Crypto Trading on Autopilot: A Beginner’s Guide to AI-powered Bots

beginners guide to ai crypto bots
Apr 8, 2024 Reading time : 7 min

It’s pretty much a world of AI out there.

There is no industry out there that has not witnessed the power and potential of AI in improving and simplifying workloads.

And it’s not just that.

Artificial intelligence is now being built into pretty much everything we use.

From your favorite online stores to search engines and even in your coffee machines, you can see the application of AI everywhere.

This is true in the world of cryptocurrencies too.

With the speed of crypto growth over the years, many people are jumping into this market to make some big bucks, and now, with the help of AI, it is easier than ever.

In this blog post, we will tell you what AI-powered crypto bots are, their benefits, and how you can make money using these bots.

Besides, if you want to learn more about AI in crypto trading, you can check out the Biffy AI Site.

What are Crypto Trading AI Bots?

We all know, bots are software programs that can help investors automate their trading strategies and buy and sell crypto automatically.

These bots need to be monitored constantly or you might just lose all your money.

But AI-powered bots are different.

They can use the analytic power of artificial intelligence and machine learning to automate almost most of the trading process.

These bots are also able to learn from their mistakes and adjust their trading strategies accordingly to make profits most of the time.

How Does an AI Crypto Trading Bot Work?

Well, AI pretty much thrives on information.

It can analyze a ton of data in just a matter of seconds and find patterns and markers that can be used to create a trading strategy.

And it also has a better chance of success than any bot or human could ever achieve.

AI bots use their artificial intelligence and machine learning to analyze market trends, past data, and some other markers and indicators to make logical and accurate predictions.

Plus, they are also designed to buy and sell cryptocurrencies for you automatically.

This means that all you have to do is sit back and relax while the bot takes care of all the trading work.

The success rate of AI crypto trading bots is very high. This means that these AI bots can predict 80% of trades accurately. This success rate of AI bots integrated with its sub-second order execution ability, means it can make profitable trades in a short period in a volatile crypto market.

Here, you can take a look at the things that an AI crypto bot is capable of:

It Analyzes All Kinds of Data

AI is very dependent on data for most of its functions and trading bots are no different.

These bots can easily take a look at a ton of data, all from different sources (like news, social media, price movements, market sentiment, etc.), in just a matter of seconds.

This gives them the ability to predict where the market will go based on trends and past patterns.

It Can Make Smarter Decisions

The crypto bots are programmed to learn from their mistakes and adapt to changes in the market accordingly.

Artificial intelligence-powered trading bots use algorithms to process analyzed data instantly and make micro-second decisions on when to buy and sell your crypto.

And these decisions are not even random.

They are based on strategies that take into account the risk tolerance of your portfolio as well as the market conditions before making any judgments.

It Runs On Its Own (Full Automation Capabilities)

Automation is one of the best things about these bots.

After all, no human is capable of sitting around all day monitoring the crypto market for opportunities.

These bots can do that and much more in less than a second.

This not only saves a lot of time but also makes sure that all the trades are made at just the right time so that you can rake in the profits.

It Can Account For Risks in the Market too

No matter what type of market you trade in, there will always be risks, and this is especially the case for cryptocurrencies.

The prices in this market swing pretty violently all the time.

These bots are also able to include risk management in their trading practices to protect your investments.

With things like stop-loss, adjusting trading parameters, and diversification of investments, AI bots can help reduce the risks of you losing all your money just in case a crypto falls.

It Learns From Its Mistakes

Unlike regular trading bots, AI bots come with great analytical and machine-learning capabilities.

This means that as it continues to trade, it can learn from its mistakes and make changes to its trading strategy automatically.

This means that the number of times it can make successful trades will only increase.

So, How Do You Pick an AI Bot for Trading Cryptocurrencies?

Before you can start making any money with a crypto bot, you need to find one that is the right fit for what you want in your trading practices.

Different kinds of bots are programmed with different data sets and trading styles and in looking at the crypto space, some are even fake.

Besides, with so many options available, you need to take your time and pick one that is legit, has good reviews, and suits your trading needs.

What Should You Do After Bot is Up and Running?

Once your bot is up and running, there are a couple more steps you need to take to make sure that it is running as it is supposed to.

The bot is self-learning and automatic, right? So why do you need to take more steps?

Well, the answer here is pretty simple, nothing is absolute in this world and while the bot can learn, it is not immune to making mistakes.

Besides, as it depends on data,  biased data can make the bot a loss-making machine instead of making money.

This is why you need to check all the data and programming parameters before you allow the bot to run amok on your crypto account.

Aside from this, just like any other programming, AI can also have bugs, errors, or glitches in its programming, which can be fatal when you look at the amount of money that is at stake.

Global AI Crypto Trading Bot Market was valued at USD 21.69 Million in 2022 and is anticipated to reach USD 145.27 Million by 2029, witnessing a CAGR of 37.2% during the forecast period 2023-2029.


You can see the applications of artificial intelligence being adopted pretty much everywhere. 

Most tech you use today uses AI in one form or another and the same can be said for the cryptocurrency industry too.

With its advanced learning and analytical capabilities, AI can easily help you automate all your trading processes and it can adjust its strategies based on data and other variables.

These trading bots are capable of much more than any single human investor can do on his own.

But, while the upsides are many, you need to keep an eye on these bots from time to time because, just like any other piece of technology, they’re prone to defects too. 

And, as it has been trained on data, you also need to make sure that the data it’s trained on is not biased.

And before you jump into picking one, you need to do your due diligence and research about the bot before you buy it and let it run on your account.