Did you know that several types of trading robots exist? Of course! Especially since they are gaining popularity as the perfect investment assistant.

Let’s first clarify, what is a trading robot? It is the new modern technology that can work with precision and without a break. The reason for this is that they are automated. The only thing the person must do is to set the pre-customized algorithms that the machine has to follow.

Thus, with almost zero effort from the user, the bot analyzes, gathers information about strategies and market conditions, executes transactions, buys, and sells. One of its most valued qualities is that it is devoid of human emotions and can always make the right decision.

Why are there different types of robots ?

With the passage of time and the emergence of new needs, specific types of market and trading have also emerged. And this is how different types of trading robots have been created. To be able to specialize in these new and different types of trading. Let’s take a look at these one by one.

Hodl robots

The first type of trading robots that we are going to review is the hodl bot. These are very suitable for beginner traders because they require little setup. Their name comes from the misspelling of the word “hold” in the context that the trader holds his coin for a longer period without selling it. These periods can range from several months to several years. The robot analyzes changes in the markets and can place a sale when it is most profitable. So, hodl bots are suitable for newcomers to the field because they can deliver slowly but make a more certain profit with significantly less risk.

Arbitrage robots

Most of you are probably already familiar with the term “arbitrage”. But let’s clarify it just in case. It’s a type of plan or trading strategy that you can implement to make a profit. The key factor here is that you benefit from market inefficiencies. And the factors that you need to watch are the price differences between the exchanges. So, this is exactly the role of arbitrage trading robots. They monitor the prices of the currencies in the different exchanges. They can compare the differences much faster than a human and find the best profit opportunities for you.

Market-Making Trading Robots

These type of trading bots make a profit on something called a spread. It is the range between the highest and lowest cost for a currency. Its purpose is to buy at a low price and sell at a high price.

Technical Trading Robots

In order to work properly, these robots need technical indicators to perform their analyses. They can also provide you with those of successful traders.

Coin Lending Bots

Some investors earn more by lending coins and getting their loan back at a markup. In fact, there are a special kind of trading robots that do just that. All you have to do is set the interest rate you want and a date to repay the loan. The robot will carry out the process automatically and thus save you a lot of time.

Signal robots

The last type of trading robots that we will introduce to you are the signal bots. Their task is to receive external signals about the purchases and sales of currencies from a signal bot. A certain subscription fee is paid for this service. Signal bots do not make random trades but choose the best option for you at the right time.

You are now familiar with most types of trading robots and will be able to choose the right one for you according to your needs and experience in the field. Click here to explore the robots available at thirdbrainfx.com.