PHPTrader Ethereum Cryptocurrency Trading Bot Software
Digital currencies such as bitcoin and Ethereum do not sleep, and the same is true for their markets. Most cryptocurrency markets run 24/7 even during holidays and weekends. This is why some investors prefer to use trading bots. Trading bots are software programs that talk to financial exchanges and can place or buy orders on the investor’s behalf. You can plug your bot directly into the exchange of your choice. Bots use trading strategies to trade even when an investor might be away from the computer. They watch the market price movements and react making decisions according to their predefined rules.
How Trading Bots Work
Most bots use the exponential moving average (EMA) as their starting trading strategy. The average track market prices over a given time span, and the bots are programmed to the price movements. For instance, if the price moves beyond a given threshold, the bot can sell the cryptocurrency in a certain exchange. You can also program your bot to look out for strength indicators and regression analysis. An investor will have to come up with their own rules if they are going to instruct a bot on how to make decisions.
The PHPTrader Ethereum Bot
Christian Hashcheck developed the PHPTrader bot. It was initially a bitcoin trading bot, but today it is used for Ethereum trading as well. The best feature of the bot is that you can use it on any model of Raspberry Pi, which makes it a convenient solution
The Ethereum bot is powerful, and although its design is simple, it offers all the needed functionality. It only supports the Coinbase exchange thus traders need to have a Coinbase account. However, the fact that the bot is written in PHP means that it can be expanded to work in other exchanges in the future. The code is available on GitHub and users can make their additions to the bot. The bot have all a novice investor might need although it will not predict prices nor perform an analysis. It might not be a solution for investors seeking to make big investment decisions, but it is the ideal solution for novice investors.
Bots offer advantages as they can diligently trade on your behalf as they run 24/7 so it is true you can make or lose money as you sleep while using a bot. They also remove all the emotions from trading. Thus, you do not have to invest with your heart such as investing in a coin because you like it. However, the downside of using a bot is that if you do not have the financial knowledge to come up with a trading strategy, you could automate your bot to make poor trading decisions that can lead to losses.