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This is new to me. What does a Bitcoin trading bot do exactly? Do they trade alt-coins through exchanges?

• bonestamp2 9y ago
  Yes, exactly. Bitconnect claimed to be running a trading bot but everyone said they were just running a ponzi scheme because the returns were about 1%/day... even though they refunded everyone's coins when they stopped the lending bot program. I've never heard of a ponzi scheme that can return everyone's money when it closes up. Not to mention, I think it's completely possible they were actually running a real trading bot because you can run your own trading bot and earn more than 1%/day very easily. People here really don't like to hear facts because it's easier to go with your gut feeling about some paradigm you've never heard of than doing the research, so they downvote any comment that says bitconnect was anything other than a ponzi scheme (or they'll call it a pyramid scheme if they really want to prove they don't know what they're talking about). The trading bot uses BTC, ETH or USDT as a base currency and then buys alt coins with the base currency then sells them back to the base currency of your choice using an exchange. If it's configured right, it will make dozens of trades a day for small profits, which add up through the day (and night). I personally run the bot called "Profit Trailer" and use it with the exchange "Binance". I use Binance because you can buy their coin and get lower fee trading by using their coin to pay for the fees.