In the crypto market, trades occur all day and night. Average human beings can’t monitor their movement 24*7. Even full-time traders can’t do it. This kind of problem leads to restricting the profits they earn. To solve this problem, trading bots were introduced.
A crypto trading bot is developed to trade cryptocurrencies while traders are not able to monitor the trades all the time. The crypto trading bot is automated computer software that provides 24/7 monitoring of the crypto market. It is considered a lucrative option for full-time traders.
Let’s explore how crypto trading bot development works.
STEP 1 — Gather the requirements
Identify the business purpose for which you want to develop the bot. For example, trading bots can be developed for arbitrage, automation, and market-making. Gather all the necessary requirements listed below.
- The secondary requirement is choosing the best trading bot strategy to maximize the trade.
STEP 2 — MVP Development
MVP stands for Minimum Viable Product. It is a product with limited features that are checked first and tested as a demo product before moving it to the development stage. Creating a prototype helps to make changes and rectify the problem that occurs in the early stage.
STEP 3 — Design & Development
After creating and testing the prototype, the development cycle takes place in which the front-end and back-end teams work simultaneously. Most crypto trading bots are developed using Python because it is easier to implement. During the development stage, all the features are added to the bot.
- Front-end — The front-end developers design the website and dashboard with excellent UI & UX elements for convenient usage.
- Back-end — The back-end developers write code for the bot to operate effectively without lags.
STEP 4 — Deployment & Testing
Testing is done after the deployment of the crypto trading bot. Bugs are identified and solved by developers and reverted to the testing engineers. Several tests are done on the product to evaluate its performance and make sure the tested product will ensure reliability and security. The following tests are done by testing engineers are.
- Unit Testing — It is a type of software testing method to isolate each part to check whether written code is working as expected.
- Functional Testing — This kind of software testing is used to test each input that is given and verify the outcome from it against the functional requirements/specifications.
- End to end Testing — It is testing the software from the beginning to its end for the workflow.
STEP 5 — Launch
After testing, It is an apt time for deploying and launching the bot in real-time. Make sure about the type of platform it releases. Because the platform is the medium that increases the reach of the product among customers
Crypto trading bot attracts all the investors and the traders. If you want a stable income from trading even while sleeping, develop a bot on your own or choose a trading bot development company and avail their services.