Cryptocurrencies are volatile currencies, while Forex trading is stabler.

We should not forget to talk about the complexity. In general, making crypto robots is slightly difficult as they are more complex compared to their Forex counterparts. It should not be a surprise that crypto vs Forex trading robots is fundamentally different from one another.

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