Just as aimbots automate aiming in video games, crypto trading bots automate cryptocurrency trading. In both cases, the workload is offloaded to computer scripts.
There are three main ways one can earn money in the crypto world. You can buy cryptocurrency and sell it when it reaches a price point that yields a sufficient profit, be that one month or one year. You can stake your coins in DeFi (Decentralized Finance) protocols to earn an interest rate. Lastly, you can engage in high-frequency trading.
The third option is where crypto trading bots come in. As you may have noticed, crypto coins fluctuate in price daily and hourly. This means that you can bet their prices will go up or down, entering either long or short positions, respectively. In turn, with each successful bet, you can earn money.
However, to make such high-frequency trading profitable, you would have to dedicate an entire day to constantly watch technical indicators that tell you when to exit or enter the market. Crypto trading bots alleviate this strenuous mental load and eyestrain.
Crypto trading bots automate both technical analysis to gauge market risk and when to commit trades. As such, they pose as more powerful traders because they can process more incoming data than any human brain. Likewise, crypto trading bots will never enter the wrong sum to trade, misclick, or misinterpret. More importantly, they can work 24/7, leaving you to enjoy life instead of staring at charts all day long.
Lastly, one of the most important advantages of crypto trading bots is that they are not emotional. Human traders often succumb to panic and clouded thinking, making them commit costly errors. With that said, crypto bots can't quite comprehend the whole picture of the market, coming from external sources, such as Musk's tweets or unfavorable news from the Federal Reserve.
How to pick the right bot and use it properly is an art form in itself. Therefore, it is critical to thoroughly read up on crypto trading bot reviews and pick one that best fits your specific use scenario.