AI is everywhere! We can’t deny this fact, right?
Going through a sudden spike in AI usage, its growth is predicted to touch 40% by the end of 2030, as per Forbes.
So does the boom of AI crypto trading bots in the blockchain arena.
As of now, Crypto exchange platforms like Binance, KuCoin, and Poloniex have upgraded AI bots into their platform. They also grew their user base with this adoption and made headlines over and over again.
Entrepreneurs, why don’t you integrate such a one and reach milestones in your business?
Well, I’m not gonna leave you behind. Let me give you the complete guide on how to integrate AI crypto trading bot in a crypto exchange.
I value your time, and let’s enter this insightful journey together.
What is a Crypto Trading Bot? What are its Types?
Technically, a crypto trading bot is a software that automates the buying and selling of cryptocurrencies based on its specifications. Traders don’t need to analyse the market and place their orders.
Sounds like a robot, doesn’t it?
Yes, it is. It’s like a robot where we program its work and functions. Here, there are two use cases.
One is the admin(platform owner) who gives the bot specifications. And another is that the user specifies the currencies and loss limits with it.
This crypto trading bot doesn’t have a specific timeframe to work. It works 24/7, analyses the market on behalf of the traders, and places the trades. This eradicates the emotional decision-making. It usually occurs with crypto traders. They just follow the social media trends or even the fake announcements.
Due to its various use cases, users are opting for crypto exchange platforms that have trading bots. And so, now every platform is rushing to integrate them. When speaking about bots, there are many types of bots as of today’s market scenario.
Let’s explore them below.
Arbitrage Bot
The arbitrage bot is based on the arbitrage trading strategy. It is the most used crypto trading strategy among users. It analyses the price changes between the crypto exchanges and executes the trades.
Market Making Bot
Market making bots are not a bot based on a trading strategy. Its purpose is to bring liquidity to your newly launched cryptocurrency exchange. Admin specifies the buy/sell orders for a particular trading pair and enables the bot to provide instant liquidity.
Copy Trading Bot
It is enabled for copy trading. Copy traders specify their ratio, amount, and loss limit. When the copy leader accepts the follow-up request of the users, their trades get automatically placed for them, too. Copy leaders set their commission percentage when traders move their assets out of the copy wallet.
Grid Trading Bot
Grid trading bot is the most comfortable source for experienced traders. It allows users to place multiple buy and sell orders simultaneously at predefined intervals. These bots are to be monitored properly and adjusted to their metrics accordingly.
Scalping Bot
Like a grid trading bot, a scalping bot is also for pro traders. It performs high-frequency trades on short time intervals like minutes. It focuses on making profits from small time intervals. So, traders get fast results and profits.
AI Crypto Trading Bot
Well, we’ve come to the crucial point of our article. An AI crypto trading bot uses machine learning algorithms to analyze the market and execute trades. Traders don’t need to put lots of effort into reviewing the history of the market. Instead, the bot analyzes A-Z and performs the trade.
Excluding AI crypto trading bots, all the bots are crucial for a crypto exchange platform. Each of the bots has its own use cases. But, AI bots are trending, and taking the crypto exchange’s image to the next level.
Come on, let’s know what the strong reason is behind it for businesses adoption.
Why AI Crypto Trading Bot Development is Entrepreneurs’ Choice?
Businesses need to stay updated on the crypto market trends. Upgrading the products to those trends is inevitable in this scenario. And we do know that AI is occupying huge space in every sector, and even a part of our lifestyle too.
In the crypto industry, AI bots are influencing the platforms. The major hit this concept is the crypto traders. Usually, traders monitor, synthesize the market conditions like price fluctuations and make trading decisions. It was the thing followed till the past decade.
So, when was this tradition broken?
Users needed an easy medium to analyse the flow and place the orders on their behalf. And trading bots are introduced. Bots are specifically brought to address users’ issues and trade more efficiently than ever.
Because of this sophisticated trading, users started piling up on the platforms that support AI bots. And so, every business mind started integrating AI bots into their platforms. You need to work with a trusted cryptocurrency exchange development company and make your platform rich and unique.
It’s a guaranteed upgrade to your business.
AI Crypto Trading Bots
Based on Forbes
Brings more users to your platform.
Keeps you updated on the trends.
Puts you ahead of the fellow entrepreneurs.
Helps you create a value-equipped brand.
Well, before making such a decision, you need to have a clear picture of it working.
Let’s understand the A-Z of AI crypto trading bots inside out
What is AI Crypto Trading Bot and how does it work?
AI trading bots compare the past, present, and future history of the market and perfectly place the orders. Users don’t need to wait for the right moment to place their positions. It automates everything after a proper survey and prevents users from making wrong decisions.
To put it clearly, I’m gonna show you how the AI crypto trading bot works.
Step 1: Analysing the Data
Firstly, the AI bots cross-check parameters like past history, trends, news, and predictions to analyse the data clearly.
Step 2: Optimizing the Trading Strategies
With the help of machine learning, they review and refine the trading strategies continuously. It identifies the patterns, predicts the market fluctuations, and adapts to upcoming market trends too.
Step 3: Automated Decision-making
Based on the thorough analysis of the patterns, AI trading bots execute the order. The same cycle occurs accordingly.
AI crypto trading bots can handle multiple cryptocurrencies simultaneously, irrespective of the loads. It optimizes across assets based on performance and risk thresholds. Another major highlight is that the bot specification is customizable.
We’ve seen adequate insights about this wonderful trending tech. It’s time to know how to integrate the bot into your crypto exchange platform.
How to integrate AI Crypto Trading Bot in your Crypto Exchange?
Start-ups find it difficult to start their platforms with high-end features. Because they have to go through multiple development and testing stages. However, they always have an option to make it out much easier.
Going for ready-made solutions like cryptocurrency exchange script stands as the prime solution to date. I do know that you may be half-minded about this idea. Not only you, but many entrepreneurs have such a query in their minds.
Does obtaining a pre-built crypto exchange platform limit my business potential?
Not even at a single point! It doesn’t slow you down. You can stretch out the platform according to your business directives. You can integrate multiple features with advanced security protocols to make it signature-grade in the market.
I’m listing out the integration process in 3 simple steps.
Step 1: API Integration
Through the APIs, AI crypto trading bots are integrated flawlessly into your cryptocurrency exchange platform.
Step 2: User Specification
Your users set the bot parameters like risk tolerance, trade size, and limits based on their preferences.
Step 3: Maintenance
Admin constantly monitors the bot’s activity to maintain its performance. Also, perform security audits and regularly update the bot’s metrics.
Stake it before it spikes!
Well, dear business magnates! Here are the ultimate insights specifically curated for you.
If some of the queries are still running through your mind, get your solutions.
FAQs on Integrating AI Crypto Trading Bots
What are the key benefits of launching an AI trading bot platform?
Launching an AI trading bot platform gives benefits like
- Steady revenue
- Enhanced liquidity
- Consistent user engagement
- Brings more users in
- Time-proof expansion
What’s the difference between AI bots and other trading bots?
Different bots have different use cases. Some bots are designed for liquidity and specific trading strategies like scalping, arbitrage, grid, etc. Where AI crypto trading bots are designed to perfectly analyze the historical market data and automate the trades.
How can I monetize a crypto trading bot platform?
- Subscription plans
- Performance-based fees
- Tiered fee structure for pro frequent bot users
- Affiliate commissions
What are the biggest risks in running a trading bot business?
- Security breaches
- Poorly performing strategies are damaging user trust
- Market volatility
- Exchange API changes or downtime
How do I attract and retain users for my AI bot platform?
You need to secure the API key management and conduct regular security audits. Regularly monitor the performance and its metrics and update them according to the market volatility.
Looks like we’ve tied all the loose ends. Feel free to reach out if anything’s still unclear.
We can finish this up now.
Final Takeaway
I’m gonna wrap this up in two cases. Firstly, to the budding entrepreneurs. If you’re planning for a fresh start, then without doubt, go for an AI crypto trading bot integrated crypto trading platform.
Secondly, to the thriving businesses. I highly recommend integrating trading bots into your crypto exchanges. You don’t need to take all the stress out of implementing such things.
Join a reputable cryptocurrency exchange development company to make this in reality. Just give your complete requirements and customize the bots to your operational needs. Spend more time and resources on marketing than on development from scratch. Because that’s the untold truth in the crypto business.
Start a valuable business with AI crypto trading bot development for lifetime returns.
You have a vision. We have a way to get you.
