As the blockchain industry continues to expand and evolve, using automation and bots in web3 has become increasingly advantageous.
It’s becoming clear that using bots is fast becoming a requirement for anyone wanting to participate in web3 meaningfully.
A no-code platform, Boto.io, is making it easier than ever for people to participate in the blockchain economy by enabling the creation of bots without needing to code.
The rise (and necessity) of automation in web3
The blockchain space is quickly evolving, with new protocols, tokens, and projects launching constantly. Keeping track of these developments manually is daunting and can be nearly impossible to keep up.
Bots can help individuals to stay on top of the latest news and developments in real time. They can monitor Twitter feeds, scan forums, and track the price movements of various tokens.
By doing so, they can help traders to make informed decisions more quickly, buying or selling at the right time and maximizing their profits.
The blockchain space is also highly competitive. Millions of people worldwide are vying for the same opportunities, whether that’s getting in on a promising fundraising rounds, buying a rare non-fungible token (NFT), or taking advantage of the latest yield farming opportunity.
In such a competitive environment, bots’ speed and precision can make all the difference.
By automating specific tasks, such as monitoring price movements or executing trades, bots can help traders get ahead of the competition and take advantage of opportunities that may have passed them by.
However, creating bots has traditionally required significant technical expertise. This has limited the number of people who can participate in the blockchain economy, as only some have the necessary programming skills to create bots or the funds to pay someone to code one for them.
Boto.io is an automation platform that allows anyone to create and share bots without needing to code. The platform provides an intuitive, drag-and-drop interface that simplifies the process of creating bots, making it accessible to a wider audience.
People can select pre-built bot templates, customize them to their liking, and deploy them with just a few clicks. The growing library of integrations empowers anyone to create bots that interact with various blockchains, including Ethereum, Polygon, BNB Smart Chain, and Solana; and marketplaces such as OpenSea, Magic Eden, Looksrare, and more.
Automation advantage on OpenSea
NFTs are popular and OpenSea is one of the leading platforms for buying and selling these assets. While the process of buying an NFT can be straightforward, obtaining rare and lucrative NFTs can be a daunting task. That’s where NFT trading bots come in.
OpenSea is a marketplace for NFTs. As with any marketplace, the most valuable and rare items are in high demand. Many people are willing to pay top dollar for NFTs that they believe will increase in value over time. However, these NFTs can be difficult to obtain, and without the right tools and strategies, buyers may miss out on desirable opportunities.
NFT trading bots can monitor listings, track sales data, and execute trades automatically, giving buyers a significant advantage over those who don’t automate.
Bots capable of these tasks are now accessible to people who don’t code on Boto.io.
Here’s how they give traders a leg up:
Step 1: identifying the NFT
The first step in obtaining a rare and lucrative NFT is to identify it. This can be challenging, as there are thousands of NFTs available on OpenSea. Moreover, new ones are added every day. Buyers must be familiar with the market and understand which NFTs are in high demand and likely to increase in value.
Sales data is critical to understanding the market for a particular NFT. Buyers who want to obtain a rare and lucrative NFT must have a deep understanding of the market, including historical prices, current trends, and buyer behavior.
NFT trading bots can track sales data automatically, providing buyers with real-time information about the market. This information can be used to make informed buying decisions and adjust buying strategies based on market conditions.
Step 2: monitoring listings
OpenSea is a dynamic marketplace, and new listings can appear at any time. Buyers who want to obtain a rare and lucrative NFT must be constantly monitoring the platform for new listings.
NFT trading bots can monitor OpenSea everyday of the weak. As such, buyers do not have to spend all their time refreshing the platform and searching for new listings. Bots can be set up to monitor the specific NFT the buyer is interested in and alert them when a new listing appears with certain rare traits and/or at certain price points.
Step 3: execute trades
Once a desirable NFT has been identified, and the bot has alerted the buyer to a new listing, it’s time to execute the trade. Buyers who do not use bots must do this manually, which can be challenging, especially if there are multiple buyers vying for the same NFT.
NFT trading bots can execute trades automatically, ensuring that buyers do not miss out on desirable opportunities. The bot can be set up to place bids automatically, and adjust bidding strategies based on market conditions such as current gas fees.
Without bots, obtaining rare and lucrative NFTs can be challenging. Buyers would need to monitor OpenSea manually, track sales data on their own, and execute trades manually. This process can be time-consuming and challenging, and buyers may miss out on desirable opportunities due to their inability to monitor the market every time.
How bots give DeFi traders an edge
Arbitrage trading and yield farming are popular strategies in the decentralized finance(DeFi) space. It allow users to earn profits by buying and selling of cryptocurrencies and other digital assets. These strategies require a significant amount of time and effort to be executed effectively, which is why bots make all the difference.
Arbitrage trading is the practice of buying an asset on one exchange and selling it on another exchange where the price is higher. This allows traders to earn profits from the price difference between the two exchanges. Yield farming, on the other hand, is the practice of earning interest on cryptocurrency holdings by lending them out on a DeFi platform.
In arbitrage trading and yield farming, timing is crucial. To be successful, traders need to be able to identify price discrepancies or high-yield opportunities as quickly as possible and act on them before the market adjusts.
Bots used for arbitrage trading and yield farming on platforms like Aave and Uniswap are programmed to scan multiple exchanges and DeFi platforms simultaneously to identify profitable opportunities. They can execute trades automatically based on pre-defined criteria, such as price differences, interest rates, or other market indicators.
For example, a trader using a bot for arbitrage trading might set it up to scan multiple exchanges for a specific cryptocurrency pair.
When the bot identifies a price discrepancy, it will execute a trade automatically, buying the asset on the exchange where it’s cheaper and selling it on the exchange where it’s more expensive.
This allows the trader to profit from the price difference almost instantly, without the need for manual intervention.
Similarly, a trader using a bot for yield farming on platforms like Aave might set it up to automatically lend out their crypto holdings to the highest-yielding pools available.
The bot will monitor interest rates across multiple platforms and automatically move the user’s funds to the most profitable pool based on pre-defined criteria.
The benefits of using bots for arbitrage trading and yield farming are numerous:
- They can scan multiple exchanges and DeFi platforms much faster than any person could. This increased speed allows them to identify profitable opportunities before they disappear.
- They can execute trades much faster than any person could, ensuring that the trader capitalizes on the opportunity before the market adjusts.
- Bots can operate 24/7, which means they can continue to scan the market and execute trades even when the trader is sleeping or otherwise occupied.
Without bots, traders would need to constantly monitor the market for price discrepancies or high-yield opportunities, which can be mentally taxing and prone to human error. Additionally, they may miss opportunities due to the time it takes to execute a trade manually.
Why automation is critical for web3’s mass adoption
It’s not just traders who can benefit from using bots in web3.
The space is full of other opportunities too, such as participating in governance systems or contributing to decentralized applications.
In many cases, these opportunities require a significant amount of time and effort, such as reading through complicated whitepapers, participating in forums, and executing various tasks. For those with limited time or resources, this can be a significant barrier to entry.
However, bots can help to automate many of these tasks, making it easier for anyone to participate in the web3 space, regardless of their background or experience.
As we’ve seen with other technologies, such as the internet and mobile phones, the adoption of new technologies tends to be driven by convenience and accessibility.
If using bots becomes the most convenient and accessible way to participate in web3, then it’s likely that more and more people will adopt them.
This, in turn, will create a feedback loop, where the increased use of bots leads to more demand for bot-related services and more innovation in the space.
But for this to happen, bots need to become more accessible to the average person.
Currently, creating and using bots requires a certain level of technical expertise, which can be a significant barrier to entry for many.
However, there are already companies like Boto.io working to make bot creation more accessible to the average person.
As these platforms become more prevalent, we’re likely to see an explosion in the use of bots in the web3 space, which will, in turn, drive mainstream adoption of the technology as a whole.
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