Algorithmic trading in crypto means trades are handled by software, not a human. You set the rules in advance—when to open or close a position, and how much to buy or sell. The system automatically tracks prices and keeps running trades around the clock based on the algorithm you programmed.

How It Works

The strategy logic gets laid out as clear buy and sell triggers. For example: if the price drops 5% from yesterday’s close, the bot buys; if it climbs 5%, it sells. The trader also sets the trade size ahead of time. Once it’s running, the program constantly checks the market and fires off trades whenever those conditions are hit—no manual work needed.

Crypto Market Scenarios

There’s a range of approaches, from simple price thresholds to handling big orders. One common scenario: scooping up a large amount of an asset while keeping your average fill price close to the current market rate. Whatever the play, the core idea stays the same—set your logic in advance and let the algo manage price action automatically, without having to step in by hand.