Crypto doesn't sleep, but you do. And that’s a big problem if you want to ride every market wave profitablly. Manual trading can be daunting and emotionally stressful, That’s where AI trading bots come in. They watch the market, execute clever moves, and stick to the plan, so you don’t have to. Now let's learn about them.
What are AI trading bots?
AI trading bots are automated programs that analyze market trends, carry out trades, and optimize strategies without human interference. On many centralised exchanges like Binance, Bybit, Bitget,Gate and the rest, these bots help traders catch trade opportunities round the clock without emotions and hesitations
How do AI trading bots work?
Think of AI trading bots as traders that follow predefined rules. These rules are set by the algorithm of the bot which enables them to react to the market faster than any human could. Depending on the type of bot, they use technical indicators, market trends, or predefined strategies to make calculated moves.
So how do these bots get access?
AI trading bots, operate directly within the platform they are integrated. So I am saying that you don’t need to grant external access or set up API keys. When you activate a bot, it reserves funds from your Spot or Futures Wallet, using those funds to place orders (buy or sell) based on your predefined trading plan
Types of AI trading bots.
Spot Grid bots – Buy low, sell high within a set price range. Ideal for sideways markets.
Futures Grid bots – Same as Spot Grid, but for futures trading with leverage. Higher risk, higher reward.
Martingale bots – Increase investment after a loss to recover quicker when the market turns. High risk but effective in trending markets.
Smart portfolio bots – Automate portfolio rebalancing to optimize asset allocation based on your strategy.
CTA (Commodity Trading Advisor) bots – Follow trend-based strategies to ride market momentum.
Signal bots – Execute trades based on real trading signals from professional analysts and algorithms.
These are a few bots that take the confusion out of trading and execute faster, smarter, and more efficiently than human traders can. Now let's discuss them one after the other, shall we?
Well, I know that you are ready 😂
Spot Grid Bot
What it does: It buys low and sells high within a specified price range, maximizing profit from sideways markets.
When to use: It is used in ranging markets, where prices move up and down within a predictable zone. It thrives when there’s no clear trend — not too bullish or bearish — helping you profit from frequent price fluctuations.
How to use:
- Go to any centralised exchange that offers this trading bot and select Spot Grid Bot.
- Choose a trading pair, say, BTC/USDT.
- Set your price range; the bot will buy and sell accordingly.
- Define the number of grids (more grids = smaller, frequent trades).
- Allocate investment funds from your Spot Wallet.
- Click Start and let the bot handle the trades automatically.
Here is where I am going to stop for now, stay tuned because in subsequent articles, I will discuss the other bots and by the way, the image below shows more information about this type of bot
