Investing and trading cryptocurrencies is appealing to many due to its potential high returns, but it can also be challenging, especially if the market conditions are unfavorable, leading one programmer to create a bot that can reportedly forecast crypto prices.
As it happens, a Redditor known only by the username xk4rimx, made a post in the TelegramBots subreddit on the popular social news aggregation and discussion website on June 2, declaring that:
“I made a bot that forecasts cryptocurrencies’ prices.”
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How it works
In addition, the user attached a video to the post, illustrating the use of the “Crypto Predictor Bot,” adding in the comments that:
“The bot is hosted on a premium Heroku dyno, and uses Firebase database.”
With this, the user was referring to Heroku Dynos, which are the building blocks that power any app built on the cloud platform as a service (PaaS) Heroku. According to their web page, “dynos are isolated, virtualized Linux containers designed to execute code based on user-specified command.”
Meanwhile, the Firebase is a Google-backed cloud-hosted database that stores data as JavaScript Object Notation (JSON) – a lightweight format for data storage and transportation – and synchronizes it in real-time to every connected client device.
The bot is very easy to use, and details all the instructions in its Telegram chat. For instance, if you would like to learn the price prediction for Bitcoin (BTC), you will enter: “/pred btc d” and get an instant reply in the form of a 1-day price prediction chart for Bitcoin.
Predictions can also be made for other cryptos using their ticker symbols, as well as for other periods – weekly and monthly forecasts, changing the “d” letter in the message for “w” for weekly prediction or “m” for monthly prediction.
Additionally, the bot can also be used to generate a forecast about how many Ethereum (ETH) coins will one Bitcoin be worth in the next month, week, or day.
Crypto trading bots
Using bots in the cryptocurrency sector is not a new concept. However, whereas this bot’s creator promises its product can predict crypto prices, other bots mainly serve to automate cryptocurrency trading.
Indeed, as trading crypto grows increasingly complex, such bots have become an essential tool that experienced traders deploy to assist them in staying afloat in the ocean of assets, some of which are highly volatile.
Examples of automated crypto trading bots include Coinrule, Pionex, and Bitsgap. They can be deployed in cryptocurrency exchanges such as Coinbase Pro and Binance, as Finbold reported.
