digital currency</strong></a> assets on the trader&rsquo;s behalf. <em>Why are they used? </em>To earn a profit in crypto trading, you'll frequently need to acquire and sell assets quickly using specific strategies or tactics that are also used by other traders. Consequently, even short delays in trade-offs can result in significant losses, <strong>which is why many cryptocurrency traders</strong> incorporate trading bots into their strategies.</p>\n<p><em>How does a trading bot work?</em> Basically, it automates the process of buying and selling crypto assets, as well as does the analysis and interpretation of the market statistics. This implies that the trading bot can <strong>collect data</strong>, analyze it, calculate potential market risk, and execute digital currency purchases or sales.</p>\n<p>Trading bots are programmed to make these judgments based on a pre-programmed threshold. It is like a &nbsp;<strong>determiner that shows whether a crypto asset has gone beyond or below a given value</strong>, as well as where it can be bought or sold. For instance, you can program a crypto trading bot to buy <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin or <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum when the price falls below a certain threshold or to sell it when the price rises just beyond that threshold. Thus, you can sit back and relax while the<strong> bot does all the work</strong>.</p>\n<p>Trading bots feature data analysis modules meaning that they save and interpret raw market data from multiple sources. Then, they base their trading decisions on the data they collect. To achieve more precise results, many trading bots will let you specify which types of data go into the signal generation sector.</p>\n<p>In addition, there is a <strong>market risk protection module</strong> that calculates the potential risks using the market data. Based on potential risks bots will decide how much to trade or invest and it is one of the most important features of trading bots.</p>\n<p>There is also an execution module that enables bots to sell or buy digital assets in a strategic way using <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-api/">APIs. This module helps to avoid situations of purchasing tokens in bulk or helps to buy them immediately if it&rsquo;s needed.</p>\n<p>There are two main advantages of trading bots &ndash; they are fast and they <strong>never have to sleep</strong>. 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token production and does not require the TRON Virtual Machine (TVM). You can <strong>access</strong> TRC-10 through an <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-api/">API. The <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-transaction-fee/">transaction fees</strong></a> of the TRC-10 token are <strong>1,000 times lower</strong> than the ones of the TRC20 token. Though it does require more <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bandwidth/">bandwidth for API transactions and deposits.</p>\n<p>In the beginning, TRC-10 tokens were a part of the <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum blockchain until TRON's <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-mainnet/">mainnet opened, and at that point, they were traded and moved to its own blockchain network. They are compatible with all major <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-wallet/">cryptocurrency wallets</strong></a> and are entirely free to use (in most cases).</p>\n<p><strong>Transactions in TRON </strong>are conducted with the help of bandwidth points. Every TRON account gets 5,000 free bandwidth points each day. TRX (native TRON token) holders can receive TRC-10 by <strong>storing their tokens in a suitable wallet</strong>. When tokens are transferred via <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-smart-contract/">smart contracts</strong></a>, both bandwidth points and energy are consumed.</p>\n<p>Note that a TRC-10 token can be created by any TRON account user for a minimum of 1,024 TRX. When making these tokens, the issuer has to specify the <strong>token name</strong>, TRX conversion value, the total value, definition, circulation length, <strong>token stake</strong>, total bandwidth point usage, and maximum bandwidth points per account. Besides, account-holders can individually lock up their TRC-10 tokens.</p>\n<p>In addition, there are no listing costs to pay when using TRC-10 tokens in an <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-initial-coin-offering-ico/">ICO project, and no prior knowledge of programming is required to produce TRC-10 tokens. The supply of TRC-10 tokens can be increased once they are issued, or they can be burned if the tokens are <strong>returned to their original address</strong>.</p>\n<p>The main ways a TRC-10 token is used include:</p>\n<ul>\n<li>In initial coin offerings (ICOs)</li>\n<li>With blockchain-based products</li>\n<li>As a payment method in <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-are-decentralized-applications-dapps/">decentralized applications (DApps)</strong></a></li>\n</ul>\n<p>The <strong>major benefits of TRC-10 tokens</strong> consist of:</p>\n<ul>\n<li>TRC-10 tokens are fast and scalable, and they can be accessed using smart contracts and APIs.&nbsp;</li>\n<li>TRC-10 tokens have an integrated tracking system and <strong>transaction costs that are many times lower than TRC20 tokens</strong>.&nbsp;</li>\n<li>TRC-10 tokens allow users to download files faster in comparison to decentralized file-sharing systems.</li>\n</ul>\n<p>Banking and finance, retail, real estate, supply chain management, healthcare, education, media, gaming, virtual reality, augmented reality, and aviation are industries that use TRC-10 tokens.</p>","level":"medium","meta_title":"What is TRC-10 (TRON)? 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In the simplest terms, tokenization refers to the transformation of real-world assets into virtual assets called <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-token/">tokens. Real-world assets&nbsp;can be anything from valuable works of art to real estate.</p>\n<p>From a business standpoint, tokenization may assist a variety of companies. It provides them with a guide <strong>to help their customers use their products</strong> while also reducing their dependency on other entities for receiving public funding.</p>\n<p>So, both the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-security-token/">security token</strong></a> market and the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-utility-token/">utility token</strong></a> market will most likely continue to grow substantially in the coming years as more and more companies figure out how to use them to their advantage.</p>\n<p>Besides, the concept of tokenization is increasing in popularity since it manages to <strong>decrease disharmony</strong> for companies that are eager to get funding by selling assets on an open market.</p>\n<p>A great example is a company that wants to sidestep the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-initial-public-offering-ipo/">IPO process and issue a token instead of a stock sale. Blockchain tokens are often exchanged on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-exchange/">cryptocurrency exchanges</strong></a> and are prone to price fluctuations according to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-supply-and-demand/">supply and demand</strong></a>.</p>\n<p>As a result, both the security token and the utility token markets are expected to <strong>develop significantly</strong> in the future years as more businesses find out how to utilize them to their benefit.</p>\n<p>Security and utility tokens have both been shown to be incredibly valuable and attractive. They differ from regular cryptocurrencies such as <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin and <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum, although they also employ blockchain technology and are tradable financial units.&nbsp;</p>\n<p>Besides, since the blockchain ecosystem is still in its early stages, the <strong>regulatory framework</strong> for both utility tokens and security tokens is currently being worked out globally.</p>\n<p>Unfortunately, there are a lot of ways that cybercriminals can target vulnerable organizations including <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-malware/">malware, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-phishing/">phishing emails</strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-brute-force-attack-bfa/">brute force attacks</strong></a>, and other attacks. However, tokenization works in a way that there is no data accessible to steal when breaches take place.</p>","level":"medium","meta_title":"What is Tokenize? Definition & Meaning | Crypto Wiki","meta_description":"Tokenize meaning: Tokenize - Tokenization is the process of converting real-world assets into virtual assets known as tokens.","meta_keywords":null,"language":"en","created_at":"2022-04-01T06:13:30.000000Z","updated_at":"2022-05-13T14:32:24.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-tokenize"},"currentChapter":"T","currentSection":"what-is-trading-bot","chapterTitle":"T","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-trading-bot","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter T

What is Trading Bot?

Trading Bot MEANING:
Trading Bot - a program that is developed to trade cryptocurrency assets on the trader's behalf.
Medium
2 minutes

Let's find out Trading Bot meaning, definition in crypto, what is Trading Bot, and all other detailed facts.

Essentially, a trading bot is a program that trades digital currency assets on the trader’s behalf. Why are they used? To earn a profit in crypto trading, you'll frequently need to acquire and sell assets quickly using specific strategies or tactics that are also used by other traders. Consequently, even short delays in trade-offs can result in significant losses, which is why many cryptocurrency traders incorporate trading bots into their strategies.

How does a trading bot work? Basically, it automates the process of buying and selling crypto assets, as well as does the analysis and interpretation of the market statistics. This implies that the trading bot can collect data, analyze it, calculate potential market risk, and execute digital currency purchases or sales.

Trading bots are programmed to make these judgments based on a pre-programmed threshold. It is like a  determiner that shows whether a crypto asset has gone beyond or below a given value, as well as where it can be bought or sold. For instance, you can program a crypto trading bot to buy Bitcoin or Ethereum when the price falls below a certain threshold or to sell it when the price rises just beyond that threshold. Thus, you can sit back and relax while the bot does all the work.

Trading bots feature data analysis modules meaning that they save and interpret raw market data from multiple sources. Then, they base their trading decisions on the data they collect. To achieve more precise results, many trading bots will let you specify which types of data go into the signal generation sector.

In addition, there is a market risk protection module that calculates the potential risks using the market data. Based on potential risks bots will decide how much to trade or invest and it is one of the most important features of trading bots.

There is also an execution module that enables bots to sell or buy digital assets in a strategic way using APIs. This module helps to avoid situations of purchasing tokens in bulk or helps to buy them immediately if it’s needed.

There are two main advantages of trading bots – they are fast and they never have to sleep. Talking about speed, they are definitely faster than a human trader because they have all of their data pre-programmed and can process a large amount of data at once. In terms of sleep, it’s obvious that, unlike human traders, they don’t need it, which means that they are much more efficient.